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Frequently Asked Questions

Here are answers to some useful questions. If there’s anything else you’d like to ask, give us a call at 6221 2111. We’re open Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

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Frequently Asked Questions

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Cover

What types of cover can I choose from?

We have three types of policies you can choose from for your motorcycle.

Third Party Only is the most basic plan and covers your legal responsibility for damage to other people’s property or bodily injury or death to other people caused by an accident involving your motorcycle. It doesn’t cover damage to your own motorcycle.

Third Party Fire and Theft covers the same as Third Party Only plus loss or damage to your motorcycle if it is stolen or catches fire.

Comprehensive covers the same as Third Party Fire and Theft plus any damage to your motorcycle up to its market value.

Can anyone ride my motorcycle?

Our motorcycle insurance is a Named Rider plan. Below are the definition and excess amounts applicable to the Named Rider plan.

Named Rider Plan

This plan covers ONLY:

  • The person who uses your motorcycle most frequently (i.e. the Main Rider), and
  • One other person you include on your policy as Named Rider.

IMPORTANT: The Policyholder must be listed as either the Main Rider or a Named Rider in order to be covered under your policy.

Type of Excess

On Each and Every Claim**

Policy Excess S$300
   
Additional Excess  
Named Rider below 25 years old S$500
Named Rider with less than 2 years' valid driving licence S$500

** before any applicable GST

Calculation of the total Excess payable on claims
The total Excess you have to contribute towards a claim is the aggregate of the Policy Excess and any Additional Excess(es) which apply.

Example
If a claim involves a Named Rider who was 24 years old and was holding a valid driving licence for less than 2 years, the total Excess payable would be S$1,300.00 computed as follows:

Policy Excess S$300
Named Rider below 25 years old S$500
Named Rider with less than 2 years' valid driving licence S$500
Total S$1,300
How much do you insure my motorcycle for?

Under the Comprehensive and Third Party Fire and Theft plans, we insure your motorcycle up to its market value at the time of loss or damage.

Do you guarantee repairs to my motorcycle?

No, we do not guarantee repairs to your motorcycle done by your own workshop.

 

Do I have to tell you if I ride to work on my motorcycle?

Yes, when you go through our 'get a quote' process, we will ask you how you use your motorcycle. Here are the definitions of vehicle usage:

Private and Commuting Use is use of your motorcycle for social, domestic and pleasure purposes, and for travelling between home and a regular place of work only.

Private and Occasional Business Use is "Private and Commuting Use" above, plus use for occasional business purposes by the Main Rider or Named Rider only. "Occasional Business" means your motorcycle is not registered for business use, and the use of your motorcycle is not an essential part of earning income for a business.

Private and Business Use is "Private and Commuting Use" above, plus use for the business and/or occupation by the Main Rider or Named Rider only.

We allow:

  • carrying of goods or samples that are not for sale or payment

We do not allow:

  • carrying of passengers or delivery of goods in connection with any trade or business (for example, for despatch or courier purposes) (whether paid or not);
  • any purpose in connection with Motor Trade;
  • driving tuition or test (whether paid or not);
  • hire to other people; or
  • any other purposes which we have not agreed to in writing.
Who would Budget Direct Insurance not insure?

We won’t insure Riders who have had their licence suspended or revoked in the last 3 years. And we won’t insure those who have been rejected or declined by an insurer in the last 3 years. We don’t cover riders who have a DUI charge (riding while under the influence of alcohol or drugs).

Do you cover modified motorcycles?
What is a No Claim Discount (NCD)?

NCD is a discount on your motorcycle insurance premium. It’s based on how long you’ve been riding and your claims record. As you accumulate more years of riding without making a claim, you will receive more discount on the full-priced premium.

Provided you have been insured with us for the last 12 months and if you do not make any claim under your policy, we will give you a discount off your premium on the following scale when you renew your policy:

Number of claim-free years

NCD

One year

10%

Two years

15%

Three or more years

20%

Your NCD will be shown on the Policy Schedule and/or Certificate of Insurance. However, if subsequently, there is a claim made under your policy, we will reduce your NCD as follows:

Current NCD

NCD after 1 claim

20%

0%

15%

0%

10% and under

0%

Your NCD will be reduced to 0% after a claim is made under your policy in a policy term. If you fail to report an incident leading to a claim on your policy within 24 hours of the incident or the next working day, we will reduce your NCD upon renewal as follows:

Current NCD

NCD after late reporting

20%

15%

15%

10%

10%

0%

0%

0%

If you sell your motorcycle and buy another one and continue to maintain a motorcycle insurance policy with us, you will be entitled to retain your NCD for the new policy. If, however, you own more than one motorcycle, you will need to earn the NCD for each motorcycle. In such cases, we will advise you on the NCD under each motorcycle policy.

