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If you are one of the 800,000 motorists in Singapore, take note of a new initiative that sets out new procedure you must observe from today. Launched by the General Insurance Association (GIA), it requires you to report all motor accidents to your insurer within 24 hours or on the next working day. It does not matter how minor the accident is, and the requirement applies even if there is no obvious damage to the vehicle. The new procedure is not to be taken lightly because not complying with it will result in penalties. They include the loss of your no claim discount (NCD) and the risk of having your claim prejudiced or declined later by insurers. Not surprisingly, motorists have had a lot to say about the initiative. Some say it will be troublesome to have to report all accidents to their respective insurers within the stipulated period. In the past and in the absence of penalties, many motorists did not report accidents when they could make a private settlement and/or there was no damage or injury. Recently, a motorist wrote to The Straits Times Forum page asking if insurers could find other ways of reducing their motor business costs rather than 'penalising' motorists with the new measure. Others wonder if motor insurance premiums could be lowered in future if indeed the new measure does manage to arrest exaggerated motor claims. Rising motor claims After all, motorists have been coughing out more over the years because of rising motor insurance premiums, which have surged by around 20 per cent from a year ago. This rise was driven by the mounting motor losses the industry had been experiencing. At a recent press briefing, GIA president Derek Teo highlighted the dire straits that motor insurers were in. 'For every dollar in premiums that we collected in the last two years, we paid out $1.20 in claims and other expenses. The current rising loss situation is not sustainable.' Last year, motor underwriting losses hit a five-year high of $103.2 million. Mr Teo attributed the poor results in the past two years to a price war arising from renewed competition since 2004, when the motor insurance sector returned to the black after an earlier slump. It had suffered 12 years of losses, which peaked at a record $120 million in 2002 amid inflated repair claims and runaway third-party costs. Given this backdrop, it is not surprising that the new initiative is backed by all insurers in Singapore. Here are some frequently asked questions about the new motor claims framework, and what the insurers say: Q: Why is the new framework necessary? It is a best practice undertaken by all motor insurers in Singapore, and provides clear and standard procedures regarding what to do in the event of a motor accident. When involved parties are forced to report their accidents 'fresh', the incidence of people lying and collaborating with repair workshops to inflate claims is drastically reduced. This will provide motorists with a better claims experience and help contain insurers' cost of claims. Q: Will the new framework translate into higher premiums? On the contrary, it will help to contain the cost of claims for insurers. And if claims are managed well, premiums should not rise. Q: Do I have to pay any reporting fee to the insurer? No. Q: What if there is no damage to my vehicle? Do I have to inform my insurers? Yes, you have to report all accidents to your insurer no matter how minor the accident is. This is the requirement even if there is no visible damage, or even if you have come to a private settlement with the other driver. This is because you can never be absolutely sure that the other party will not file a claim against you later. Q: Do I still need to report to my insurer if I do not intend to claim from any insurer or third party? Yes. Q: What happens if I choose not to report the accident to my insurer? Failure to make a report within 24 hours or on the next working day will affect your NCD when you renew your motor insurance. For private car owners, this means losing 10 percentage points of their NCD if they do not comply. For motorcyclists and owners of commercial vehicles, the penalty is 5 percentage points of their NCD. Not reporting will also put you at risk of having your claim declined later by insurers. Q: Will the new framework apply to all motorists? Yes, the framework applies to all motorists. It will be a policy condition that all motor insurers will enforce with effect from today. Q: What if I want to send my car back to my car dealer or favourite mechanic? Each insurer offers different types of motor insurance plans, some of which allow customers to use any workshop. You have to check with your insurer on this point. Q: Can I still use Idac (independent damage assessment centres)? The new framework does not spell the end of Idac. There is no change to the process at Idac, which is used by some insurers. Resolving disputes Meanwhile, drivers in disputes with insurers over motor accident claims now have a venue through which to settle them under a new mediation scheme. If your motor accident damage claim is below $1,000 and involves no bodily injury, you can file your complaint with the Financial Industry Disputes Resolution Centre (Fidrec) under the Fidrec-Nima (non-injury motor accident) scheme. The scheme was launched last month, and is expected to help settle cases more affordably and quickly than going before the courts. The scheme applies to disputes where consumers claim against an insurer that is not their own insurer. Where disputes are resolved through mediation, Fidrec's services are free of charge for the consumer. ======================== What to do after a motor accident If anyone has been hurt in the accident, call the police immediately. Otherwise, a police report should be made within 24 hours of any accident that involves: 1. Damage to a government vehicle or property. 2. A foreign-registered vehicle. 3. A hit-and-run incident. The parties involved should exchange particulars, including their names, identity card numbers, telephone numbers, addresses, insurers and vehicle numbers. If there are witnesses, note their contact details. If you have a digital camera or camera phone, take photographs of the accident, the vehicles and the scene. If you are sending the photos via a multimedia message, enter 97112758 and the vehicle number and date of accident in the following format: , . You will receive an acknowledgement SMS from the General Insurance Association Record Management Centre. Call your insurer's hotline for a tow truck or for further advice on how to handle the accident. Avoid all unauthorised tow-truck operators or repair workshops. Report the accident and take your accident vehicle, whether damaged or not, to the approved reporting centre (provided by your insurer) within 24 hours or by the next working day. Take with you the completed Singapore Accident Statement, which contains two forms, if you have it. You can also ask your approved reporting centre or authorised workshop to help you fill up the forms. Avoid discussing which party is at fault. Refer all communication from the other drivers or their lawyers to your insurer. Do not authorise any repair work without the consent of your insurer. Source: General Insurance Association of Singapore

Hi guys, Need some advice on my Kia Rio 1.5 (41km mileage - slightly more than 3 years). Recently I heard knocking sounds in front of my car when I am braking easy (light pressing) to a slow stop and I suspect its my front right disc brake. It will be like tock tock tock x times (quite rhythmic and evenly distributed sound) and stops when the vehicle stops to stationary. It doesn't seem happen when I brake harder perhaps just a single tock sound before car halts. What could be wrong? Brake pads (have not changed yet)? Rotor warped (i dont feel the vehicle wobbling during breaking though)? Can someone also recommend a trusted ws to check this (eastern side) cos I have no contacts at the moment? Check all 4 to be safe? Thanks for reading.