Section 25(5) of the Insurance Act (Cap. 142) mandates the proposer to disclose all facts that they know or ought to know, to enable the insurer to assess the risk accurately. Failure to do so may render the policy voidable by the insurer. This duty of disclosure is paramount in insurance contracts, which are based on utmost good faith (uberrimae fidei). The insurer relies on the proposer’s disclosures to determine whether to accept the risk and on what terms. The other options do not accurately reflect the legal requirement for full and faithful disclosure under Singapore’s Insurance Act.

According to MOM regulations and standard FDW insurance policies, the minimum compensation for accidental death or permanent disablement is S$40,000. This compensation is payable if the death or disablement results from violent, external, and visible means within 12 months from the date of the accident. While policies may offer higher coverage, the minimum stipulated by MOM is S$40,000.

Section 25(5) of the Insurance Act (Cap. 142) places a duty on the proposer to disclose all facts that they know or ought to know, which would influence the insurer’s decision to accept the risk or determine the premium. Failing to do so may render the policy void. This principle ensures fairness and transparency in the insurance contract, allowing the insurer to accurately assess the risk they are undertaking. The other options do not accurately reflect the legal requirement for full disclosure as stipulated by the Insurance Act.

Personal Liability Insurance, unlike commercial liability insurances, covers legal liability at Common Law only. It is designed to protect the insured and their family members from liabilities arising from non-business activities. The key distinction lies in the scope of coverage: commercial lines cover liabilities under Statute, Common Law, and/or Contract, whereas personal lines are restricted to Common Law. Therefore, if a liability arises from a contractual obligation, it would not be covered under a Personal Liability Insurance policy.

Hospital Cash Insurance policies typically have a waiting period for illnesses to prevent claims for pre-existing conditions or illnesses contracted shortly after the policy’s inception. This waiting period, often around 30 days, ensures that the illness is genuinely new and not a continuation of a pre-existing condition. In contrast, injuries resulting from accidents are usually covered immediately without a waiting period, reflecting the sudden and unforeseen nature of accidents. The scenario highlights the importance of understanding these waiting periods to determine the validity of a claim. The other options are incorrect because they either misrepresent the standard waiting period conditions or confuse the waiting period for illness with that of injury.

The Pairs & Sets Clause in a Valuable Articles Insurance policy addresses situations where an item that is part of a set or pair is damaged. The standard application of this clause allows the insurer to make a proportionate payment for the damaged item, without necessarily considering the diminished value of the remaining item(s). However, some insurers offer a more lenient approach where, if the insured surrenders the undamaged item(s), the insurer will pay the full replacement cost of the entire set or pair. This is a softening of the impact of the clause. The scenario described involves Eddy’s insurer applying the standard Pairs & Sets Clause, and not the softened version. Therefore, the insurer is correct in applying the standard clause and making a proportionate payment.

The question assesses the understanding of how No Claim Discount (NCD) is affected by claims made during the policy year. According to the guidelines, if an insured has a 50% NCD and makes one claim during the policy year, the NCD is reduced to 20% upon policy renewal. The scenario specifically mentions one claim, so the reduction is to 20%.

Personal Liability Insurance is designed to protect the insured against legal liabilities arising from unintentional acts that cause bodily injury or property damage to third parties. The policy typically covers situations where the insured is found legally liable for negligence. While some policies may offer extensions for specific incidents like defamation, the core purpose is to cover unintentional harm. Contractual liabilities, intentional acts, and professional services are generally excluded and would require different types of insurance coverage.

The key here is understanding the ‘Pairs and Sets Clause’. This clause is specifically designed to address situations where the loss of one item from a set diminishes the value of the remaining items. The insurer will compensate for the lost item, but only for a proportionate part of the total set’s insured value, recognizing that the remaining items still hold some value, even if less than before. Paying the full value of the set would be an overpayment, while not compensating at all would be unfair to the insured. Repairing the remaining items is not relevant as the loss is of one item, not damage to the remaining ones. This clause is a standard practice in valuable articles insurance to ensure fair compensation in such scenarios.

Temporary total disablement benefits are designed to provide financial support when an insured person is temporarily unable to perform the duties of their specific occupation due to an accident. The key factor is the inability to perform occupational duties, not general work capacity. The scenario highlights that while the insured can perform some work-related tasks, they cannot fulfill their primary occupational duties as a surgeon due to the injury. This aligns with the definition of temporary total disablement, making the weekly benefits applicable. The other options do not accurately reflect the conditions for temporary total disablement as defined in personal accident insurance policies.

According to the policy conditions, if there is a dispute regarding the amount to be paid for a claim that the insurer admits liability for, the dispute must be referred to an arbitrator. Legal action against the insurer is not permitted until the arbitrator has made a decision. This is in accordance with the arbitration clause in the policy. The Contracts (Rights of Third Parties) Act 2001 states that a person who is not a party to the insurance policy has no right to enforce any of its terms. The policy is governed by Singapore Law, and no amount payable under the policy carries interest. These clauses define the legal framework and dispute resolution process for the insurance policy, ensuring that disputes are resolved through arbitration before legal action is pursued.

