Frequently Asked Questions –
Q: Is Commercial Motor Insurance required by Singapore Law?
A: Yes. Third Party Insurance is a mandatory cover under the Motor Vehicles (Third Party Risks and Compensation) Act. All vehicles must purchase and maintain a minimum coverage of Third Party Only insurance (covers liability to the lives of third parties) before they can be used on the roads.
Q: What vehicle types can be insured under Commercial Motor Insurance?
A: Any vehicles used for commercial purposes that is registered under a company used for product delivery, supply and cargo pickup and other business tasks. These may include Delivery Vans (small, medium to large and specialised vans) or Cargo/Goods Transport Trucks and Lorries (e.g. Pick-Up, Tail Life, Construction, Box, Refrigerated, Flatbed, Tippers, Lorry cranes) etc. The vehicle must be registered in Singapore and any modifications must be LTA compliant.
Excluding vehicles that are used for hire, such as Grab or Uber used cars.
Q: Who can buy Commercial Motor Insurance?
A: If you are the main driver of the vehicle and it is registered under your own name or company which is owned by you. You or any additional drivers need to be a Singapore resident, possessing a valid NRIC/FIN or a registered company with valid Company or Business Registration Number.
Q: What does “Excess” mean?
A: Excess means that you shall be responsible for the first amount of any claim made to the insurance company. For instance, if the damage to your passenger door costs $1,000 to replace and your excess states $100 for door replacement, you will be responsible for the first $100.
Q: Is there an additional excess for Young, Elderly and Inexperienced Drivers?
A: In the event of an occurrence to the insured vehicle resulting in a valid claim, drivers aged 27 and/or who has held a full driving licence for less than 2 years, or who is above the age of 75, an additional excess under the Own Damage Section will be imposed in addition of the policy excess. Please refer to the policy schedule for additional excess applicable.
Q: Can the vehicle be driven out of Singapore?
A: Other than Singapore, your vehicles are covered when driven in West Malaysia and in Thailand that is within 80 kilometres of the border between Thailand and West Malaysia. An additional excess may apply in addition to the policy excess. Please refer to the policy schedule for additional excess applicable.
Q: What is not covered by Commercial Motor Insurance?
A: Some common exclusions are
- Wear and tear
- Mechanical or electrical breakdowns or failure of breakages
- Vehicle used for hire or reward, road rally pace making, speed testing or any purpose related to the motor trade
- Driver under the influence of alcohol or drugs
- Vehicle is not driven by an authorised driver(s)
- Vehicle is driven by any person not permitted to drive under licensing or other laws or regulations
- Vehicle is not used in connection with policy owner’s business
Please refer to your policy for the full list of terms, conditions and exclusions.