|
Insurance reimburses people in the case of loss. People get insurance to provide them with security.
Insurance provides people with protection in the event of something unforeseen happening; like a car accident or house fire. By providing this security, insurance gives people peace of mind, knowing that they and their loved ones can maintain a quality of life during or after an unforeseen event.
Insurance comes in many forms and covers many different types of risks. The most popular insurance policies cover motor vehicles and health. For a more detailed description on the various types of insurance available in Singapore, visit the Products section of the website or contact a representative from a GIA member company. You may like to contact your insurance company or insurance intermediary if you have special or specific insurance needs.
The General Insurance Association of Singapore encompasses all non-life insurance companies transacting business in Singapore. The Life Insurance Association, Singapore (LIA) is the trade association that represents life insurance companies in Singapore.
There are several ways to obtain or buy insurance.
- You can go directly to an office of an insurance company
- Some insurance companies have staff or agents who will come and see you
- You can contact an agent or a broker (insurance intermediary) who can help you get the insurance coverage you need
Looking for an insurance company? There is a listing of insurance companies in the Member Companies section of this site.
- - Discuss the type of insurance you require with an insurance company representative or intermediary (agent or broker).
- - Depending on the insurance company's procedure, a proposal form would usually be given to you for completion before a quotation is provided.
- - Receive a quotation from the insurance company or broker.
- - If you are agreeable to the quotation for the insurance cover, you should indicate your acceptance to the insurance company or broker.
- - Arrangement for payment of the premium and an insurance policy shall be issued to you shortly thereafter.
- - Your insurance cover will begin from the agreed date outlined in your policy.
You may contact the underwriting, marketing or sales personnel at the insurance company. The insurance company may also refer you to their agents if it is more convenient for you to deal with them.
Yes. A broker or agent will take you through all the necessary steps to get the insurance you need.
In the event of an incident which is covered under your policy, you should always contact your insurance company as soon as possible.
Firstly, you'll be required to complete and return a claim form. Sometimes, the insurance company might appoint an independent adjuster to look into the circumstances of the loss.
You should provide all information at your disposal to the questions that are raised by the insurance company as this will facilitate the processing of your claim.
Upon the completion of the investigation, the insurance company will make an offer to settle the claim, provided it is an admissible claim. If you accept the offer, the claim would then be paid. You would need to sign a claims discharge form indicating the finality of the claim.
If you are not satisfied with the way your insurer has handled your claim, you can contact the Financial Industry Disputes Resolution Centre Ltd (FIDReC). FIDReC is an affordable and independent channel for resolving insurance disputes involving claims between insureds and insurers of up to S$100,000 for both life and general insurance. Visit the FIDReC site to learn more.
Back to top
EDDIES is short for Electronic Driver Data Information and Enquiry System. It is an online enquiry system that allows members of the public, insurance and car rental companies to retrieve and view a driver’s driving licence status and eligibility for Certificate of Merit (COM).
EDDIES is hosted by the eCitizen Centre, a one-stop Public Service Centre that provides a secure infrastructure for public to access government services on the Internet.
Licence holders or interested parties can access EDDIES by logging on to the eCitizen website at http://www.ecitizen.gov.sg. The information made available on EDDIES includes licence holders’:
1) Eligibility for Certificate of Merit (COM)
2) Driving Licence Status
Process to retrieve and view information on driving licence status:
1) User logs on to eCitizen website (http://www.ecitizen.gov.sg) and selects Licence Inquiry under Transport Town.
2) User enters the license holder’s licence number and date of birth at the Licence Inquiry initial webpage.
3) System validates the input and sends the request to Traffic Police Headquarters and Ministry of Home Affairs.
4) System generates a webpage displaying the licence holder’s date of birth, class(es) of driving licence passed, and respective expiry date(s)
5) User can print out the details for future reference.
Process to retrieve and view information on eligibility for COM:
1) User logs on to eCitizen website (http://www.ecitizen.gov.sg) and selects COM under Transport Town.
2) User enters the licence holder’s licence number and date of birth at the COM initial webpage.
3) System validates the input and sends the request to Traffic Police Headquarters and Ministry of Home Affairs.
4) System generates a webpage displaying the details of the COM.
5) User can print out the details for future reference.
- EDDIES benefits driving licence holders by:
Allowing them to check the up-to-date status of their licences and eligibility for the COM anywhere and at anytime.
- Allowing participating insurance companies to check via the Internet if the licence holders are eligible for COM that entitles them to a 5% discount on their insurance premium, at the point of insurance purchase.
