Why do I need motor insurance?
In Singapore it is against the law to drive a motor vehicle on the road without a valid insurance policy. The minimum requirement is that the policy provides cover for personal injury to other parties.

Motor insurance makes good sense. Besides covering you for personal injury to third parties, it could also cover you for costs if you damage someone else's property or for any other loss or damage you might suffer in a motor accident.

Remember: always carry your Certificate of Insurance in your vehicle. The police may ask to see it in a routine check and it contains useful information that you will need should you be involved in an accident.

What types of motor insurance policies are available?
Insurers offer three main types of motor insurance policies. Optional benefits are available to meet your individual needs.
 

Third Party	Third Party, Fire and Theft	Comprehensive	Optional benefits for comprehensive policies (may be subject to payment of additional premium)
Death or injury to other parties	Death or injury to other parties	Death or injury to other parties	Windscreen damage
Damage to other parties' property	Damage to other parties' property	Damage to other parties' property	Damage arising from riot, strike and civil commotion
	Fire damage to, or theft of, your vehicle	Fire damage to, or theft of, your vehicle	Damage arising from flood and windstorm
		Accidental damage to your vehicle	Liability of passengers for acts of negligence
		Personal accident cover (private car only)	Personal accident benefits for passengers
		Medical expenses (private car only)	Additional excess
			No-Claim Discount protection (private car only)

What is No-Claim Discount (NCD)?
For more information about NCD, please

How does the insurer set my premium?
Most insurers in Singapore adopt a "risk factor rating system" when setting your premium. This means that the premium is based on factors other than the vehicle's value or the price you paid for it.

In general, the following risk factors are considered when setting your premium:

< Make and model of vehicle
< Engine capacity
< Age of vehicle
< Age, sex and occupation of drivers
< Driving experience of drivers
< Claims history of drivers
< What vehicle will be used for (private use/corporate use/commercial use/hire etc)
< Type of cover

These risk factors will not necessarily have an equal influence on the size of your premium. Your insurer will give each risk factor a weighting based on a range of statistics and past claims information.

What does my insurer need to know about me?
The insurer needs to know some information about you. This is to help it assess the business accepted from you and your needs as a policyholder. The proper premium can then be set.

It is important to answer these questions truthfully. Failure to do so may affect the level of payout you receive in the event that you make a claim. The following are some questions you may be asked:

< Have you made any recent claims?
< Have you ever received a ticket or been charged for a driving offence?
< Has your vehicle been modified?
< Who will be driving the vehicle?
< What will the vehicle be used for?
< Have you had any recent motor accidents?
< How long have you been driving?
< Do you have any medical conditions or disabilities that may affect your driving?

If you do not understand what is being asked, please clarify with your insurer, agent or broker.

What is the insurer recommended to disclose to me when I buy an insurance policy?
< The premium payable
< The excess (for insured and drivers - named and unnamed)
< The scope and period of coverage
< Restriction on drivers (if any)
< Restriction on repairs
< Non-standard exclusions
< Special accident reporting and claims procedures
< The insurer's cancellation and refund policy



What is No-Claim Discount (NCD)?
For more information about NCD, please click here.

What is Certificate of Merit (COM)?
For more information about COM, please click here.

 

Source: General Insurance Association