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Premiums Coming Down Despite Inflated Claims
Tue, 07/09/2013 - 11:15
The practice of claims being inflated by repair shops still occurs in Singapore, although a number of measures have been introduced to kerb it.
The General Insurance Association of Singapore (GIA) has introduced a number of initiatives to address the problem, most prominently the Motor Claims Framework, and the Non-Injury Motor Accident Scheme (NIMA).
The Motor Claims Framework
The Motor Claims Framework (MCF) is a report that must be completed by any motorist involved in an accident, even if they arrive at a private settlement with the other party/parties. The report must be provided within 24 hours, or by the next working day. The measure is chiefly to protect the insured against the other party changing their mind and deciding to make a claim.
Regulations introduced last year also stipulate that insurers are permitted to inspect damage to a vehicle before repairs go ahead, so it they are not exaggerated by the workshop with a view to charging the insurer more. Insurers have two days in which to inspect the vehicle prior to repair.
What is NIMA?
The FIDReC Non-Injury Motor Accident Scheme (“FIDReC-NIMA Scheme”) was set up to help resolve claims of under S$3,000 in which there were no injuries. It covers claims made by individuals against insurance companies not their own.
For such incidents, court proceedings cannot take place before the Financial Industry Disputes Resolution Centre Ltd (FIDReC) has heard the claim.
Making A Claim
With all the stress of being involved in an accident and making a claim, filling out a Motor Claims Framework report may be at the back of your mind, but DirectAsia.com’s friendly customer care staff will remind you of this and any other requirements, whether you are making a claim or have decided to settle privately.
Competitive Premiums Despite Inflated Claims
Despite inflated claims, car insurance premiums are in fact coming down. An example from sgCarMart illustrates this: They say a 32-year old financial services worker with 5 years of driving experience, who owns a Toyota Corolla Altis and has a zero no claims bonus, with be offered a premium of S$1,956 by NTUC Income. AIG offers a S$3,232 premium, and AXA S$2,637. But the most affordable car insurance premium is from DirectAsia.com, who can insure such a person for just S$1,783 per annum.
For more info on GIA Motor Claims Framework
For more info on FIDREC NiMA scheme