PGI - Personal General Insurance — Questions and Answers

Question 1: What is 'stop loss' reinsurance?

Reinsurance that stops losses from exceeding policy limits
A reinsurance contract that pays when the cedant's total losses for a defined period exceed a stated percentage of earned premium (Correct answer)
Reinsurance that stops at the cedant's retention level
A per-risk excess of loss arrangement

Correct answer: A reinsurance contract that pays when the cedant's total losses for a defined period exceed a stated percentage of earned premium

Stop loss reinsurance protects the cedant's overall loss ratio for a defined period. The reinsurer pays when total losses exceed a specified percentage of earned premium, protecting the cedant from catastrophic aggregate losses across the portfolio.

Question 2: What does 'medical expenses reimbursement' cover in a Singapore PA policy?

Only traditional Chinese medicine
All medical expenses for any reason
Reimbursement of medical costs directly resulting from a covered accident, including hospitalisation, surgery, and follow-up treatment (Correct answer)
Only ambulance costs

Correct answer: Reimbursement of medical costs directly resulting from a covered accident, including hospitalisation, surgery, and follow-up treatment

Medical expenses reimbursement under PA covers accident-related treatment costs including emergency room visits, hospitalisation, surgery, medication, physiotherapy, and follow-up consultations.

Question 3: What is 'construction all risks' (CAR) insurance and who typically purchases it?

CAR is only for road construction projects
CAR is purchased by building material suppliers only
CAR covers accidental physical damage to construction works; typically purchased by contractors or project owners for building projects (Correct answer)
Only building owners purchase CAR policies

Correct answer: CAR covers accidental physical damage to construction works; typically purchased by contractors or project owners for building projects

Construction All Risks (CAR) insurance covers accidental physical damage to the contract works, temporary works, and third-party liability during construction. It is typically arranged by the main contractor, project owner, or both under a joint names policy.

Question 4: What happens if an insured person submits a fraudulent insurance claim in Singapore?

The claim is rejected, the policy may be voided, the insured could face criminal prosecution, and they may be blacklisted by the industry (Correct answer)
Only the fraudulent portion is rejected
The insurer must still pay part of the claim
A warning is issued for the first offence

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

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 5: What is a 'loss prevention' survey and how does it affect commercial underwriting in Singapore?

An inspection of the insured's premises and operations to identify and recommend improvements to reduce loss frequency and severity, typically improving underwriting terms (Correct answer)
A survey conducted after a major claim
A financial audit of the insured's business
A survey conducted by MAS to assess insurer practices

Correct answer: An inspection of the insured's premises and operations to identify and recommend improvements to reduce loss frequency and severity, typically improving underwriting terms

A loss prevention survey involves a technical inspection of the insured's facilities to identify hazards, assess existing controls, and recommend improvements. A favourable survey demonstrating good risk management practices can improve underwriting terms and premiums.

Question 6: What is MAS's 'balanced scorecard framework' for insurance intermediaries designed to achieve?

Ranking agents by sales performance
Measuring insurer profitability
Ensuring remuneration structures do not create conflicts of interest that harm customers (Correct answer)
Setting fixed commission rates industry-wide

Correct answer: Ensuring remuneration structures do not create conflicts of interest that harm customers

The balanced scorecard framework ensures that insurance intermediaries' remuneration is linked not just to sales volume but also to quality of advice, customer outcomes, and compliance — reducing conflicts of interest.

Question 7: What is 'emergency medical evacuation' coverage in travel insurance?

A free helicopter ride
Evacuation from natural disasters only
Coverage for ambulance rides only
Coverage for the cost of transporting you to the nearest adequate medical facility or back to Singapore if local treatment is insufficient (Correct answer)

Correct answer: Coverage for the cost of transporting you to the nearest adequate medical facility or back to Singapore if local treatment is insufficient

Medical evacuation coverage pays for transport (air ambulance, commercial flight with medical escort) to a suitable medical facility or back to Singapore when local medical care is inadequate for your condition.

Question 8: What is 'directors and officers' (D&O) liability insurance?