How does your NCD Protector work?

You can choose to protect your NCD under this Optional Cover. Refer to the table below for more details. This Optional Cover is only available to you if your NCD is 20%.

No. of claims made during Policy Term* NCD entitlement on renewal of your Policy

One

20%

Two

0%

Three or more

0%
* Includes cases where an incident occurs during the Policy Term but the claim is made after the Policy Term has expired.
I have a new motorcycle that is still under warranty. Can I use my own workshop for repairs?

We allow all accident repairs to be carried out at a workshop of your choice.

I bought my motorcycle insurance policy from Budget Direct Insurance a week or so before the policy was due to start. I was involved in an accident after the purchase of the policy but before the policy start date, and I will now claim against my current insurance policy. But I have been told that my new insurance premium with you will increase. Is this right?

Yes, it is standard industry practice for insurers to update the number of accidents prior to the policy start date, which may result in the premium being adjusted accordingly. At Budget Direct Insurance, we look at the total number of accident(s)/ claim(s) on your record in the last three years preceding the start date of your policy, regardless of whether you were at fault in those accident(s).

Are there any professions, trades or services you don't cover?


We do not cover the following professions, trade or services:

  • Driving instructors requiring business use
  • Professionals who are involved with the entertainment industry
  • Professional sportsmen or sportswomen
  • Personnel of foreign armed forces
  • Foreign diplomats and foreign diplomatic staff
My motorcycle is over 10 years-old, are you able to cover me?
Yes, we can certainly cover your motorcycle which is more than 10 years-old, no problem. It is our aim to make the cost of your motorcycle ownership as affordable as possible. Budget Direct Insurance offers motorcycle insurance premiums from as low as $150. We also provide a wide range of optional covers.

Managing your policy

What documents will I receive when I buy my policy?
  1. Policy Summary
  2. Certificate of Insurance
  3. Policy Schedule
  4. Tax Invoice
  5. Product Disclosure Document

The above documents will be sent to you by post unless you opt to go "Paperless", in which case we will email you the documents. If you decide to go "Paperless", your premium is reduced by S$20 (before GST).

What if I need to change my details such as my address?

You will be able to access your details under the 'Policy Manager' section of our website or you may call us at 6221 2111 Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

Can I cancel my policy after purchase?

Yes, we offer a 'Cooling-off period' to help you to decide if the cover is right for you. This is a 14-day window from the time of purchase, where you can cancel your policy and receive a full refund if your policy has not been incepted and no claims have been made or accidents reported on your policy. If your policy has been incepted, a pro-rated refund will be provided without a cancellation fee. We would refund you via the same way as you have paid for your premium, e.g. if you have paid by cash or cheque, we would refund you by cheque. If you have paid by credit card, we would refund you through the same credit card.

Can I cancel my policy after the Cooling-off period?

Yes, you can cancel your policy by giving us at least 7 days’ notice. You will receive a refund of the pro-rated premium less a cancellation fee of S$50 (before GST) if no claims have been made or accidents reported on your policy.

Where do I find my motorcycle’s details?

You can check your motorcycle details here on LTA's website.

If you need help finding this information, give us a call at 6221 2111 Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

Do I have to pay my motorcycle insurance premiums in one lump sum or can I pay in instalments?

You can choose to pay in one lump sum, or if your premium is above S$200 then you can pay in instalments by using your DBS/POSB MasterCard or Visa credit card. Just select your preferred payment method before you pay online or over the phone with us. Choose to enjoy a 3% discount on your premium when you make a single premium payment, or simply pay your premium in 12 interest-free monthly instalments. The choice is yours.

I am paying my motorcycle insurance policy premium by monthly instalment under an Instalment Payment Plan (IPP). What happens if I cancel the policy before the end of the policy term?

We will credit the refund of the pro-rated unused premium (“Refund Credit”) to the same credit card account, in accordance with the terms in your Product Disclosure Document. Your IPP with the bank will terminate and the balance total outstanding amount under the IPP will be set-off against the Refund Credit, and reflected accordingly in your credit card statement.

Can I make an early redemption of the IPP by settling the balance total outstanding amount owing in one lump sum?

You may do so by contacting the bank. However, please note that administrative fees may be imposed by the bank in accordance with its respective terms and conditions in the event of early redemption of the IPP (that is not due to policy cancellation). For more details, you may wish to check with your bank directly.

Can I cancel the credit card which is used for the monthly payment under the IPP?

