MR CHOY Zin Shee raised the issue of non-reporting of motor accidents to insurers ("Loophole lets drivers escape accident liability"; last Thursday).
Under the General Insurance Association of Singapore's (GIA) Motor Claims Framework, motorists are required to file an accident report with their insurers, even if there is a private settlement between the parties. This is to protect the insured against the other party later having a change of heart and then filing a claim.
There are serious consequences if drivers fail to file an accident report, because it constitutes a breach of the insurance policy condition. This means the insurer is entitled to repudiate liability, and the insured no longer gets protection under the policy.
Worse still, policyholders who ignore their insurer's request to file an accident report are violating the Road Traffic Act, and may face serious consequences like non-renewal of their motor insurance policies.
In addition, the insurer concerned may consider declining renewal of that insured's motor insurance policy.
GIA and our members have established a protocol to deal with an insured who fails or refuses to report a motor accident. Under the protocol, the insurer concerned will write to the insured, notifying him that there is a third-party claim against him, and that under his policy condition, he is contractually obliged to report the accident to the insurer. If the insured fails to report the accident after receiving two registered letters, the insurer will refer the case to the Traffic Police for further action.
To assist the other party's insurer to investigate his case, Mr Choy may wish to provide video footage of the accident or photographs of the accident scene and the damage sustained by both vehicles, if he has not done so.
For more information, readers may refer to the Consumer Guide in the Motor Insurance section of our website at www.gia.org.sg
Derek Teo
Executive Director
General Insurance Association of Singapore
Under the General Insurance Association of Singapore's (GIA) Motor Claims Framework, motorists are required to file an accident report with their insurers, even if there is a private settlement between the parties. This is to protect the insured against the other party later having a change of heart and then filing a claim.
There are serious consequences if drivers fail to file an accident report, because it constitutes a breach of the insurance policy condition. This means the insurer is entitled to repudiate liability, and the insured no longer gets protection under the policy.
Worse still, policyholders who ignore their insurer's request to file an accident report are violating the Road Traffic Act, and may face serious consequences like non-renewal of their motor insurance policies.
In addition, the insurer concerned may consider declining renewal of that insured's motor insurance policy.
GIA and our members have established a protocol to deal with an insured who fails or refuses to report a motor accident. Under the protocol, the insurer concerned will write to the insured, notifying him that there is a third-party claim against him, and that under his policy condition, he is contractually obliged to report the accident to the insurer. If the insured fails to report the accident after receiving two registered letters, the insurer will refer the case to the Traffic Police for further action.
To assist the other party's insurer to investigate his case, Mr Choy may wish to provide video footage of the accident or photographs of the accident scene and the damage sustained by both vehicles, if he has not done so.
For more information, readers may refer to the Consumer Guide in the Motor Insurance section of our website at www.gia.org.sg
Derek Teo
Executive Director
General Insurance Association of Singapore
