Wednesday, December 31, 2008

Review of 2008

Review of my 5 2008 Resolutions as per my 1st Jan 08 post

1) To achieve stablised income of $3,000/mth or $36,000/yr

* Due to my switch of career, my average income in 2008 is probably only around $1,000/month at the moment
2) To pass CFA Level 1 examination
* I did not pass my CFA in Jun08 and I have no time to retake Dec08 exam
3) IPPT Silver in 2008
* I got my IPPT Silver in August 08
4) Gain weight from 58kg to 62kg thru weights training
* I did nothing at all to make me a stronger person till December
* I think I gain more fats than muscles
5) Toastmasters Competent Communicator
* I drop out from Toastmasters after leaving NTUC Income and I did not join any club

What I feel about 2008?
* No major illnesses except for occasional back pains. I did not exercise much in 2008 and I can feel my energy level dropping.

* I made a career switch in Jun08 to join a Financial Advisory Firm. I lost my clients and commissions overnight and start earning from zero. A lot of time are spent learning and unlearning.
* No regrets in getting out from the tied agency system but a bit of miscalculation by joining a firm whose remumeration system gives better benefits to top advisers and managers. I have no intention to be a manager yet. Perhaps in 2010.

* It took me nearly 4 years to start earning a stable income of $2k/mth and now I started with $0 again. Thats the problem in our profession. We give up our salary when we leave for new firm.
* I'm currently on negative cashflow position. I have been through this stage before and I'm confident to be back in the black within 1 year. Things will only get better.

* Still okay. Not much time for friends nowadays except for occasional wedding dinners and house warmings
* Cannot work like my unmarried or unattached colleagues. My time are divided equally between work and family now.

* My wife gives me a lot of support. She understand my philosophy in Financial Planning and believe that I will do well one day. I love her and I will not fail her.
* Kids? I have a probia for one. Don't ask me why? Maybe because I worry about insufficient time and money.

I shall write about my Resolutions tomorrow...

Monday, December 29, 2008

Developing your Financial Plan

As Financial Planners, we help our clients in developing a Financial Plan. Many people have no idea what a Financial Plan should constitute. Some of them demanded more complicating stuffs from us and disappointed on how simple it can be. Our roles are not well defined and often misunderstood.

* Financial Plan is not Rocket Science that comes with complicating formulaes. We are not Financial Engineers.
* Financial Plan is not about helping you make lots of money and to analyse all your stock holdings. We are not Financial Analyst.
* Financial Plan is not about scrutinising every stocks in your Unit Trust and answer why was some shares selected. We are not Fund Managers.

If a Financial Plan do not help us analyse all these and let us make lots of money, then why need a Financial Plan?

My work desk and unpresented Financial Reports

I always consider myself more like a Financial Counsellor and not a Financial Professor with complicating formulaes to impress others. My role is to guide my clients in a structured way towards managing their finance and to ensure that they are disciplined enough to hit their financial goals. We are also like cheerleaders, cheering and encouraging them to be focused on their goals through our regular reviews.

So what are the considerations that we, as Financial Planners take when we construct a Financial plan? I can share 10 basic things that I do for my clients.

1. Understanding client’s needs, short/mid/long term goals and priorities
2. Gathering relevant quantitative and qualitative data
3. Hearing first hand on client's problems and concerns and record them into their individual file
4. Informing clients on assumptions used in the Financial Plan and when a review is necessary
5. Analysing Client's Net Worth and Cash Flow
6. Using basic Formulas to guage Client's Financial Health
7. Looking through Client's current Insurance policies and assist them with knowing their insurance numbers. (Hospitalisation, Death, Disability Critical Illnesses, accidents, etc)
8. Understanding Client's Investment Strategy and Philosophy
9. Understanding Client's Retirement needs and if on track with current strategy
10. Income Tax and Estate Planning considerations

After the Financial Plan is completed, we'll proceed with Recommendations and the Implementation process. As FAs, we have another layer of job which is to identify the plan with the best value from the range of companies we represent. Last but not least, Our job is also in reviewing the financial plan as an on-going service.

A Financial Plan is normally not complicated but tedious and time consuming to construct. We recommend according to needs and earns a modest living when we recommend plans of good value for our clients. Majority of us earns a commission and it is a way to compensate our time.

For me, I do more on Simple Cases and I cannot have differing standard as of who I shall charge a fee and who shall not. For simplicity, I keep to one system for the moment.

