The need for foreign vehicles to have local insurance on both sides of the Causeway

I browse with interest the Singapore’s Straits Times article titled, “Ensure foreign vehicles have local insurance” written by Chen Junyi

“….basically what this article meant was for policyholders who drive their vehicle across the causeway to have their motor insurance certificate endorsed by a local registered insurer; more for counter checking into the validity of the insurance certificate and whether the coverage is adequately wide to cater for the local regulatory requirements; eg., legal liability to passengers extension is compulsory when driving in Singapore. Yes, the costs will increase. …”

The following is the article; although this is yet to be the reality, I hope you will enjoy reading. …

CURRENT regulations require only foreign vehicles registered outside West Malaysia to have an insurance certificate issued by a Singapore-based insurer.


Attitude is like a flat tire, you can't go anywhere until it is repaired. ...

While Singapore vehicles enjoy the same quid pro quo, this also creates uncertainties in the event of accidents in Singapore involving Malaysian vehicles.

As a matter of fact, there seems to be no check that the West Malaysian vehicles entering Singapore have valid motor insurance in Malaysia itself.

All motorists sharing the roads should share the same responsibility, and have the confidence that their fellow motorists are held to the same accountability.

Hence, all foreign vehicles entering Singapore should have a motor insurance certificate endorsed by a Singapore-based insurance company.

The Singapore-based company will be required to act as the insurer for the foreign vehicle in the event of accidents.

This will allow the workshops in Singapore to handle the claims as local cases, rather than cross-border ones, and facilitate the repair of damaged vehicles.

Having Singapore insurers cover foreign vehicles will lead to greater confidence for victims that their no-claims discount will be protected, as there will be no cross-border claims involved. Hence, this will encourage them to claim against their own policies first and get their vehicles repaired earlier.

The price for Singapore motorists will probably be higher premiums, in order for their insurers to get similar endorsements from Malaysia-based insurance companies for them to enter Malaysia. But this also benefits them, as, in the event of accidents, there will be less cause for them or their vehicles to be held back, as they will now have local insurance representation in Malaysia.

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1 comment for “The need for foreign vehicles to have local insurance on both sides of the Causeway

  1. May 5, 2015 at 08:03

    Some feedbacks over The Straits Times….

    Hard to pursue claim against foreign driver
    Published on May 5, 2015 2:04 AM

    I READ Mr Chen Junyi’s letter (“Ensure foreign vehicles have local insurance”; April 25) with interest.

    In July 2009, I was involved in a chain accident along the Kranji Expressway. Mine was the first car in front, followed by a Malaysia-registered car and two Singapore cars behind that one.

    At that time, I assumed that everything would be resolved by my motor insurance.

    After the accident, I made a police report and went to several authorised workshops provided by my motor insurer.

    To my surprise, none of them wanted to take up the case with the Malaysia-registered car’s insurer. They advised me to claim from my own insurance, which would lead to a deduction in my no-claims bonus.

    I subsequently called the driver of the Malaysia-registered car to settle the matter, but he rejected all my calls and messages.

    I had to engage a workshop on my own, pay the fees up front for the repair job and engage a lawyer through the workshop to claim damages from the Malaysian driver’s insurer. The claim finally came through after a good four years of waiting.

    I sincerely hope the authorities can consider working with insurance companies to create local insurance coverage for foreign-registered cars to safeguard local drivers’ interests.

    Lu Qimin

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