- Allowing employers and rental companies to check the up-to-date status of their driving licences via the Internet round the clock and globally.
It will be reflected the day after you have obtained your driving licence.
No. Your driving licence is the only legal document that certifies you as a qualified driver of the class of vehicle. The driving licence must be produced when authorities request for proof of your eligibility to drive vehicles under the various classes.
Yes, you can check your licence expiry date by accessing the driving licence status enquiry.
EDDIES does not reflect the number of demerit points you have incurred or any other details of penalties involved.
What will be reflected on EDDIES is that your driving licence is invalid.
Yes, if he is provided with your IC number and birthdate.
Records of all Singaporean drivers are on the EDDIES as they are obtained directly from TP’s computer system.
This is to protect the licence holder's privacy.
Questions on COM
The Certificate of Merit (COM) entitles a driver a 5% discount on vehicle insurance premium (from participating insurance companies only), over and above his No-Claim Bonus (NCB).
A driver is eligible for a COM if, at the point of purchasing a car insurance coverage, he/she has maintained for the past 3 years, a continual unblemished and demerit-point-free driving record.
This means that, if a driver committed a traffic offence any day in the 3 years immediately before an insurance purchase that resulted in him/her being “awarded” demerit points, he/she would no longer be eligible for a COM on the day that he/she purchases the insurance.
The list of participating insurance companies in hyperlinked to EDDIES. You can check if your insurance company is on the list there.
You may print a copy for the insurance company. However the insurance company can log on to EDDIES to check the latest status of your eligibility for COM.
No. The insurance company can verify the COM from via EDDIES. This is possible because EDDIES is updated every 12 hours.
COM is not transferable. Drivers other than you yourself are not entitled to your COM incentives.
No. The authenticity of a printed COM can be verified via EDDIES.
With this system, TP will no longer send COM cards. You may request your insurance agent or company to check on your behalf. Those who need to clarify can call Traffic Police at 6547-0000.
You can contact Traffic Police at 6547 0000 or write to SPF_Feedback_TP@spf.gov.sg
Back to top
Household insurance comes in many forms with varying coverages, terms and conditions. Fire insurance is one of the more basic protections available to an owner of a property, covering the building and/or its contents.
In the case of fire insurance on the building (not including its contents) of a residential property, it generally covers the building structure, the permanent fixtures and fittings such as built-in cabinets, baths, toilets, air-conditioning units, fixed carpet, parquet flooring and other immoveable decorations or improvements. It may also extend to cover outbuildings such as garages, covered porch and perimeter walls. However foundations and swimming pools are normally not covered under fire insurance for buildings.
Most fire insurance for buildings provide cover against damages caused to the building by:
- fire
- lightning
- domestic explosion
- bursting or overflow of water tanks and apparatus
- road vehicle impact
- aircraft impact
- malicious intent
- riot and strike
- earthquake, windstorm and flood
- theft or attempted theft accompanied by forcible or violent entry
Depending on the insurers, other perils such as subsidence and landslip due to windstorm and flood may also be included.
The term “sum insured” in a fire insurance for residential property is the insured value of the property and the maximum amount an insurer will pay if it is totally destroyed by an insured peril. The sum insured should reflect the cost of rebuilding the insured property (also known as the reconstruction or replacement cost) to its original condition (or its equivalent) at the time just before the damage occurred. For added protection, professional fees and cost of debris removal may be included in the sum insured. Under normal circumstances, the market value of the property is not used as the sum insured and there is no direct relationship between the market value of a property and its reconstruction cost for the purpose of insurance. The sum insured also should not take into consideration the foundation and the value of the land.
It is the responsibility and in the interests of the owner to ensure that the sum insured is adequate, otherwise the owner may find his/her insurance protection wanting in times of contingency. As the cost of fire insurance is normally low and very affordable, the risk of under-insuring one’s property certainly out-weighs any savings on the insurance cost.
It therefore makes economic sense to allow for some buffer in the sum insured of your property. When determining an adequate sum insured specific to your property, you should also seek the assistance of a qualified property valuer or quantity surveyor.
The Replacement Cost Table below provides a general guide to replacement cost of various private residential developments. To estimate the replacement cost of your property, you first need to know its Construction Floor Area (CFA). CFA is the area of all building enclosed covered spaces measured to the outside face of the external walls including covered basement and above ground car park areas. You can obtain the CFA from the developer of your property or the Managing Agent in the case of a condominium unit (i.e. Strata Titled property). Alternatively, you can estimate the CFA by measuring the external area of your house.
