To sue or settle out of court? This is probably the toughest dilemma for most drivers in the unfortunate event of an accident.
In the heat of the moment, you may consider suing the other party involved in the accident. However, it is imperative that you understand the costs and payouts involved for each option.
To help you with that, you can consider using the Motor Accident Claims Online (Maco) simulator. Read on to find out what Maco is exactly as well as tips on what you can do in the event that you are involved in a traffic accident.
Motor Accident Claims Online Explained
Developed by the Singapore Courts and Singapore Academy of Law, the Motor Accident Claims Online (Maco) is an online traffic accident claim simulator that aims to enable those involved in a traffic accident to make more informed choices.
Giving an indication of which party was at fault and the amount of damages they will be able to claim under the law, Maco is useful in resolving the dilemma of whether one should sue the other party or settle the matter out of court. Furthermore, Maco also serves to verify if the party involved has received a reasonable insurance payout, allowing parties to save time and money.
With 46 per cent of civil writs filed in the State Court coming from motor accidents, Maco also has the potential to allow for better utilisation of court resources by reducing the number of minor motor accident hearings. Motorists who would have brought the case to court might opt for private settlement instead after seeing the estimated amount of damages claimable.
With numerous renowned insurance companies starting to capitalise on Artificial Intelligence (AI) methods to determine payouts, Maco is a step in the right direction in integrating technology to achieve more efficient outcomes in the insurance industry.
How Maco Works
Using the Outcome simulators, which include the Liability Simulator and Quantum Simulator, parties involved in the accident can determine who was at fault and the amount of damages they will be able to claim under the law.
Liability Simulator
As its name suggests, through a five-minute multiple-choice questionnaire regarding the accident that occurred you will be able to find out who may be considered to be liable for the accident.
The simulator takes into account the law and case precedents, producing a good estimate.
Quantum Simulator
Similar to the Liability Simulator, through a 10-minute multiple-choice survey, you will be able to find out the possible damages that you will be able to claim.
Despite the many benefits that Maco offers, do take note that Maco is not a substitute for legal advice, but a platform that gauges the liability and damages parties can claim. Moreover, the Outcome Simulators are only applicable for accidents involving two parties and do not cover the following scenarios:
- Damage to vehicle and other property (cost of repairs and loss of use of vehicle)
- Personal injuries awarded for (i) loss of future earnings or earning capacity (ii) medical expenses.
Opting For a Private Settlement
Motor accidents have varying severities. In more serious accidents which involve death and serious injuries, damage to property, and hit-and-runs, you are required to report the accident to your insurance company. On the other hand, for minor accidents with minimal damage to property and injury where the damage incurred falls below or is marginally above the deductible, you might opt for a private settlement instead.
Put simply, a private settlement, or an out-of-court settlement, is an agreement between both parties that does not result in parties filing a claim with the respective insurers.
What the Process of a Private Settlement Is Like
In the event that the motor accident results in minor damage and both parties opt for a private settlement, here is what the process would entail.
Exchange Particulars
To facilitate the claims process, it is important that the parties involved exchange and note down the following information:
- Name
- NRIC / FIN
- License plate
- Telephone number
- Address
- Insurer
Take Pictures of the Accident Scene
To serve as evidence, it is imperative to take photographs of the accident scene. This includes the following:
- Damage to your own vehicle with your license plate
- Damage to all other vehicles involved with the license plates
- For multiple vehicle collisions, capture the vehicles in direct contact
Inform Your Insurer
While you may not file a claim with your insurer, under the Motor Claims Framework (MCF), it is required that all motor accidents, regardless of the damage, must be reported to your insurer within 24 hours or the next working day.
Should you fail to report the accident within the required time frame, you may face the following consequences:
- Your Insurer may repudiate liability and you will have to cover the repair costs and any Third Party claims made against you
- Your insurer may cancel or decline the renewal of your policy
- Your No Claims Discount (NCD) will be docked upon the renewal of your policy
Getting an Accurate Estimate of the Cost of Repairs
The most crucial step would be to obtain the cost of repairs. This is where Maco comes in handy. Simply fill in the Liability Simulator and Quantum Simulator and ensure that a fair compensation amount is settled upon.
