If you have ever been in an accident, you can understand all the stress that follows. That’s why it’s important to be prepared to deal with such situations. One of the best ways to manage accident-related stress is to have a comprehensive car insurance policy that covers not only the damages to your vehicle but also the damages caused to any third party.
POSB offers two car insurance policies: DriveShield Plus and Drivo. It’s true that every vehicle owner has unique insurance requirements. That’s why these policies have been designed to allow you to choose from multiple plans, depending on your needs and budget.
Types of Car Insurance Provided by POSB
DriveShield Plus: Underwritten by MSIG Insurance, it’s a comprehensive insurance policy that protects your vehicle against loss/damage due to an accident. In addition, it also covers your third-party legal liabilities. There are two plans available under this policy: DriveShield Plus Value Plan and DriveShield Plus Premier Plan.
It’s also Singapore’s first ever policy that determines your premium on the basis of how good or bad your driving is. So, your premium will be directly linked to how safely your drive. This is done with the help of a small telematics device that is installed in your vehicle. The device and its installation, together worth over S$250, are complimentary. Safe drivers will also enjoy an excess waiver of up to 100%.
Drivo: Underwritten by NTUC Income, this is also a comprehensive policy that lets you choose from two different plans to match your requirements: Drivo Premium and Drivo Classic. Depending on the plan you choose, you get the flexibility to get your vehicle repaired at a workshop of your choice. In addition to protection against accidental damages, this insurance also provides you with personal accident benefits.
Features and Benefits of POSB Car Insurance
- Unlimited coverage for windscreen: Both the policies offer unlimited windscreen coverage. So, every time you get your vehicle’s windscreen replaced or repaired, these policies will cover the expense. However, you will have to pay an excess of S$100 for every claim you make under this coverage.
- Personal accident coverage: The policies also compensate for death or injuries due to an accident. With DriveShield Plus and Drivo, you will enjoy personal accident coverage of up to S$100,000 and S$50,000, respectively.
- No claims discount (NCD): If you don’t make any claim under your policy, you will enjoy a discount on the premium at the time of renewal of the policy. You can enjoy a discount of as much as 50% if you don’t file any claim for five or more consecutive years.
- Towing services: You will enjoy coverage for the towing expenses you might have to incur following an accident.
- Third party property damages: The policies also cover you against any liabilities for the damages you may have caused to a third party property while driving your insured vehicle.
- Daily transport allowance: This coverage is available under DriveShield Plus Premier Plan and is optional in case of Drivo plans. With this cover, you will get daily transport allowance of S$50 as compensation for the expenses you may have incurred on transportation during the period of repair of your vehicle. While DriveShield gives allowance for up to 10 days if repairs take more than three days, Drivo gives this allowance for up to seven days.
No Claim Discounts Offered by POSB
The premium you pay at the time of renewal of your policy is calculated on the basis of your NCD. Your NCD is based on the claims you have made under the policy. Take a look at the table below to find out how POSB calculates your NCD:
|No claim made under your policy for:||NCD|
|Two consecutive years||20%|
|Three consecutive years||30%|
|Four consecutive years||40%|
|Five or more consecutive years||50%|
When you make a claim under your policy, your NCD also gets adjusted. If your NCD at the time of making a claim is 40% or 50%, your NCD will be reduced to 10% or 20%, respectively. If the NCD at the time of making a claim is 30%, 20% or 10%, your NCD will be reduced to zero. Check out the table below to understand how NCD is adjusted when you make a claim:
|Current NCD||Adjusted NCD|
|When you make one claim||When you make more than one claim|
What Does POSB Car Insurance Policy Cover?