Under a motor insurance policy, an insured can authorize repairs to their damaged vehicle without prior insurer approval, provided the estimated repair cost does not exceed S$300 after deducting the Own Damage Excess. The insurer must be informed of the detailed cost estimate as soon as possible. This provision allows for prompt repairs of minor damages, streamlining the claims process while maintaining insurer oversight.

The Foreign Domestic Worker’s Liability extension in a Foreign Domestic Worker Insurance (FDWI) policy specifically covers the employer’s legal liabilities arising from the FDW’s negligence during the course of employment. This coverage is designed to protect the employer from financial losses due to third-party claims for death, injury, or property damage caused by the FDW’s actions. Contractual liabilities are explicitly excluded to ensure the coverage is limited to liabilities resulting from negligence. The scenario provided illustrates a clear case of negligence where the FDW’s carelessness directly leads to injury of a third party, making the employer liable for the resulting medical expenses. The FDW’s belongings are covered under a separate section of the FDWI policy, and the FDW’s medical expenses are covered under a different benefit. The employer’s legal costs, while related, are not the primary focus of the scenario; the key issue is the reimbursement of the injured party’s medical expenses due to the FDW’s negligence.

The Third-Party Indemnity to Employer extension in a motor insurance policy provides coverage to the insured’s employer for liabilities to third parties arising from the use of the insured vehicle for the employer’s business. However, this indemnity specifically excludes liability for death or bodily injury sustained by an employee during the course of their employment. Such incidents are more appropriately covered by Work Injury Compensation Insurance or Employer’s Liability Insurance, as stipulated under Singaporean employment regulations. Therefore, the motor insurance policy with this extension will not cover injuries to the employee.

The No Claim Discount (NCD) is a discount applied to the motor insurance premium as a reward for claim-free driving. It belongs to the insured, not the vehicle. Therefore, selling the car does not affect the NCD. The insured retains the NCD even when changing vehicles. The NCD is also transferable between insurers, subject to verification. The NCD is not transferable to another person, except in some cases between spouses with the same insurer. The NCD cannot be transferred from one vehicle class to another (e.g., motorcycle to car).

According to the Insurance Act, Cap. 142, Section 25(5), a proposer for insurance is required to disclose fully and faithfully all facts known to them that are relevant to the risk being proposed. Failure to do so may render the policy void. This duty of disclosure ensures that the insurer has an accurate understanding of the risk they are undertaking, allowing them to appropriately assess premiums and coverage terms. The principle of ‘utmost good faith’ (uberrimae fidei) underlies this requirement, emphasizing honesty and transparency in the insurance application process.

The scenario describes a situation where a traveler, due to a sudden illness requiring hospitalization just before their trip, cannot proceed. However, another person takes their place. According to Section 23 of the travel insurance policy, the insurance company will reimburse the original traveler for administrative fees or charges incurred to change the travel and accommodation arrangements, enabling the replacement traveler to take the trip, provided the hospitalization occurs within seven days before the trip’s commencement. The key here is that the policy covers the administrative fees for changing the booking to accommodate the replacement traveler, not the full cost of the trip or medical expenses.

The Road Traffic Act (Cap. 276) mandates the registration of motor vehicles. Using or driving a vehicle that isn’t registered or has had its registration canceled violates the Act. Additionally, any modifications not approved by the Land Transport Authority (LTA) also contravene the Road Traffic (Motor Vehicles, Registration and Licensing) Rules. Therefore, the insurer is not liable for any loss, damage, or liability sustained or incurred while the motor car is being used or driven when it is not registered under the Road Traffic Act (Cap. 276) or when its registration has been canceled; or used or driven with modifications not approved by LTA in accordance with the Road Traffic (Motor Vehicles, Registration and Licensing) Rules.

Under the Insurance Act (Cap. 142), specifically Section 27, an insurer has a duty to disclose all material facts to the insured. A material fact is one that would influence a reasonable person in deciding whether to enter into a contract of insurance, or the terms on which to do so. In this scenario, the insurer’s failure to disclose the USA/Canada Exclusion Clause, which significantly limits the geographical scope of the policy, constitutes a breach of this duty. The insured, relying on the policy’s general terms, suffered a loss in the USA, which was not covered due to the undisclosed exclusion. Therefore, the insurer is liable for the loss because they did not properly inform the insured about a critical limitation of the policy. This aligns with the principles of utmost good faith (uberrimae fidei) that govern insurance contracts, as interpreted by Singaporean courts.

A ‘no claim premium refund’ is a feature offered by some insurers where a portion of the premium is refunded if no claims are made during a specified period, typically after the policy has been in force for a minimum number of consecutive years. This is different from an increase in the sum insured, which would increase the coverage amount. It also differs from a premium discount, which is usually applied at the policy’s inception or renewal, and a deductible waiver, which relates to the amount the insured pays out-of-pocket before the insurance coverage kicks in. This feature is designed to reward policyholders for maintaining a claim-free record, encouraging responsible behavior and reducing the insurer’s risk exposure. This aligns with general insurance principles of risk management and customer retention, as discussed in the CMFAS exam syllabus.

