In the old days (before Sep 1989), insurance premiums were derived using a standard table provided by the General Insurance Association of Singapore (GIA). This table is known as a Motor Tariffs Table.
Under this system, factors such as the ones below were used as a basis for computation:

- Type of Cover,

- Engine Capacity,

- Carrying capacity of Vehicle,

- Car usage, and

- Value of vehicle

After that, the Motor Tariffs Table evolved into the Points Rating System. The major difference between these two systems is that the Points Rating System takes into consideration the characteristics of the driver – age, marital status, indoor/outdoor job, et cetera.

Then in Jul 2001, the GIA formed a Motor Insurance Task Force (MITF), which promulgated a Risk Factor Premium Rating System, improving upon the previous system.

Under this system, points are awarded to various risk factors, based on the industry or insurer’s own risk profile and claims experience.

This means that if there’re lots of people who’re making claims against a particular insurer compared to the other insurers, this insurer will tend to (or rather…have to) charge higher premiums so as to conform to the Risk Factor Premium Rating System. And of course this REALLY makes sense for this particular insurance company’s financial health as well.

Enough of the insurers. Now, let’s talk about you…

What does the above information mean to you?

It implies that even though you have submitted the exact same information to different insurers, the premiums that you’re charged for your auto insurance WILL be different. This is because the points that you’re awarded (internally) by the insurers will be different, due to the company’s own risk profile and claims experience.

Therefore the only logical action that you HAVE to take is to compare several different quotes from different established and reputable auto insurance companies. You’ll thus be able to tell which motor car insurance company gives you the best deal.

Of course it’s a great hassle to do so, but it’s well worth it. And you don’t have to do it yourself if you have a car insurance quote comparison service working for you.

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First, let’s look at why the MIB was set up. Its main purpose is to handle motor claims in cases where (1) the negligent driver cannot be traced/located, (2) the negligent driver possess an invalid motor car insurance policy, or (3) the negligent driver is not covered by any auto insurance at all.

Under the above situation, the MIB will seek to compensate the third party (victim) for any bodily injuries or death. Unfortunately damages to anything other than death and bodily injuries (take for example, property damages) are not claimable from the MIB.

To undertake this public responsibility, the MIB is funded by a small contribution (levy) paid by its members. And all motor insurers in Singapore are (mandatory) members of the MIB, and their contribution is based in proportion to the motor insurance premium income they earn.

This is a little known information although it’s being taught to all drivers during driving theory lessons. Little known, yet it may be useful. You never know – you may be able to help a helpless soul with this information some day in the future.

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Below are the things to do if you happen to be involved in an accident – hopefully none of us ever need to apply these steps. But as the wise saying goes, always prepare for eventualities.

What to Do During An Accident

Step 1

Stay calm. This is not easy, but you HAVE to. This usually determines how the situation will turn out. The other party may be raging mad, yet staying calm and keeping your cool helps ease the tension. So take a deep breathe, stay calm.

Step 2

Check if you or your passengers are injured, and call for emergency medical help (like the ambulance) if necessary. Then approach the other driver and check if he or his passengers are injured.

Step 3

Do not remove vehicles unless it’s necessary to extricate people (perhaps from inside the car or under the vehicle) or send the injured to hospital.

Step 4

Exchange information with the other driver – vehicle registration number, name of driver & NRIC, contact number, insurance company and policy number. Do not apologise or admit any faults and do not argue over who’s wrong. Keep silent ESPECIALLY if the other party pressures you or threatens you.

Step 5

Take photographs of the accident site, damage on vehicles, tire skid marks on the road, et cetera, if you have a camera on hand.

Step 6

Report the accident to your insurer immediately after the accident.

If there is any personal injury, you must lodge a police report within 24 hours of the accident. Hopefully there isn’t any injury – and in this case, a “Non-Injury Motor Accident Report” will have to be submitted through your insurer. (The staff at your insurance company’s office will know what to do) Ideally, witnesses and passengers should also make reports, which helps with investigation.

BUT if the accident is just a small dent at the back of your bumper, please exchange information, take a quick snapshot from your handphone, and move your vehicle away. Small damages are not worth claiming – and take note that you can’t make claims if the damage doesn’t exceed the excess amount.

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