Basic motor insurance coverage is required by law in Singapore under the Motor Vehicles (Third-Party Risks & Compensation) Act.
In case of an accident, the basic motor insurance coverage policy will help to pay for the bills that exceed our excess amount, such as the other party's medical bills and/or damage to their vehicle. The policy also pays for legal fees if you end up in court due to the accident.
If you don’t have basic motor insurance coverage, you can be fined up to $1,000, jailed up to three months, or both. Additionally, you'll also be disqualified from holding or obtaining a driving licence for 12 months after being convicted.