There are options of claim motorist need to decide when filing a motor claim in Singapore. Usually as a general rule of thumb, if you think you are not at fault, you should be advised to claim against 3rd party. If you are the one at fault, then you should consider filing an Own Damage Claim. However there are some complications when deciding which to opt for and one can make a drastic mistake if chosen wrongly.
I have line up a general explanations of the types of claims available to motorists in Singapore and some of the possible complication faced by them.
3rd Party Claim
“3rd party” herewith indicate as any other parties involved in the same accident. In the event when the accident is not directly at fault of the motorist, a claim will be filed against the 3rd party for all damages incurred. Claimant usually gets a replacement vehicle during the period of repairs and no excess payment to the insurance company is required to exercise a 3rd party claim. As claim is against a 3rd party insurance company, motorist is NOT required to adhere to rules and regulations of their own insurer. Claimant can choose to go to their preferred workshops and agents for repairs. 3rd party claim repairs are usually completed faster as repairers are not tied down by claimant’s insurer claim procedures hence claimant can usually expect their vehicle to be fixed and returned quicker.
There are a few downsides of a 3rd party claim. In the event of a situation that the liability of the accident is unclear, the outcome of the liability is final. Meaning that any shortfall of repair cost will be borne by the claimant. These shortfall/s cannot be reverted to claim against claimant’s own insurance creating an uncertain liability to claimant. Claimant should only exercise 3rd party claim when they are very sure of their circumstances of accident is in their favor. Alternatively they should seek professional advises from their workshop before making a decision.
Own Damage Claim
“Own Damage Claim” sometimes refer as 1st party claim indicate claimant filing for claims against their own motor insurance coverage policy. As there are many variation of policies available in the market, one should always check with their insurance company on the coverage of their policy. Depending on the type of policy, most claimant will NOT get a replacement vehicle during the repair period. Claimant is also required to pay an Excess Payment before commencement of claim. The amount of Excess required is usually indicated in the certificate of insurance. Repairs are to be carried out by the insurers’ authorized workshops. Current list of authorized workshops are available here.
The downsides of an Own damaged claim is that usually it is considered an admission of liability to the accident and should the other parties involved filed for a 3rd party claim. 1st party insurer generally concede to the 3rd party claim, compromising ones NCD and future increment of premium.
As there are many complicated alternatives to a motor insurance claim, one should always check with a source of reliable credentials so that the procedures are carried out correctly.
Should you need further assistances or unbiased opinions on your motor insurance claims, you can contact us via these channels.