But the settlement sum was much less than the estimated cost of repairs to his car.
It seemed like an unfair proposition, so Mr Keith Tan, 22, ignored the letter from insurer NTUC Income.
But he thinks others who receive such a letter might not understand the implications of accepting the payment.
This means that those who have signed the letter may have to fork out the difference if the repair bill amount is more than what the insurer has offered.
NTUC Income explained that it made a direct offer to Mr Tan as he had not indicated his choice of workshop.
A spokesman also said that if the amount offered was insufficient, he could have negotiated with the company.
But Mr Tan, who works in the marine sales line, decided not to accept the offer and to let his workshop handle the matter instead.
Mr Tan was driving from Sengkang towards the Tampines Expressway at about 8am on 3 Aug when he was hit from the back by a Kangoo van.
The impact damaged the back and bumper of Mr Tan's silver Toyota Altis and the boot could not be closed.
The other driver was insured by NTUC Income.
Mr Tan drove to the Independent Damage Assessment Centre (IDAC) at Kaki Bukit immediately after the accident.
Those who want to make a claim for their vehicles after an accident have to take them to an IDAC within 24 hours of the accident.
Photo/ KELVIN CHNG
The IDAC will certify the extent of the damage and photograph the damage but it does not assess the repair cost. Drivers are also asked to sign insurance claims forms there.
Mr Tan then took his car to a workshop in Hougang the same day. A third party surveyor went there and estimated the cost of repairs while he was there.
Mr Tan left his car at the workshop for three days and was given a replacement car in the meantime.
On 11 Sep, he received a letter from NTUC Income asking him to acknowledge payment of $2,100.
A discharge voucher was attached, and by signing it, it meant accepting 'full satisfaction liquidation and discharge of all claims'.
A confused Mr Tan called the workshop.
He said: 'I was surprised when I found out from the workshop that the third party surveyor report showed that the charges incurred could have been more than $3,000.'
He was concerned that he would be liable for any difference in costs and that the workshop would ask him to pay the balance.
'I kept wondering why they didn't just go to the workshop? Shouldn't they pay them directly?' said Mr Tan.
He ignored the letter and the workshop said it would handle the matter with NTUC Income.
One of the supervisors at the workshop told The New Paper it was the first time he had come across such a case. He said he advised Mr Tan not to sign it.
Said the supervisor: 'The insurance company should deal with the workshop and not send the letter to the owner.
'If the driver signs the letter and the cost is more than that, he will have to pay the difference.'
In the end, the workshop accepted NTUC Income's offer of $2,873.
A NTUC Income spokesman said that if Mr Tan felt that the offer was not sufficient, he could have negotiated with the company.
She added: 'He should not accept an offer by signing the discharge voucher if he knows that the offered amount is insufficient to compensate him for his loss.'
The spokesman said it was the company's practice to attach discharge vouchers with its letters of offer.
'This is to speed up the claim process,' the spokesman added.
