Source: The Straits Times, Friday 2 September 2011
Motorist who want to make non-injury accident claims of up to $3,000 will now have to go before the Financial Industry Disputes Resolution Centre (Fidrec) before they can file them in court.
According to the news report, the Consumers Association of Singapore, a member of the Motor Insurance Taskforce which lobbied for the limit to be raised, said the new ceiling is more reflective of the average claim of $4,000 and reckons the $3,000 limit will allow Fidrec to handle more cases.
There might be cases whereby claimant jack up their claims to avoid the Fidrec process, but they will have to produce substantive evidence in court to show that their claims are justified.
The main intention of the move is for all parties to reach an amicable settlement by themselves. However, if they need the help of a third party to resolve a case, there is Fidrec.
The Fidrec process requires claimants to turn up personally to file and present their cases. Fidrec has assisted the insurance industry in bringing down the claim settlement amount. Last year, motor claims amounted to $767million. If the $11.6million attributed to flood damage was excluded, the sum would have been close to the $742million posted three years ago, even though there are now more vehicles on road.
The raise in the limits of claim to go through Fidrec will:
- pave way for more claims to be settled quickly and cheaply – without the appointment of lawyers
- allow all parties to reach an amicable settlement by themselves
To find out more about the process, please visit Fidrec website.