PGI - Personal General Insurance — Questions and Answers

Question 1: What is 'supply chain risk' and how does it create insurance exposure?

Risk of labour disputes at the insured's premises
Risk that disruptions in the supply chain interrupt the insured's business, creating contingent business interruption exposure even when the insured's own premises are undamaged (Correct answer)
Risk from competitors in the same supply chain
Risk of price changes in raw materials

Correct answer: Risk that disruptions in the supply chain interrupt the insured's business, creating contingent business interruption exposure even when the insured's own premises are undamaged

Supply chain risk arises when disruptions at upstream suppliers or downstream distributors interrupt the insured's business operations, even when the insured's own premises are undamaged. This creates contingent business interruption exposure.

Question 2: What is 'advance loss of profits' (ALOP) insurance in major project contexts?

Coverage for loss of anticipated profits or revenue during the delay period caused by insured damage before a project commences commercial operations (Correct answer)
Coverage for advance premium payments if a project is cancelled
Coverage for contractor profit margins on a project
Coverage for profits already earned before project completion

Correct answer: Coverage for loss of anticipated profits or revenue during the delay period caused by insured damage before a project commences commercial operations

ALOP (also called Delay in Start-Up or DSU) covers financial losses — typically lost revenue and ongoing financing costs — arising from delays to a project's planned commercial start date caused by an insured physical damage event during construction.

Question 3: What is 'professional indemnity' (PI) insurance and who needs it in Singapore?

Insurance for professional equipment
Insurance for professionals (lawyers, doctors, accountants, architects) protecting against claims of negligence or errors in their professional services (Correct answer)
Insurance for professional athletes
Insurance for job loss

Correct answer: Insurance for professionals (lawyers, doctors, accountants, architects) protecting against claims of negligence or errors in their professional services

PI insurance covers professionals against claims that their advice, services, or designs caused financial loss to clients. In Singapore, some professions (lawyers, architects) are required to have PI coverage.

Question 4: What is Work Injury Compensation Act (WICA) insurance in Singapore?

Compulsory insurance for employers covering employees against work-related injuries and occupational diseases regardless of fault (Correct answer)
Voluntary employee wellness programme
Health insurance for retirees
Insurance for freelancers only

Correct answer: Compulsory insurance for employers covering employees against work-related injuries and occupational diseases regardless of fault

Under WICA, employers must insure all manual workers and non-manual workers earning up to SGD 2,600/month. WICA provides compensation for work injuries and occupational diseases without needing to prove employer fault.

Question 5: How does personal accident insurance differ from health insurance in Singapore?

PA covers accidental death and disability only; health insurance covers illness and hospitalisation. PA pays lump sums; health insurance reimburses medical costs (Correct answer)
Health insurance only covers surgery
They are identical products
PA is more expensive

Correct answer: PA covers accidental death and disability only; health insurance covers illness and hospitalisation. PA pays lump sums; health insurance reimburses medical costs

PA insurance pays benefits for accident-related outcomes (death, disability) regardless of medical costs. Health insurance reimburses actual medical expenses for both illness and accidents.

Question 6: What anti-money laundering (AML) checks apply to general insurance in Singapore?

Only life insurers need AML checks
Insurers must conduct customer due diligence, monitor for suspicious transactions, and file suspicious transaction reports as required by MAS regulations (Correct answer)
AML only applies to banks
No AML checks apply to general insurance

Correct answer: Insurers must conduct customer due diligence, monitor for suspicious transactions, and file suspicious transaction reports as required by MAS regulations

Under MAS regulations, general insurers must implement AML/CFT measures including Know Your Customer (KYC) procedures, transaction monitoring, and reporting suspicious activities to STRO.

Question 7: How does group personal accident insurance work for Singapore employers?

Employers purchase a single policy covering all employees, usually as part of employee benefits; premiums are based on group characteristics rather than individual assessment (Correct answer)
It replaces WICA insurance
It is the same as individual PA
Only government employers offer it

Correct answer: Employers purchase a single policy covering all employees, usually as part of employee benefits; premiums are based on group characteristics rather than individual assessment

Group PA insurance provides accident coverage for all employees under one policy. It is typically cheaper per person than individual PA, requires no individual medical underwriting, and is a common employee benefit.

