New Motor Claims Framework

If you have not heard of the new Motor Claims Framework (MCF) initiated by General Insurance Association of Singapore, I would advise you to lend me your ear for a while. This is because the new MCF will require some changes in accident reporting for all motorist.

This new ruling will commence with effect from 1st June 2008.

What are the requirements? Well, this new ruling requires all motorist to report to their insurer's approved reporting center (ARC) with their accident vehicle within 24hours or the next working day . This is irregardless whether or not the vehicle is damagd or whether or not there is any possible claim.

Now, failure to comply will result in insured losing part of his No Claim Discount (NCD) and prejudice their claim. How about that? The GIA termed this as non-reporting NCD.

So, if your NCD is 50% on now, on renewal, it will step down by 10%. As such, the renewal NCD will be 40% only. One thing to note is the accident NCD will apply first before the non reporting NCD. As such, if you have 50% NCD currently, and there is a at-fault claim against your policy, your NCD will become 20% on renewal. Due to the non-reporting, your NCD will drop further to 10% only.

So, if you do not want to jeopardize your claim or affect your NCD, the only way is to comply with the requirement. Do check with your respective insurers on the list of approved reporting centres. Most of the time, the insurer's authorised workshops are also the approved reporting centres.

If you are interested to find out more of the rationale behind this new MCF and more, watch this corner again!