CMFAS Personal General Insurance (PGI) Exam Free Trial Set Two

In law, the word “property” embraces both tangible and intangible property, and
may refer to either Real Property and/or Personal Property.

Tangible property is something one can touch, e.g. a building.

The replacement cost under Contents generally refers to the
purchase price of the items.

Although valuables (e.g. jewellery, antiques, paintings, furs, etc.) are commonly
covered, the policy will specify that the insurer’s liability for such items is limited

The GIA initiated the industry-wide Motor Claims Framework (MCF) in
Singapore on 1 June 2008, to provide clear and common procedures for the
reporting of motor accidents.

The MCF provides motorists with an enhanced claims experience and helps
contain claims costs for insurers.
MCF requires to take pictures of the accident scene and submit all pictures to the motorist’s authorised accident reporting centre
MCF helps in filing claims against a third party

Report and bring the accident car (whether damaged or not) to the approved
reporting centre/authorised workshop within 24 hours or by the next working
day.

No Claim Discount (NCD) refers to the discount percentage given to you each policy year where no claim is made against the Policy in the
preceding year.

However no daily transport allowance will be paid:
(a) for the first working day of the repairs
(b) for a windscreen claim
(c) for a total loss claim
(d) when the repairs to the Insured Vehicle is delayed due to unavailability of replacement parts.

That means that once the ownership of a motor car has been changed, the former owner needs to cancel his policy, and the new owner must purchase a
new Private Motor Car Insurance policy.

This condition requires the insured to pay the premium in full on or before the
effective date of insurance under the policy, renewal certificate, cover note,
and/or endorsement.

Generally, insurers are concerned with drivers having a history of multiple motor accidents within a short period, and they are unwilling to accept Private Motor Car Insurance proposals that have poor claim histories.

The occupation of the insured driver is of concern to an underwriter.

Generally, insurers are concerned with drivers having a history of multiple motor accidents within a short period, and they are unwilling to accept Private Motor Car Insurance proposals that have poor claim histories. Some insurers adopt a two strike” rule in that they are likely to turn away any driver who has made two or more claims in the same period of insurance.
For those drivers with good driving records, they will be entitled to discounts on premiums as incentives to encourage continued good driving records.

Section I – Insurance On The Motor Car: This section is generally termed the “Own Damage” section.

Accidental Loss Of Or Damage To The Motor Car
Cost Of Removal After Accident

Policy conditions are common for all forms of Private Motor Car Insurance policies. They deal with the conduct between the two parties (i.e. the insured
and the insurer) to the insurance contract.
The majority of these conditions are listed under their individual headings, but
sometimes may be found under the general heading of “CONDITIONS”.

Jurisdiction Clause

Under such a policy, the insurer agrees to indemnify the insured for his liability arising from using his motor car on the road. This policy covers only the insured’s liability arising from death or bodily injuries to third parties (including passengers). It does not cover property damage to third parties, nor does it cover bodily injuries to the driver or damage to the insured motor car.

The type of insurance that is compulsory for the motor car owner to take up is the Act Liability Only policy.

The motor claim form essentially contains questions on the:
▪ details of the policy (insured’s name, policy number, type of coverage, etc.);
▪ particulars of the driver at the time of the accident (name, driver licence,
contact details, etc.);
▪ material facts of the accident (date and time, place and occurrence of the
accident, etc.);
▪ damage to the insured motor car, third-party property and personal bodily
injuries sustained during the accident;
▪ particulars of the witnesses, if any; and
▪ photographs taken at the scene of the accident

The four basic sections are:
▪ Section I – Insurance On The Motor Car;
▪ Section II – Liability To Third Parties;
▪ Section III – Medical Expenses; and
▪ Section IV – Personal Accident Benefits.

Sometimes, the insured person may have to curtail his trip and return home earlier than planned, such as owing to any of the following disrupting events:
▪ death, severe injury or serious illness suffered by him, his travel companion, or an immediate family member in Singapore;
▪ compulsory quarantine by any government or local authority, owing to any infectious disease suffered by him or his travel companion;
▪ hijacking of the aircraft in which he is a passenger on board; or
▪ natural disaster (such as earthquake, tsunami, typhoon and the like) or
sudden strike, riot or civil commotion outbreak at the planned destination;

If any one of the above events happens, the insurer will refund the irrecoverable travel and/or accommodation costs that may have been pre-paid, including the travel agent’s cancellation fee. However, the insurer will not refund the deposit owing to cancellation, just because the insured person has a change of mind about undertaking the trip

Emergency medical repatriation occurs when, because of an accident or illness abroad, the insured person requires repatriation to Singapore. The decision as to whether or not the insured person should be repatriated would strictly rest with the attending medical doctor or the insurer’s contracted specialist company.

If the insurer decides to arrange a medical examination (at its own expense), it enables the insurer to be satisfied that:
▪ the alleged accident has caused the injuries; and
▪ such injuries are preventing the insured person from working; or
▪ the injury is as described and is causing the disability sustained.

Any change in the occupation of the insured has a bearing on the risk, particularly as the premium is determined mainly according to his occupation.
Hence, there will usually be a condition stating that the insured will give the insurer written notice of any change of occupation. This enables the insurer to re-underwrite, if appropriate, to consider continuation of the insurance, the rate of premium, and any conditions that may be applied.
Also, it may be common for insurers to further specify that any changes in “habits, pursuits or of any disease, injury or physical defect or infirmity” be reported to the insurer, as such factors may influence the risk insured, thus requiring a review of the premium payable by the insured.

A Double Indemnity benefit, which is also commonly included under the standard cover, pays twice the benefit for death or permanent disablement if the accident occurs while the insured person is riding as a fare-paying passenger in a common carrier, public conveyance or public transport, such as bus, ferry, hovercraft, hydrofoil, ship, train, tram, or underground train.

For the purpose of premium classification, insurers usually divide the world map into different geographical regions/zones. Three common classifications are ASEAN, Asia, or Worldwide.

The purpose of Personal Accident (PA) Insurance is to provide financial protection and financial burden relief to the insured against the risk of accidental death or bodily injury happening to him

In the event of the insured’s accidental death, this policy will pay a monetary sum to his beneficiary. It also serves to mitigate potential loss of income and to cover additional expenses incurred if he is disabled and unable to attend to his usual occupation or work.

The insured must provide the insurer with a claim notification within a certain period, usually 30 days, although market practice may vary.
The insured (or the legal personal representative), at his own expense, is required to furnish certificates, information, and evidence in the form as required by the insurer. In practice, the insurer issues a printed claim form (which may be downloaded from the insurer’s website), so drafted as to elicit the information that is normally required. This must be completed by the insured himself