You may do so by contacting the bank. However, please note that the balance total outstanding amount under the IPP will become payable immediately. Do also note that administrative fees may be imposed by the bank in accordance with its respective terms and conditions in the event of early termination of your credit card account. For more details, you may wish to check with your bank directly.

I am paying my motorcycle insurance policy premium by monthly instalment under an IPP. What happens if there is a partial refund of premium payable to me before the end of the policy period (for example, due to change in my NCD entitlement from 0% to 20%)?

We will credit the premium to be refunded to the same credit card account, and this will be reflected in your credit card statement for that billing period. There is no change to your monthly instalment amount, which will continue to be charged to your credit card every month, up to the final instalment.

If I choose to pay my insurance via monthly instalments then what method of payment can I use?

If your premium is above $200 you can pay in 12 monthly instalments. At the moment this is possible using your DBS or POSB credit cards only. We don’t charge you interest for your premium if you wish to pay in instalments.

Why do you only accept DBS/POSB credit cards for instalment payment?

At the moment we only accept payment for instalment plans via DBS/POSB credit cards.

In the future we will be bringing in other banks so that our customers have more choice when it comes to paying via instalments. This is currently in the process of being organized. In the meantime, we believe that DBS/POSB banks have one of the largest market shares for consumer banking (personal accounts).

We apologise if this causes any inconvenience to any of our customers and we thank you for your kind understanding and patience on this matter.

Claims

What should I do if I have an accident?

A step-by-step guide on what you should do if you are involved in an accident:

  1. Remain calm and do not panic.
  2. Check if anyone is injured - if there is personal injury, call 995 for ambulance or 999 for police assistance.
  3. Do not move your vehicle unless necessary, especially if there are personal injuries involved.
  4. Take photographs of the accident scene and damaged vehicles/property.
  5. Exchange the following information and particulars with the other parties involved (including witnesses):

    - Vehicle Registration Number
    - Name/Address/NRIC
    - Contact Number
    - Insurer
  6. Do not admit any liability, whether verbally or in a written form.

Should you require any towing services or assistance, please call our 24-hours Claims hotline at 6221 2199 if you are in Singapore or +65 6540 2199 if you are overseas.

Wait for a tow truck assigned by Budget Direct Insurance to tow your motorcycle – you should not accept help from any other towing service providers. You should also report the accident at any of Budget Direct Insurance’s Accident Reporting Centres within 24 hours of the accident or by the next working day.

Do I need to report an accident to the police?

You are only required to report the accident to the police if someone is injured in the accident or if it involves government/foreign vehicles, government property, cyclists or pedestrians.

Should you require further assistance, please call our 24-hour claims hotline at 6221 2199 or +65 6540 2199 if you're overseas.

What should I do if I am involved in an accident outside Singapore?

You are required to report the accident to the local police. If your motorcycle is damaged or it is no longer safe for you to ride your motorcycle, we will assist to arrange towing services to bring your motorcycle back to Singapore. For further assistance, please call our 24-hour claims hotline at +65 6540 2199 and our representatives will advise you.

If it is safe for you to ride your motorcycle, you may report the accident to any of our accident reporting centre upon your return.

Where can I repair my motorcycle after an accident?

You can go to any workshop of your choice for all accident repairs

What should I do if my motorcycle is stolen?

You are required to report the theft to the local police and proceed to any of our accident reporting centres to lodge an incident report. For further assistance, please call our 24-hour claims hotline at 6221 2199 or +65 6540 2199 (if overseas) and our representatives will advise you.

How much will I be paid if my motorcycle is deemed as "Total Loss" in an accident or if my vehicle is stolen?

If you have a Comprehensive motorcycle insurance policy with us, we may choose to replace your motorcycle or pay you the market value of your motorcycle at the time of loss (as determined by us). Upon our replacement or payment, your policy will no longer be in force and there will not be any refund of premiums.

If you have a Third Party Fire and Theft Insurance policy with us, we will only pay you the market value of your motorcycle at the time of loss (as determined by us) in the event your motorcycle is deemed total loss due to damage by fire or is stolen. There will not be any coverage on your motorcycle if it is due to an accident.

If you have a Third Party Only Insurance policy, there will not be any cover on your motorcycle.

What should I do in the event of "Park and Found" or "Hit and Run"?

In the event of "Park and Found" or "Hit and Run", you must lodge a police report before reporting the incident at our accident reporting centre. You may choose to claim under your own policy.

Should I accept any assistance from unknown roadside towing services or workshops?

You should only allow tow trucks assigned by Budget Direct Insurance to tow your motorcycle.

