The Motor Claims Framework ( MCF ) sets out procedures for motorists to follow when their vehicles meet with an accident. Under the MCF, all accidents, regardless of how minor, and even if the damage is not visible, must be reported to your insurers within 24 hours or by the next working day.

It does not matter if you intend to claim from the insurers or Third Parties; you must still lodge a report with your insurers. With this new policy, all insurers will operate a 24-hour hotline. Even if you enter into a private settlement with the driver of the other vehicle involved in the accident, you must still report the accident to your insurers. You may wish to visit the GIA’s website at www.gia.org.sg for more information.

In general, when we first buy a car, the car agent will recommend their preferred insurance company for you to purchase your insurance. It is not possible to own a car in Singapore without a car insurance because you will need to show that your car is properly insured before you can pay for your road tax in Singapore. I was a nob about car insurance until owning a car myself in 2007. That was when I found out that there are many car insurance companies out there with a good insurance coverage at affordable prices.

Based on my own experience, I have always take up a policy with NTUC because their price is very reasonable and they have a special recovery service known as the Orange Force which is a 24/7 accident response team. They aim to assist policyholders who are often in a state of stress and anxiety after an accident, the Orange Force Riders will arrive at accident scenes to render help anytime and anywhere on the island. They will advise the policyholders, ensure their safety at the scene, assist in removing their vehicles if necessary, arrange alternative transportation and ensure that their interests are protected. This kind of service, to me , is especially crucial for young people, who might not have the experience of handling a traffic accident and panic at the event of one.

I am not trying to pitch for NTUC income . But in general, I will suggest a more established insurance company will be a better choice when it comes to selection of insurance. It is simple, large companies are able to assist you with better experience. With greater financial backing, they will be able to give you your claims more timely and effectively.

Some reviews from smaller insurance companies have revealed that these companies, although cheaper in their premiums and are less stringent in their background checks, they are not as prompt when it comes to servicing of claims. Some might even have too many fine prints when it comes to claimant and you might end up servicing an insurance which doesn’t really cover you much. Therefore, you have to be very careful and read through your insurance terms and conditions before signing on that dotted line.

Do make a research about the various insurance coverage online from all the insurance companies such as:

1. NTUC

2. Avivia

3.AXA

Besides these few companies, there is also MSIG, Sumitomo and Chartis.

TYPES OF INSURANCE COVER

credits: Car Insurance singapore

In simple terms, the car insurance should cover the following

Third Party Cover

This policy covers the driver’s legal liability for damage to property belonging to other persons such as cars; fences; street lighting etc. It also includes the driver’s legal liability for death of or bodily injury to passengers and third parties caused by his negligence. This is normally the cheapest car insurance policy as it provides the least coverage.

Third Party, Fire and Theft

In addition to the cover provided by the “Third Party” cover, this policy is extended include accidental loss or damage by fire and/or theft of the vehicle. This is slightly more expensive as compared with the third party policy. This car insurance is complusory for owners who are still financing their cars, which are more than 10 years old.

Comprehensive Cover

This offers the widest coverage and includes all the abovementioned covers plus accidental damage to the insured’s own vehicle, accessories and spare parts arising in Singapore, West Malaysia and that part of Thailand within 50 miles of the border between Thailand and West Malaysia. The additional cover provides personal accident benefits for the driver and medical expenses arising from the motor accident. Although the term “comprehensive” is used, the standard comprehensive cover does not include losses arising from riots, strikes and civil commotions, floods and windstorms. It also does not cover personal accident benefits for passengers and liability of passengers for acts of negligence. Comprehensive insurance cover is not available for cars which are more than 10 years old. Owners are required to get comprehensive insurance cover if their cars are less than 10 years old and are still under financing.

Does the insurance company cover drink/drunk driving cases?

NO

Most car insurance policies contain specific clauses with regards to impaired driving. Car insurance policies usually stipulate that the insurer DO NOT indemnify (or cover) you if you, or the driver of your car, do not have a valid driver’s licence, drives under the influence of alcohol or drugs, or while the percentage of alcohol in the driver’s blood exceeds the legal limit.

So why does insurance companies NOT cover drink/drunk accident case? Reason is simple, it is like suicide to life policy. It is self induced and self inflicted. Even IF you can claim that your liver is not as strong or you are unable to handle the alcohol intake. As long as TP has a case or charge against you for drink or drunk driving, there is no way you are going to get anything out from it.

What might be worse is, the insurance company might:

decide that you are too high a risk for them to carry and refuse to continue your car insurance cover.
Your monthly insurance premium will go up rather heavily as you will be regarded as a high-risk driver.
This is also to say, for those who has been charged in court before for drink or drunk driving the insurance premium can get higher if you plead guilty and declare that you have been charged for drink/drunk driving. But of course you can try to hide the fact but there is always ways for the insurance company to find out. Especially now that the TP system goes online.