If you can't beat them, join them, or so appears to be the strategy of motor insurer NTUC Income which is planning to tie up with car distributors to get a bigger share of the new car market.

Income revealed at a press conference yesterday that it is in talks with two of the players among the top five car brands, but declined to name them.

Income is not traditionally tied to the major car distributors in Singapore, while AIG or AXA - the other two big motor insurers - are estimated to have cornered as much as three-quarters of the new car market.

AIG overtook Income in the fourth quarter of 2006 to become the market leader by a wafer-thin margin.

But since taking over the reins in February, Income chief executive Tan Suee Chieh has been quoted as saying the aim is to regain the top ranking.

Yesterday, Mr Tan unveiled Income's new multi-channel approach of working with car distributors as well as intermediaries such as corporate agents to capture the renewal market, and stepping up its direct sales effort through advertisement campaigns.

From May, the cooperative will offer two insurance plans - 'drivo Premium' and 'drivo Classic'.

The former allows customers to return to the car distributor's workshop for accident repairs, while under the latter, repairs will continue to be carried out at Income's workshops.

Mr Tan said the rates for 'drivo Premium' will be about 25 per cent more than 'drivo Classic'.

Actually, the option to have repairs done at the car distributor's or any other workshop has been available since May last year but Income decided to make it more 'structured'.

'Whether they are buying new motor or life insurance, or sending their vehicles in for repair, customer choice is at the heart of our new strategy,' explained Mr Tan.

As for regaining the top spot in auto, Mr Tan clarified that being No 1 is not the aspiration. 'If we do well, we ought to be No 1. If our premiums are good and the majority of people buy our policies, our market share will go up.'

Income is widely acknowledged as having the lowest rates in the industry. Its motor premiums average between $600 and $800.

For example, the published rate for a Toyota Camry 2.0 for a 35-year-old motorist with no NCD (no claims discount) is $1,281 if it is to be sent to an Income workshop after an accident.

The rate is $1,600 if the authorised distributor's workshop is preferred.

But Mr Tan said current rates will not be lowered, and hoped that in 12 months' time, 15 to 20 per cent of Income's policies will be of the 'drivo Premium' variety.

Currently, all except one to 2 per cent are under the Classic plan.

Income reported an underwriting profit of $5.1 million in 2006, but its motor portfolio has shrunk by about 20 per cent in the past few years.

In 2006, its gross written premiums were $165.4 million, down from $206.5 million the previous year. The latter was lower than the $255.3 million in 2004.