Should you require any assistance, please call our 24-hour claims hotline at 6221 2199 or +65 6540 2199 (if overseas).

Can I request breakdown towing/assistance in the event my motorcycle breaks down?

Breakdown towing/assistance is available if you purchase the 24 Hours Roadside Assistance optional cover. If you did not purchase this optional cover, we can help you to arrange for roadside assistance, however, you will have to pay any costs directly to the operator.

What is the time frame for me to report an accident and what documents are required for accident reporting?

The rider involved in the accident must report personally within 24 hours or the next working day, with a copy of his/her driving licence and NRIC, to any Accident Reporting Centre. The motorcycle must be present at the time of reporting.

Will there be a replacement motorcycle/ loss of use/ transport allowance when my motorcycle is undergoing repair?

There will be no replacement motorcycle. If you purchased our Transport Allowance optional cover we will pay you S$30 per day, capped at a maximum of 10 days per accident and subject to a total of 20 days per policy term. This optional cover includes an additional allowance of S$30 to "get you home" after an accident.

This Transport Allowance optional cover is only available for Comprehensive Motorcycle Insurance and Third Party Fire and Theft Insurance policy types.

How do I make a claim against the other party’s insurer?

After reporting the accident at our accident reporting centre, our accident reporting centre will be able to assist you to make a claim, or you may proceed to any workshop of your choice to file a third party claim.

Do I need to inform Budget Direct Insurance if I privately settle the accident with the other party?

Yes, you are required to file an accident report at our accident reporting centre for each and every accident even if there is a private settlement with the other party.

The purpose of informing us is to safeguard you from any claims that might arise from the accident and we will be able to defend you against any legal proceedings. You still need to lodge an accident report for any accident you are involved in.

Please click here for a copy of Budget Direct Insurance Private Settlement Form.

What should I do if I receive a Letter of Demand/ Writ of Summons?

If you receive any Letter of Demand/ Writ of Summons from the other party relating to the accident, you should forward it to us "By Hand" immediately. You should not negotiate, admit liability or offer payment to the other party.

How do I make a claim against a foreign vehicle?

You are required to lodge a police report at, or near the place of accident. If you are not liable for the accident, you may choose to either claim under your own policy and we will recover all amounts paid from the insurer of that vehicle or you may proceed to any workshop of your choice to file a third party claim.

Do I have to pay excess when I make a claim on my motorcycle insurance?

Excess is the amount that you have to pay towards your claim. At Budget Direct Insurance our standard policy excess for motorcycles is $300.

You can choose to reduce or increase this amount depending on your claim experience and budget.

For motorcycle you can reduce your excess right down to zero. This will increase your premium but means you pay less excess on your claim. You can also increase your excess up to $800, which means you pay less premium.

Types of Excess

The table below shows the types of excess that will apply when you make a claim.

Type of Excess

On Each and Every Claim**

Policy Excess S$300
Additional Excess
- Theft Outside Singapore 50% of Market Value of your Motorcycle at the time of Theft (up to maximum of S$2,000)
- Medical Expenses S$100
- Named Rider below 25 years old S$500
- Named Rider with less than 2 years’ valid driving licence S$500

** before any applicable GST

How to calculate the total excess payable on a claim

The total excess that you have to contribute towards a claim is:

the policy excess and any additional excess(es) that apply.

Example

If a claim involves a Named Rider who is 24 years old and has held a valid driving licence for less than 2 years, the total excess payable would be S$1,300. This amount is computed as follows:

Policy Excess S$300
Named Rider below 25 years old S$500
Named Rider with less than 2 years’ valid driving licence S$500
Total S$1,300

Policy excess waived

You do not have to pay any policy excess towards a claim arising from an accident involving another identified vehicle registered in Singapore, that was wholly not your fault based on our assessment.

The policy excess does not apply if you are claiming for damage to your motorcycle due to fire.

If your motorcycle is stolen outside of Singapore, the excess will be 50% of the market value of your motorcycle at the time of the theft (up to a maximum of $2,000 before any GST).

Where can I report an accident involving my motorcycle?
I have 20% NCD from my current insurer, can it be transferred to the policy I'm about to get from you?

Your current NCD (0-20%) is transferable to your new policy with Budget Direct Insurance. But do note that any protected NCD (NCD Protector) is not transferable from one insurer to another. If you have been involved in an at-fault accident/ claim and your 20% NCD has not been reduced to 0% because of the NCD Protector, you would have to declare your NCD to be 0% when you switch over to us.

If you are unsure of your renewal NCD level, please state 0% or give us a call at 6221 2111 , Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).