While Maco does give a good gauge of the cost, it is still recommended that you bring your car to a workshop that is authorised by your insurer to get a written statement of the estimated cost of repair. Only by doing so will you be able to settle on a reasonable compensation amount the party at fault should pay.
Signing a Private Settlement Form
The final step to a private settlement requires a private settlement form signed by all the parties involved. Most insurers offer a sample private settlement form on their website so be sure to check with your respective insurers!
As seen from a sample form from Budget Direct, the private settlement form should include the following details:
- Details of the accident (location, date, and time)
- Particulars of the parties involved (full names, NRIC / FIN, vehicle registration number)
- A statement that parties involved have agreed to settle the accident amicably
- A statement that no personal injuries or death was involved in the accident
- A statement that no police report and an insurance claim will be made by both parties
- Compensation Amount
- Acknowledgement of receipt of compensation, if any
- Signature of parties involved
Breach of Agreement
Should any party violate the terms in the private settlement form, a legally binding agreement, they will face the consequences for a breach of contract.
Tips if You Find Yourself in a Motor Accident
Accidents can happen anytime no matter how careful a driver can be. In the unfortunate event that you find yourself in a motor accident, here are some tips you should keep in mind.
Do Not Move the Vehicles Involved
As with a crime scene, moving the vehicles before taking photographs of the accident scene can be considered to be destroying evidence. While the vehicles could be obstructing the flow of traffic, moving them before photographs have been taken could greatly affect one’s liability.try your best to capture the scene as fast as possible, taking the necessary pictures to serve as evidence before moving the vehicles to the side.
When to Make a Police Report
While it is mandatory to make a report to your insurer, it is not always necessary to file a police report. Should you find yourself involved in an accident that fits the description below, do make a Traffic Police report within 24 hours of the accident.
- Fatality
- Damage to government property
- Foreign vehicle
- Pedestrian or cyclist
- Hit-and-run
- At least one party involved in the accident was taken to the hospital
- Any party involved in the accident is injured and has outpatient medical leave for three or more days
The Road Ahead
Getting into an accident is scary. But with the right insurance policy, rest assured that your policy will protect you against its ramifications of it. While the law only requires motorists to get the Third Party Only plan, it is recommended to get a more comprehensive policy that will benefit you, in the long run, should you be involved in an accident.
For those looking to make the switch to a more comprehensive plan, that is, value-for-money motor insurance plans, we have included our top picks for both car and motorcycle insurance below.
Car Insurance
Affordable Yet Comprehensive Car Insurance: Budget Direct
| Benefit | Limit | Extra Cost | Excess |
|---|---|---|---|
| Windscreen/Window Damage | Unlimited | N/A | S$100 |
| Personal Accident (Main Driver) | S$20,000 | S$32.10 | N/A |
| Medical Coverage | S$500 | S$21.40 | N/A |
| Towing | S$200 | N/A | N/A |
| Temporary Transport | S$50/day | S$64.20 | N/A |
| Young Driver Excess | S$500 | ||
| Inexperienced Driver Excess | S$500 |
Budget Direct’s Comprehensive car insurance plan is the best option for sedan and SUV owners who require basic protection and want to pay as little as possible.
Budget’s plan is one of the cheapest available, with a typical car insurance quote averaging 48 to 54 per cent cheaper than the average comprehensive plan for sedan and SUV drivers, regardless of the no claim discount (NCD). However, this price cut comes at a cost. Budget Direct’s medical, personal accident and roadside assistance coverage cost extra. Nonetheless, the base premium is low enough that drivers can choose the coverage that matters to them and still pay super low prices.
Budget Direct has two options to choose from if you need to insure multiple drivers. The Named Driver plan covers the main driver and the named drivers you add to your plan. The Authorised Driver plan costs 15 per cent more than the Named Driver plan but will cover anyone whom you let drive your car. Due to the low prices, the Authorised plan still remains competitively priced option for drivers who lend out their car often. Budget Direct’s low named young and inexperienced driver excess of S$500 each also makes it a great option for parents who want to insure their younger drivers.
| Benefit | Limit | Extra Cost | Excess |
|---|---|---|---|
| Windscreen/Window Damage | Unlimited | N/A | S$100 |
| Personal Accident (Main Driver) | S$20,000 | S$32.10 | N/A |
| Medical Coverage | S$500 | S$21.40 | N/A |
| Towing | S$200 | N/A | N/A |
| Temporary Transport | S$50/day | S$64.20 | N/A |
| Young Driver Excess | S$500 | ||
| Inexperienced Driver Excess | S$500 |
Budget Direct’s Comprehensive car insurance plan is the best option for sedan and SUV owners who require basic protection and want to pay as little as possible.
