Q: Why do I need to buy car insurance?
A: This is governed under the Motor Vehicles (Third-Party Risks and Compensation) Act where the law requires motorists to have in place an insurance policy for bodily injury to a third party.
Car insurance provides you protection against financial damages or losses that may arise from a motor accident or other loss or damage you may suffer in a motor accident. It also covers you for personal injury that you may cause to third parties and/or damages to someone else’s property.
Q: What are the available plan types of private car insurance?
A: The choices of plans available are:
a. Comprehensive (Authorised Workshop)
b. Comprehensive (Any Workshop)
c. Third Party, Fire & Theft
d. Third Party only
Q. Which motor plan should I purchase?
A: The Comprehensive (Authorised Workshop) plan covers liability to third parties and also cover for repairs of damages to the own vehicle caused by accidents, fire, flood and/or theft.
You may wish to opt for the Comprehensive (Any Workshop) plan if your vehicle is still within the warranty period as this allows you to go back to the original dealer for repairs.
Q. Do the policy cover damage to my vehicle by falling trees, flooding and fires by arsonists.
A: Yes these are covered under a Comprehensive plan.
Q. What is excess?
A: Excess is the first amount of the claim that you have to pay. For example, if the excess is S$500 and the total repair cost is S$2,000, you have to pay S$500 and the insurer will bear the remaining S$1,500.
Q: Why do I need to buy car insurance?
A: This is governed under the Motor Vehicles (Third-Party Risks and Compensation) Act where the law requires motorists to have in place an insurance policy for bodily injury to a third party.
Car insurance provides you protection against financial damages or losses that may arise from a motor accident or other loss or damage you may suffer in a motor accident. It also covers you for personal injury that you may cause to third parties and/or damages to someone else’s property.
Q: What are the available plan types of private car insurance?
A: The choices of plans available are:
a. Comprehensive (Authorised Workshop)
b. Comprehensive (Any Workshop)
c. Third Party, Fire & Theft
d. Third Party only
Q. Which motor plan should I purchase?
A: The Comprehensive (Authorised Workshop) plan covers liability to third parties and also cover for repairs of damages to the own vehicle caused by accidents, fire, flood and/or theft.
You may wish to opt for the Comprehensive (Any Workshop) plan if your vehicle is still within the warranty period as this allows you to go back to the original dealer for repairs.
Q. Do the policy cover damage to my vehicle by falling trees, flooding and fires by arsonists.
A: Yes these are covered under a Comprehensive plan.
Q. What is excess?
A: Excess is the first amount of the claim that you have to pay. For example, if the excess is S$500 and the total repair cost is S$2,000, you have to pay S$500 and the insurer will bear the remaining S$1,500.
Q. Where do I find my car’s details?
A: You can check your car details here at LTA’s website.
Q. Who will be covered for Personal Accident?
A: The Insured, Authorised Driver and/or Passenger(s) for bodily injury sustained in connection with a motor accident up to the benefit limits stated in the policy.
Q. What is covered under Medical Reimbursement?
A: Reasonable medical expenses incurred in connection with bodily injury sustained by the Insured or Authorised Driver or any Passenger(s) as a result of a motor accident.
Q. What is “market value”?
A:This is the assessed value of the Insured Vehicle at the time of the accident, arrived at by comparing retail prices for vehicles of the same make, model, age and condition.
Q. Am I covered when I drive my car out of Singapore?
A: Yes, you are covered if you drive your car in West Malaysia, the Republic of Singapore and that part of Thailand within fifty (50) miles of the border between Thailand and West Malaysia.
Q: Am I covered if I use the vehicle for hire and reward purposes (E.g. GrabCar)?
A: This policy does not cover if you use it for hire and reward, such as GrabCar. However, car sharing or carpooling is covered under our policy. (E.g. GrabHitch)
Q: What is No Claim Discount (NCD)? How will it affect my premium?
A: A No-Claim Discount (NCD) is an entitlement given to you if no claim has been made under your policy for a year or more with the existing insurer. It reduces the premium you have to pay for the following year. NCD is recognised by all insurers across the industry. NCD is a way of rewarding you for being a careful driver. The following table shows how the NCD is determined by most insurers across the industry.
| Number of accident-free years | Percentage of NCD awarded to Private Car |
| One Year | 10% |
| Two consecutive years | 20% |
| Three consecutive years | 30% |
| Four consecutive years | 40% |
| Five consecutive years | 50% |
Q. Does my NCD apply to me, or to my vehicle?
A: Your NCD applies to you and not the vehicle. If you sell away the current vehicle and buy a new one, you can use the existing NCD for the new car insurance. However, if you own more than 1 vehicle, you will have different NCD for individual vehicle.
Q: How is my No Claims Discount (NCD) applied?
