BCP Property & Casualty Insurance 1 — Questions and Answers
Question 1: What does a standard Fire Insurance policy in Singapore typically cover?
- Fire and all weather events
- Fire, lightning, and explosion of domestic boilers (Correct answer)
- Fire only
- Fire, theft, and accidental damage
Correct answer: Fire, lightning, and explosion of domestic boilers
A standard Fire Insurance policy covers loss or damage caused by fire, lightning, and explosion of domestic gas boilers or gas used for domestic purposes. Other perils require extensions.
Question 2: Which of the following is typically EXCLUDED from a standard property insurance policy?
- Storm damage
- Fire damage
- Gradual deterioration and wear and tear (Correct answer)
- Lightning damage
Correct answer: Gradual deterioration and wear and tear
Gradual deterioration and wear and tear is typically excluded from property insurance policies because insurance covers sudden, unforeseen events — not inevitable deterioration over time.
Question 3: What is 'public liability insurance' designed to cover?
- Government liability to the public
- A business's legal liability to third parties for bodily injury or property damage (Correct answer)
- An individual's personal liability to family members
- Liability for product defects only
Correct answer: A business's legal liability to third parties for bodily injury or property damage
Public liability insurance covers a business's legal liability to third parties (members of the public) who suffer bodily injury or property damage arising from the business's activities.
Question 4: In motor insurance, what does 'Third Party Only' (TPO) coverage provide?
- Coverage for the insured's own vehicle damage
- Coverage for injuries and damage caused to other parties by the insured (Correct answer)
- Coverage for theft of the insured's vehicle
- Medical expenses for the insured driver
Correct answer: Coverage for injuries and damage caused to other parties by the insured
Third Party Only (TPO) motor insurance covers the insured's legal liability to third parties for bodily injury and property damage caused by the insured's vehicle, but does not cover the insured's own vehicle.
Question 5: What does 'employers' liability insurance' cover in Singapore?
- The employer's property at the workplace
- The employer's legal liability for work-related injuries or illnesses suffered by employees (Correct answer)
- Employee theft of company assets
- Salary payments during business interruption
Correct answer: The employer's legal liability for work-related injuries or illnesses suffered by employees
Employers' liability insurance covers the employer's legal liability to pay compensation to employees who suffer work-related injuries, diseases, or death in the course of their employment.
Question 6: Which peril is typically covered under a Contractors' All Risks (CAR) policy?
- Contractor's professional negligence
- Accidental physical loss or damage to the contract works (Correct answer)
- Delay in completion penalties
- Design errors by engineers
Correct answer: Accidental physical loss or damage to the contract works
A Contractors' All Risks (CAR) policy covers accidental physical loss or damage to the contract works, plant, and equipment during construction, subject to policy exclusions.
BCP Property & Casualty Insurance 1
What does a standard Fire Insurance policy in Singapore typically cover?