WHEN his car was involved in a minor collision with a bus, Mr Peter Sng, 62, decided to pay for his own repairs.

The managing director of a spa chain did not want to claim from his motor insurer so that it would not affect his no-claim bonus (NCB).

But Mr Sng was shocked when he renewed his insurance in May this year. He was told to pay about $1,950 - some $780 more than what he paid last year.

Before the renewal of his policy from Mitsui Sumitomo Insurance through insurance brokerage Newstate Stenhouse, Mr Sng's NCB was 50 per cent.

NCB REDUCED

However, he was told his NCB had been reduced to 20 per cent.

It is common practice for motor insurers to give policy holders annual discounts on their premiums as a reward for not making claims.

Mr Sng's case raises the question - can motorists lose their NCB even if they have not made any claim?

Mr Sng said: "I thought I was doing the right thing by paying for my own repairs. Instead, I was penalised."

Last November, Mr Sng's black Volvo S80 was involved in an accident with a private bus along Havelock Road.

The car's right side had some minor damage and its right sideview mirror was broken.

Mr Sng's repair bill came up to about $1,120.

He then filed a claim against the private bus' insurance through Newstate Stenhouse.

The bus' insurer Allianz Insurance offered to settle Mr Sng's claim for about $405 but he rejected it as it was too low. There was subsequently no settlement.

When contacted, Newstate Stenhouse's spokesman said Mr Sng's accident was classified as a "side-swipe road accident" with both parties sharing equal blame.

The spokesman said: "Mitsui Sumitomo would anticipate that the third party probably would also claim against Mr Sng's policy. Accordingly, Mitsui put up a third party claim reserve."

To prepare for this, Mr Sng's NCB was reduced, hence raising his insurance premium this year. Otherwise, it would have been about $1,170, said Newstate Stenhouse.

But Allianz Insurance has so far not made any claim against Mr Sng.

Other motor insurers said the NCB would not be affected as long as no claims were made against the vehicle owner.

HIGHER PREMIUM

Newstate Stenhouse said it would have been different if Allianz Insurance had offered to cover more than 70 per cent of Mr Sng's repairs bill.

Under the company's policies, Mr Sng's NCB would then not be affected.

Mr Sng said: "Not only did I pay $1,000 for the repairs, but I am now paying a higher premium. I'll most likely switch to another insurer when my policy expires next year."