Insurance for director salaries
Insurance for company directors' personal vehicles
Insurance protecting company directors and officers against personal liability for decisions made in their corporate capacity that result in legal action (Correct answer)
Insurance for office equipment

Correct answer: Insurance protecting company directors and officers against personal liability for decisions made in their corporate capacity that result in legal action

D&O insurance protects individual directors and officers from personal financial loss when they are sued for alleged wrongful acts in managing the company, covering legal defence costs and settlements.

Question 9: How does group personal accident insurance work for Singapore employers?

Employers purchase a single policy covering all employees, usually as part of employee benefits; premiums are based on group characteristics rather than individual assessment (Correct answer)
It is the same as individual PA
It replaces WICA insurance
Only government employers offer it

Correct answer: Employers purchase a single policy covering all employees, usually as part of employee benefits; premiums are based on group characteristics rather than individual assessment

Group PA insurance provides accident coverage for all employees under one policy. It is typically cheaper per person than individual PA, requires no individual medical underwriting, and is a common employee benefit.

Question 10: What is 'material damage warranty' in a business interruption policy?

A requirement that the BI policy is triggered only if there is first a valid material damage claim under the property policy covering the same premises (Correct answer)
A warranty that all insured property is in good condition
A clause requiring damage to be reported to police first
A warranty that the insured will maintain all property in repair

Correct answer: A requirement that the BI policy is triggered only if there is first a valid material damage claim under the property policy covering the same premises

The material damage warranty requires that a BI claim is only valid if there is also an insured physical damage loss under the linked property policy. It prevents BI coverage from responding to purely financial or non-physical causes of business interruption.

Question 11: What is the purpose of MAS's 'stress testing' requirements for Singapore insurers?

To measure the speed of claims processing
To assess whether insurers can withstand severe but plausible adverse scenarios and maintain solvency (Correct answer)
To test the insurer's IT systems only
To test the performance of investment portfolios only

Correct answer: To assess whether insurers can withstand severe but plausible adverse scenarios and maintain solvency

Stress testing requires insurers to model the impact of severe adverse scenarios (economic shocks, catastrophic events) on their financial position, ensuring they hold sufficient capital buffers to remain solvent under stress.

Question 12: What is the difference between 'replacement cost' and 'indemnity value' in Singapore property insurance?

Indemnity value is always higher
Replacement cost is always cheaper
They are the same
Replacement cost pays the full cost to replace an item with a new equivalent; indemnity value pays the current depreciated value of the item (Correct answer)

Correct answer: Replacement cost pays the full cost to replace an item with a new equivalent; indemnity value pays the current depreciated value of the item

Replacement cost covers the expense of buying a brand new equivalent item. Indemnity value deducts depreciation for wear and tear, resulting in a lower payout, especially for older items.

Question 13: What does 'retention' mean in the context of reinsurance?

The insurer retaining cancelled policies
The amount of each risk the cedant (primary insurer) keeps for its own account (Correct answer)
The reinsurer retaining premiums after a claim
The period the reinsurance treaty remains in force

Correct answer: The amount of each risk the cedant (primary insurer) keeps for its own account

Retention is the amount or proportion of each risk that the cedant keeps on its own account. Losses up to the retention are borne entirely by the cedant; amounts above are passed to the reinsurer.

Question 14: What is FIDReC and how does it help insurance consumers in Singapore?

The Financial Industry Disputes Resolution Centre — an independent body that resolves disputes between consumers and financial institutions including insurers through mediation and adjudication (Correct answer)
A consumer credit bureau
A government insurance company
A financial advisory firm

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

FIDReC provides consumers with a free, independent avenue to resolve disputes with insurance companies. Claims up to SGD 100,000 can be adjudicated, and the process is designed to be accessible and fair.

Question 15: Can a person have multiple personal accident insurance policies in Singapore?

