SINGAPORE - Motor insurance giant NTUC Income has launched two schemes which offer drivers discounts if they drive well or drive less.

Income's Drive Master is a smartphone-based app that tracks what time of day a motorist is on the road, the distance he clocks, whether he keeps to speed limits, and if he accelerates or brakes hard.

Based on scores accumulated for the four factors, a driver will be given discounts of between 5 per cent and 20 per cent on his insurance premium.

The company's FlexiMileage scheme uses a black box device which is plugged into the car. It tracks how many kilometres a driver clocks a year. Those who clock no more than 9,000km stand to save 20 per cent, while those who clock less than 5,000km could be granted a 35 per cent discount.

Income vice-president of motor insurance Bill O'Connell said Drive Master "allows drivers to be more aware of their driving behaviour, ultimately giving them the ability to influence their insurance premiums".

In May, another motor insurer introduced a similar scheme, but only for private-hire drivers. AXA's pay-as-you-drive policy for Grab drivers varies premiums based on mileage clocked.

In January, MSIG Singapore also launched a trial to reward safe drivers with discounts of up to 20 per cent. It tracked their driving behaviour via a device installed in the car.