DriveShield, a relatively new motor insurance package, distributed by DBS Bank and underwritten by MSIG Insurance (Singapore) Pte Ltd (formerly known as Aviva General Insurance), is making many motorists take notice.

The package, coming as it does into an increasingly competitive motor insurance market, has several attractive features which should appeal to those who seek hassle-free, service-oriented insurance coverage for their motor vehicles.

Just about two years into its launch, DriveShield has got motorists such as Mr Lee, 60, a veterinary surgeon, crossing over into its growing fold of policyholders.

Said Mr Lee who drives a one-year-old Toyota Harrier: "I am extremely impressed by their excellent service and ease of application. I am paying $776 for the DriveShield policy, which is slightly cheaper than my previous policy and I can go to any workshop for accident repairs. So why not?" He said in both his former policy and his present one, he enjoys a 50 per cent no-claim discount.

Another motorist, 43-year-old Mr Tan H.L., who owns a 2003 Mercedes-Benz E200 with a 1798 cc engine, and who also has a 50 per cent no-claim discount, now pays only $722 per year under DriveShield. He says this a very good deal.

Added Mr Tan: ?Their service is good and very efficient. I called in the morning and requested for the certificate of insurance to be sent by the following day as I needed to renew my road tax urgently. In the same evening, the certificate was delivered to me!?

Motor insurers usually offer a wide variety of policies to meet the individual needs of car owners. So while the basic cover is generally similar, insurers try to differentiate their policies from those of their competitors by offering different benefits. But they do generally impose rules on vehicle use, claims and repairs.

Potential car buyers viewing what's on offer

One of DriveShield's big attractions is this: It allows policyholders to go to the workshop of their choice for repairs following a motor accident. Policyholders can also have their cars repaired at the dealer?s workshop.

Furthermore, they do not have to send their cars to IDAC (Independent Damage Assessment Centre) to assess and record the extent of damage. The IDAC factor has been the bone of contention among many motorists who feel this extra process inconveniences them.

In another move to be one up on the competition, DriveShield offers a special protection for car loans made by policyholders. Since car ownership in Singapore is a heavy investment which normally requires many years of financing, DriveShield will cover the outstanding car loan for up to $200,000 in the event of the accidental death of the policyholder involving the insured car. This will relieve the policyholder?s dependents of heavy financial burdens.

And of course, there is the easy 12-month, interest-free instalment payment scheme for policyholders using DBS Master / VISA credit cards. For those who like the convenience of online application, DBS Bank offers the first and only instalment payment option via the internet for DriveShield.

DBS Bank describes DriveShield and its payment scheme this way: "Competitive pricing, hassle-free application and easy-payment arrangement.?

Customers can simply buy online via www.dbs.com/sg/personal and pay their annual premiums by choosing the instalment payment plan, or pay in full either by credit card or by debiting their internet-banking account online.

But wait, there is more.

For policyholders who drive up north into peninsular Malaysia, they can have peace of mind knowing that should they encounter any road mishap, they can rely on a free 24-hour automobile assistance service. Of course, this service is also for those who drive in Singapore.

All policyholders need to do is to make a phone call to MSIG Assist which will help to arrange for emergency towing, or roadside repairs if feasible. Should the policyholder?s vehicle break down or get stolen, this service offers to help organise alternative transport for the policyholder to continue with the journey, assist the policyholder to secure a rental vehicle, or may even help to arrange for hotel accommodation at the nearest location. Other assistance offered by this service includes arranging for the repatriation of vehicle to Singapore, locksmith referral should the policyholder be locked out of his/her car, and information on the nearest police station to lodge a police report.

Such a service really eases the anxiety many motorists face when involved in road accidents ? especially when they are stranded and alone in a foreign country. However, do note that MSIG Assist only provides free referral or arrangement of services, and the policyholder shall be responsible for any third party expenses involved.

DBS Bank and MSIG Insurance hope that this package is attractive enough for motorists to pay attention to the DriveShield package.

On how it is going to control the possibility of inflated repair claims by unscrupulous workshops, under DriveShield's free-choice of repair scheme, a spokesman for MSIG Insurance said: ?We are keeping a close watch on the claims cost. More importantly, we feel it is important that our policyholders are given the choice to go to their preferred workshop for accident repairs. Nothing beats getting the car repaired to our policyholder?s satisfaction, which is basically what claims service is all about. "

With the motor insurance business back in the black after being in the red for 12 years, competition in this industry has been heating up. The entry into the market of several smaller players led to a price war which resulted in insurance companies reducing their premiums.

Now, the industry is facing the problem of lower profits as a result.For the first half of this year, motor insurance underwriting profits fell to $14.5 from the $31.5 million in the same period last year.

Experts warn that if this continues, the full-year profit will be significantly lower than last year?s.

* DriveShield policy terms and conditions apply.

See all of what DriveShield has to offer by clicking here