Important Information
TypesOf Coverage
There are three main types of Coverage:
- Third Party - covers death or bodily injuries to third-parties and/or passengers: and damage to third-party's property
- Third Party, Fire And Theft - covers extension of third-party only policy in addition of loss or damage which may result from fire and theft.
- Comprehensive - covers extension of third-party, fire and theft policy in addition of loss of or damage to the vehicle other than as a result of fire or theft. Coverage also covers medical expenses and personal accident benefit (for private motor car insurance) or towing (for commercial motor vehicle insurance).
Factors Affecting The Premium
Most of the motor Insurers
adopt a risk factor premium rating system.
This system calculates the premium based on the factors below:
- 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
The weight of each factors varies from insurer to insurer as they each have their own different claim experiences and risk appetite.
No Claim Discount (NCD)
NCD is a financial incentive for insured for not making any claims under the policy. If there is no claim made during a period of insurance immediately before the renewal of a policy, a no claim discount will be granted on the renewal premium.
| Private car policies | Commercial vehicle and motorcycle policies | ||
| Period of insurance | Discount | Period of insurance | Discount |
| Preceding Year | 10% | Preceding Year | 10% |
| 2 consecutive Year | 20% | 2 consecutive Year | 15% |
| 3 consecutive Year | 30% | 3 consecutive Year | 20% |
| 4 consecutive Year | 40% | ||
| 5 consecutive Year | 50% | ||
Motor Claims Framework
In the case of accident, there are numbers of things to do:
- Exchange particulars of
involved parties including Name,
NRIC/FIN, Telephone Number, Address and Insurer. Take note of the
vehicle numbers and do take digital photographs of your accident
vehicle which can be included during e-filing of accident reports later.
- Call your insurer's hotline
for a tow truck or for further advice
on the accident.
- Report and bring your
accident vehicle to the approved reporting
centre/ authorise workshop within 24 hours or by the next working day.
- Avoid all unauthorrised tow-truck operators or repair workshops.
Things To Ask Yourself
There are things to consider before choosing the best deal. Factors which may lead to changes in premium or coverage.Things to ask yourself before making the decision:
- Do you have any preferred workshop?
- How much excess are you willing to pay when there is a claim?
- Who else will be driving the car?
- Do you need No Claim Discount (NCD) Protector?
- Do you need a courtesy car when your car is in the workshop?