PGI Insurance Ethics and Consumer Protection

Question 1

What is the duty of disclosure for general insurance applicants in Singapore?

Accepted Answer

Applicants must honestly disclose all material facts that would influence the insurer's decision to accept the risk and set the premium

Answer

No disclosure is needed

Answer

Only disclose major claims history

Answer

Only disclose the vehicle's age

Question 2

What is the role of the General Insurance Association (GIA) of Singapore in consumer protection?

Accepted Answer

GIA promotes industry standards, handles consumer complaints, publishes guidelines, and works with regulators to protect policyholder interests

Answer

GIA sells insurance directly

Answer

GIA only represents large insurers

Answer

GIA has no consumer protection role

Question 3

What happens if an insured person submits a fraudulent insurance claim in Singapore?

Accepted Answer

The claim is rejected, the policy may be voided, the insured could face criminal prosecution, and they may be blacklisted by the industry

Answer

The insurer must still pay part of the claim

Answer

Only the fraudulent portion is rejected

Answer

A warning is issued for the first offence

Question 4

What cooling-off period applies to general insurance policies in Singapore?

Accepted Answer

For most general insurance policies, there is no standard free-look period unlike life insurance; however, some policies and insurers may offer voluntary cancellation windows

Answer

30 days for all general insurance

Answer

7 days for all policies

Answer

No cooling-off period exists for any insurance

Question 5

How can consumers compare general insurance products in Singapore?

Accepted Answer

Use comparison websites, consult insurance brokers, check GIA resources, read policy wordings carefully, and compare coverage, exclusions, and premiums

Answer

All products are the same

Answer

Only ask friends for recommendations

Answer

Price is the only factor to compare

Question 6

What is FIDReC and how does it help insurance consumers in Singapore?

Accepted Answer

The Financial Industry Disputes Resolution Centre — an independent body that resolves disputes between consumers and financial institutions including insurers through mediation and adjudication

Answer

A government insurance company

Answer

A financial advisory firm

Answer

A consumer credit bureau