Question 8: What does 'third-party' mean in liability insurance terminology?

A three-person company
The insurance agent
Any person or entity other than the insured and the insurer who suffers loss or damage due to the insured's actions (Correct answer)
A government authority

Correct answer: Any person or entity other than the insured and the insurer who suffers loss or damage due to the insured's actions

In liability insurance: the first party is the insured (policyholder), the second party is the insurer (insurance company), and the third party is anyone else who may have a claim against the insured.

Question 9: What does the compulsory HDB fire insurance scheme cover in Singapore?

Only electrical fires
The building structure of the HDB flat against fire damage; it does NOT cover contents, renovations, or personal belongings (Correct answer)
Both structure and contents
Everything inside the flat

Correct answer: The building structure of the HDB flat against fire damage; it does NOT cover contents, renovations, or personal belongings

The compulsory HDB fire insurance covers only the building structure. Home contents (furniture, electronics, personal items) and renovations require separate home contents insurance.

Question 10: What is the landlord's insurance available in Singapore?

Insurance for property agents
Insurance for the tenant
Insurance for property owners who rent out their property, covering building structure, rental income loss, tenant-related risks, and landlord liability (Correct answer)
Insurance for HDB upgrading

Correct answer: Insurance for property owners who rent out their property, covering building structure, rental income loss, tenant-related risks, and landlord liability

Landlord insurance protects rental property owners against risks including building damage, loss of rental income (if the property becomes uninhabitable), tenant defaulting on rent, and liability claims.

Question 11: What is 'underwriting year' versus 'accident year' versus 'calendar year' accounting in reinsurance?

They all produce identical financial results
Calendar year accounting is prohibited in reinsurance
Underwriting year groups losses by policy inception; accident year groups by when the loss occurred; calendar year groups by when losses are recorded — each gives different timing views of performance (Correct answer)
Underwriting year is only used in Lloyd's of London market

Correct answer: Underwriting year groups losses by policy inception; accident year groups by when the loss occurred; calendar year groups by when losses are recorded — each gives different timing views of performance

These three accounting bases group losses differently: underwriting year by when the policy was written, accident year by when the loss event occurred, and calendar year by when losses are actually recorded in financial statements — giving different perspectives on portfolio performance over time.

Question 12: What is 'late reporting prejudice' and how can it affect reinsurance recoveries?

Prejudice against claims adjusters who report late
Failure to report claims to the reinsurer within required timeframes, potentially allowing the reinsurer to deny the recovery on grounds of prejudice (Correct answer)
The financial cost of delayed claims reporting to policyholders
Prejudice against late-reporting insurers in the market

Correct answer: Failure to report claims to the reinsurer within required timeframes, potentially allowing the reinsurer to deny the recovery on grounds of prejudice

Most reinsurance contracts require prompt notification of large or unusual claims. Failure to notify within specified timeframes can prejudice the reinsurer's ability to investigate and manage the claim, potentially providing grounds to deny or reduce the reinsurance recovery.

Question 13: What is 'directors and officers' (D&O) liability insurance?

Insurance for office equipment
Insurance protecting company directors and officers against personal liability for decisions made in their corporate capacity that result in legal action (Correct answer)
Insurance for company directors' personal vehicles
Insurance for director salaries

Correct answer: Insurance protecting company directors and officers against personal liability for decisions made in their corporate capacity that result in legal action

D&O insurance protects individual directors and officers from personal financial loss when they are sued for alleged wrongful acts in managing the company, covering legal defence costs and settlements.

Question 14: What is the Motor Insurers' Bureau (MIB) of Singapore?

A driving school
A motor vehicle repair shop
A car rental company
An organisation that compensates victims of road accidents caused by uninsured or untraced drivers (Correct answer)

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 15: What is 'industrial all risks' (IAR) insurance and what does it typically cover?