Friday, December 26, 2008

The Need of Discipline and Convenience

I walked into the California Gym 2 months ago to ask about their Gym membership package. I thought of starting 2009 with a disciplined exercise regime.

Many friends tell me not to sign up because it is cheaper in Sport Councils where it cost only $2.50 per entry and that I can do my own weights exercises and jogging myself to keep fit. Its not necessary to sign up a Gym Package.

I know about the lower cost in Sports Councils and that I can do my own exercise at home but the thing is that “I never do it despite the low cost of keep fit”. My usual excuses are the lack of convenience and discipline.

* To overcome the convenience factor, I had chosen a gym within walking distance to my office and rented a personal locker in the Gym to put my clothes, shoes, bathing stuffs in my locker. I don’t need to bring all these barang barang now compared to the times when I go to sports council.
* To overcome the Discipline factor, I had asked my colleagues to join me so that we can encourage each other. The thought of putting in money monthly will also ensure that I fully make use of their services. This shall motivate me as well.

I eventually sign up the package without waiting for 2009. I'm currently going Gym on a regular basis and I must try to keep it this way...

This incident reminded me of my investment plan.

In the past, my investment discipline was through setting aside my monthly surplus and target to buy ETFs and shares every 3-4 months because of the lower cost structure compared to Unit Trust.

I encountered a few problems with this way of investment
1) It take rather long before I can accumulate enough money to get into ETF and shares at reasonable cost. I normally buy only after I accumulate $3-4k.
2) I also realized that I do not have the discipline to save because I spend more when I have more money.
3) After accumulating that $3-4k, I become fearful with my money that I will lose it. I was very emotionally with this money and start to punk the market, hoping for quick returns.
4) I become greedy at the height of the bull market like many investors and I got myself burnt with my investments.

To control my greed and lack of discipline, I decided to adopt a very simple and convenient way of investment called RSP (Regular Savings Plan). In the past, I failed to target an amount to save and I tend to spend more when I have more money. With a Unit Trust RSP, I forced myself to invest $XXX/month without trying to time the market. I spend only after setting aside the money for investments.

My investment plan is somehow similar to my new exercise regime. I need the Discipline and Convenience to achieve my fitness target. I also need this Discipline and the Convenience of RSP to achieve my financial target. The cost of Unit Trust is slightly higher and potential returns are smaller compared to the stock market, but it suits me well.

To start an RSP is simple and the cost is reasonable. I strongly encourage you to start one. Don’t need to wait so long!!!

Tuesday, December 23, 2008

Incontestability Clause

I was recently asked about the Incontestability Clause by one of my client. Below is my reply to him...


Hi Mr XXX,

Below is the actual wording from the i-term Policy Document with regards to incontestability

After one year from the Date of Issue or from the date of reinstatement, whichever is later, this Policy shall be incontestable except for fraud or non-payment of premiums.


This clause is to prevent the insurer from contesting or disputing the validity of the policy except on grounds of fraud or non-payment of premiums after policies have been in force for at least one year from the date of issue or date of revival.

The purpose of the incontestable clause is to protect the beneficiary if the insurer tries to deny payment of the claim years after the policy was first issued. This is because the insured will be dead and he or she cannot refute the insurer's allegations. As a result, the beneficiary could be financially harmed if the claim is denied on the grounds of a material misrepresentation or concealment.

I have not heard of any legal case with regards to incontestability in Singapore but in my opinion, the insurance company has to prove that there is fraudulent intent, in order to reject a claim after 1 years if they choose to reject a claims.

Fraud is a false representation calculated to deceive another into acting against her or his legal interest. Statements that are inaccurate but made without the intent to deceive are not fraudulent.

Hope my info helps with regards to incontestability. Thanks.

Adrian Khiat


Friday, December 19, 2008

Another close comrade passed away

I write this because 2 close ex-colleagues, coincidently by the name of David, passed away during the past 1 year. Both of them coincidently also joined NTUC Income with me, though different departments.

I joined NTUC Income as a full-time adviser on 1st March 04. A colleague by the name of David Lam joined on the same day. We were quite close in our work. We went Army Camps for talks and he was my room-mate during one of the company retreat. He was diagnosed with nose cancer around Oct05 and passed away around Dec07. I was quite sad over his death at that time but I managed to meet him before he die and have a very long chat.

