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Students from the National University of Singapore Pro Bono Group prepared this guide. The guide is for public education and is not legal advice.

What are motor insurance disputes and how do they arise?

Motor insurance disputes are disputes between the motor insurer and the insured or a third-party victim. The most common motor insurance disputes relate to claims for damage to property or personal injury.

There may also be disputes over the quantum of the claim. This means that the insurer disagrees with the amount claimed by the policyholder.

What should I look out for when filing a motor insurance claim?

When you file a claim against your insurer, the insurer will determine whether to pay your claim based on your insurance policy.

The insurer will also request documents and other evidence from you, including:
  • Accident Report.
  • Police Report, if any.
  • Medical Report, if any.
  • Evidence (e.g. photographs and dashcam footage).
  • Repair bills and payment receipts.

Some reasons why insurers may reject a motor insurance claim include:
  • The insured person failed to make an accident report within 24 hours.
  • Driving under the influence of alcohol or other drugs.
  • The vehicle was illegally modified.
  • A vehicle insured under a private motor insurance policy was used for commercial purposes.


Do note that insurers may also reject your claim if you had approached a road tout and an unauthorised servicing agent repaired your car. So do make a police report and alert your insurer as soon as possible after an accident. Do not take up the offers of road touts.

 

What do I do if I disagree with the insurer’s decision on my claim?

Step 1: Speak to your insurer first

You should first speak to your insurer to resolve the dispute. If you think that your insurer has treated you unfairly, you can lodge a complaint directly with the insurer.

Motor insurers usually have instructions on their websites on how to make a complaint. You can also contact your insurance representative. The Monetary Authority of Singapore expects all Financial Institutions to handle all consumer complaints effectively and promptly. You can find your insurer's contact details using the Financial Institutions Directory.

Before you contact the insurer, you should have a clear idea of what your concerns are and how you would like the insurer to address these concerns. Do provide the insurer with:
  • Your particulars (name, contact number, vehicle plate number, etc.),
  • The details of your complaint, and
  • Supporting documents.
 
The insurer should acknowledge your complaint within 7 business days. If necessary, they may request for more information from you within 7 business days from the date of your complaint.
 
If your complaint is more complex, the insurer may need more time to attend to it. If so, the insurer should update you on the progress of the complaint within 15 business days of your last communication.
 
If you still feel the response is inadequate, or if there is no response from your insurer, you can then write in to appeal to the Chief Executive of the insurer. You can expect a response to this complaint within 15 business days.

Step 2: Approach FIDReC for Help

If you cannot resolve the matter with your insurer after 4 weeks, you may approach the Financial Industry Disputes Resolution Centre (“FIDReC”) for mediation. There is no cost to consumers to do so.

FIDReC is an independent dispute resolution institution handling disputes between consumers and licensed financial institutions. FIDReC provides a low-cost and effective avenue to resolve problems that cannot be settled directly with your insurer.

Please note these limitations before approaching FIDReC:
  • FIDReC is only able to assist individuals or sole-proprietors.
  • Claims that exceed S$100,000 cannot be referred to adjudication unless the consumer limits their claim or the insurer agrees to the higher limit.
  • You must approach FIDReC within 6 months of receiving the final reply from the insurer to ensure that FIDReC is able to assist you.
  • Your claim must not fall under the types of claims that FIDReC cannot handle under its Terms of Reference. For example, claims already decided in court or settled privately.


FIDReC can handle disputes between the insurer and the insured, and third-party motor insurance claims. This means that accident victims can claim against the insurer of the other party for damages or injury suffered.

Do note that the FIDReC adjudication outcome only binds the insurer and not the consumer. This means that if you are not satisfied with the outcome, you can continue to pursue other avenues of recourse. This includes taking legal action.

Or you can approach the Consumers Association of Singapore (“CASE”), the Singapore Mediation Centre (“SMC”) or the Small Claims Tribunal (“SCT”). These organisations handle disputes across all types of products and services.

Step 3: Taking legal action against the insurer

Resolving motor insurance disputes through legal action is usually a last resort. Legal action is usually time-consuming and expensive. You should get advice from a lawyer before taking legal action. If you wish to engage the services of a lawyer, you can access the Legal Services Regulatory Authority for a list of practising lawyers here.

