Making Claims for Motor Accidents in Singapore

If you have been involved in a motor accident, after the immediate aftermath of the accident, the most pressing issue for you would be to settle claims, such as the repair work to the vehicle, or hospitalisation bills. This article seeks to provide an overview of:

• From Who Can You Claim?
• What Can You Claim For?
• Deadline for Making Motor Claims in Singapore

From Who Can You Claim?

Claims for compensation can be made via the following ways:

1. Claim against your insurer

The procedures for claims after a motor accident vary from insurer to insurer. There may be an “excess” clause in your insurance policy. This means that your claim must exceed the excess amount in order to be valid, and your insurance company will pay only the difference between your claim and the excess amount.

For example, if the excess amount is $700 and your claim is $500, your insurer will not pay out at all. On the other hand, if your claim is $1,000, your insurer will pay $300. You will also lose your no-claim bonus.

Excess payments aim to reduce the amount of small claims that are made to the insurer – keeping premiums down – and to hand some responsibility back to the motorist. Most insurers allow you to change the amount of excess, but the lower the excess, the higher the premium and vice versa.

2. Claim against the other party’s insurance

When filing a third-party claim, your insurer will not act on your behalf to file a third party claim. Therefore, you are encouraged to lodge an own damage claim where you claim under your own policy and be indemnified by your insurer who will then commence recovery against the other driver’s insurer if it can be proven that the driver is fully liable for the accident. Your insurer will not dock your No Claim Discount at next renewal if recovery is successful.

If you choose to not lodge an own damage claim, you are to reach out to the other party’s insurer to file a claim. The at-fault party’s insurer will investigate the details of the accident and may contact you to arrange for an inspection of the damage done to your vehicle, so do not send the car for repairs until they determine liability.

If the insurer finds the other party at fault, they will typically make a settlement offer to cover the repair costs and any other damages. Once you reach an agreement, you can authorise the repairs at your preferred shop (or the shop specified by the at-fault party’s insurer). The at-fault party’s insurer will pay the repair shop directly or reimburse you if you paid upfront.

However, third-party claim costs are typically much higher compared to claims against your insurer. This could be due to several reasons such as:

• Disputes and negotiations: Claims involving hidden internal damage or replacement of damaged parts, are more likely to face disputes over liability and costs. Both parties may need to engage in prolonged negotiations, which increase costs due to additional assessments, mediation efforts, and possible legal involvement.

• Legal fees and loss of use: If negotiations fail, you may have to consider pursuing legal action against the at-fault party or their insurer, especially if you believe the settlement offered is insufficient to cover your damages. This could also leave you without your vehicle for an extended period and incur extra transportation costs etc..

For third-party claims, it is advised that you consult a lawyer. Lawyers can represent you only if you authorise them to do so, usually by signing a warrant to act. If you do not know how or where to find a lawyer, contact your insurer for advice or approach one of our experienced personal injury lawyers.

A claim may eventually be resolved through litigation or private settlement (without the need for trial). You can obtain the other party’s insurance particulars from the Land Transport Authority for S$27.25 (GST inclusive).

You may choose to opt for private settlement when:

• The parties involved wish to settle the matter amicably;
• Where the damage inflicted on your car is accurately estimated to be below or even slightly above the excess;
• You have filed for other accidents which makes you a high-risk profile, which may lead to either a hike in premium or make insurers reluctant to insure you; or
• You are determined to keep your No Claim Discount.

3. Claiming in hit-and-run cases

If you suffer personal injury as a result of an accident and do not know the particulars of the other party that caused the accident, you may make a claim to the Motor Insurers’ Bureau (MIB).

The MIB does not deal with damage to property.

4. FIDReC Non-Injury Motor Accident Scheme   

The FIDReC (Financial Industrial Disputes Resolution Centre Ltd) is provided for non-injury motor claims below $3,000.

There are no lawyers involved in this scheme. It is an avenue to resolve disputes directly between consumers and the insurance companies, which are not their own. You may visit FIDReC’s website for more information.

What Can You Claim For?

A person in a motor accident can claim for damages and costs.

Damages are compensation for the losses suffered in the accident. There are three types of damages – general damages, special damages, and bereavement damages:

1. General damages

General damages compensate the victim for pain and suffering as a result of his personal injuries.

How much you can claim as general damages for your personal injuries depends on guidelines from earlier cases. You can use the Singapore Academy of Law’s Motor Accident Claims Online Quantum simulator to get an estimate of how much you may be able to claim for your injuries.

2. Special damages

Special damages compensate the victim for expenses incurred, which can include the following items:

1. Medical fees
2. Transport costs
3. Repair costs
4. Substitute vehicle rental costs
5. Loss of salary
6. CPF savings contributions before the trial
7. Survey fee
8. LTA fee

Therefore, it is essential to keep the original receipts for these expenses.

3. Bereavement damages

Bereavement damages are awarded to the family of the deceased, fixed at S$15,000 in total according to section 21 of the Civil Law Act.

If the matter makes it to court, the judge or registrar will decide whether the defendant is liable for the claimed damages. He may also decide to slash the quantum of damages awarded due to the contributory negligence of the claimant.

Costs refer to the legal costs incurred in making or defending a claim. If you lose a case, you may have to pay the costs of your own lawyer, in addition to the costs (or part of) of the winning party. Read our other article for more information on such post-lawsuit costs.

Deadline for Making Motor Claims in Singapore

There is a time limit to claims that can be made in order to discourage claimants from sleeping on their actions, and to bring about a definite end to litigation. If a claimant files a claim after the prescribed limitation period, the plea of limitation will serve as a defence to absolve the defendant of all liability, and the claimant’s action will be deemed to have been time-barred.

Generally speaking, actions for damages in a negligence suit may not be brought after the expiration of 6 years from the date on which the cause of action had occurred. Where the damages claimed are for personal injuries to the claimant or anyone else, the claim must be made within 3 years from the date of injury, or the earliest date on which the claimant had knowledge of the injury.