Is It Practical To Implement It?

Imagine a friend of yours was involved in a major traffic accident and his newly bought Volkswagen beetle badly damaged.
Yet, he is unable to claim insurance pay-offs for his prized possession as he failed to file for a claim within the next 24 hours because he remained unconscious in hospital for the next two days, while the other motorist involved got off scratch-free and fled without rendering him help to avoid any liabilities.
Touch wood, but this would be the uneventful scenario motorists would face in an accident under the new Motor Claims Framework, which kicks in early this June.
Tuesday's (26th May 2008) announcement made by the General Insurance Association of Singapore (GIA) was followed by a month long delay to introduce this new framework to prevent insurers from incurring higher motor-underwriting loss.
Last year's $103.2 million high deficit was reportedly the worst for the sector since 2002, which coincided with a sharp rise in accidents, reports Channel News Asia.
This figure was up by 99.4% from the previous year (2006) at $625,000.
Under this new framework, motorists will have to report the accident to their insurers within the next 24 hours or latest by the next working day at any of their insurer's list of approved reporting centre(s).
Failure to comply will result in a claim being denied or worse, the loss of their no-claims discount upon policy renewal.
This three step reporting procedure demands for the individual(s) involved to be alert at the time of mishap, requires them to exchange important particulars with the parties involved, take a photograph detailing the accident scene for insurers to determine repair costs and call their insurer's hotline for further advice before taking their vehicles to an approved reporting centre.
22-Year-Old Miss Ng Yuin Jun, who just got her driver's license early this year, told us she found the new framework feasible but not for individuals caught in the above scenario.
"It would be better if motorists are given a week to file for a claim and gather sufficient evidence to support their stand."
Likewise, seasoned motorist Mr Tan Jin Ann, 56, said he sees no difference between the previous framework and the new structure.
"They shouldn't have implemented it in first place."
However, the GIA believes that with this new framework in place, the repair cost and cost of claims can be better managed. Insurers would be able to improve on their pricing and do not have to impose higher ratings on motorists, reports Channel News Asia.