I THANK Mr Daniel Choy for last Friday's letter, "Motor Claims Framework: Why no cut in premium?"

As the Motor Claims Framework (MCF) was implemented nine months ago, it is still too early to assess its full impact on containing claim costs.

The General Insurance Association firmly believes that in the middle to long term, there will be a positive and sustained impact.

Already our member insurers have seen a significant 24 per cent increase in accident reports being filed since the framework was implemented.

We believe that such timely reporting will go some way in containing and curbing rising claims, a key determinant in the need for insurers to raise motor premiums.

To better assess the effectiveness of the framework, the General Insurance Association will conduct a national survey in May to gather feedback from motorists on their reporting and claims experiences, and make further improvements.

The issue of inflated third party claims, as raised by the writer, is a very real one.

The General Insurance Association is currently studying various other options to address this crucial area as well.

Mark Lim
Executive Director
General Insurance Association

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