David Lam on the extreme left during a Company Retreat

Today. I get to know of another good friend, David Chew, passed away. He joined NTUC Income Business Centre on 1st Feb06 together with me. We worked quite closely together and he was my usual lunch and dinner kaki. I fought for him when I felt he was unfairly dismissed by our manager in Feb07. He was actually a very nice and polite fellow but not well liked by our immediate managers because of his out-spoken nature and he, being not so well groomed.

We met twice for lunch even after he left NTUC Income. We spoke over the phone quite often and we last chatted over the phone in Oct08. As I'm the midst of work when he called, our conversation lasted less than 3 minutes. He seems trying to tell me something.

David's mother called me today. She thanked me for the Christmas card that I sent David. She told me that he will no longer be able to receive my cards anymore because he passed away on 9th Dec. I tried to asked how he passed away but his mum just told me that he was down with depression. She said that he suffered a lot and asked me why people in Singapore are so wicked. I was stunned for words and my mind was totally blank. I suspect that he had ended his own life. I did not probe further.

David Chew on the extreme right during a New Year party.

She thanked me for helping David when he was down during his times in NTUC Income. She said that he mentioned about me often and that he will remember me for life as I'm the only one who stood up for him during that period.

I am very sad, even till now. Tears did appear in my eyes but it was well controlled and I was confused if I should cry at all because we are actually not that closely related. Did David try to seek my help when he called in October. Was he already in depression then? He was in Peoples Association then and probably under a lot of stress. I was actually thinking to meet him after Christmas but its too late.

Unlike David Lam's case where I managed to have a good talk with him before he passed away. I felt sad that I don't have a chance to meet David Chew for the last time and I could have helped him in some way if I know that he is depressed.

This is to remind me to appreciates the people around me and don't let ourselves be buried in work everyday.

Thursday, December 18, 2008

Unit Trust (3) - Constructing a Portfolio

I attended a wedding dinner last Sunday and met my ex-classmates. One of them shouted across the table at me and asked "Hey Adrian, if I got $100k now, what shall I invest and make the most money?" Everyone was waiting for my answer, expecting me to give them some stock tips. I stare back at my friend and replied,"I don't know. Let me know if you have the answer."

I normally help my clients invest via a portfolio. I cannot tell exactly what you should buy today and sell tomorrow. I adopt an investment process and I do not speculate for high returns. Thats one reason I never able to sell to an uncle or auntie in their 50s who just want quick money.

Today, I like to share how I help my clients construct a portfolio. Sounds academic but its what I really do.

1) Going through a Fact-finding
a) Understanding client's short, mid and long term financial objectives
b) Understanding client's current assets and % that will be used for investment
c) Understanding client's abiity and need to take investment risk
d) Understanding client's time horizon and Risk profile

2) Asset Allocation
a) Grouping my clients to their risk level from Conservative to Agressive
b) Setting a target asset allocation to each group. Example, Agressive portfolio is 80%equity;20% fixed income.
c) Setting a band in their asset allocation.
Eg Agressive investor 60%equity - 90% equity
* In economic downturn when our view is bearish in the near term, we will reduce the equity portion gradually from 80% to minimum 60%. We will gradually move back to as high as 90% when economy stablises.

3) Choosing the sectors by Geography and Industry
a) Split the equity portion into Core and Satellite
* My Core Portfolio are normally 2 global and 1 asia fund
* My Satellite is normally 1 Country specific fund and 1 theme fund
b) Split the Fixed Income to Bonds and Money Market
* Normally 1 global and 1 local bond
* The money market fund is kept for tactical allocation in short term

4) Choosing the specific fund manager
a) My selection criterias are:
i) Consistency of performance over 1,3 and 5 years
ii) Fund Size and Expenses Ratio
iii) Comparing the Alpha, Beta, Standard Deviations and Sharpe Ratio with peer funds of comparable performance
iv) Understanding the experience of the fund manager and check his history, if any.
v) I normally avoid new funds with less than 2 years of track record

5) The ongoing process
* After the time consuming part of funds selection, our portfolio are somehow similar for most of our clients. The smaller the investment amount, the lesser the funds.
* We have our regular investment meetings among advisers to share our respective economic views.
* We adjust the clients' portfolio by reallocating the asset allocation within the specified band.

The investment process is to ensure my clients stay invested and avoid timing the market excessively. My role is to help manage risk, emotions and expectations of my clients and not to help them make quick money.

Tuesday, December 16, 2008

2008 Christmas Tree

I received a Christmas greeting from my banker friend today...

Sunday, December 14, 2008

Unit Trust (2) – Why invest and Why not?