A: Your NCD is tied to you (the policyholder) and can only be applied to one vehicle at one time. If you own more than one vehicle, you may decide which vehicle to apply your NCD.
For example:
- If you sell your existing vehicle and buy another one, you can transfer the NCD from the existing vehicle to the newly purchased vehicle.
- If you retain your existing vehicle and buy another one, you can choose to transfer the NCD from the existing vehicle to the newly purchased vehicle. Your existing vehicle will have to earn the NCD from 0%.
- Alternatively, you can choose to keep the NCD with your existing vehicle and start earning the NCD for the newly purchased vehicle.
35. Can I insure against the loss of my NCD?
Yes, you may add on the NCD Protector as long as you have a NCD of 50% to protect your NCD in the event of a claim. This is an optional benefit with additional premium to be paid. The benefit will protect your NCD against the 1st claim during the Period of Insurance. However, your NCD will be affected if you have more than one claim during the Period of Insurance. Please refer to the table below:
| No. of Claim(s) made During the Period of Insurance | NCD entitlement upon renewal |
| One | 50% |
| Two | 20% |
| Three or more | 0% |
Q: What if I declare my NCD wrongly?
A: Insurers will verify with your previous insurer and adjust the NCD accordingly.
- If you declare a higher NCD, you will need to pay the difference in premium.
- If you declare a lower NCD, a refund will be made to you for the difference in premium.
Q: What is the penalty if I fail to make a report of an accident to my insurance company?
A: Your insurer may refuse to accept the liability for the accident in view of a breach in policy conditions. Your NCD will be further reduced by 10% on top of any NCD reduction resulting from the claim made under your car insurance policy.
Q: How long will my NCD remain valid after I stop owning a car?
A: Your NCD will remain valid for 24 months from the end date of your last policy.
Q: I am the policyholder and Primary driver for my car insurance policy. Can I transfer my NCD to one of my Named drivers under my policy so that he / she can enjoy a lower premium?
A: No, NCD is not transferrable to another person except to your spouse, provided your spouse is taking a new car insurance policy with the same insurer. This is a one-time transfer and is non reversible. After the transfer, the NCD for your existing car
Q: What do I do if I get into a car accident?
A: If you are involved in an accident, please follow these steps:
- Exchange particulars such as name, driving licence & NRIC/Passport and contact number of the other driver who was involved in an accident with you. Take note of the vehicle numbers.
b. Take pictures of the accident scene and the damages caused to both cars.
c. Do not accept any repairs and towing service from non-authorised workshop.
d. If towing service is not required, please send your damaged vehicle to your insurer’s Authorised Workshop within 24 working hours from time of accident.
e. Make a police report as soon as possible or within 2 hours of the accident if the accident involves:
- Fatality;
- Damage to government property;
- Foreign vehicle;
- Pedestrian or cyclist;
- Hit-and-run cases;
- Vandalism or theft of your car; or
- Injury cases where
- at least one person involved in the accident was taken to hospital from the accident scene by an ambulance/self-conveyed; or
- any party involved in the accident was injured and obtain outpatient medical leave for 3 days or more.
f. If you have video recording of the accident, please keep and provide for the report and claims.
g. Filing a report at the Authorised Accident Reporting Centre is mandatory regardless if you are making a claim under your policy.
h. Should you receive any Writ of Summon or Letter of Demand from Third Party against you due to the accident, do not reply and forward to the Insurer immediately.
Kindly note that the 24 hours accident reporting requirement is mandatory as failure to do so allows insurer to apply a late reporting penalty against your NCD and to repudiate policy liability indemnifying you for the damage repair to your vehicle as well as for your liability towards the damage caused to Third Party property and/ or injury.
For your convenience and peace of mind, you are strongly advised to leave your accident damaged vehicle with any of the insurer’s Authorised Accident Reporting Centres for repairs as they are also our Authorised Workshops. You will enjoy policy Excess waiver (conditions apply) for Own Damage repair, and if you were assessed to be not at fault, our Authorised Workshop will repair the vehicle and assist you in formulating a Third Party claim against the responsible Third Party Singapore registered vehicle insurer. This way, your NCD will not be affected.Under the Motor Claims Framework endorsed by the General Insurance Association of Singapore, you are required to file an accident report regardless of whether you intend to make a claim.
Q: What is the time frame for me to report the accident?
A: Under the Motor Claims Framework, all accidents must be reported to your insurer within 24 working hours or by the next working day with your car, no matter how trivial or even if there is no visible damage, and irrespective of whether you are claiming from any insurers or third parties.
Q: Can I request for towing service even though my policy is not under a Comprehensive coverage?
A: Towing benefit is only available under Comprehensive coverage, and charges are covered for only accidental purposes. However, a tow truck can be arranged upon request. Towing fees is subject to our policy terms & conditions.