PGI Motor Insurance

Question 1

What are the three types of motor insurance coverage available in Singapore?

Accepted Answer

Third-Party Only, Third-Party Fire and Theft, and Comprehensive

Answer

Singapore motor insurance comes in three tiers: Third-Party Only (minimum legal requirement), Third-Party Fire and Theft (adds fire and theft coverage), and Comprehensive (covers own damage as well).

Question 2

What is the No Claim Discount (NCD) system in Singapore motor insurance?

Accepted Answer

A discount on premiums for each year without claims, starting at 10% and increasing to a maximum of 50% after 5 claim-free years

Answer

NCD rewards safe drivers: 10% after 1 year without claims, 20% after 2 years, 30% after 3 years, 40% after 4 years, and the maximum 50% after 5 consecutive claim-free years.

Question 3

What is the 'excess' amount in a Singapore motor insurance policy?

Accepted Answer

The first portion of each claim that the policyholder must pay out of pocket before the insurer pays the rest

Answer

The excess is the deductible amount the policyholder bears per claim. Standard excess is typically SGD 500-1,000, with additional excess for young or inexperienced drivers.

Question 4

What additional excess applies to young drivers in Singapore motor insurance?

Accepted Answer

Drivers under 27 or with less than 2 years of driving experience typically face an additional young/inexperienced driver excess

Answer

Young drivers (under 27) and inexperienced drivers (less than 2 years of licence) are statistically higher risk. Insurers impose an additional excess (typically SGD 500-1,500) on top of the standard excess.

Question 5

What happens to the NCD if a motor insurance claim is made in Singapore?

Accepted Answer

The NCD is reduced or lost entirely depending on the insurer's policy, typically dropping by 10-30 percentage points per claim

Answer

Making a claim typically reduces the NCD. Some insurers reduce it by 10-30 percentage points, while others reset it entirely. NCD protector add-ons can help preserve the discount.

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