Claims Handling Flashcards
6 cards from real BCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Claims Handling flashcards as text
What is the purpose of a 'proof of loss' requirement in a property insurance claim?
Answer: To provide formal evidence of the loss, its cause, and the value of the claim
A proof of loss is a formal statement by the insured providing evidence of the loss — its cause, time, place, and financial value. It supports the insurer's assessment and satisfies a policy condition.
When can an insurer legitimately reject an insurance claim in Singapore?
Answer: When the loss falls within an exclusion, there is non-disclosure, or a policy condition has been breached
An insurer can legitimately reject a claim when the loss falls within a policy exclusion, when the policyholder has failed to disclose material facts, or when a policy condition (such as timely notification) has been materially breached.
What is 'betterment' in the context of property insurance claims?
Answer: A deduction made when repairs or replacement improve the property beyond its pre-loss condition
Betterment is a deduction from the claim payment when repairs or replacement result in the insured property being in a better condition than it was before the loss, reflecting the improvement in value.
What is 'third party recovery' in insurance claims?
Answer: The insurer recovering from a responsible third party the amount paid to the insured, via subrogation
Third party recovery is the process by which the insurer, using its subrogation rights, recovers from the third party legally responsible for the loss the amount it has paid to the insured.
What information must an insurer provide when rejecting a claim in Singapore?
Answer: Clear written reasons for the rejection, referencing the specific policy provision or ground for denial
When rejecting a claim, MAS expects insurers to provide clear written reasons citing the specific policy provision, exclusion, or ground for denial, enabling the policyholder to understand and potentially challenge the decision.
What recourse does a Singapore policyholder have if dissatisfied with an insurer's claim decision?
Answer: Internal dispute resolution, then FIDReC, and ultimately the courts
A dissatisfied policyholder can first use the insurer's internal dispute resolution process, then escalate to FIDReC for independent adjudication, and ultimately pursue legal action through the courts.