BCP - Basic Insurance Concepts and Principles Singapore The Insurance Claims Process Questions and Answers

Question 1

Mr.
Lim's insured delivery van is stolen overnight.
Due to a busy schedule, he only notifies his insurer one week after discovering the theft.
The policy contains a condition requiring "immediate notification of any loss".
What is the MOST likely consequence of this delay in the context of Singapore's insurance claims practice?

Accepted Answer

The insurer may reject the claim if they can prove the delay has prejudiced their ability to investigate or recover the vehicle.

Answer

The claim will be automatically rejected due to the breach of a policy condition.

Answer

A late reporting penalty, equivalent to 10% of the claim amount, will be deducted from the settlement.

Answer

The claim will be paid in full, as the delay was less than the 30-day statutory limit for reporting claims.

Question 2

In the event of a large and complex fire claim at a warehouse in Singapore, the insurer appoints an independent claims specialist to investigate the cause of the fire, assess the extent of the damage, and recommend a settlement amount. What is this specialist known as?

Accepted Answer

Loss Adjuster

Answer

Loss Assessor

Answer

Claims Executive

Answer

Insurance Broker

Question 3

After his retail shop was damaged by a burst water pipe, the policyholder submitted a claim. He included the cost of genuine water-damaged stock but also added invoices for old, unsold stock that was not affected by the incident. Under the common law principles applied in Singapore, what is the insurer's right upon discovering this fraudulent padding of the claim?

Accepted Answer

To forfeit the entire claim, including the genuine part, and potentially void the policy.

Answer

To pay for the genuine portion of the loss but reject the fraudulent part.

Answer

To reduce the total claim payment by 50% as a penalty.

Answer

To report the policyholder to the General Insurance Association (GIA) and await their decision.

Question 4

After successful negotiations for a personal accident claim, the insurer presents the claimant with a document to sign before issuing the settlement cheque. This document confirms the agreed amount is in full and final settlement of the claim. What is this document commonly called?

Accepted Answer

Discharge Voucher

Answer

Letter of Subrogation

Answer

Certificate of Insurance

Answer

Claim Proposal Form

Question 5

A pedestrian is injured in a hit-and-run accident in Singapore, and the driver cannot be traced. The pedestrian has incurred significant medical expenses but has no personal accident insurance. Which Singaporean body is specifically established to compensate such victims?

Accepted Answer

The Motor Insurers' Bureau of Singapore (MIB)

Answer

The Monetary Authority of Singapore (MAS)

Answer

The General Insurance Association (GIA)

Answer

The Financial Industry Disputes Resolution Centre (FIDReC)

Question 6

According to the Motor Claims Framework (MCF) supported by the General Insurance Association of Singapore (GIA), what is the first and most critical step a motorist should take immediately following a motor accident, regardless of how minor it is?

Accepted Answer

Exchange particulars with the other party and take photographs of the accident scene and damages.

Answer

Wait for the Traffic Police to arrive before moving the vehicles.

Answer

Immediately send the vehicle to their preferred workshop for a repair quotation.

Answer

Agree on a private settlement with the other driver to avoid making a report.