|Accidental repairs at a workshop authorised by the insurer||Yes||Yes|
|Accidental repairs at a workshop of your choice||Yes (Only with Premier Plan)||Yes (Only with Premium Plan)|
|Loan protection to cover the outstanding amount of your car loan in the event of your death when you were driving the insured vehicle||Maximum coverage of S$200,000 (with Premier Plan)||Not applicable|
|Daily transport allowance||S$50 for maximum 10 days when the repair period is more than three days (applies to Premier Plan)||Optional cover: S$50 for maximum seven days. Benefits can be claimed from Day 1|
|Policy excess||Waiver of up to 100% of excess amount||S$600 or any other amount as specified in the policy. Applies to every single accident claim|
|Unlimited coverage for windscreen||Yes (S$100 excess applicable)||Yes (S$100 excess applicable)|
|Personal accident||Maximum coverage of S$100,000||Maximum coverage of S$50,000|
|Medical treatment expenses for the car driver and other passengers||Maximum coverage of S$1,000||Maximum coverage of S$1,000|
|Post-accident towing||Maximum coverage of S$500||Maximum coverage of S$500|
|Third party property damages||Maximum coverage of S$5 million||Maximum coverage of S$5 million|
No claim will be paid under these policies if:
- The accident happened when you were under the influence of alcohol/drugs or when your vehicle was driven by a person not authorised by law.
- Damages resulted from an act of terrorism.
- The number of passengers in the vehicle when the accident occurred were more than the allowed capacity.
- Damages to your vehicle resulted from war or riots.
- The accident was a result of an attempt to commit suicide.
POSB Promotions for Car Insurance
Enjoy a discount of 5% on your premium if you request a quotation for Drivo Insurance Policy or DriveShield Plus Policy between 1 January 2018 and 28 February 2018. Check out some terms and conditions related to the promotion:
- Only first time applicants are eligible for this promotion. Existing Drivo or DriveShield Plus policyholders are not eligible.
- Your application must be approved by MSIG or NTUC Income before the promotion expires.
- You must purchase the policy through DBS website.
- You must provide your contact number and email address.
How to Make a Claim
You can call POSB’s Hotline to report the accident as well as to make a claim. Make sure you report the accident within 24 hours or maximum by the next working day. Failure to report the accident within that time will lead to 10% reduction in your NCD. In addition, you must keep the following things in mind after the accident to have a smooth claim process:
- Get your vehicle to the accident reporting centre for inspection.
- Inform POSB immediately if there is any third party claim against you.
- Avoid making an offer to a third party without permission from POSB.
- Report the accident to the police.
How to Cancel POSB Car Insurance
If you wish to cancel your policy, you will have to inform POSB in writing or over phone. You will be entitled to premium refund for the unexpired period of your insurance. In case of Drivo policy, you will receive 85% of the premium for unexpired insurance period. For DriveShield policies, you will get 80% of the premium for unexpired period of your insurance.
However, there will be no refund if you have already made a claim under your policy or if your refund amount is less than S$25.
Frequently Asked Questions
Q. Can I use a credit card to pay for the policy?
A. Yes, you can use any credit card to pay for these policies.
Q. Who do I contact if I need changes in my policy or if I want to know status of my application?
A. You can get in touch with MSIG Insurance at 6827 7607 (firstname.lastname@example.org) or NTUC Income at 6788 6616 (email@example.com).
Q. How does MSIG Insurance calculate my car insurance premium?
A. MSIG Insurance calculates your first year premium on the basis of their standard premium charges as well as your NCD. Second year onwards, MSIG will also consider your driving score to calculate the premium.
Q. Where can I get the telematics device installed?
A. You can get this device installed at MSIG’s designated workshops. You will find the details on these workshops in your policy’s Infopack that you will receive with your policy documents.
Q. Do I have to pay the installation charges for telematics?
A. No. You don’t have to pay any installation charges. Furthermore, if you install telematics within 30 days from the start of your policy, you will receive S$150 cash from MSIG Insurance.
Q. What should be my drive score to enjoy excess waiver?
A. There are four categories for drive score: Green, Yellow, Orange, and Red. If you drive score is in green, you will enjoy 100% excess waiver. If it’s in yellow category, you will enjoy 50% excess waiver. For orange and red categories, standard excess will apply.
Q. What if I don’t install the telematics device?
A. If you don’t install this device within 30 days of the start of your policy, you will not be able to enjoy excess waiver benefit in the event of an accident.
Q. What happens to the telematics device when I am cancelling the policy?
A. You can get this device removed from your car at any of MSIG’s designated workshops seven working days after the policy cancellation.