#Motor-insurance avg. premium collected last year was $1,250, down from $1,280 in 2012

The average motor-insurance premium collected last year was $1,250, down from $1,280 in 2012. Furthermore, insurers made their smallest payout in motor-insurance claims in 5 years last year. They paid $712.4 million in claims, $29.7 million less than the $742.1 million the previous year.

Reason? Measures to tackle inflated or fraudulent claims, such as its Motor Claims Framework, are taking effect.

Implemented in 2008, the scheme requires motorists to inform insurers of accidents within 24 hours and makes it mandatory for insurers to conduct pre-repair inspections.

Mr Derek Teo, executive director of GIA, said: "It's now more embraced by motorists. In the beginning, motorists were not so used to it so not many adhered to it."

He added: "Timely reporting gives insurers a better chance to investigate."

Inspections by third-party insurers before the repair works start also cut down the chances of cheating and inflated claims.

So what does this mean to us?
I hope our car insurance premium will fall much more year on year.
However, I also believe that it is our responsibility as an individual driver, to drive defensively and safely to reduce the possibility of an accident on the road. As such, then insurers will have less claims and they should be able to pass on the some of their profit margin to us such that all motor-insurance premium will be lowered.

In summary, if we hope our car insurance premium can drop to a lower level that deem more affordable and reasonable to all of us, we also should do our part by

1) Report any accident timely, but touch wood, hopefully no need to report forever will be best.

2) Drive defensively and safely to reduce the risk and possiblity of accident on the road.

Happy driving!

I am inspired to write about my views by the report in MyPaper. Check that news out:
http://mypaper.sg/top-stories/war-motor-claims-bears-fruit-20140319