Commercial Motor Insurance

Commercial Motor Insurance is purchased for trucks, lorries, vans, cranes and trailers etc. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom. .

Type of Motor Insurance

In Singapore, there are mainly 3 types of cover namely :


This covers accidental loss or damages to the insured vehicle and legal liability for third party injury or property damage. It is the most costly and optional benefits are available for additional coverage.

Third Party, Fire and Theft

This covers loss or damage to the insured vehicle caused by fire or theft only and also legal liability for third party injury or property damage.

Third Party Only

This indemnifies only the insured’s legal liability for any third party injury or property damage. It is the cheapest  type of  motor insurance.

However, if your vehicle is still under finance, the financing company would require you to take a comprehensive coverage on your own vehicle.

Premium of Motor Insurance

Premium of motor insurance is calculated based on 2 category, Vehicle’s Risk & Motorist’s Risk

Motorist’s Risk

  • Accidnet Record in last 3 years
  • Nature of business involved
  • NCD Accmulated

Vehicle’s Risk

  • Make & Model
  • Tonnage
  • Type of Coverage (Comprehensive/TPFT/TPO)
  • Age of Vehicle
  • Usage of Vehicle

No Claim Discount (NCD)

No claim discount is a financial incentive for the insured for not having to make a any claims under you policy either by yourself or by a third party for a period of 12 months between each successive renewal of the policy. The following table shows how the NCD is awarded by all insurers across the industry.

NCD Accumulation Table
Commercial Vehicle Policies
with no claims
1 Year 10%
2 Year 15%
3 Year & More 20%

If a claim is made during the policy year whilst the insured is enjoying a NCD, the NCD will be reduced at the next renewal of the policy, as follows :

NCD Claim Table
NCD at time of claim No of claim during period of insurance On renewal NCD reduced to
20% 1 0%
15% 1 0%
10% or less 1 0%


Not all motor insurance policies are the same. To meet the individual needs of customers, insurers offer a wide variety of products. By shopping around, you will have the best chance of finding a policy with your preferred combination of price, excess and requirements relating to use and repairs.

As a general rule, the lower the premium, the more restrictions may apply to what is covered, how much you would be paid in the event of a claim, and what your options may be in the event of a claim. For instance, low-priced policies might come with restrictions as to where you can send your vehicle for repair or whether new or reconditioned parts are used. More expensive policies may allow more flexibility in your choice of repairers, etc.

The following are important things to consider when buying a motor insurance policy:
•Are there restrictions on who can drive the vehicle?
•What extra cover can you buy?
•Does the policy meet the requirements of your bank or finance company if you are buying the vehicle on hire purchase or a car loan scheme?
•How much excess will you be required to pay should you need to make a claim?
•Does the policy require you to take your vehicle to an Independent Damage Assessment Centre (Idac) for damage assessment?
•Does the policy have restrictions on who is permitted to repair the vehicle?
•Will reconditioned parts be used for repairs?

Are there restrictions on who can drive the vehicle?

Some insurer imposed exclusion that if the worker’s permit does not indicate as “Construction Worker cum Driver”, nothing is payable if the worker drives and involve in an accident.

What extra cover can you buy?

Some insurer insist that lorry with canopy must insure the canopy.
Other insurer deem it as optional cover.