Budget’s plan is one of cheapest available, with a typical car insurance quote averaging 48-54% cheaper than the average comprehensive plan for sedan and SUV drivers, regardless of no claim discount (NCD). However this price cut comes at a cost. Budget Direct’s medical, personal accident and roadside assistance coverage comes at an extra cost. Nonetheless, the base premium is low enough that drivers can choose the coverage that matters to them and still pay rock-bottom prices.
Budget Direct has two options to choose from if you need to insure multiple drivers. The Named Driver plan covers the main driver and the named drivers you add to your plan. The Authorised Driver plan costs 15 per cent more than the Named Driver plan but will cover anyone who you let drive your car. Due to the low prices, the Authorised plan still a remains competitively priced option for drivers who lend out their car often. Budget Direct’s low named young and inexperienced driver excess of S$500 each also makes it a great option for parents who want to insure their younger drivers.
Best Value Car Insurance: FWD
| Benefit | Limit | Excess |
|---|---|---|
| Windscreen/Window Damage | Unlimited | S$100 |
| Personal Accident (Main Driver) | S$30,000 | N/A |
| Personal Accident (Passenger) | S$10,000 | N/A |
| Medical | S$1,000 | N/A |
| Towing | S$300 | N/A |
| Temporary Transport | S$40/day | N/A |
| Car Accessories | S$500 | N/A |
| YIDR Excess | S$2,500 |
For families who want a well-balanced yet budget-friendly car insurance plan, FWD Classic is 10 to 20 per cent cheaper than average for sedan drivers and 6 per cent below average for SUV drivers, regardless of citizenship. The plan’s coverage features high personal accident, medical and car replacement benefits, lump payments for surviving children and adjustable excess options for young drivers.
FWD car insurance has a few notable benefits. First, it is the only insurer to offer a Lifetime NCD benefit when you reach 50 per cent NCD, which lets you keep your no claim discount even when you file a claim. It also offers roadside assistance for accident and non-accident reasons (such as jump-starting your car). Lastly, FWD pays up to the market value of your car in the event of an accident. It also pays for its parts, fitting the parts and transporting the parts to Singapore if the accident were to happen in other countries. The recent addition of flood coverage and the ability to add named drivers at no additional cost (after the first one) makes FWD an insurer that provides generous coverage for nearly unbeatable prices.
| Benefit | Limit | Excess |
|---|---|---|
| Windscreen/Window Damage | Unlimited | S$100 |
| Personal Accident (Main Driver) | S$30,000 | N/A |
| Personal Accident (Passenger) | S$10,000 | N/A |
| Medical | S$1,000 | N/A |
| Towing | S$300 | N/A |
| Temporary Transport | S$40/day | N/A |
| Car Accessories | S$500 | N/A |
| YIDR Excess | S$2,500 |
For families who want a well-balanced yet budget-friendly car insurance plan, FWD Classic is 10 to 20 per cent cheaper than average for sedan drivers and 6 per cent below average for SUV drivers, regardless of citizenship. The plan’s coverage features high personal accident, medical and car replacement benefits, lump payments for surviving children and adjustable excess options for young drivers.
FWD car insurance has a few notable benefits. First, it is the only insurer to offer a Lifetime NCD benefit when you reach 50 per cent NCD, which lets you keep your no claim discount even when you file a claim. It also offers roadside assistance for accident and non-accident reasons (such as jump-starting your car). Lastly, FWD pays up to the market value of your car in the event of an accident. It also pays for its parts, fitting the parts and transporting the parts to Singapore if the accident were to happen in other countries. The recent addition of flood coverage and the ability to add named drivers at no additional cost (after the first one) makes FWD an insurer that provides generous coverage for nearly unbeatable prices.