Fire and flood coverage for factories only
Comprehensive property coverage for industrial plants, machinery, and equipment against accidental physical damage, with optional business interruption (Correct answer)
Insurance for industrial workers only
Coverage only for machinery breakdown

Correct answer: Comprehensive property coverage for industrial plants, machinery, and equipment against accidental physical damage, with optional business interruption

Industrial All Risks (IAR) insurance provides comprehensive property coverage for industrial facilities, covering accidental physical damage to buildings, plant, and machinery from any cause except specifically excluded perils, typically with optional business interruption extension.

Question 16: What is 'permanent total disability' (PTD) in Singapore personal accident insurance?

Any injury requiring hospitalisation
A temporary disability lasting more than a year
Complete and permanent loss of function of two or more limbs, both eyes, or total inability to engage in any gainful employment (Correct answer)
Loss of one finger

Correct answer: Complete and permanent loss of function of two or more limbs, both eyes, or total inability to engage in any gainful employment

PTD means the insured is permanently unable to perform any gainful employment due to the accident. It typically includes loss of both hands, both feet, sight in both eyes, or any combination.

Question 17: What pre-existing condition rules apply to Singapore travel insurance?

Only heart conditions are excluded
All pre-existing conditions are covered
Most travel insurance policies exclude pre-existing medical conditions unless declared and specifically covered, often for an additional premium (Correct answer)
Pre-existing conditions are never covered

Correct answer: Most travel insurance policies exclude pre-existing medical conditions unless declared and specifically covered, often for an additional premium

Standard travel insurance typically excludes claims related to pre-existing medical conditions. Some insurers offer coverage for declared conditions at an additional premium after underwriting assessment.

Question 18: What does personal accident (PA) insurance cover in Singapore?

Only workplace accidents
Only road accidents
Only medical expenses
Death, permanent disability, and temporary disability resulting from accidents, typically paying a lump sum or weekly benefit (Correct answer)

Correct answer: Death, permanent disability, and temporary disability resulting from accidents, typically paying a lump sum or weekly benefit

PA insurance provides financial protection against accidents resulting in death, permanent total or partial disability, and temporary disability. Benefits are typically paid as lump sums or weekly income replacement.

Question 19: What is the insurance intermediary's duty to clients in Singapore?

To sell only their company's products regardless of suitability
To sell the most expensive policy
To provide honest advice, recommend suitable products based on client needs, disclose all material information, and act in the client's best interest (Correct answer)
To maximise their own commission

Correct answer: To provide honest advice, recommend suitable products based on client needs, disclose all material information, and act in the client's best interest

Insurance intermediaries in Singapore must follow MAS fair dealing guidelines: understand client needs, recommend suitable products, disclose fees and commissions, and prioritise client interests.

Question 20: What activities are typically excluded from Singapore personal accident insurance?

Professional sports, hazardous activities (skydiving, motor racing), war/terrorism, self-inflicted injuries, and injuries while committing a crime (Correct answer)
No activities are excluded
Only overseas activities are excluded
Only swimming is excluded

Correct answer: Professional sports, hazardous activities (skydiving, motor racing), war/terrorism, self-inflicted injuries, and injuries while committing a crime

Standard PA policies exclude professional sports, extreme activities, war and terrorism, self-inflicted injuries, injuries from criminal activity, and injuries while under the influence of drugs or alcohol.

Question 21: How should Singapore travellers file a travel insurance claim?

Notify the insurer as soon as possible, complete the claim form, and submit supporting documents (receipts, medical reports, police reports, delay certificates) within the specified timeframe (Correct answer)
Claims can be filed anytime within 5 years
Only verbal claims are accepted
Claims must be filed before the trip ends

Correct answer: Notify the insurer as soon as possible, complete the claim form, and submit supporting documents (receipts, medical reports, police reports, delay certificates) within the specified timeframe

File claims promptly after the incident. Most insurers require claims within 30 days of return. Required documents include the claim form, original receipts, medical reports, police reports (for theft), and delay certificates.

Question 22: What are the four main risk treatment strategies?

