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A motorist met an accident and sent the vehicle to an assessment center (Idac). Our quality workshop quoted the repair at $1,735.

The motorist refused to accept our repair. He sent the vehicle to his workshop. The workshop sent an estimate for $12,500. The vehicle has a market value of $9,000 and a scrap value of $4,800.

We rejected the higher estimate and offered to settle the claim at $1,735 less the excess of $500. The motorist brought the case to the Channel News Asia and the Straits Times.

Why is there a big difference in the repair cost?

The higher estimate included several damages that were not related to the accident. It was costed using expensive new parts, which was unnecessary for a vehicle that was nearly 7 years old.

General Insurance Association has issued a guideline (posted in its website and in the consumer guide) which requires new parts to be used only for vehicles less than 3 years old.

How often do you get disputes with claimants?

Each month, we settle about 3,000 motor claims. About 4% of these claims (120 cases) involve a dispute on liability and quantum. Most are settled through mutual agreement.

About 0.1% of these cases (3 case) had to be referred to an independent external body, the Insurance Dispute Resoluton Organisation (IDRO).

Does NTUC Income have the right to insist on using its workshop?

Section 1 clause 3 (b) of our policy contract states, ".... we shall be entitled to have the repair carried out at a workshop selected by us".

It is our duty to repair the vehicle satisfactorily to the pre-accident condition and ensure that it is road worthy. We carry out an inspection after the repair, before returning the vehicle back to the owner.

What about additional damages that were not discovered by the initial assessment?

We will settle this directly with our quality workshop. For our record, this affect only 2% of the cases. Most of the time, the initial assessment is accurate.

Can your workshop give satisfactory repair, if they have to tender to get the repair job?

Although they tender a competitive price, the quality workshop can make an adequate margin. The awarded price is usually higher than the price that the workshop normally charge to individual owners.

The workshop will be required to give satisfactory repair. They have to meet our quality standard and to provide a 6 month guarantee on their repair. They are establised and trustworthy workshops.

Will motorists benefit from the claim measures introduced by NTUC Income?

Our aim is to look after the interest of our policyholders, by providing satisfactory repair at a reasonable price. By acting against inflated claims, we are able to keep the premium rates low and benefit all policyholders.