Easy for workshop to make a third party claim

12 October 2006

Editor
Forum Page
Straits Times

I refer to the report entitled "Fake road collisions: Income to go after workshops (St Times 12 October 2006).

The Motor Workshop Association's representative, Mr. Joey Lim said that the outcome of the recent court case would allow insurers to put the squeeze on workshop operators. The small workshops would be reluctant to hire a lawyer and would be forced to settle for a smaller amount offered by the insurer.

I wish to refute this statement.

It is easy for a third party workshop to submit their claim directly with NTUC Income. They can send the vehicle to an Idac center for assessment of the damages. We will make a fair offer of the repair cost based on the benchmark price obtained from our Motor Repair Cost System. This has produced a repair cost that is similar to what is estimated by our quality workshop. It contains a satisfactory profit margin for the repairer. After the repair has been completed, we pay the bill within four days.

We will only take legal action against a workshop that refuses to make a direct settlement with us, inflate the repair bill and get a lawyer to submit the claim. It is our duty to avoid paying an inflated repair bill. We want to act vigilently against inflated claims, so as to reduce the premium rate payable by our customers.

Each year, we handle about 10,000 repair jobs for our customers. About 94% of the repairs are arranged by us and carried out at our quality workshops. Only 6% of our customers opt for their own workshop to carry out the repair at the same price as our quality workshop.

NTUC Income wish to help the smaller workshops to operate efficiently and survive in this competitive market. A total of 130 workshops now operate under five business fusion groups to tender for the repair jobs of our customers. They are able to meet our quality standards and to offer a competitive price. As their cost of operation is lower than the larger workshops, they can enjoy a satisfactory profit margin. They also enjoy free and convenient access to these repair jobs.

About 30% of our repairs jobs are now awarded to the smaller workshops under the business fusion groups. Our customers give a high satisfaction rating to their service quality and standard of repair.

Tan Kin Lian
Chief Executive Officer
NTUC Income