Unit Trust, in my opinion, is just another way to invest apart from the stock or property market where many people are already in. Its may not be the best way to invest, but its certainly a good way to diversify our assets and it is made to be so easy and convenient for everyone to invest.

Why Invest in Unit Trust?
1) Suitable for almost anyone on the street
We can start to invest with as little as $1000 or $100/mth. Its so modest that it practically means that anyone can invest.
2) Can Invest big and wide with small money
UT allows us to invest in Securities that we may be unable to access as an individual investor. These securities includes bond that usually required a minimum investment of $100.000. We are able to access into the global stock or bonds market using the Unit Trust way.
3) Its liquid and as simple as ABC
Buying and redeeming unit trust is simple and easy. Most unit-trust allow daily buying and selling of units. We can get updated values of the price of our unit trust from the daily newspaper or Internet. Online investment platforms have made it easier for investors and Financial Planners in giving advices too.
4) Portfolio investment creates flexibility
* With several hundreds of funds available, we are able to construct an investment portfolio based on the individual investment goals, risk tolerances and preferences, etc.
* We determine our % of bonds, Equities and Cash. We determine the region, countries or themes to invest. We determine which fund manager to park our money in. We are so spoilt for choices under a UT investment.

Why not invest in Unit Trust?
1) Additional Layer of Cost
Management and Trustee fees are paid from the pool of money. It can go as much as 3% per year. We pay advisers a Sales charge on a new purchase. It can go as much as 5%. These charges eat into our returns.
2) No Micro-management
We are not able to invest into the specific companies or sectors which in our opinion is bullish. Our investments are solely dependent on the fund manager and we are not properly updated when they change strategy.
3) Not suitable for speculation and trading
Unit Trusts generally move slower due to its diversified nature. Considerable time are required to buy, switch and to sell. Because of the slower price movement, time needed to trade and the initial expenses, it may not be fast enough to make quick money.

What are the Risk when we invest in Unit Trust?
1) Investment Risk
* The Systematic and Unsystematic Risk of investment. Systematic Risk such as inflation and the current economic crisis cannot be diversified away.
* If you invest in the wrong sector or country, you will lose money.
2) Fund Manager Risk
* Even if the sector is supposedly doing well but you select the wrong fund manager, you may also lose money.
* This Fund Manager might be underperforming the benchmark by a wide margin.
3) Trustee Risk
* The worst case is if you select the right sector, right manager but the trustee went bankrupt or run away with your money, you will also lose money. Such cases are very very rare

* That’s why I always advocate diversification and portfolio investment to reduce some of these risk.

Friday, December 12, 2008

Unit Trust (1) - What is it and who are the parties involved...

What is a Unit Trust Fund?
* A unit trust fund is a collective form of investment whereby the financial resources of individuals and corporate investors with the same investment objective are pooled together for the purpose of making large-scale investments in a selected portfolio of securities.
* The pool of money is split into a number of equal parts called units. Each unit represents exactly the same proportion of the value of shares held by the unit trust. As an investor, you "buy into" the pool by purchasing these units. The fund managers then use this pool of money to invest in a wide range of stocks, bonds and other money market instruments.
* The fund is set up under a Trust Deed. The Trustee holds the assets in the fund and monitors the way the fund manager invests. Let me elaborate further...

Who are parties involved?
1) The Unit Holders / Investors
* People like you and me with similar investment objective, combine our money together to buy into the Unit Trust of our choice. We will receive units of which the value is based on the underlying assets.
* Example: 100 people invested $1,000 each. There will be a collective sum of $100,000. The fund manager creates a unit trust of 100,000 shares valued at $1 per unit and each investor will get 1,000 units. Assuming after 1 year, the underlying assets of $100,000 grew to $120,000. As the number of units remains at 100,000, the value of the units will become $1.20 each. If the investor sold his 1,000 units, he will sell it for $1,200, a profit of $200.

2) The Fund Manager / Fund Management Company
* The fund manager job is to act in the interest of the Unit Holders by making the best investment decision with their money. Other than the day-to-day investment management, the fund manager also prepares the semi-annual performance report and the declaration of dividends.
* The fund manager, are supposedly be experienced and skilful enough to devise strategies in picking stock from the universe of companies.