Buy, sell, trade, and hold
Identify, measure, monitor, and report
Avoidance, reduction, transfer (including insurance), and retention (acceptance) (Correct answer)
Mitigate, arbitrate, litigate, and negotiate

Correct answer: Avoidance, reduction, transfer (including insurance), and retention (acceptance)

The four main risk treatment strategies are: Avoidance (eliminating the risk), Reduction/Mitigation (reducing likelihood or impact), Transfer (e.g., via insurance or contracts), and Retention/Acceptance (keeping the risk, often with a contingency fund).

Question 23: What is the typical exclusion for pre-existing conditions in Singapore PA insurance?

Only diabetes is excluded
Pre-existing conditions are always covered
Disabilities or death caused by or contributed to by pre-existing medical conditions may be excluded or subject to limitations (Correct answer)
Pre-existing conditions do not affect PA coverage

Correct answer: Disabilities or death caused by or contributed to by pre-existing medical conditions may be excluded or subject to limitations

While PA insurance covers accidents, if a pre-existing condition contributes to the severity of the injury or death (e.g., heart condition worsened by an accident), the claim may be reduced or excluded.

Question 24: What is 'umbrella liability' insurance and how does it work with underlying policies?

A single policy replacing all other liability policies
A policy providing additional limits above the underlying liability policy limits, dropping down to cover gaps in underlying coverage (Correct answer)
An umbrella policy covering only weather-related liability
A policy covering only the director of a company

Correct answer: A policy providing additional limits above the underlying liability policy limits, dropping down to cover gaps in underlying coverage

Umbrella liability provides additional limits above those of underlying policies (CGL, auto, employers' liability). It also 'drops down' to cover certain gaps where underlying policies have exhausted or do not respond, providing broader and deeper coverage.

Question 25: What is the role of a 'forensic accountant' in major commercial insurance claims?

A specialist appointed to quantify business interruption losses, verify financial records, and calculate complex financial aspects of commercial claims (Correct answer)
A government official verifying insurance reserve adequacy
An accountant who investigates criminal fraud exclusively
An accountant who audits the insurer's financial statements

Correct answer: A specialist appointed to quantify business interruption losses, verify financial records, and calculate complex financial aspects of commercial claims

Forensic accountants are appointed in complex commercial claims to independently assess and quantify financial losses — particularly business interruption claims — examining financial records, projecting lost profits, and verifying claimed amounts.

Question 26: What is 'home contents' insurance in Singapore and what does it cover?

Insurance for the building structure only
Insurance for the garden and exterior
Insurance covering only jewellery
Insurance covering personal belongings, furniture, electrical appliances, and renovations inside the home against specified perils (Correct answer)

Correct answer: Insurance covering personal belongings, furniture, electrical appliances, and renovations inside the home against specified perils

Home contents insurance protects movable property inside the home: furniture, electronics, clothing, jewellery (up to limits), and renovation fixtures against perils like fire, theft, water damage, and storm.

Question 27: What documentation is needed to claim on a PA policy in Singapore?

Only a witness statement
Only a phone call
Completed claim form, medical reports, hospital bills, police report (if applicable), proof of disability (specialist assessment), and death certificate (for death claims) (Correct answer)
Only the insurance card

Correct answer: Completed claim form, medical reports, hospital bills, police report (if applicable), proof of disability (specialist assessment), and death certificate (for death claims)

PA claims require comprehensive documentation: the claim form, medical evidence of injury, original bills, specialist assessment for disability claims, police report for accident circumstances, and proof of employment for income-related benefits.

Question 28: What is 'public liability' insurance commonly needed by businesses in Singapore?

Insurance for public relations
Insurance covering a business's legal liability for bodily injury or property damage to third parties caused by the business's operations or premises (Correct answer)
Insurance for publicity events
Insurance for government buildings

Correct answer: Insurance covering a business's legal liability for bodily injury or property damage to third parties caused by the business's operations or premises

Public liability insurance protects businesses against claims from third parties (customers, visitors, passersby) who suffer injury or property damage due to the business's activities or premises.

Question 29: What is the significance of 'aggregate limit' in liability insurance?

