So You Got In A Road Traffic Accident. What's Next? (Insurance Edition)

Any motor vehicle on the road must have valid insurance. The minimum requirement is that it provides cover for personal injury to other parties (i.e. Third Party Only policy).

Tip: Always carry the Certificate of Insurance in the vehicle. The police may ask to see it in a routine check and it contains useful information that will be needed in the event of an accident.

Insurance Rates and Values

It is important for drivers to insure their car for an amount that reflects its market value:

• Insure a new car to its full purchase value.

• For used cars, the insurance value should take into consideration the residual Certificate of Entitlement (COE) and Open Market Value (OMV), with the addition of a "market force" factor. This can be assessed from listings of similar cars for sale in most motoring publications.

The maximum liability of the insurer is based on the sum insured or the actual market value of the car at the point of claim, whichever is lower than the other. This is a standard condition of motor insurance contracts.

With most insurance companies, it is a policy condition not to admit liability following an accident. Instead, you should simply submit a factual account of what happened using the insurer's Singapore Accident Statement (SAS) jointly with the other party involved. The SAS provides the insurer with the needed background regarding the accident that had occurred in order to determine liability.

In the event of an accident involving an insurance claim, all motor insurance companies in Singapore use a guide called the Barometer of Liability Agreement (BOLA) to determine each party's liability.

Barometer of Liability (BOLA)

This guide is used by insurers to determine how liable each party is in an accident, and is designed to speed up claims' processing. However, it does not diminish a person's right to contest liability under the law.

Under the BOLA, the claimant's NCD (No Claims Discount) will be unaffected if their liability is 20 percent or less in an accident involving an identified vehicle. In all other cases, the NCD may be affected.

Injury Claims in the Event of a Road Accident

Drivers or passengers who are injured, or family of persons killed in a traffic accident can make a claim for medical expenses, loss of income, pain, and other costs as required.

A claim can be filed with a lawyer. The lawyer will need copies of the police report, along with any medical and specialist reports, a list of expenses incurred (such as transport, medical fees, rental of car) and other supporting documents related to the traffic accident such as photos of the damage.

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