Or you may approach the Legal Aid Bureau for legal aid and advice. Do note that you would need to meet specific prerequisites to do so. Find out more here.

 

What is the process for filing a motor insurance claim at FIDReC?

FIDReC offers two schemes:
  • The FIDReC Dispute Resolution Scheme, and
  • The FIDReC Non-Injury Motor Accident Scheme (“FIDReC-NIMA Scheme”).

The FIDReC-NIMA Scheme is for non-injury motor accident disputes with third-party insurance companies where the amount claimed is below $3,000. You can find out more about the FIDReC-NIMA Scheme here.

FIDReC adopts a 2-step process.
 
  1. A case manager will mediate the dispute between you and your insurer. If the dispute is not settled by mediation, you can choose to bring your case to the second stage of adjudication.
 
  1. An adjudicator will decide on your dispute based on the facts and merits of the case.  If you choose to proceed to adjudication, there is a nominal fee of S$50 (plus GST) will be charged for the FIDRC Dispute Resolution Scheme. If your claim is under the FIDReC-NIMA Scheme, the adjudication fee is S$250 (plus GST). Under the FIDReC-NIMA Scheme, S$200 may be refunded to the party according to the NIMA Refund Rules.

You can find out more about FIDReC's Dispute Resolution Process or file a complaint using the Online Dispute Resolution Form. For more information, please visit FIDReC’s Frequently Asked Questions page or submit an enquiry.
 

What information should I include in the FIDReC Dispute Resolution Form?

You will need to complete and submit a Dispute Resolution Form to FIDReC for them to start work on your claim. You should also submit details of your communications with the insurer, and all other relevant supporting documents.

For motor accident disputes, the Dispute Resolution Form requires you to fill in details relating to your insurance policy and the motor accident. You will also need to provide these documents where relevant:
  • Certificate of Insurance (including its Terms and Conditions).
  • General Insurance Association (GIA) reports and written transcripts.
  • Evidence of payment to the repairer.
  • Surveyor’s report and coloured photographs of the damaged vehicle.
  • Policy excess bill/receipt.
  • Vehicle registration card (if any).
  • COE/PARF certificate.
  • Coloured photographs of the accident scene (if any).
  • Rental agreement, invoice or receipt for alternative vehicle (if any).
  • Supporting documents for other expenses claimed (if any).
  • Written confirmation that pre-repair inspection has been carried out or waived.

You can access the full details and instructions here.
 

What can I expect about mediation at FIDReC?

A case manager will review your Dispute Resolution Form. He or she may contact you for further information. The case manager will also request the insurer to submit an investigation report.

The case manager may conduct discussions with you and the insurer separately or together. Depending on the case, mediators can arrange physical or online meetings, or rely on telephone calls or email.

The case manager will help the parties understand what has happened and explore options for settlement. If parties cannot agree, you can choose to bring your case to the second stage of adjudication.

Before adjudication, the case manager may suggest you receive a Mediator’s Indication. This is where an experienced neutral will evaluate your case and give you their opinion on the likely outcome at adjudication. The parties can choose to accept the Mediator’s Indication or to reject it. If they accept it, they can enter a settlement agreement and resolve the dispute. If they reject it, adjudication remains an option for the consumer.
 

What can I expect about adjudication at FIDReC?

During adjudication, an adjudicator will decide on your dispute based on the facts and merits of the case. Both parties will have to prepare written submissions and exchange them. There is usually a hearing where the parties present their case to the adjudicator. The parties can bring in witnesses. They can ask questions of each other and of the witnesses. The adjudicator may ask questions too.

FIDReC's Adjudicators comprise highly qualified professionals. They include retired judges and experienced lawyers. The Adjudicators are independent and impartial. FIDReC will not interfere with the decisions of the Adjudicators. The Adjudicators act wholly on their own and adjudicate cases based on the facts of the case, the evidence produced by the parties, and the law. Again, note that the outcome of adjudication only binds the insurer, and the consumer is free to pursue any other legal recourse available to him.

 

Sources

Keywords: Motor Insurance