According to the Motor Vehicles (Third-Party Risks and Compensation) Act (Cap. 189), every motor vehicle user in Singapore must maintain insurance coverage to indemnify against legal liabilities arising from death or bodily injuries to third parties due to the use of the motor vehicle on a road. This is a statutory requirement to ensure that victims of road accidents have a recourse for compensation. The Act mandates this minimum coverage to protect the public from the financial consequences of accidents caused by negligent drivers. Failing to have this insurance in force is an offense.

Personal Liability Insurance, unlike commercial liability insurances, covers legal liability at Common Law only, not under Statute or Contract. It is designed for individuals and their families, not businesses. The geographical limit is typically within the Republic of Singapore. The policy covers accidental death, bodily injury, or illness to any person and accidental loss of or damage to property, provided the insured is directly liable. It also covers legal costs and expenses with the insurer’s consent.

Under the Insurance Act, specifically Section 37, insurers are required to handle claims fairly and efficiently. This includes providing clear communication, conducting thorough investigations, and making prompt decisions. Delaying a legitimate claim without reasonable justification is a violation of these principles. While insurers have the right to investigate claims and request necessary documentation, unreasonably delaying the process to discourage the claimant is unethical and potentially illegal. The Monetary Authority of Singapore (MAS) oversees the insurance industry and can take action against insurers that engage in unfair claims practices.

The Agri-food & Veterinary Authority of Singapore (now the Singapore Food Agency) registration is a crucial requirement for pet dog insurance. If the pet is not registered, the insurance company is not liable for claims. The age of the dog is also a factor, with dogs under 3 months or over 5 years old typically excluded. The policy also excludes claims for physical defects, illnesses, or diseases known to the insured when the policy was taken up or at renewal and not accepted in writing by the Company. Surgery not necessitated by accidental bodily injury nor necessary to save the pet dog(s) life, which results in its death is also excluded.

Under the Insurance Act, specifically concerning travel insurance, it’s crucial to understand the implications of non-disclosure. Failing to disclose pre-existing conditions can lead to claim denials, policy cancellations, or altered terms. While insurers can investigate claims, the primary responsibility lies with the insured to provide accurate information upfront. The insurer’s actions are governed by the principles of utmost good faith, but this doesn’t negate the insured’s duty of disclosure. The Monetary Authority of Singapore (MAS) also provides guidelines on fair dealing, emphasizing the need for insurers to treat customers fairly, which includes clearly communicating the consequences of non-disclosure.

When a packaged household insurance policy includes liability coverage, it is crucial for the insured to promptly forward any legal documents served on them to the insurer. This includes writs, summonses, legal processes, or any other form of legal communication. This action allows the insurer to take appropriate steps in managing the liability claim, which may involve legal defense and settlement negotiations. Failing to do so could potentially jeopardize the insured’s coverage and ability to receive assistance from the insurer in handling the legal matter. This requirement is designed to ensure that the insurer is informed and can act in a timely manner to protect the insured’s interests.

According to the provided text, the travel insurance policy typically covers the cost of transporting the mortal remains of the deceased insured from the place of death to Singapore for burial. As an alternative, upon specific request of the personal representative, the policy may cover the cost of local burial in the country where the insured was visiting at the time of death, up to the equivalent cost of repatriation to Singapore. If the representative chooses an alternative destination besides Singapore for burial, the policy will cover the cost of transportation to this alternative site, up to the equivalent cost of transporting the remains to Singapore. Therefore, the policy provides flexibility in handling the mortal remains based on the wishes of the deceased’s representative, within the specified cost limits. This coverage is subject to the terms and conditions outlined in Section 15 of the policy.

The Personal Accident section of a Personal General Insurance policy typically provides coverage for bodily injury sustained by the insured due to accidental means while at the insured dwelling. The policy outlines specific benefits for death or permanent disablement resulting from such injuries within a defined timeframe. The table of benefits specifies the percentages of the sum insured payable for various types of permanent disablement. In this scenario, the insured’s loss of speech due to an accident at home falls under the specified benefits, with a defined percentage of the sum insured payable. The key is to identify the correct benefit amount as per the policy’s table of benefits for loss of speech.

A ‘no claim premium refund’ is an incentive offered by some insurers, where a portion of the premium is refunded if no claims are made during a specified period, typically after the policy has been in force for a minimum number of consecutive years. This is different from an increase in the sum insured, which provides higher coverage, or a waiver of premium, which suspends premium payments under certain conditions. A bonus sum assured is an additional amount added to the sum assured, usually upon maturity or a specific event.

The Motor Vehicles (Third-Party Risks and Compensation) Act (Cap. 189) mandates a minimum level of coverage, specifically Act Liability Only, which covers death or bodily injuries to third parties, including passengers. Third-Party Only extends this to include damage to third-party property. Third-Party, Fire & Theft adds coverage for the insured’s vehicle against fire and theft. Comprehensive provides the broadest coverage, including accidental and malicious damage to the insured’s vehicle, medical expenses, and personal accident benefits. Therefore, the most extensive coverage is offered by a Comprehensive policy.