SINGAPORE — Drivers who display good driving behaviour or clock in lower mileage can now pay cheaper insurance premiums with Singapore’s largest motor insurance provider NTUC Income, as it taps digital technology to make policies more “personalised” for its clients.

The insurer launched two plans on Thursday (Oct 6) that use telematics — employing computers and wireless telecommunication technologies to transmit data — to award tiered savings to private-car owners, giving them a 5 to 35 per cent discount on their premiums if data capture that they have been driving well, or less. 

NTUC Income chief executive officer Ken Ng said this would provide a more “accurate assessment” of risk compared to using factors such as a driver’s age, type of car, and gender.

In May, insurance firm AXA launched a policy that allows drivers using the GrabCar ride-booking app to pay for their commercial motor insurance according to the mileage on paid trips.

For NTUC Income’s new plans, drivers who sign up for the Drive Master scheme have to use a smartphone app as well, while those who opt for the FlexiMileage scheme have to instal a telematics device in their vehicles.

Drive Master tracks the time spent on the road, the distance travelled and the speed as well as the drivers’ manoeuvres, such as how frequently they rapidly accelerate or brake harshly. 

The data will compute a cumulative score, and drivers must allow this to be shared via the app for six consecutive months and drive a minimum of 5,000km. 

Their scores will determine the discounts they get, which range from 5 to 20 per cent.

FlexiMileage measures just the distance travelled, with drivers netting a 35 per cent discount on premiums if their mileage is below 5,000km a year, or a 20 per cent discount if mileage is between 5,000km and 9,000km yearly. 

When asked whether clients may find ways to cheat the system, Mr Bill O’Connell, NTUC Income’s vice-president for motor insurance, said: “We trust our customers … we’ve done many studies and we don’t think Singapore drivers can be Jekyll and Hyde — turn off and drive crazy, and turn it on again.” 

Drivers such as public servant Dickson Koh, 30, expressed interest in the schemes for the cost savings and “being rewarded for driving safely”. 

This might also help motorists to change their driving habits in the long run, he added.

However, Mr Koh hopes that the app might be able to factor in more flexibility and leeway in scoring. “Sometimes we have no choice (in braking harshly) as the car in front might brake suddenly or a pedestrian suddenly appears on the road … So it’s not that you’re a reckless driver, but you just have to respond to the situation.” 

Madam Adeline Lee, 55, an assistant executive who drives about once a week, cited privacy concerns as one reason for not getting the plan. 

“If there’s a tracking device where others know where you’re going, it might be out of the question (for me),” she said.