PGI Motor Insurance 2 — Questions and Answers
Question 1: What is the Motor Insurers' Bureau (MIB) of Singapore?
- A motor vehicle repair shop
- An organisation that compensates victims of road accidents caused by uninsured or untraced drivers (Correct answer)
- A driving school
- A car rental company
Correct answer: An organisation that compensates victims of road accidents caused by uninsured or untraced drivers
The MIB provides a safety net for accident victims who cannot claim from the at-fault driver because they were uninsured or could not be identified (hit-and-run). It is funded by all motor insurers.
Question 2: What is an 'NCD protector' in Singapore motor insurance?
- A free add-on for all policies
- An optional add-on that preserves your No Claim Discount even if you make a claim, usually for an additional premium (Correct answer)
- A type of anti-theft device
- A government subsidy for safe drivers
Correct answer: An optional add-on that preserves your No Claim Discount even if you make a claim, usually for an additional premium
An NCD protector is an optional paid add-on that preserves your NCD (up to a certain percentage) after a claim. It costs extra but can save money if you need to make a claim.
Question 3: What factors affect motor insurance premiums in Singapore?
- Only the vehicle's colour
- Vehicle make/model, driver's age and experience, claims history, NCD, usage, driving record, and modifications (Correct answer)
- Only the number of passengers
- Only the vehicle's age
Correct answer: Vehicle make/model, driver's age and experience, claims history, NCD, usage, driving record, and modifications
Multiple factors determine premiums: vehicle type and value, driver demographics, driving experience, claims history, NCD level, annual mileage, vehicle modifications, and intended use (personal vs. commercial).
Question 4: What is the windscreen cover in a Singapore motor insurance policy?
- Always included at no extra cost
- Optional coverage for windscreen damage, typically with its own excess, that can be claimed without affecting the NCD (depending on the insurer) (Correct answer)
- Not available in Singapore
- Only covers the rear windscreen
Correct answer: Optional coverage for windscreen damage, typically with its own excess, that can be claimed without affecting the NCD (depending on the insurer)
Windscreen cover is an optional benefit in many comprehensive policies. Some insurers allow windscreen claims without affecting NCD, though a separate windscreen excess usually applies.
Question 5: What is the GIA (General Insurance Association) accident reporting process in Singapore?
- Report only to the police
- Report to the insurer and the GIA within 24 hours using the motor accident report form, with both parties submitting their versions (Correct answer)
- No reporting is required for minor accidents
- Only report if hospitalisation occurs
Correct answer: Report to the insurer and the GIA within 24 hours using the motor accident report form, with both parties submitting their versions
Both parties in a motor accident should submit reports to their respective insurers and may use the GIA motor accident report form. Prompt reporting within 24 hours helps expedite the claims process.
Question 6: What does 'agreed value' vs 'market value' mean in motor insurance?
- They are the same concept
- Agreed value is a pre-determined fixed payout in case of total loss; market value is the actual market worth of the vehicle at the time of the claim (Correct answer)
- Market value is always higher
- Agreed value is only for new cars
Correct answer: Agreed value is a pre-determined fixed payout in case of total loss; market value is the actual market worth of the vehicle at the time of the claim
Agreed value provides a guaranteed payout amount set when the policy starts. Market value pays the current market worth at the time of loss, which depreciates over time. Agreed value provides certainty.
PGI Motor Insurance 2
What is the Motor Insurers' Bureau (MIB) of Singapore?