Only if from different insurers
No, only one PA policy is allowed
Yes, multiple PA policies can be held and claimed simultaneously as PA benefits are not subject to the indemnity principle (Correct answer)
Only with MAS approval

Correct answer: Yes, multiple PA policies can be held and claimed simultaneously as PA benefits are not subject to the indemnity principle

PA insurance pays defined benefits (not reimbursement), so multiple policies can coexist. If you hold three PA policies with SGD 100,000 each, you can claim SGD 300,000 for accidental death.

Question 16: What is 'cyber liability' insurance and why is it growing in Singapore?

Insurance for social media accounts
Insurance covering data breaches, cyberattacks, ransomware, and associated costs including legal liability, notification costs, and business interruption (Correct answer)
Insurance for computer hardware
Insurance for internet service providers only

Correct answer: Insurance covering data breaches, cyberattacks, ransomware, and associated costs including legal liability, notification costs, and business interruption

With Singapore's digital economy growth and strict PDPA requirements, cyber liability insurance covers costs from data breaches, including notification expenses, legal defence, regulatory fines, and business disruption.

Question 17: What does 'personal liability' coverage in Singapore travel insurance protect against?

Liability for lost travel documents
Legal liability if you accidentally injure someone or damage their property while travelling overseas (Correct answer)
Liability for business losses
Liability for missed flights

Correct answer: Legal liability if you accidentally injure someone or damage their property while travelling overseas

Personal liability covers your legal responsibility if you accidentally cause injury to a third party or damage their property while overseas. It pays for compensation and legal defence costs.

Question 18: What specific peril is commonly excluded from standard home insurance policies in Singapore?

Fire
Electrical damage
Flood and earth movement (subsidence), which typically require special coverage or endorsements (Correct answer)
Theft

Correct answer: Flood and earth movement (subsidence), which typically require special coverage or endorsements

Standard home insurance policies in Singapore typically exclude flood damage and earth movement (subsidence). Given climate change risks, some insurers now offer flood coverage as an add-on.

Question 19: What does 'utmost good faith' (uberrima fides) mean in Singapore general insurance?

Good faith is optional in commercial insurance
It only applies to life insurance
Only the insurer must act in good faith
Both the insurer and the insured must deal with each other honestly, disclosing all relevant information and not misrepresenting facts (Correct answer)

Correct answer: Both the insurer and the insured must deal with each other honestly, disclosing all relevant information and not misrepresenting facts

Utmost good faith is a fundamental principle requiring both parties to be completely honest. The insured must disclose all material facts; the insurer must be transparent about policy terms and conditions.

Question 20: What is 'trade credit insurance' and what risk does it address for Singapore businesses?

Insurance for bank credit facilities
Insurance for credit cards used for business expenses
Insurance protecting businesses against the risk of non-payment by their customers due to insolvency or protracted default (Correct answer)
Coverage for currency exchange losses on trade transactions

Correct answer: Insurance protecting businesses against the risk of non-payment by their customers due to insolvency or protracted default

Trade credit insurance protects sellers against the risk that buyers fail to pay for goods or services delivered, typically due to insolvency or protracted default. It is particularly relevant for Singapore exporters selling on credit terms.

Question 21: What is the No Claim Discount (NCD) system in Singapore motor insurance?

A discount for older vehicles
A discount on premiums for each year without claims, starting at 10% and increasing to a maximum of 50% after 5 claim-free years (Correct answer)
A loyalty programme for repeat customers
A discount for paying premiums annually

Correct answer: A discount on premiums for each year without claims, starting at 10% and increasing to a maximum of 50% after 5 claim-free years

NCD rewards safe drivers: 10% after 1 year without claims, 20% after 2 years, 30% after 3 years, 40% after 4 years, and the maximum 50% after 5 consecutive claim-free years.

Question 22: What is 'subrogation' in the context of Singapore general insurance?

The insurer's right to pursue a third party responsible for the loss after paying the insured's claim, to recover the amount paid (Correct answer)
Adding a rider to a policy
Transferring a policy to another person
Cancelling a policy

Correct answer: The insurer's right to pursue a third party responsible for the loss after paying the insured's claim, to recover the amount paid

After paying a claim, the insurer can 'step into the shoes' of the insured and pursue the responsible third party to recover the costs. This prevents the insured from being compensated twice.