Motorcycle Insurance
Affordable Yet Comprehensive Motorcycle Insurance: Budget Direct
| Benefit | Limit | Excess | Added Cost |
|---|---|---|---|
| 3rd Party Damage | S$500,000 | N/A | N/A |
| 3rd Party Injury/Death | Unlimited | N/A | N/A |
| Damage or Loss to Your Bike | Market Value | S$300 (S$0 if caused by fire) | N/A |
| Emergency Assistance | Yes | N/A | S$26.75 |
| Towing Expense | S$100 | N/A | Inc. in Emergency Assistance |
| One-Time Transport Cover | N/A | N/A | N/A |
Riders with a history of safe riding will find that Budget Direct’s motorcycle insurance will provide them with the cheapest rates. Bike owners with 20 per cent NCDs will find that, on average, they will pay 6 to 31 per cent cheaper premiums with Budget Direct, with the steepest discounts for riders with bikes up to 200cc or bikes with more than 400cc’s. You’ll also receive an additional 5% discount if you only ride your motorcycle in Singapore.
However, it’s not just owners of new bikes that will be enticed by Budget Direct’s pricing. If you are looking for a Comprehensive plan for a bike that is between six and 0 years old, you may pay 29 per cent less than with other insurers who provide Comprehensive coverage for bikes six to 10 years old. Furthermore, Budget Direct is unique in providing Comprehensive coverage for motorcycles over 10 years old, which can be useful for people who own vintage bikes. However, you should note that Budget Direct’s pricing for the base plan comes at the cost of less benefits. Thus, you will have to spend a bit more on Budget Direct’s add-ons to get peace of mind benefits like emergency assistance, daily transportation and personal accident coverage.
| Benefit | Limit | Excess | |
|---|---|---|---|
| 3rd Party Damage | S$500,000 | N/A | N/A |
| 3rd Party Injury/Death | Unlimited | N/A | N/A |
| Damage or Loss to Your Bike | Market Value | S$300 (S$0 if caused by fire) | N/A |
| Emergency Assistance | Yes | N/A | S$26.75 |
| Towing Expense | S$100 | N/A | Inc. in Emergency Assistance |
| One-Time Transport Cover | N/A | N/A | N/A |
Riders with a history of safe riding will find that Budget Direct’s motorcycle insurance will provide them with the cheapest rates. Bike owners with 20 per cent NCDs will find that, on average, they will pay 6 to 30 per cent cheaper premiums with Budget Direct, with the steepest discounts for riders with bikes up to 200cc or bikes with more than 400cc’s. You’ll also receive an additional 5 per cent discount if you ride your motorcycle only in Singapore.
However, it’s not just owners of new bikes that will be enticed by Budget Direct’s pricing. If you are looking for a Comprehensive plan for a bike that is between 6-10 years old, you may pay 29 per cent less than with other insurers who provide Comprehensive coverage for bikes between 6-10 years old. Furthermore, Budget Direct is unique in providing Comprehensive coverage for motorcycles over 10 years old, which can be useful for people who own vintage bikes. However, you should note that Budget Direct’s pricing for the base plan comes at the cost of less benefits. Thus, you will have to spend a bit more on Budget Direct’s add-ons to get peace of mind benefits like emergency assistance, daily transportation and personal accident coverage.
| Benefit | Limit | Excess | Extra Cost |
|---|---|---|---|
| 3rd Party Damage | S$500,000 | N/A | N/A |
| 3rd Party Injury/Death | Unlimited | N/A | N/A |
| Damage or Loss to Your Bike | Market Value | S$500 | N/A |
| Emergency Assistance | Yes | N/A | S$32.19 |
| Towing Expense | S$100 | N/A | N/A |
| One-Time Transport Cover | N/A | N/A | N/A |
If you are an experienced rider riding a bike with an engine capacity between 201 cc and 400 cc and are looking to get rewarded for your safe driving, DirectAsia’s Comprehensive Plan can be a good fit. Unlike other motorcycle plans that cap their NCD at 20%, DirectAsia’s plan increases the maximum NCD possible to 30%. This means that riders of class 2A bikes who qualify for their 30 per cent NCD will end up paying the cheapest premiums on the market. Furthermore, with their optional NCD protector benefit, you can protect your current NCD even if you make one at-fault claim.
