Claims

Terms & Conditions

The insured is responsible for ensuring that the named vehicle is fit for the road at all times. He/she must also take reasonable precautions to prevent further damage, loss or injury after an accident.

There are usually three kinds of claim – against own insurer, against third party, and against insured. The insured must report the accident and any claim or legal documents received from a third party within one working day. It is important for the insured to not admit liability or make an offer before investigation and consent by the insurer if a third party makes a claim. All correspondence and control must be handed over to the insurer immediately. Any breach of the above may compromise insurance benefits such as coverage and claim discounts.

In the event of a successful claim for the vehicle or its accessories, most insurers will repair, provide an exact replacement or compensate by cash. For repairs, the appointment of a workshop will be at the insurer’s discretion. Claim for property damage is usually capped at an amount limit.Any direct and indirect consequence of war, nuclear and terrorism are generally excluded.

Discounts

• No Claim Discount

Under this scheme, policyholders are rewarded for having no claims. The premium discount increases with the number of years they have without claims, up to a cap (eg: 50 per cent). Usually, if one has reached a high discount tier, the discount will be reduced in the event of a claim. For lower discount tiers, the discount will be retracted completely.

As the No Claims Discount can accumulate significant cost-savings, many policyholders sign up for an add-on to protect and preserve their discount up to a certain extent when claims are being made.

• Certificate of Merit Discount

This rewards the driver for good behaviour on the road. This will require the driver to have a clean traffic offence record. The incentive is usually nominal and added on to the No Claims Discount.

• Loyalty Discount

To retain customers, some insurers provide a premium discount or rebate incentive once the insured has renewed their policy for a number of years.

• Off-peak Car Discount

To be fair to those with reduced usage, a premium discount is sometimes offered. This is only applicable to countries where drivers are given the option to apply for off-peak vehicle license plate.