Channel NewsAsia - 1 hour 11 minutes
ago
SINGAPORE : From June 1, motorists who are involved in an
accident with another vehicle will need to report to the insurer
through a three—step process, regardless whether the damage is
significant or not.
The General Insurance Association of Singapore (GIA) has
standardised motor accident claims.
From next month, in case of an accident, a motorist must first
exchange particulars with involved parties and then take a
photograph of the scene.
This photograph can be submitted to the GIA’s management centre
through a multimedia messaging service (MMS).
The motorist then needs to call the insurer’s hotline for
further advice, before taking the accident vehicle to an approved
reporting centre within 24 hours of the accident or by the next
working day.
Motorists who fail to do this will be seen as breaching policy
terms, and this will have a bearing on their "No Claims
Discount".
GIA said it will publicise more details soon.
It added that motorists need to report all such incidents, even
if there is no obvious damage. This will help rule out unnecessary
disputes after the accident.
GIA said going through an authorised workshop will also prevent
rogue charges.
Besides providing better customer service, the new framework is
GIA’s answer to the problem of fraudulent claims.
GIA said such claims had led to more than S$100 million in
losses last year, and this is unsustainable in the long run.
Derek Teo, President, General Insurance Association of
Singapore, said: "In the year 2006, I think the motor results were
slightly improving and at the end of 2006, we found that it
improved to a point where insurers do have a positive result.
"And then subsequently what happened (was) 2007 saw a
deterioration in result. Last year, the industry lost more than
S$100 million. Such losses are not sustainable in the longer
term.
"With this new framework, with more efficient claims management,
the repair cost and cost of claims can be better managed. Insurers
should be able to improve on their pricing and do not have to
impose a higher rating on the motorists." — CNA/ms