Friday, October 12, 2007

Traffic Accident – How to claim on your Insurance

If you drive a car and you meet with an accident, you face a dilemma. Which party is at fault? Do you want to settle the liability on the spot, or leave it to your insurance company to handle?

In the case of a minor accident, it is best that both parties agree to have a private settlement and not to make any claim on the insurance policy. One party may agree to pay a sum of money to the other party to repair any damage.

The private settlement should be recorded in writing and be signed by an independent witness. Some insurance companies have issued a simple form that can be used to record a private settlement. If you do not have this form, a simple agreement can be written. In fact, if both parties are honorable, a verbal agreement will be adequate.

Some years ago, another car hit my car in the car park. The driver was a young lady, who was obviously an inexperienced driver. Her father called me on the mobile phone and agreed to bear the repair cost of my car.

In case they do not keep their word, I reported the accident to my insurance company but indicated that I had made a private settlement. The other party paid the repair bill, which amounted to more than $1,000. The accident never became an insurance claim.

If you make a private settlement, both parties will keep their No Claim Discount.

If private settlement cannot be reached, you have to make an insurance claim. Both parties can, on the spot, record down the circumstances of the accident and the extent of the damages to the vehicle. Photographs can be taken. If most or all of the facts are agreed, the insurance companies for both vehicles can settle the claim quite easily.

The insurance companies have issued a form called the Singapore Accident Statement, which can be used for this purpose.

Only a small percentage of motorists used the Singapore Accident Statement. This is due to the lack of awareness and to the disputes over the facts of the accident.

Insurance companies are partly to blame. Many years ago, I saw an advisory from an insurance company to its policyholders never to admit liability for an accident. This could be a reason for the many disputes involved in motor accidents.

A better advisory is for the policyholder to use the best judgment and agree to the facts of the accident.

If you cannot reach a private settlement or get a Singapore Accident Statement agreed on the spot, with photographs of damages, what is the next best approach for you to take?

You have to make a report the accident to your insurance company as soon as possible. You have to bring the vehicle to the reporting center, so that photographs of the damages can be taken. These will be useful to settle the repair cost, and also to establish the party that bears the liability for the accident.

Some insurance companies used the service of Idac centers (i.e. independent damage assessment centers). These Idac centers have long operating hours, up to a late time at night, and are located in various parts of Singapore. Most motorists find the reporting at an Idac center to be quite convenient.

After reporting, some insurance companies ask you to send your vehicle to their authorized workshops to carry out the repair. Some allow you to find your own workshop.

Some undertake to arrange the repair for you and ensure that the repair is carried out to a satisfactory repair standard.

It is best for the policyholder to let the insurance company arrange the repair. They can find a suitable workshop to repair the damages at a fair price. They can ensure that the repair is carried out to the quality standard. The policyholder is freed from the hassle of arranging the repair. In some cases, they are given a courtesy car to use during the period of the repair.

By reporting at an Idac center, you will have a good record of the damages. This may be useful to defend against an inflated or aggravated claim that may be submitted by the other party against you.

In past years, many insurance companies did not have a system of prior assessment of damages. They allowed their policyholders to send their vehicle to any workshop. The workshop submits a report of the damages and estimate of the repair cost.

This has led to inflated claims. Some workshops aggravated the damages to the vehicle to submit a large repair bill.

The workshop entices the customer by giving some incentive, such as replacing the old tires, or to repaint the vehicle. The repair bill can easily be more than three times of the fair repair cost.

Some workshops use touts to look for the accident cases and bring the vehicle to their workshop.

Inflated claims will result in higher premiums to be paid by all motorists, including those that did not make any claim.

If you wish to make a third party claim against the other vehicle, which you deem to be at fault in the accident, you should submit your claim directly to the insurance company of the other vehicle.

You should not let your workshop handle your third party claim, as they may inflate the repair cost. They will be using your name to lodge the fraudulent claim. This may cause legal problem to you, as you may be held to be a party to the fraud. It is best to avoid this potential problem. Indeed, it is quite common for third party claims to be inflated or fraudulent.

23 comments:

  1. I dont understand... if we got involved in the accident, yet the protocol is to refrain from making a claim. Then what is the point of getting a insurance?

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  2. You should claim only for the larger accidents.

    For minor accidents, you should avoid making a claim. This will protect your No Claim Discount, which can amount to a few hundred dollars a year.

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  3. The problem with Singaporean, they want to claim every thing, even the small ones, when they buy insurance. They never consider the premium or what would happen to their benefits.

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  4. how can i dispute a case of where i am possitive that the other vehicle was speeding. Do insurance company do investigation on the damages to ascertain the speed of the vehicle?

    Scenario:
    i was filtering left. Signalled, checked side mirror. After the last vehicle passed on the left, the next one is about 40m away (evidently from small headlight). I filtered and the next thing i know the car crashed onto my left wheel and everything around it. I understand that this case is not exactly favourable since i'm the one filtering.

    pls advice

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  5. Hi Mr Tan, a very informative article. I have featured your post in The Singapore Daily [singaporedaily.wordpress.com]. Keep blogging!

