Possible Advantages of Private Settlement for the Victim

1. Get Quick Compensation

  • If the at fault driver agrees to pay for repairs on the spot or shortly after, you can skip the long insurance claim process.

2. Use Your Own Workshop

  • You’re free to choose a trusted workshop (especially useful if you’re particular about repair quality).

  • No need to go to authorised workshops tied to the insurer.

Tips for Victims Considering Private Settlement

If you do decide to settle privately, follow these steps:

  1.  Take clear photos of:

    • Vehicle damage (both cars)

    • Road scene

    • License plates and surroundings

  2.  Exchange full details:

    • Names, NRIC/FIN, contact numbers

    • Vehicle registration numbers

    • Insurers’ names

  3.  Get a written agreement:

    • Include agreed amount, payment method, and statement that both parties will not make further claims.

  4. Still report to your insurer (mark it as “for record only”) to protect your NCD and rights.

Download Download Download Private Settlement Form Here

Disadvantages of a private settlement in Singapore

Private settlement In Singapore, it’s quite common for drivers to consider settling an accident privately especially if the damage looks minor. But before you do that, here are some important reasons why you should think twice.

1. You Must Report to Your Insurer — It’s Mandatory

According to most insurance policies in Singapore, you must report any accident within 24 hours or by the next working day, even if:

  • You don’t intend to make a claim, or

  • You’ve already agreed to a private settlement

Failure to do so could result in:

  • Loss of your No Claim Discount (NCD)

  • Your claims being rejected in the future

  • Your policy being voided

2. Damage or Injuries May Show Up Later

What looks like minor cosmetic damage might actually be hiding internal issues — like frame misalignment or battery problems (especially for EVs).
Also, injuries such as whiplash or joint pain may only appear a few days later. If you’ve already settled privately, it’ll be too late to claim.

3. The Other Party Can Change Their Mind

Even if both parties sign a private settlement agreement, the other party can still:

  • Report the accident to their insurer

  • Change their version of the story

This can result in a dispute — and if you didn’t report the accident earlier, your insurer may refuse to help.

4. Repairs May Not Be Properly Done

Private settlements often involve repairs at non-authorised workshops. These may be cheaper, but:

  • The quality may not be guaranteed

  • There is usually no warranty

  • You may face future repair costs on your own

5. Your Insurance Premium Could Still Go Up

Even if you don’t make a claim, just being involved in an accident may result in:

  • Higher renewal premiums

  • Being categorised as a higher-risk driver

So private settlement doesn’t always mean you save money in the long run.

6. Insurance Exists to Protect You

You pay for car insurance to give you peace of mind. If you settle privately and things go wrong later, you’ll have to bear all the costs yourself.