BCP Claims Handling 1 — Questions and Answers
Question 1: What is the first step a policyholder should take when making an insurance claim in Singapore?
- Contact a lawyer immediately
- Notify the insurer as soon as practicable and within any specified notification period (Correct answer)
- Wait until the loss is fully assessed
- Contact the police only, not the insurer
Correct answer: Notify the insurer as soon as practicable and within any specified notification period
The policyholder must notify the insurer as soon as practicable after a loss, and within any specified timeframe in the policy. Late notification can prejudice the claim.
Question 2: What is a 'claims adjuster' and how do they differ from a 'loss adjuster'?
- They are the same — the terms are interchangeable
- Claims adjusters typically work for insurers internally; loss adjusters are independent professionals appointed to assess complex claims (Correct answer)
- Loss adjusters work for policyholders; claims adjusters work for courts
- Claims adjusters are only used for motor claims
Correct answer: Claims adjusters typically work for insurers internally; loss adjusters are independent professionals appointed to assess complex claims
Claims adjusters typically work internally for insurers handling day-to-day claims. Loss adjusters are independent professionals appointed for larger or more complex claims to independently assess the loss and recommend settlement.
Question 3: Under Singapore's general insurance practice, what document formally presents a claim for payment?
- A letter of demand from a lawyer
- A claim form completed by the insured with supporting documentation (Correct answer)
- A court judgment
- A MAS complaint form
Correct answer: A claim form completed by the insured with supporting documentation
A claim form, completed by the insured and supported by relevant documentation (such as invoices, police reports, medical reports), formally presents the claim to the insurer for assessment and payment.
Question 4: What does 'fraudulent claim' mean and what are the consequences in Singapore?
- Any claim that the insurer disputes
- A deliberate false or exaggerated claim, which voids the entire policy and may result in criminal prosecution (Correct answer)
- A claim submitted without a receipt
- A claim submitted after the cooling-off period
Correct answer: A deliberate false or exaggerated claim, which voids the entire policy and may result in criminal prosecution
A fraudulent claim involves deliberate misrepresentation or exaggeration of a loss. In Singapore, this voids the entire policy, forfeits all benefits, and the claimant may face criminal prosecution under the Penal Code.
Question 5: What is 'without prejudice' communication in the context of insurance claims?
- Communication that harms the insured's claim
- Communication made during settlement negotiations that cannot be used as evidence in court proceedings (Correct answer)
- Communication that automatically settles a claim
- Communication that requires MAS approval
Correct answer: Communication made during settlement negotiations that cannot be used as evidence in court proceedings
'Without prejudice' communications are made during settlement negotiations with the understanding that they cannot be used as evidence in subsequent court proceedings, encouraging open negotiation.
Question 6: What is the purpose of a 'discharge voucher' in insurance claims settlement?
- A document authorizing vehicle repairs
- A document signed by the insured confirming full and final settlement of a claim (Correct answer)
- A document transferring policy ownership
- A certificate confirming premium payment
Correct answer: A document signed by the insured confirming full and final settlement of a claim
A discharge voucher is signed by the insured to confirm they accept the settlement amount as full and final settlement of the claim, releasing the insurer from further liability for that claim.
BCP Claims Handling 1
What is the first step a policyholder should take when making an insurance claim in Singapore?