Otherwise, DirectAsia’s benefits are fairly standard and include S$500,000 of 3rd party damage, towing, 3rd party injury or death and theft & fire damage coverage. However, it is worth pointing out that its premiums are below average only for Class 2A motorcycles. Otherwise, riders can expect to pay up to 14 per cent above average. Thus, riders of bikes with engine capacities under 201 cc or above 400 cc may not get the cheapest premiums with DirectAsia.
| Benefit | Limit | Excess | Extra Cost |
|---|---|---|---|
| 3rd Party Damage | S$500,000 | N/A | N/A |
| 3rd Party Injury/Death | Unlimited | N/A | N/A |
| Damage or Loss to Your Bike | Market Value | S$500 | N/A |
| Emergency Assistance | Yes | N/A | S$32.19 |
| Towing Expense | S$100 | N/A | N/A |
| One-Time Transport Cover | N/A | N/A | N/A |
If you are an experienced rider riding a bike with an engine capacity between 201 cc and 400 cc and are looking to get rewarded for your safe driving, DirectAsia’s Comprehensive Plan can be a good fit. Unlike other motorcycle plans that cap their NCD at 20%, DirectAsia’s plan increases the maximum NCD possible to 30%. This means that riders of class 2A bikes who qualify for their 30% NCD will end up paying the cheapest premiums on the market. Furthermore, with their optional NCD protector benefit, you can protect your current NCD even if you make one at-fault claim.
Otherwise, DirectAsia’s benefits are fairly standard and include S$500,000 of 3rd party damage, towing, 3rd party injury or death and theft & fire damage coverage. However, it is worth pointing out that its premiums are below average only if you own a Class 2A motorcycles. Other riders can expect to pay up to 14 per cent above average. Thus, riders of bikes with engine capacities under 201 cc or above 400 cc may not get the cheapest premiums with DirectAsia.
Best Value Motorcycle Insurance: FWD
| Benefit | Limit | Excess |
|---|---|---|
| 3rd Party Damage | S$500,000 | N/A |
| 3rd Party Injury/Death | Unlimited | N/A |
| Damage or Loss to Your Bike | Market Value | S$500 |
| Emergency Assistance | Yes | N/A |
| Towing Expense | S$50 | N/A |
| One-Time Transport Cover | S$50 | N/A |
For the majority of riders, the cheapest motorcycle insurance will be FWD. We found that its premiums cost 18 per cent below average compared with other comprehensive plans on the market, in part due to its generous ongoing discounts. However, despite its low premiums, FWD offers a plethora of benefits not typically included in other plans. For instance, 24-hour roadside assistance, towing expenses and a one-time transport cover are all included at no extra cost.
Beyond these benefits, riders also receive S$500,000 of liability coverage and market value replacement for accidental loss or damage by fire or theft. Lastly, if you are a safe driver with a 20 per cent NCD, you will also be eligible for FWD’s Lifetime NCD. This means that no matter the number of “at-fault” claims you have after getting this benefit, your NCD will not drop.
| Benefit | Limit | Excess |
|---|---|---|
| 3rd Party Damage | S$500,000 | N/A |
| 3rd Party Injury/Death | Unlimited | N/A |
| Damage or Loss to Your Bike | Market Value | S$500 |
| Emergency Assistance | Yes | N/A |
| Towing Expense | S$50 | N/A |
| One-Time Transport Cover | S$50 | N/A |
For the majority of riders, the cheapest motorcycle insurance will be FWD. We found that its premiums cost 18 per cent below average compared with other comprehensive plans on the market, in part due to its generous ongoing discounts. However, despite its low premiums, FWD offers a plethora of benefits not typically included in other plans. For instance, 24-hour roadside assistance, towing expenses and a one-time transport cover are all included at no extra cost.
Beyond these benefits, riders also receive S$500,000 of liability coverage and market value replacement for accidental loss or damage by fire or theft. Lastly, if you are a safe driver with a 20 per cent NCD, you will also be eligible for FWD’s Lifetime NCD. This means that no matter the number of “at-fault” claims you have after getting this benefit, your NCD will not drop.
Having a good insurance policy is not everything. It is equally important that you are a responsible driver. However, should you find yourself involved in a motor accident, be sure to use Maco before deciding whether you would like to sue the other party!
Considering a motor insurance policy? Check out our in-depth analysis of the car insurance and motorcycle insurance policies available in Singapore!
Read Also
The article A Comprehensive Guide On What To Do When You Get Into A Car Accident in Singapore originally appeared on ValueChampion.
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