Managing a busy workshop comes with risks, customer vehicles in your care, road testing, parts movement, and liability exposure. For many repair shops, panel beaters, and spray-paint centres, a poorly structured policy leads to constant disputes, unclear coverage, and long claim delays.
This case study shows how one Singapore workshop significantly reduced disputes simply by restructuring its motor trade insurance Singapore programme.
1. Background: A Growing Workshop Facing Rising Risks
A mid-sized workshop operating in the eastern industrial belt handled daily servicing, accident repairs, and insurance-authorised work. As volume grew, so did exposure:
-
More customer vehicles parked on-site
-
More road tests
-
Higher-value repairs
-
Increased third-party interactions
Despite being insured, the workshop experienced repeated coverage disputes, mostly due to unclear policy wording, insufficient limits, and mismatched add-ons.
2. The Key Problems Before the Policy Review
A. Unclear Coverage for Customer Vehicles in Custody
Damage caused during repairs or accidental incidents inside the workshop often led to disagreements with insurers.
B. Road Test Liability Gaps
Mechanics occasionally test-drove repaired cars, but the workshop’s policy didn’t clearly specify coverage during road testing.
C. Insufficient Public Liability Limits
Customer interactions and delivery drivers increased third-party risks, but coverage limits had not been updated for years.
D. Slow and Repeatedly Disputed Claims
Claims were often rejected for technicalities or missing documentation, creating financial strain and operational downtime.
For reference, situations like these are common in automotive businesses, similar to challenges mentioned in top tips to choose the best motor insurance in Singapore.
3. The PCMI Intervention: A Full Policy Audit
The workshop engaged PCMI to review its motor trade insurance Singapore programme.
PCMI’s licensed advisers performed a full audit that included:
-
Claims history analysis
-
Policy and endorsements review
-
Workshop risk assessment
-
Mechanic road test procedures
-
Storage capacity & customer vehicle flow
Using the findings, PCMI redesigned the policy with improved clarity, higher protection, and stronger operational alignment.
4. The New Motor Trade Policy Structure
A. Clear “Vehicles Under Care, Custody & Control” Coverage
This eliminated ambiguity over damage responsibility, reducing customer disputes and insurer pushback.
B. Road Risk Extension for Mechanics
All authorised employees were listed, with clearer rules for test-drives and movement of vehicles.
C. Updated Public Liability Limits
Coverage was increased to match the workshop’s higher daily vehicle turnover.
D. Policy Documentation Simplified
Clear instructions, checklist-based requirements, and streamlined claims communication channels were added.
Workshops facing similar challenges often struggle with incomplete claim submissions, something PCMI helps prevent through their insurance claims support service.
5. The Result: 42% Fewer Claim Disputes in 12 Months
In the following year, the workshop saw measurable improvements:
A. Claims Became Faster and Cleaner
With proper documentation, clearer terms, and aligned processes, insurers processed claims with fewer follow-up issues.
B. Reduced Policy Ambiguity
Because the policy now matched real workshop operations, fewer incidents fell into grey areas.
C. Improved Customer Trust
Customers appreciated transparent repair responsibilities and faster resolution timelines.
D. Operational Confidence Increased
Managers knew exactly what incidents were covered, helping them focus on workflow and customer service.
The improvement aligns with best practices seen in regulated motor policies, such as those in MAS rule updates for commercial vehicles.
6. Why Motor Trade Insurance Needs Periodic Updates
Automotive workshops evolve quickly: more vehicles, larger premises, more diagnostics, and higher-value parts.
Yet many businesses keep the same outdated policy for years.
A structured motor trade insurance Singapore review ensures:
-
Cover aligns with real risks
-
Limits match today’s repair values
-
Employee practices are properly insured
-
Claims are processed smoothly
Workshops with fleets or delivery vehicles also benefit from aligning policies with PCMI’s commercial motor insurance advisory.
Conclusion: Coverage Should Support, Not Hinder, Your Workshop
This case shows that businesses don’t always need higher premiums, they need smarter structuring.
The right motor trade insurance Singapore programme reduces disputes, improves claims success, and builds long-term customer trust.
To review your workshop’s policy or request a claims audit, chat with PCMI on WhatsApp and speak with a licensed insurance adviser today.
