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Frequently Asked Questions
What are the main types of motor insurance?
There are three main types of car/motor insurance:
1. Third Party Only (TPO) - Protects individuals against liability should they injure a third party
or cause damage to a third party's property. Most importantly, be aware that TPO does not cover the
driver for damage, loss or theft to his or her car and property.
2. Third Party Fire and Theft (TPFT) – Third Party coverage plus additional coverage for theft of
your vehicle and fire damage.
3. Comprehensive - offers protection for accidental damage, theft, fire, as well as liability towards
third parties. Importantly, Fully Comp can pay for damage to the driver's vehicle and property no matter
whose fault the accident is.
Why motor insurance costs vary?
There is a massive variation in the cost of motor insurance. The premium you pay will depend on your age, your driving expreience, the car you drive and whether you have made any claims in the past.
Young drivers, males in particular, face the higher premium because they are most likely to be involved in an accident.
However, the price you are quoted will also vary from insurer to insurer so it pays to shop around and compare prices from a number of insurer. It could save you.
What is NCD? How will it affect my premiums?
If you have not made any claims for a year or more, you are entitled to a No-Claim Discount (NCD).
The NCD reduces the policy premium for the following year.
The rates of discount for private cars are such:
Period of Insurance | >Discount |
The preceding year | 10% |
The preceding 2 consecutive years | 20% |
The preceding 3 consecutive years | 30% |
The preceding 4 consecutive years | 40% |
The preceding 5 consecutive years | 50% (max) |
If a claim is made during the policy year whilst the insured is enjoying a NCD, the NCD will be reduced at the next renewal of the policy, as follows:
NCD At Time Of Claim |
No. Of Claims During Period Of Insurance |
On Renewal, NCD Reduced To: |
50% | 1 | 20% |
40% | 1 | 10% |
30% or less | 1 | 0% (NIL) |
50% or less | 2 | 0% (NIL) |
What is No Claim Discount (NCD) Protection?
If you are enjoying 50% NCD entitlement, you can protect your NCD entitlement by taking up NCD Protection
for an added level of coverage for the next claim you make.
An illustration of how NCD Protection works for an Insured with a 50% NCD:
No. Of Claims During The Period Of Insurance | NCD upon renewal (Usual) | NCD upon renewal (With NCD Protector) |
1 claim | 20% | 50% |
2 claims | 0% (NIL) | 20% |
3 claims or more | 0% (NIL) | 0% (NIL) |
What is excess amount?
Excess, also called deductible, is to the first amount of the claim which the insured has to bear.
If the insured has an excess of $500 and the total repair costs $2,000, then the insured has to pay
$500 while the insurer pays the remaining $1,500.
* Opting for a higher total excess will help bring down the premium but it will also mean you have to pay more yourself in the event of a claim so it could prove a false economy.
What’s the difference between authorised scheme and anyworkshop scheme?
Authorised workshop scheme normally has lower premium because the insurer has control of the repair cost. Most of the motor cars are covered under authorised scheme in Singapore. Some people opt for any workshop scheme because they want their cars to be repaired at designated workshops.