Question 23: What is the GIA (General Insurance Association) accident reporting process in Singapore?

Report only to the police
Report to the insurer and the GIA within 24 hours using the motor accident report form, with both parties submitting their versions (Correct answer)
No reporting is required for minor accidents
Only report if hospitalisation occurs

Correct answer: Report to the insurer and the GIA within 24 hours using the motor accident report form, with both parties submitting their versions

Both parties in a motor accident should submit reports to their respective insurers and may use the GIA motor accident report form. Prompt reporting within 24 hours helps expedite the claims process.

Question 24: What is the significance of 'aggregate limit' in liability insurance?

The minimum claim amount
The most you can claim per incident
The premium amount
The maximum total amount the insurer will pay for all claims combined during the policy period (Correct answer)

Correct answer: The maximum total amount the insurer will pay for all claims combined during the policy period

The aggregate limit caps the total payout for all claims during the policy period. Once this limit is reached, no further claims are covered. This is separate from the per-occurrence limit.

Question 25: How can consumers compare general insurance products in Singapore?

Only ask friends for recommendations
All products are the same
Use comparison websites, consult insurance brokers, check GIA resources, read policy wordings carefully, and compare coverage, exclusions, and premiums (Correct answer)
Price is the only factor to compare

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

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.

Question 26: What is 'loss reserve development' and why is it important in reinsurance?

Changes in investment returns on reserves
Development of new reinsurance products
The process by which initial estimates of claims costs change over time as actual costs become clearer, affecting reinsurance recoveries (Correct answer)
The growth in premium reserves over time

Correct answer: The process by which initial estimates of claims costs change over time as actual costs become clearer, affecting reinsurance recoveries

Loss reserve development refers to how initial claims estimates change as additional information emerges, claims develop, or legal proceedings conclude. In long-tail reinsurance, reserve development can significantly affect the actual reinsurance recoveries eventually received.

Question 27: What anti-money laundering (AML) checks apply to general insurance in Singapore?

Only life insurers need AML checks
No AML checks apply to general insurance
AML only applies to banks
Insurers must conduct customer due diligence, monitor for suspicious transactions, and file suspicious transaction reports as required by MAS regulations (Correct answer)

Correct answer: Insurers must conduct customer due diligence, monitor for suspicious transactions, and file suspicious transaction reports as required by MAS regulations

Under MAS regulations, general insurers must implement AML/CFT measures including Know Your Customer (KYC) procedures, transaction monitoring, and reporting suspicious activities to STRO.

Question 28: What does the compulsory HDB fire insurance scheme cover in Singapore?

Both structure and contents
The building structure of the HDB flat against fire damage; it does NOT cover contents, renovations, or personal belongings (Correct answer)
Only electrical fires
Everything inside the flat

Correct answer: The building structure of the HDB flat against fire damage; it does NOT cover contents, renovations, or personal belongings

The compulsory HDB fire insurance covers only the building structure. Home contents (furniture, electronics, personal items) and renovations require separate home contents insurance.

Question 29: What is 'advance loss of profits' (ALOP) insurance in major project contexts?

Coverage for loss of anticipated profits or revenue during the delay period caused by insured damage before a project commences commercial operations (Correct answer)
Coverage for contractor profit margins on a project
Coverage for advance premium payments if a project is cancelled
Coverage for profits already earned before project completion

Correct answer: Coverage for loss of anticipated profits or revenue during the delay period caused by insured damage before a project commences commercial operations

ALOP (also called Delay in Start-Up or DSU) covers financial losses — typically lost revenue and ongoing financing costs — arising from delays to a project's planned commercial start date caused by an insured physical damage event during construction.

Question 30: How does the claims process work for home insurance in Singapore?

Only the housing agent can file claims
Call the police first for all claims
Notify the insurer as soon as possible, document the damage with photos, complete a claim form, provide supporting documents (receipts, police report if theft), and await assessment (Correct answer)
Claims must be filed within 24 hours

Correct answer: Notify the insurer as soon as possible, document the damage with photos, complete a claim form, provide supporting documents (receipts, police report if theft), and await assessment

The claims process involves prompt notification to the insurer, documentation of damage (photos, videos), police report (for theft), completion of claim forms, and provision of purchase receipts or proof of ownership.

