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Private Settlement in the Event of Car Accidents

Drivers dread getting into accidents but it is inevitable that we will get into one sooner or later. In the case of minor accidents where damage is minor and there are no injuries, most drivers would prefer to take the option of not claiming from their vehicle insurer and preserve their NCD.

In these instances, the repair costs will be borne by the drivers involved according to an mutually agreed upon percentage or the party who admits liability.

NCD Protector

In the sourcing for vehicle insurance, be sure not to jump onto the lowest quote but to study the terms and conditions of the insurance carefully. One thing many drivers do not know about or miss out is the NCD Protector. This usually comes in the form of an add on for basic policies and it is worth considering to include in your insurance that can come in handy when you are involved in expensive repairs resulting from accidents.

Post Accident Reporting

Do note that it is a must to report any accidents to your insurance company whether you decide to or not to claim for accidents. From a legal perspective, insurers can void your policy or remove your NCD if you fail to do so.

If you get into an accident, it can be a bit of a traumatic experience. Below are some things you should do as a guide if you do get into one.

Check that no one is injured. If there are injuries, you have to report the incident to the police and call for medical help. In most cases of minor accidents and no injuries involved, remember to do the following:

  1. Take photos of the vehicles involved in the accident at the scene with a time and date stamp if possible

  2. Get the personal details from other parties involved.

  3. Shift your vehicle to the side so as not to block traffic if it is possible. Alternatively, you can arrange for a tow truck to send it to your choice of workshop (depending on your insurance plan or if it is a private settlement).

  4. Get a quote from the workshop and assess if you should do a private settlement or claim from your insurer.

  5. In the event of a private settlement, ensure that the compensation amount is fair and agreed upon.

The Private Settlement Letter

Once the repair costs have been agreed upon, parties should proceed to draft and sign a private settlement form. This is a legal binding agreement, in which both parties agree to settle the issue that has arisen without involving the law.

The Letter Should Include the Following:

Details Of The Accident

  • Location

  • Date

  • Time

  • Parties involved

  • Vehicle registration numbers

  • Name of drivers

  • NRIC

Terms Of The Agreement

This should clearly state that:

  • There was no personal injury or death that has arisen as a result of the accident;

  • Both parties are willing to settle the incident amicably;

  • The repair costs, and if it was to be borne by the at-fault driver, or if both parties are to pair for their own repairs;

  • Both parties will not elevate the case to the police; and

  • Both parties will not file a claim for damage with insurance as a consequence of the accident.


To be included are details such as the repair costs, and that both parties are willing to settle it without involving the insurance company, the authorities and without further pursuing restitution.

These documents are legally binding, and failure to adhere to the terms stipulated can lead to legal repercussions.


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