THE long-running issue of rising motor insurance premiums is about to be heard in the highest forum in the land.

Mr Yeo Guat Kwang, a Member of Parliament for Aljunied GRC and head of the Consumers Association of Singapore (Case), is seeking legislative support for fundamental changes to motor insurance laws and practices here.

When Parliament sits later this month, Mr Yeo will propose that a task force be formed to look into the issue, with representatives from stakeholders like the General Insurance Association (GIA), Automobile Association of Singapore and motor workshops.

A key change Case is exploring is whether Singapore can adopt the so-called no-fault regime. In such a system, motorists involved in accidents file claims against their own insurers, regardless of whose fault it is.

This does away with third-party claims, seen by many to be the main cause of escalating claims.

Motor insurance premiums have been climbing steadily. The average rate in 1998 was $672, while claims amounted to $375 million. Last year, premiums averaged $1,013, while claims hit $741 million.

Premiums are expected to rise substantially this year. NTUC Income, the top motor insurer here, has raised some rates by more than 30 per cent, while No.2 AIG has increased its premiums by 17 per cent. They blame high claims for the increases.

Mr Yeo told The Straits Times that Case is not pushing for a no-fault regime per se. One possible change: making sure that those making accident statements tell the truth - or face legal action.

GIA president Derek Teo points to one main weakness of the law: the three-year window for submitting bodily injury claims. Mr Tan Kin Lian, former chief executive of NTUC Income, said a no-fault system would work best for injury claims.

He said most injury claims here involve lawyers and often take years to settle, adding that legal fees could even account for up to a third of the payout.