Question 31: What is a 'portable all-risks' policy commonly added to Singapore home insurance?

A travel insurance add-on
Insurance for mobile phones only
Insurance for portable buildings
Coverage for valuable personal items (laptops, cameras, jewellery) that are carried outside the home against accidental loss or damage anywhere (Correct answer)

Correct answer: Coverage for valuable personal items (laptops, cameras, jewellery) that are carried outside the home against accidental loss or damage anywhere

Portable all-risks coverage extends protection beyond the home for specified valuable items. It covers accidental damage, loss, or theft of items like laptops, cameras, and jewellery wherever you take them.

Question 32: What is 'operational risk' in the context of risk management?

The risk of legal disputes with customers
The risk of changing market conditions
The risk of business operations being profitable
The risk of loss resulting from inadequate or failed internal processes, people, systems, or from external events (Correct answer)

Correct answer: The risk of loss resulting from inadequate or failed internal processes, people, systems, or from external events

Operational risk is the risk of loss from failures in internal processes, people (human error, fraud), systems (IT failures), or from external events (natural disasters, cyber attacks). It is distinct from financial risks like market and credit risk.

Question 33: What is Work Injury Compensation Act (WICA) insurance in Singapore?

Health insurance for retirees
Insurance for freelancers only
Voluntary employee wellness programme
Compulsory insurance for employers covering employees against work-related injuries and occupational diseases regardless of fault (Correct answer)

Correct answer: Compulsory insurance for employers covering employees against work-related injuries and occupational diseases regardless of fault

Under WICA, employers must insure all manual workers and non-manual workers earning up to SGD 2,600/month. WICA provides compensation for work injuries and occupational diseases without needing to prove employer fault.

Question 34: What is 'fidelity guarantee' insurance in Singapore?

Insurance for investment returns
Insurance protecting businesses against financial loss caused by dishonest or fraudulent acts of their employees (Correct answer)
Insurance for brand loyalty
Insurance for marriage

Correct answer: Insurance protecting businesses against financial loss caused by dishonest or fraudulent acts of their employees

Fidelity guarantee insurance compensates businesses for direct financial loss resulting from employee dishonesty — theft, fraud, embezzlement, or misappropriation of funds.

Question 35: What is 'permanent total disability' (PTD) in Singapore personal accident insurance?

A temporary disability lasting more than a year
Complete and permanent loss of function of two or more limbs, both eyes, or total inability to engage in any gainful employment (Correct answer)
Any injury requiring hospitalisation
Loss of one finger

Correct answer: Complete and permanent loss of function of two or more limbs, both eyes, or total inability to engage in any gainful employment

PTD means the insured is permanently unable to perform any gainful employment due to the accident. It typically includes loss of both hands, both feet, sight in both eyes, or any combination.

Question 36: What activities are typically excluded from Singapore personal accident insurance?

No activities are excluded
Only overseas activities are excluded
Professional sports, hazardous activities (skydiving, motor racing), war/terrorism, self-inflicted injuries, and injuries while committing a crime (Correct answer)
Only swimming is excluded

Correct answer: Professional sports, hazardous activities (skydiving, motor racing), war/terrorism, self-inflicted injuries, and injuries while committing a crime

Standard PA policies exclude professional sports, extreme activities, war and terrorism, self-inflicted injuries, injuries from criminal activity, and injuries while under the influence of drugs or alcohol.

Question 37: Does home insurance cover water damage from a burst pipe in Singapore?

Never covered
Only if the pipe was installed by a licensed plumber
Only for HDB flats
Typically covered under accidental damage or water damage peril in most comprehensive home insurance policies (Correct answer)

Correct answer: Typically covered under accidental damage or water damage peril in most comprehensive home insurance policies

Water damage from burst pipes, overflowing tanks, or leaking appliances is typically covered under home contents insurance. However, gradual water damage from poor maintenance may be excluded.

