Despite more car accidents in Singapore, insurance claims are down

Despite more car accidents in Singapore, insurance claims are down | Insurance Business

Despite more car accidents in Singapore, insurance claims are down
There was a sharp rise in vehicular accidents in Singapore in 2016, but the total value of motor insurance claims was actually lower than the previous year. An insurer’s association believes that the increase in private-hire cars under companies such Grab and Uber may have played a part in this trend.
 
According to the General Insurance Association (GIA), there were 161,361 motor accident reports in 2016, 8% more than 2015 and the highest level in five years.
 
While there were more accidents, total value of motor insurance claims dropped by 8.5% to SGD494.4 million. There were also fewer vehicles on Singapore’s roads, with 956,430 as of end-2016, down from 957,246 in 2015.

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The association theorized private-hire car drivers are likely to have contributed to the rise in accidents. These drivers also pay higher amounts out-of-pocket while making a claim, so they are less likely to lodge claims for minor vehicular accidents.
 
“This emerging trend could contribute to the increased number of accident reports,” Derek Teo, GIA chief executive, told The Straits Times. “We will find ways to capture data relating to this segment of drivers.”
 
“If our suspicion is right, we will engage with relevant stakeholders and the authorities to address the issue,” he added.
 
Fortunately for the general public, the rise in accidents is not likely to cause a premium hike that could affect all motorists.
 
“We will find out what are the trigger points for the increased number of accident reports and apply pricing changes for specific segment of drivers, if necessary,” Teo said.


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