new pre-repair inspection requirement

the latest news from the general insurance association of singapore:

NEW PRE-REPAIR INSPECTION REQUIREMENT

We wish to inform you of an important change in procedures concerning the repair of motor vehicles involved in an accident.

From 1 May 2011, motorists making property damage claims to their vehicles must now give the potential defendants (i.e. the owner/s of the other vehicle/s involved in the motor accident) or their insurers an opportunity to inspect the damages to the vehicle, prior to the commencement of repairs. The potential defendant’s insurers, upon receipt of notification on the location of the damaged vehicle, will conduct a pre-repair inspection on the damaged vehicle within 2 working days from the time of notification, excluding Saturdays, Sundays and public holidays.

If the potential defendant’s insurer has however, waived the requirement for the pre-repair inspection, the claimants may proceed with the repairs. Under the Sub Courts Protocol, the potential defendant or his insurer will also have to compensate the claimant for loss of use of the vehicle for the period of the pre-repair inspection.
We also wish to highlight that claimants who proceed to repair their vehicles without first notifying the potential defendant or without allowing the pre-repair inspection to be carried out, may find that the Courts can impose sanctions as to costs on the claimants.

This pre-repair inspection requirement has been mandated by the Sub Courts under the Pre-action Protocol for Non-Injury Motor Accident Cases. It is also a key recommendation of the Motor Insurance Task Force, which is co-chaired by the Presidents of CASE and AA Singapore.

We therefore seek your understanding and cooperation to observe this new change so as not to prejudice your claim against third parties.

my comments:

this is the new rule by the motor insurance taskforce* to reduce or even eliminate (hopefully) inflated and fraudulent claims. in other words, motorists who intend to file 3rd party insurance claims will now have to contact the other driver's insurer before getting their vehicles repaired. the other driver's insurer will have up to 48 hours to inspect the damaged vehicle and if it fails to do so, it will automatically waive it's right to contest the claim.

*members of the motor insurance taskforce = general insurance association of singapore, consumers association of singapore, the automobile association of singapore, the land transport authority, the traffic police and the monetary authority of singapore.

but this new rule which came into effect on may 01, 2011 will only apply to 3rd party claims and has the backing of the subordinate court.

this scheme effectively cuts down on the waiting time where insurers are often informed of claims many weeks or even months after the accident and also shortens the time before repairs can commence as this new rule sort of forces the other party's insurer to inspoect the damaged vehicle more promptly.

hopefully, the new rule will settle clear cut cases more speedily, reduce inflated and fraudulent claims and stem rising motor premiums.

if we go by last year's figures, motor claims amounted to $767 million which includes $11.6 million due to flood damage which means the sum would be nearer the $742 million posted 3 years ago. this is noteworthy as there are now more cars on the road than 2008.

and the taks force will meet again soon to finalise other recommendations.