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

The duty of utmost good faith requires full disclosure of all material facts — past claims, property condition, security measures, previous policy cancellations, and any information that would affect the insurer's assessment.

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

The GIA sets industry standards, provides consumer complaint channels, publishes guides on insurance products, and collaborates with MAS and other bodies to maintain fair practices in general insurance.

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

Insurance fraud is a serious offence. Consequences include claim rejection, policy voidance, recovery of previously paid claims, criminal prosecution under the Penal Code, and difficulty obtaining future insurance.

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

Unlike life insurance (14-day free-look), general insurance policies in Singapore do not have a standardised cooling-off period. Some insurers offer voluntary cancellation terms, but this varies by product.

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

Consumers should compare policies on multiple factors: coverage scope, exclusions, claim limits, excess amounts, premium costs, insurer reputation, claim process, and any special terms or conditions.

PGI Insurance Practice Test

PGI Insurance Practice Test

PGI Insurance Ethics and Consumer Protection