BCP Claims Handling 2

Question 1

What does 'ex gratia' payment mean in insurance claims?

Accepted Answer

Payment made as a goodwill gesture without admission of liability under the policy

Answer

An ex gratia payment is made by the insurer as a goodwill gesture without any admission that the policy legally covers the claim. It is discretionary and does not set a precedent.

Question 2

In motor accident claims in Singapore, what is the purpose of the 'Motor Claims Framework'?

Accepted Answer

To streamline the motor claims process, reduce fraudulent claims, and ensure fair settlement

Answer

Singapore's Motor Claims Framework (MCF) streamlines the claims process, combats fraud, promotes fair settlement, and requires policyholders to report accidents and bring vehicles to authorized workshops.

Question 3

What is 'subrogation' and when does it arise in a property insurance claim?

Accepted Answer

After paying the insured's claim, the insurer takes over the insured's right to recover from the responsible third party

Answer

Subrogation arises after the insurer has paid the claim. The insurer then steps into the insured's shoes and has the right to recover the claim amount from any third party legally responsible for the loss.

Question 4

What is a 'reservation of rights' letter in insurance claims?

Accepted Answer

A letter from the insurer notifying that it is investigating a claim while reserving the right to deny coverage

Answer

A reservation of rights letter allows the insurer to investigate and potentially defend a claim while preserving the right to deny coverage if an exclusion or coverage issue is later confirmed.

Question 5

What does 'appointed repairer' mean in motor insurance claims in Singapore?

Accepted Answer

A workshop appointed by the insurer that the policyholder must use to qualify for full claim benefits

Answer

In Singapore motor insurance, an 'appointed repairer' is a workshop within the insurer's network. Using an appointed repairer typically ensures the claim is processed smoothly and the policyholder receives full benefits.

BCP Insurance Practice Test

BCP Insurance Practice Test

BCP Claims Handling 2