Question 38: What is a 'quota share' reinsurance treaty?

A treaty where the reinsurer takes all losses above a fixed amount
A treaty where the cedant cedes a fixed percentage of every risk to the reinsurer, sharing both premiums and losses proportionally (Correct answer)
A treaty covering only the largest risks in the portfolio
A treaty activated only after a catastrophe

Correct answer: A treaty where the cedant cedes a fixed percentage of every risk to the reinsurer, sharing both premiums and losses proportionally

In a quota share treaty, the cedant cedes a fixed percentage of every risk to the reinsurer. Premiums are shared in the same proportion as losses — if 30% is ceded, the reinsurer receives 30% of premiums and pays 30% of all losses.

Question 39: What documentation is needed to claim on a PA policy in Singapore?

Only the insurance card
Only a phone call
Completed claim form, medical reports, hospital bills, police report (if applicable), proof of disability (specialist assessment), and death certificate (for death claims) (Correct answer)
Only a witness statement

Correct answer: Completed claim form, medical reports, hospital bills, police report (if applicable), proof of disability (specialist assessment), and death certificate (for death claims)

PA claims require comprehensive documentation: the claim form, medical evidence of injury, original bills, specialist assessment for disability claims, police report for accident circumstances, and proof of employment for income-related benefits.

Question 40: What should Singapore travellers do if they need emergency medical treatment overseas?

Wait until returning to Singapore
Self-medicate to avoid costs
Only go to Singapore embassy clinics
Seek treatment immediately, contact the insurance company's 24-hour emergency hotline, and keep all medical receipts and reports for the claim (Correct answer)

Correct answer: Seek treatment immediately, contact the insurance company's 24-hour emergency hotline, and keep all medical receipts and reports for the claim

Get treatment immediately — health comes first. Contact your insurer's 24-hour assistance hotline as soon as possible. They can arrange hospital admission, guarantee payment, and coordinate evacuation if needed.

Question 41: What are the key benefits of travel insurance for Singapore travellers?

Only terrorism coverage
Only baggage loss coverage
Medical expenses overseas, trip cancellation/curtailment, baggage loss/delay, personal accident, personal liability, and travel delay compensation (Correct answer)
Only flight delay compensation

Correct answer: Medical expenses overseas, trip cancellation/curtailment, baggage loss/delay, personal accident, personal liability, and travel delay compensation

Comprehensive travel insurance covers multiple risks: overseas medical expenses (often the most valuable benefit), trip cancellation, lost luggage, travel delays, personal accident, and liability.

Question 42: What does 'third-party' mean in liability insurance terminology?

A government authority
A three-person company
Any person or entity other than the insured and the insurer who suffers loss or damage due to the insured's actions (Correct answer)
The insurance agent

Correct answer: Any person or entity other than the insured and the insurer who suffers loss or damage due to the insured's actions

In liability insurance: the first party is the insured (policyholder), the second party is the insurer (insurance company), and the third party is anyone else who may have a claim against the insured.

Question 43: Why is overseas medical coverage particularly important for Singapore travellers?

Hospitals do not charge foreigners
Singapore insurance covers overseas treatment
Medical care is free everywhere
Healthcare costs in many countries (especially the US, Europe, Japan) can be extremely high, and MediShield Life does not cover overseas medical expenses (Correct answer)

Correct answer: Healthcare costs in many countries (especially the US, Europe, Japan) can be extremely high, and MediShield Life does not cover overseas medical expenses

MediShield Life does not cover overseas medical expenses. A hospital stay in the US can cost tens of thousands of dollars. Travel insurance provides essential coverage for these potentially devastating costs.

Question 44: What is 'travel disruption' or 'travel delay' coverage in Singapore travel insurance?