For instance, if your property is rectangular in shape, you need to measure the external length and width of your house and multiply these two figures to arrive at the CFA. If for some reason you cannot measure the external dimension of your property, you can measure the internal area and add the thickness of the wall to the dimensions. In the case of a multi-storey property, the CFA of the property is simply the sum of the CFA of each floor.
After you have estimated the CFA, you need to identify the type of development your property falls into in the Replacement Cost Table. You can then arrive at an indicative replacement cost of your property using the methodology illustrated in the worked example below.
The replacement cost so derived is at best only an estimate of the sum insured for the purpose of fire insurance for your property. To obtain the replacement cost valuation specific to your property, you should seek professional advice from a qualified property valuer or quantity surveyor.
REPLACEMENT COST TABLE
(PUBLISHED DATE: May 2008)
| DEVELOPMENT TYPE |
Cost per CFA
(S$/psm ) |
| Condominium |
| Medium-Quality Condominium |
1,900 - 2,380 |
| Good-Quality Condominium |
2,250 - 3,000 |
| Luxury-Quality Condominium |
3,000 - 4,000 |
| Landed Residential |
|
| Semi-detached House |
2,600 - 3,200 |
| Terrace House |
2,250 - 2,600 |
| Detached House |
3,350 - 5,650 |
|
Source: Rider Hunt Levett & Bailey
The above replacement cost per CFA for the respective development types covers the cost of rebuilding a landed house or an apartment. Excluded from this cost are foundation cost, professional consultant fees, fixtures and fittings, loss of rental and other consequential losses and Goods and Services Tax (GST).
Each replacement cost in the Table provides for an average home to be rebuilt to its existing standard and specifications. It does not cover any cost of upgrading the specification and quality of the house. The above cost also assumes that quotations for the replacement work are called within 6 months of the damage occurring.
While every effort has been made to ensure the accuracy of the contents of this table, Rider Hunt Levett & Bailey will not be responsible in any way for any error, inaccuracy, loss or detriment arising out of or in connection with the use of or reliance on this Table. It should be highlighted that within each residential building type, there is a wide range of different specifications, quality of materials and finishes. Expert advice should accordingly be obtained should a replacement cost valuation be required for a specific property.
REPLACEMENT COST CALCULATION
Example:
Mr Lim lives in a semi-detached house located in a surburban district with a construction floor area (CFA) of 230 square meter. Mr Lim would like to purchase fire insurance for his property and wishes to know an indicative sum with which he can insure his house.
| REPLACEMENT COST CALCULATION |
| Step 1 - Obtain Construction Floor Area (CFA) |
| Mr Lim's house has a CFA of 230 square meter. |
| Step 2 - Select appropriate unit cost from Replacement Cost Table |
a. CFA(square meter) of semi-detached house
b. Unit Cost (S$/sq meter)
c. Estimated Reconstruction cost 230 square meter x S$2,550/square meter |
230 square meter
S$2,900/square meter (1)
S$667,000 |
| Step 3 - Add estimated value of building fixtures and fittings |
| d. Estimated amount of |
S$25,000 (2) |
| e. Sub-total |
S$692,000 |
| Step 4 - Add Professional Fees, Demolition and Removal of Debris, Goods & Services Tax (GST)(3) |
| f. Professional Fees @ 10% of sub-total (e) |
S$69,200 |
| g. Demolition and Removal of Debris @ 5% of sub-total (e) |
S$34,600 |
| h. Replacement cost excluding GST |
S$795,800 |
| i. GST @ 7% |
S$55,706 |
| j. Total |
S$851,506 |
| Estimated Current Replacement Cost Approx. |
S$ 852,000 |
|
(1) Note - Average cost/square meter used in this instance.
(2) Note - Value of built-in furniture and fixtures, light and electrical fittings, etc. estimated by owner.
(3) Note - Professional fees for reconstruction work are assumed at 10%, demolition and removal of debris at 5%, and GST at 7%
Rider Hunt Levett & Bailey (www.rhlb.com.sg)
Rider Hunt Levett & Bailey are a leading professional construction consultancy practice and are part of a global alliance of quantity surveying, project and cost management consultants with 60 offices in South-East Asia, Hong Kong, People’s Republic of China, the Middle East, Australia, the United Kingdom, Europe, and the North America.
Professional services provided extend to both traditional and non-traditional quantity surveying services and cost management services covering feasibility studies, cost planning, contractual and procurement advice, tender documentation, post-contract services, value engineering and value management, financial management and reporting and replacement cost assessment.
Back to top
 |