3) The Trustee
* The Trustee is a corporate body approved by the Minister of Finance, independent from the Fund Manager. Their role is to act as the custodian of the Unit Trust and to ensure that the Fund Manager invest the Unit Holders’ money in accordance to the Trust Deed.
* They can be considered as the “watchdog” to protect the interest of the Unit Holder. They will help minimize the risk of mismanagement by the fund manager.
* The tri-partite relationship between the Manager, the Trustee and the Unitholder is legally bound by the terms and conditions specified in the Trust Deed
* The Trust Deed legal document that lays down the terms and conditions under which the Unit holders’ money is to be invested. It also spells out the investment objective and the responsibilities of the fund managers.

4) The distributor
* There are several channels through which an investor can buy a unit trust – The Manager, Banks, Stockbroker, Financial Planners, Insurance Companies and Internet based service providers.
* Distributors of unit trusts would need to hold a financial adviser’s licence or be an exempt financial adviser.
* They will conduct Risk Profiling and design a portfolio based on the investor’s needs and risk level.

I'll talk about why and why not invest in Unit Trust in my next posting...

Tuesday, December 9, 2008

Down with a back sprain

I have back problem since my Army Days. I injured my back because I often forced myself beyond my limits when I was in Army and did not take adequate care whenever I carry heavy things.

I injured my back again on Sunday night when I was carrying a chair up the stairs. I was in pain over the past 2 days and was simply paralysed. I can't stand, sit and and even sleep well. Visited the A&E ward in Changi Hospital on Tuesday and was given a jab, painkillers and muscle relaxer pills.

I am still in pain as I'm writing in this posting but I really like to share a few things with you.

1) I realised the importance of Health
* My condition was so bad that I was totally dependent on others for my movement such as moving up from bed, taking a shower and even tolieting.
* My wife have to take leave to take care of me. I realised how it feels to be paralysed and how inconvenience life can be under such condition.
* Now I know what Eldershield is meant for ^-^
* Good Health is the most important factor in determining our wealth. If we don't take care of our health, not only that we lost our ability to work, we will have to pay for Medical expenses too.
* I lost nearly $100 over the past 2 days on medical bill and taxi expenses.

2) I realised that Time is Money to me
* I had arranged to meet prospective clients on Monday and Tuesday but are forced to postpone them due to my mobility problem. I may need to postponed my Wednesday appt as well.
* I am not a salaried worker who can take MC. I one day no work, means one day no income generated.
* I was advised not to carry heavy things for at least 1 week. This means I may have problem going for my usual appointments with my 2 bags which weighs 6-8kg.
* I can't imagine if I'm not able to work for 1 month or even 1 year.

3) I realised how time consuming it can be to wait in the public hospital
* I went to Changi hospital and have to wait for nearly 3 hours before seeing the doctor.
* My back was so painful while waiting because I can only stand or sit as I wait over that 3 dreadful hours.
* This is the consequent for trying to save some money. Long wait is a requirement before I can get subsidised treatment.

Its a frustrating and stressful experience over the few days as I realised that I'm not superman. I can fall sick and not able to work too. Having good health is so important and I think this is a message God is passing to me.

To all who read this posting. I urge all of you to "Please take good care of your health"...

Monday, December 8, 2008

Some things about Wills (2)

As mentioned, I will like to share who are the people you need to consider before you write a Will. Most people will only think of who will be the beneficiaries, they normally neglect the many other parties involved. So who are the parties involved? Let me share:

The Personal Representative
* The term Personal Representative refers to the individuals provided with the authority to administer the estates of the Deceased
* The term covers both Intestate and Testate case. If the Deceased died testate, the PR is called an Executor. If the Deceased died Intestate, the PR is called the Administrator
* In the Intestate case, the PR only gets the title of Administrator once he has taken out Letters of Administration

The Executors
* Duties: Locate Will, make funeral arrangements, call in assets, pay or release debts, prepare statement of account and distribution
* Can initiate legal action on estate’s behalf
* Power of Attorney: Implied power to engage professional help or agents to administer estate
* Duty to ensure reasonable returns from investment
* Statutory power to make advances to Beneficiaries for maintenance and education
* To distribute specific gifts

The Trustees
* Duties: Administer estate in cases where properties cannot be distributed. E.g minor Beneficiaries, life interest, Trust expressly created by Will
* Manage estate in accordance with the instructions and powers conferred under the Will or accordingly to the Trustee Act

The Guardian
* Custody of the minor child will be given to the appointed Guardian(s)
* The Guardians basic duty is to prudently administer the minor’s interest
* Make necessary applications to Court to sell, charge, mortgage, exchange possession of any of movable or immovable property of the minor or if they intend to lease land belonging to the minor for a term exceeding 1 year

The Beneficiaries
* People named in the Will to receive Gifts
* If the Testator is predeceased by the Beneficiary, the Testator can either make a new Will, or allow the relevant item to fall into residuary estate
* If the Testator omits dependants as beneficiaries, they are entitled by Law to apply for a reasonable proportion of the estate for their maintenance

The Witness / The Translator
* These are some of the other important people in preparation of the will.
* Witness should preferably not be any of the beneficiaries or those with close relation of the bebeficiaries like spouse or children, etc.
* At least 2 witnesses are required and they must really be present to witness the signing of the Will to be effective.
* If Translator is required, make sure the translator is a competent one with proficient in the 2 languages.

