BCP General Insurance Products 2

Question 1

What is 'public liability' insurance, commonly purchased by businesses in Singapore?

Accepted Answer

Insurance covering legal liability for injury or property damage to third parties occurring on the insured's premises or due to business operations

Answer

Public liability insurance protects businesses against claims from third parties (e.g., customers, visitors) who suffer bodily injury or property damage due to the business's negligence.

Question 2

In Singapore, what is the Work Injury Compensation Act (WICA) insurance?

Accepted Answer

Compulsory insurance covering employees for work-related injuries and occupational diseases

Answer

Under WICA, employers in Singapore must insure employees doing manual work (regardless of salary) and non-manual workers earning $2,600 or less per month against work-related injuries and diseases.

Question 3

What is 'professional indemnity' insurance used for in Singapore?

Accepted Answer

Protecting professionals against claims of negligence or errors in their professional services

Answer

Professional indemnity insurance covers professionals (e.g., doctors, lawyers, architects, accountants) against claims arising from errors, omissions, or negligent advice in the course of their professional duties.

Question 4

What does 'marine cargo' insurance cover for Singapore businesses?

Accepted Answer

Loss or damage to goods being transported by sea, air, or land

Answer

Marine cargo insurance covers goods in transit against risks like damage, loss, theft, and piracy. As Singapore is a major trading hub, this insurance is vital for import/export businesses.

Question 5

What is an 'excess' or 'deductible' in a Singapore general insurance policy?

Accepted Answer

The amount the insured must bear before the insurer starts paying a claim

Answer

An excess or deductible is the portion of a claim that the policyholder must pay out of pocket before the insurer covers the remaining amount. It helps keep premiums lower.

BCP Insurance Practice Test

BCP Insurance Practice Test

BCP General Insurance Products 2