CMFAS Personal General Insurance (PGI) Exam Free Trial

A notable policy covering buildings is the “HDB Fire Insurance Scheme”. This is a compulsory insurance scheme for every HDB homeowner with a mortgage loan taken after 1 September 1994.

This covers only the owner’s household contents, usually with other supplementary covers (such as personal liability and personal accident), to make it
more attractive to buyers.

Packaged Household Insurance for buildings provide the cover for which of the following:

I. Fire, Lightning, Thunderbolt Or Subterranean Fire
II. Damage caused by earthquake, volcanic eruption etc

His insurer may repudiate liability because the insured has breached the policy condition to report an accident
His No Claims Discount will be reduced upon the renewal of his policy
His insurer may cancel or decline renewal of his policy if he blatantly ignores the insurer’s requests to file an accident report

Motor Insurers’ Bureau Of Singapore (MIB): Its main purpose is to compensate people injured in road accidents caused by negligent untraced or uninsured motorists.

There is no bodily injury
The claim is a third-party claim

Motor Accident Guide” (MAG) in 2014, which serves a reference to the guidelines that the courts use to assess liability in different scenarios commonly encountered in road traffic accidents.

In accordance with the Act:
(a) the policy must be taken up with an approved insurer in Singapore, and
(b) a Certificate of Insurance must be obtained from the insurer, otherwise
the insurance policy purchased shall be of no effect.
It is also a statutory requirement that the driver must produce a valid Certificate
of Insurance at any time, as and when required by the police.
The insured, including any named driver or authorised driver, must have a valid
licence to drive a motor car in Singapore. In addition, he must not be under
suspension or disqualified from driving under the Road Traffic Act (Cap. 276).

We will not pay for:
(i) daily transport allowance or any losses due to unavailability of Accessories and/or parts
(ii) depreciation, wear and tear, mechanical or electrical breakdowns, failures or breakages of the Insured Vehicle
(iii) damage to tyres unless the Insured Vehicle suffers other damage at the same time
(iv) Excess and Additional Excess inclusive of GST if applicable

While the limit of indemnity is unlimited for liability under death or bodily injury (as required under the Act), it is common for an insurer to place a limit in respect of the claim arising from damage to third-party property, usually up to S$5 million in respect of any one claim or series of claims arising out of any one event.

limit the claim to one accident during any one period of insurance (usually 12 months).
Total and irrecoverable loss of all sight in one eye S$10,000
If the insured has more than one Private Motor Car Insurance policy with the insurer, the insured will only be entitled to a payment from one policy named driver, authorised driver, and passengers are also covered in this section under the same conditions, but are each usually entitled to half of the respective amounts as specified in the Scale of Compensation

Excess clauses are often included in Private Motor Car Insurance to curb small claims

A NCD is a financial reward for the insured that has not made a claim under the policy.

Under the BOLA, the insured’s NCD will not be affected if his liability is 20% or less in an accident involving an identified vehicle

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

This cover provides indemnity to the insured for:
Death or bodily injuries to third parties and/or passengers; and Unlike an Act Liability Only policy, a Third-Party Only policy, in addition to providing cover for death or bodily injuries to third parties (including passengers), also provides cover against damage to property belonging to third parties. The policy also covers any accident occurring on the road and on private property. However, it does not provide cover against damage to the insured’s own motor car, whatever the cause

Comprehensive:
There is also a personal accident benefits section, which provides benefits for death or permanent disability sustained by the insured and/or any passenger of the insured’s motor car, following an accident arising out of the use of the motor car.

A cover note provides evidence of the contract of insurance and has the same legal force as the Certificate of Insurance.

Insurers use endorsements to record changes in the terms and conditions of the standard insurance policy.

Renewal notice to the policyholder at least 30 or 45 business days before the expiry date of the policy.