Motor Claims Framework – What to do during an accident

Recently a friend of mine posed me a question: What to do during an accident? It is very common that the drivers they themselves are not sure of the procedures as one does not always gets into or in fact might never have get into any accident before. Though the question maybe very simple a lot of drivers are not aware of the procedures and how the Motor Claims Framework (MCF) can help them.

The MCF outlines that in the case of an accident the following are the steps to be taken:

• Exchange particulars of involving parties their name, NRIC/FIN, contact number, address and their insurer
• take note of the number plate
• Call the insurer hotline for tow truck and further advise on the accident
• Report and take your accident vehicle to the reporting centre within 24 hour or by the next working day

Important thing to note is reporting must be made within 24 hour or the next working day regardless how serious or even there is not a single scratch to your vehicle. Non compliance of the reporting will result in a penalty to your Non claim discount (NCD).

The above is how MCF work in favour of keeping the cost of premium down. Usually drivers leaves the claim to the workshop which in return might exaggerate the claim amount thus increasing the premium in long run. If you have read the post I made on “factors affecting the premium” one of the factors is the claim experience of the insurer. Overall exaggerated claims only bring bad experience to the insurer thus the increase in premium.

Based on personal experience I find that by reporting is much better than settling privately. The reason being is you will never know if the other party have other “intentions” for example:

1. sending their car to workshop and exaggerate claims for “CASH”
2. report to insurer due to self claim or flicker-minded
3. feeling remorseful after hard talking by their friends or family menbers

Some reason is unintentional for some is out of desperation we can never judge the book by its cover. If the other party were to report to insurer, my insurer will be informed and I would be penalized for failure to report within 24 hour. Then complications may arise from such senario. Therefore it is always good to report to the insurer within 24 hour of the accident.

You can visit General Insurance Association of Singapore at www.gia.org.sg for more information of Motor Claims Framework.

I hope the above clear some of the doubts of what to do during an accident and an outline of the Motor claims framework. Feel free to post any comments and questions. Thank you.

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