BCP Claims Handling 1

Question 1

What is the first step a policyholder should take when making an insurance claim in Singapore?

Accepted Answer

Notify the insurer as soon as practicable and within any specified notification period

Answer

The policyholder must notify the insurer as soon as practicable after a loss, and within any specified timeframe in the policy. Late notification can prejudice the claim.

Question 2

What is a 'claims adjuster' and how do they differ from a 'loss adjuster'?

Accepted Answer

Claims adjusters typically work for insurers internally; loss adjusters are independent professionals appointed to assess complex claims

Answer

Claims adjusters typically work internally for insurers handling day-to-day claims. Loss adjusters are independent professionals appointed for larger or more complex claims to independently assess the loss and recommend settlement.

Question 3

Under Singapore's general insurance practice, what document formally presents a claim for payment?

Accepted Answer

A claim form completed by the insured with supporting documentation

Answer

A claim form, completed by the insured and supported by relevant documentation (such as invoices, police reports, medical reports), formally presents the claim to the insurer for assessment and payment.

Question 4

What does 'fraudulent claim' mean and what are the consequences in Singapore?

Accepted Answer

A deliberate false or exaggerated claim, which voids the entire policy and may result in criminal prosecution

Answer

A fraudulent claim involves deliberate misrepresentation or exaggeration of a loss. In Singapore, this voids the entire policy, forfeits all benefits, and the claimant may face criminal prosecution under the Penal Code.

Question 5

What is 'without prejudice' communication in the context of insurance claims?

Accepted Answer

Communication made during settlement negotiations that cannot be used as evidence in court proceedings

Answer

'Without prejudice' communications are made during settlement negotiations with the understanding that they cannot be used as evidence in subsequent court proceedings, encouraging open negotiation.

BCP Insurance Practice Test

BCP Insurance Practice Test

BCP Claims Handling 1