BCP General Insurance Products — Questions and Answers
Question 1: What does a motor insurance policy in Singapore typically cover?
- Only damage to your own vehicle
- Third-party liability, own damage, and personal accident depending on the plan type (Correct answer)
- Only medical expenses of the driver
- Only theft of the vehicle
Correct answer: Third-party liability, own damage, and personal accident depending on the plan type
Motor insurance in Singapore ranges from third-party only (mandatory minimum) to comprehensive plans covering own damage, third-party liability, personal accident, and additional benefits.
Question 2: In Singapore, what is the minimum motor insurance coverage required by law?
- Comprehensive coverage
- Third-party only coverage (Correct answer)
- Third-party, fire, and theft coverage
- No minimum is required
Correct answer: Third-party only coverage
Under the Motor Vehicles (Third-Party Risks and Compensation) Act, all motor vehicles in Singapore must have at least third-party liability insurance to cover injury or death of other road users.
Question 3: What is a 'No Claim Discount' (NCD) in Singapore motor insurance?
- A discount for paying premiums annually
- A discount given for each claim-free year, up to a maximum percentage (Correct answer)
- A discount for insuring multiple vehicles
- A discount for drivers over 50 years old
Correct answer: A discount given for each claim-free year, up to a maximum percentage
NCD rewards policyholders with premium discounts for each year they do not make a claim, typically starting at 10% and going up to 50% after five consecutive claim-free years.
Question 4: What type of insurance covers a homeowner against fire and damage to the building structure in Singapore?
- Home contents insurance
- Fire insurance (building insurance) (Correct answer)
- Personal accident insurance
- Travel insurance
Correct answer: Fire insurance (building insurance)
Fire insurance covers the building structure against perils like fire, lightning, and explosion. For HDB flats, the HDB Fire Insurance Scheme is compulsory for flat owners with an outstanding HDB loan.
Question 5: What does 'home contents' insurance cover in Singapore?
- Only the building structure
- Personal belongings and furnishings inside the home against specified perils (Correct answer)
- Only electronic appliances
- Only jewellery and valuables
Correct answer: Personal belongings and furnishings inside the home against specified perils
Home contents insurance covers movable property inside the home, including furniture, electronics, clothing, and personal effects against perils like fire, theft, and water damage.
Question 6: What is 'travel insurance' primarily designed to cover for Singapore travellers?
- Only flight delays
- Trip cancellation, medical expenses overseas, lost baggage, and travel-related emergencies (Correct answer)
- Only accommodation costs
- Only travel agency fees
Correct answer: Trip cancellation, medical expenses overseas, lost baggage, and travel-related emergencies
Travel insurance provides comprehensive coverage for unexpected events during overseas trips, including medical emergencies, trip cancellations, baggage loss, flight delays, and personal liability.
BCP General Insurance Products
What does a motor insurance policy in Singapore typically cover?