Writing a Will cost nothing if you know how to write it but its nevertheless advisable to seek help from a professional to ensure your Will to be correctly worded and effective. A simple Will cost around $200. My opinion is that its not necessary to save that $200 for that important piece of instruction to your loved ones in event you can no longer tell them so.

Friday, December 5, 2008

Some things about Wills (1)

I have been emailing articles called "Health & Wealth" and "The 3 minutes investment updates" on a monthly basis to my clients and prospective clients over the years. I strive to keep them abreast with the investment climate and Financial Plannings issues such as CPF Changes, Medishield changes, etc. It has been my service and commitment to my clients over the years. Unfortunately, many of my clients who don't have an email will never know that I write all these for them.

In one of my "Health and Wealth" series, I wrote about Will Writing. Its not a new topic in my blog, but I like to beef up my readers knowledge in this area again.

Definition of a Will
* Legal document to provide for the proper administration and distribution of all estate among Beneficiaries after death
* Will includes a testament and an appointment by Will or by writing in the nature of a Will in exercise of a power and also a disposition by Will and testament and any other testamentary disposition
* A Will operates as a declaration of the Testator’s intention only. While he is alive, he can deal with his assets and property in any way he deems fit. Therefore, during his lifetime, his power of disposition remains intact and any Will that he has made does not restrict him

Why make a Valid Will?
* Easier to obtain Grant of Probate
* The Court requires less documentation as the identities of the Executor are already established. There is no need for different Petitioners for the Letters of Administration
* The Court Procedure is simpler as there is no requirement for an Administration Oath, Sureties, etc

Court Procedure after testator dies with a valid Will
a) Will to be produced
b) Petition for Grant of Probate
c) Original Will to be deposited and kept in court
d) Establish identity of Executor/Trustee
e) Call in all assets and property of the Deceased / Testator, in and outside of Singapore
f) Determine amount of Estate Duty payable
g) Executor/Trustee to distribute assets and property accordingly

Where the Deceased has made a Will, the appointed Executor / Trustee will petition to Court for a Grant of Probate. The Deceased’s estate will then be distributed in a manner as directed in the Will. All other arrangements specifically stated in the Will shall also be carried out in the manner specified by the Testator.

In my next posting, I'll write about who are the people you need to think of before you write a Will.

Tuesday, December 2, 2008

What to do in event of a Motor Accident?

I did quite a fair bit of Motor Insurance, largely for my existing clients. On average, I'll transact around 3-4 cases monthly. On a few occasions, my clients called and seek my assistance when they met an accident. They are normally shocked and confused over what to do.

You can find many versions of "What to do in event of a Motor Accident" in many websites. Its sometime very long and hard to remember. I'm going to help you rememeber in a simplier steps.

1) Exchange Particulars
* Get particulars of parties involved including Name, NRIC, address, contact number, vehicle number and car insurer info. Get particulars of any witness to the accident if there are any.
* If you have a copy of the Singapore Accident Statement(SAS) Form, try to fill up part 1 with the other driver.

2) Take photograph
Take digital photographs of your accident vehicle and accident scene. It can be used for e-filing of the accident report later.

3) Towing Services
Call your respective insurer for towing services and avoid those unauthorised tow-truck operators or repair workshops

4) Report the accident with your vehicle
From 1 June 2008, if you meet a motor accident, you must report with accident vehicle (whether damage or not) to the reporting centres or IDACs within 24 hours or latest, the next working day after the accident, before you send your car to the workshop.

5) Filing a police report
You need to file a police report under following situations:
a) There are injuries
b) Hit and Run case
c) accident with a government vehicle or damage to government property, foreign vehicle or pedestrian/cyclist

6) Last of all, "Do not admit Liability!"

If the above steps are not simple enough, just make sure you store your motor insurer's 24 hours helpline number in your handphone and call if necessary!!!