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Getting into a traffic accident is something that no driver wants. Whether it’s careless driving on our part, or an unavoidable and unfortunate accident that involves us, it’s imperative that as drivers, we know what we have to do (and not do) when we get into an accident in Singapore.
For a start, we should know that in Singapore, all drivers need to purchase motor insurance for their motor vehicles before they can legally drive on the road.
As explained by General Insurance Association (GIA) Singapore, there are three types of motor insurance policies that you can purchase in Singapore. They are 1) Third-party, 2) Third-party, fire and theft and 3) Comprehensive.
Third-party motor insurance is the bare minimum type of insurance policy that you need in Singapore. This type of motor insurance policy covers death or injury to other parties, as well as damages to other parties’ properties. However, they do not cover your vehicle. Third-party, fire and theft motor insurance is similar to third-party motor insurance. The main difference here is that you also enjoy coverage for your vehicle if it’s damaged by fire or theft.
Comprehensive motor insurance coverage covers all third-party claims, as well as damages to your vehicle. With these insurance policies, you are buying coverage that protects you from potential third-party liabilities, as well as any damages incurred on your vehicle.
The Moral Hazard Problem For Motor Insurance
In the context of insurance, moral hazard refers to the problem where a party may behave differently (i.e. drive more dangerously), knowing that their car, as well as other vehicles, are insured against major damages sustained in an accident.
Unfortunately in Singapore, there had been multiple incidents where motor insurance scams are suspected to have occurred.
Basically, what happens in these scams is that insurance fraud syndicates intentionally (and dangerously) cause accidents on the road. Shortly after the accident, an uninvolved car (or multiple uninvolved cars) may enter the situation with a “claim specialist” offering “assistance” to bring the damaged car to a recommended workshop, and even helping with all the documents required for insurance claim submission. Subsequently, the repair bills are usually inflated, with the “claim specialist” receiving a commission from the workshop for introducing the damaged vehicles for repair.
In other words, the scam tactic here is to create an accident, convince the driver(s) to send their car to the recommended workshops for repairs, and inflate the repair bills for the insurance claim so that the scammer gets a commission from the workshop.
How Do We Protect Ourselves From Such Scams?
Rather than panicking when we get into an accident and possibly, getting involved with an insurance fraud syndicate, it’s advisable that we understand and follow the proper procedures on what to do when we are involved in an accident.
For this, it’s advisable to refer to the Motor Claims Framework (MCF). The MCF was set up to provide clear and common procedures for the reporting of motor accidents and is fully supported by all insurers in Singapore. It provides motorists with an enhanced claims experience and at the same time, helps to contain claims costs for insurers.
Firstly, Get Out Of Danger
This is the first thing you should do: get out of any place that poses an immediate danger to you.
If you, or anyone else, is seriously injured, call 995 if you’re able to. Otherwise, get out of any immediate danger and wait for assistance. If you foresee waiting at the spot for some time, you should place a reflective warning sign at least 20 metres away from your vehicle.
Secondly, Take Photos
Once you are in a safe environment, or if the accident occurs in a location that poses no immediate danger to both parties, take photos of the scene.
The photos that you take should include the 1) accident scene, capturing the accident vehicles and surrounding areas. You should also take 2) pictures of the damages to your vehicle capturing your license plate as well 3) pictures of the damages to all other vehicles involved in the accident capturing licence plates.
For multiple vehicle collisions, take pictures of those with direct contact with your vehicle.
If you have video recording in your vehicle, that’s great. Save it. This, along with the photos taken, can be used as evidence for your claims.
Exchange Particulars With The Other Parties
After you’ve finished documenting the scene, approach the other driver(s) to exchange particulars. The information should include:
1) Full Name
2) NRIC number
3) Contact number
4) Home address
5) Name of their insurer
Always Remember To Call & Report To Your Insurer Within 24 Hours
If you are on the expressway and need a tow truck, Expressway Monitoring and Advisory System (EMAS) would already be on the way to shift your vehicle to the nearest exit. However, you still need to make tow arrangements to your workshop. If you are not/no longer on the expressway and require a tow truck, call your insurer’s hotline for a tow truck or further advice on the accident. Your insurer would provide tow-truck service (if required) and advise you on what you should do.
One common misconception that many drivers have is that there is no need to inform the insurer if they don’t intend to claim from their insurers, or intend to do a private settlement with the other party. This isn’t true. Regardless of whether you intend to claim from your insurer, do a private settlement, or even if the other party has admitted his liability, you should still report the accident to your insurer within 24 hours. This applies to even trivial damages, or even if there are no visible damages.
By reporting the accident within 24 hours, it protects you against any possible claims that the other party may make with their own insurer, even if they have initially told you that they don’t intend to report the accident. You can submit all photo and video evidence you have taken here.
By not reporting the accident on your end within the stipulated 24-hour time frame of the accident, you run the risk of your insurer repudiating liability because you have breached policy conditions for failure to report an accident. This may mean you will not be protected under the policy and may have to deal with your repair costs and any Third-Party claims made against you. Finally, your No Claims Discount (NCD) will be docked upon the renewal of your policy, and your insurer may also cancel or decline the renewal of your policy.
Another point to note is that reporting the accident, or even claiming from your own insurance for damage, does not automatically mean that your NCD will be deducted.
For motorists who file their own damage claim, after they have been indemnified, their insurer will commence recovery against the other driver’s insurer if it can be proven that the other driver is fully liable for the accident. The insurer will not dock your No Claim Discount (NCD) at the next renewal if recovery is successful.
Do We Need To Make A Traffic Police Report?
This may come as a surprise to some drivers but making a traffic police report if you are involved in an accident isn’t always required. However, you need to know when you need to make a traffic police report, and when you don’t have to.
You should make a police report as soon as possible, or within 24 hours of the accident if it involves:
- Fatality;
- Damage to government property;
- Foreign vehicle;
- Pedestrian or cyclist;
- Hit-and-run case; or
- Injury cases where at least one person involved in the accident was taken to hospital from the accident scene by an ambulance/ self-conveyed; or any party involved in the accident was injured and obtained outpatient medical leave for 3 days or more.
Do note that filing a Traffic Police report is not equivalent to making a report to your insurer. So you still have to report to your insurer within 24 hours or by the next working day.
Getting Into An Accident Is Bad Enough, Avoid Making It Worse
If an accident has occurred, the first thing to do is to ensure that everyone’s safe. After that, we should focus on following the correct procedure for reporting the accident. The last thing we want is to make wrong decisions that lead to more problems.
Even a minor accident (with no injuries) can cause stress and anxiety for the drivers who were involved. This is where insurance fraud syndicates, ironically the ones who instigate the accidents in the first place, thrive at. By offering their unsolicited help to tow your car to their recommended workshops, and even helping you to file the (inflated) claims, these syndicates plan to take advantage of drivers who are unfamiliar with what they should be doing after getting into an accident.
If you are approached by any unauthorised party, or if insurance fraud is suspected, you should collect objective evidence and information and submit it to GIA. These could include video recordings from your car.
Lastly, always remember to contact your insurer if you get into an accident and use an authorised workshop for your repairs.
Read Also: Protecting Our Homes: What Are The Differences Between Fire Insurance & Home Contents Insurance
Cover image by Moo Kar Ming, DollarsAndSense