Coverage for traffic jams
Coverage for jet lag
Compensation for expenses incurred when your departure is delayed beyond a specified period, such as meals, accommodation, and transport (Correct answer)
Coverage for missing your flight due to oversleeping

Correct answer: Compensation for expenses incurred when your departure is delayed beyond a specified period, such as meals, accommodation, and transport

Travel delay coverage compensates for additional expenses (meals, accommodation) when your departure is delayed beyond the trigger period (typically 6 hours) due to weather, strikes, or mechanical breakdown.

Question 45: What does personal accident (PA) insurance cover in Singapore?

Only road accidents
Only workplace accidents
Death, permanent disability, and temporary disability resulting from accidents, typically paying a lump sum or weekly benefit (Correct answer)
Only medical expenses

Correct answer: Death, permanent disability, and temporary disability resulting from accidents, typically paying a lump sum or weekly benefit

PA insurance provides financial protection against accidents resulting in death, permanent total or partial disability, and temporary disability. Benefits are typically paid as lump sums or weekly income replacement.

Question 46: What must an insurer disclose to policyholders under MAS Notice 318 for general insurance?

Only information requested by policyholders
Key features, exclusions, claims procedures, and cooling-off rights to enable informed decisions (Correct answer)
Competitor product comparisons
Only the premium amount and coverage period

Correct answer: Key features, exclusions, claims procedures, and cooling-off rights to enable informed decisions

MAS Notice 318 requires general insurers to disclose key product features, important exclusions, claims procedures, and where applicable, cooling-off rights to ensure policyholders can make informed decisions about their coverage.

Question 47: How should Singapore travellers file a travel insurance claim?

Claims can be filed anytime within 5 years
Only verbal claims are accepted
Claims must be filed before the trip ends
Notify the insurer as soon as possible, complete the claim form, and submit supporting documents (receipts, medical reports, police reports, delay certificates) within the specified timeframe (Correct answer)

Correct answer: Notify the insurer as soon as possible, complete the claim form, and submit supporting documents (receipts, medical reports, police reports, delay certificates) within the specified timeframe

File claims promptly after the incident. Most insurers require claims within 30 days of return. Required documents include the claim form, original receipts, medical reports, police reports (for theft), and delay certificates.

Question 48: What pre-existing condition rules apply to Singapore travel insurance?

Only heart conditions are excluded
Most travel insurance policies exclude pre-existing medical conditions unless declared and specifically covered, often for an additional premium (Correct answer)
All pre-existing conditions are covered
Pre-existing conditions are never covered

Correct answer: Most travel insurance policies exclude pre-existing medical conditions unless declared and specifically covered, often for an additional premium

Standard travel insurance typically excludes claims related to pre-existing medical conditions. Some insurers offer coverage for declared conditions at an additional premium after underwriting assessment.

Question 49: What is 'employer's liability' beyond WICA in Singapore?

Insurance for hiring processes
Additional insurance covering the employer against common law claims from employees for work-related injuries where negligence is proven, beyond WICA statutory limits (Correct answer)
Insurance for salary disputes
The same as WICA

Correct answer: Additional insurance covering the employer against common law claims from employees for work-related injuries where negligence is proven, beyond WICA statutory limits

While WICA provides statutory no-fault compensation, employees can also sue under common law for negligence. Employer's liability insurance covers damages awarded in such lawsuits, which can exceed WICA amounts.

Question 50: What is 'home contents' insurance in Singapore and what does it cover?

Insurance covering only jewellery
Insurance for the building structure only
Insurance for the garden and exterior
Insurance covering personal belongings, furniture, electrical appliances, and renovations inside the home against specified perils (Correct answer)

Correct answer: Insurance covering personal belongings, furniture, electrical appliances, and renovations inside the home against specified perils

Home contents insurance protects movable property inside the home: furniture, electronics, clothing, jewellery (up to limits), and renovation fixtures against perils like fire, theft, water damage, and storm.

PGI - Personal General Insurance

The PGI exam tests knowledge of personal lines insurance products in Singapore, covering motor, property, accident, travel, liability, health, and foreign domestic worker insurance. It is administered by the Singapore College of Insurance (SCI) and required by MAS for individuals selling personal general insurance products.

Questions

75 min

Time Limit

70%

To Pass

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