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  6. I have experienced many drivers who signal and then filter or worst, filter and signal at the same time. These drivers expect you to give way, perhaps all of them thing I'm 40m away. The bigger the cars the worst they are, maybe their mirrors distort the distance of objects? Strange, considering big cars are of the luxury category.

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  7. My friend drove along Bukit Timah Ave Six parallel with another lady motorist.

    Her mirror graze the side door handle of my friend's car.

    In the first place, it is not even sure who hit who.

    There is only one line on that lady's wing mirror and she demands $500 from my friend.

    After some haggling, she asked for $150.

    My friend refused, and she went to get a workshop to file $1000 claim against my friend.

    My friend's insurer company A, did not want to bother, but told my friend if he can settle privately, he should otherwise, if they settle, NCD will be lost.

    Even such a small line, some motorist are very greedy.

    My friend finally concede and his insurer is not standing by him and paid $300 just for a wing mirror which in worst case scenario, only need a respray of paint.

    There are lots of buayas out there who are opportunist.

    - Thomas Phua

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  8. I met with an accident last year, and the other parties crashed into each other. As I could not stop in time, I hit the other two motorcycles after they landed. They have collaborated and claimed against me, with repair costs being up to 4 times the reasonable amount (I got a quote from my repair shop). Can I take legal action against the bike shops that repaired their bikes, as well as against them for making a fraudulent claim when I was not responsible for their damages?

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  9. I met with an accident last year. Two bikes crashed into each other, and as I could not stop in time, I hit the bikes after they landed. They did not want to be responsible for their own doing so they claimed against me, claiming that I hit them and caused the damages. The repair costs were inflated by up to four times, as I got a quote from my repair shop. The insurance company did nothing to verify the authenticity of their claims and paid them without informing me first, or seeking my side of the story. I intend to take legal action against them, as well as the bike shops, for profiteering and making false statements. Is that possible?

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  10. Hi, i met an accident recently, but only my vehicle was damaged as i steered my vehicle to my right to avoid the collision with the other party. It was obviously the negligence from the other party. There was no damage to the other party. She got off her vehicle and apologised to me. I told her i going to claim from her insurance company and she agreed. We exchanged our particulars and she drove off for her work. No written agreement was signed.
    1)How am i going to claim from her when no agreement has been signed?

    I got my vehicle to idac for assessment and i was asked whether do i have any preferred workshop.( not knowing my insurance policy does not allow, NTUC comprehensive.)

    Initially i wanted to make a third party claim, but was advised by my workshop to make a own damage claim first, because of my disadvantage as the other party might back her words.
    The workshop's guy told me after od claim, they will help me to do a third party claim against the other party. To claim back the excess, ncd and the loss i incurred.
    2) Is this the proper way of claiming insurance? Pls advise.

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  11. Hi Mr Tan, I met an accident at a two filter lane with a zebra crossing, i was at the left lane and the other vehicle was at the right lane and when i was about to turn to my left lane. I felt my right body was knock by the other vehicle. My car does not suffer anything however the other vehicle had some minor scratches at the front bumper and we did not even exchange any particulars but I did made a immediate IDAC report. My question is who is at fault and what will happen if the other vehicle claim against me where i am not at fault and with no car damages!

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  12. Hi Mr Tan

    My car was involved in a car accident where i stop at the pedstrian crossing and a truck was coming so fast and hit the rear of my car, i informed the police and the insurance however the other party did not lodge the complain with their insurance company, so the other party insurance company does not want to pay the excess, what should i do here??? the company say that its the driver's fault and not the company vehicle

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  13. Hi Mr Tan,
    Recently my car scratch into the rear of another vehical. We agree to made a private settlement and he asked for $100.
    What's the document I need to have or take note when settle privately?
    Do I still need to report to my insurance and inform them about private settlement? Will there be any penalty for reporting and not claiming?
    Please advise.
    Thanks.

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  14. Accidents are often unexpected, and although easily avoidable, they commonly occur. If you have been involved in an accident that was not your fault, you can ask for an Accident Claim Advice because you may be entitled to receive personal injury compensation.

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  15. Even though a lot of confusion takes place after a collision, there are a few things you should be sure to do if you are involved in a road traffic accident.

    Work Injury Compensation

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  16. The information that you provided was thorough and helpful. I will have to share your article with others.
    Car Repair Singapore

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  17. Accident insurance is that provides compensation for accidental injury or death. It covers death, permanent disability loss of sight, financial loss and medical expenses incurred due to accidental injury.

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  18. If you want help with car accident law matter and need a car wreck lawyer in Pocatello, contact Baker & Harris Law Firm. We specialize in car wreck victims and want to keep you safe on and off the road.

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  19. You can contact some good and well reputed accident claim expert to claim your insurance.

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  20. Thanks for writing this Tan Kin Lian. For anyone who needs help with third party or any other accident claims you can go to www.caraccidentclaimsingapore.com

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