The maximum total amount the insurer will pay for all claims combined during the policy period (Correct answer)
The premium amount
The most you can claim per incident
The minimum claim amount

Correct answer: The maximum total amount the insurer will pay for all claims combined during the policy period

The aggregate limit caps the total payout for all claims during the policy period. Once this limit is reached, no further claims are covered. This is separate from the per-occurrence limit.

Question 30: What is the difference between 'replacement cost' and 'indemnity value' in Singapore property insurance?

Replacement cost is always cheaper
Replacement cost pays the full cost to replace an item with a new equivalent; indemnity value pays the current depreciated value of the item (Correct answer)
They are the same
Indemnity value is always higher

Correct answer: Replacement cost pays the full cost to replace an item with a new equivalent; indemnity value pays the current depreciated value of the item

Replacement cost covers the expense of buying a brand new equivalent item. Indemnity value deducts depreciation for wear and tear, resulting in a lower payout, especially for older items.

Question 31: What is a 'portable all-risks' policy commonly added to Singapore home insurance?

Coverage for valuable personal items (laptops, cameras, jewellery) that are carried outside the home against accidental loss or damage anywhere (Correct answer)
A travel insurance add-on
Insurance for portable buildings
Insurance for mobile phones only

Correct answer: Coverage for valuable personal items (laptops, cameras, jewellery) that are carried outside the home against accidental loss or damage anywhere

Portable all-risks coverage extends protection beyond the home for specified valuable items. It covers accidental damage, loss, or theft of items like laptops, cameras, and jewellery wherever you take them.

Question 32: How should homeowners determine the correct sum insured for their home contents insurance in Singapore?

Use a standard fixed amount for all homes
Estimate half the home's market value
Use the purchase price of the home
Calculate the total replacement value of all contents including furniture, electronics, clothing, valuables, and renovation costs (Correct answer)

Correct answer: Calculate the total replacement value of all contents including furniture, electronics, clothing, valuables, and renovation costs

The sum insured should reflect the total cost of replacing all contents at current prices. Underinsurance triggers the average clause, meaning claims are proportionally reduced.

Question 33: What is a 'voyage policy' in marine insurance?

A policy covering the vessel only while in port
A policy covering a specific voyage from one place to another (Correct answer)
A policy covering a vessel for a fixed calendar period of 12 months
A policy covering multiple annual voyages under one premium

Correct answer: A policy covering a specific voyage from one place to another

A voyage policy covers the subject matter for a specific voyage, attaching at the commencement of the voyage and ceasing when the destination is reached.

Question 34: What does 'blanket coverage' versus 'specific coverage' mean in commercial property insurance?

Blanket covers all types of risks; specific covers only one type
Blanket insures multiple locations or items under a single combined sum insured; specific assigns a separate sum insured to each location or item (Correct answer)
Blanket coverage has no deductible; specific has high deductibles
Blanket applies to liability; specific to property

Correct answer: Blanket insures multiple locations or items under a single combined sum insured; specific assigns a separate sum insured to each location or item

Blanket coverage insures multiple locations or items under one combined sum insured, allowing flexibility (underperformance at one location offset by another). Specific coverage assigns separate sums insured to each location or item, limiting flexibility but providing clarity.

Question 35: What should Singapore travellers do if they need emergency medical treatment overseas?

Self-medicate to avoid costs
Wait until returning to Singapore
Only go to Singapore embassy clinics
Seek treatment immediately, contact the insurance company's 24-hour emergency hotline, and keep all medical receipts and reports for the claim (Correct answer)

Correct answer: Seek treatment immediately, contact the insurance company's 24-hour emergency hotline, and keep all medical receipts and reports for the claim

Get treatment immediately — health comes first. Contact your insurer's 24-hour assistance hotline as soon as possible. They can arrange hospital admission, guarantee payment, and coordinate evacuation if needed.

Question 36: What is 'ceding commission' in proportional reinsurance?

A fee paid by the cedant to access the reinsurance market
A fee charged by MAS for approving reinsurance treaties
A commission paid by the reinsurer to the cedant, reflecting the cedant's expenses in acquiring and administering the business ceded (Correct answer)
A penalty charged for exceeding cession limits

Correct answer: A commission paid by the reinsurer to the cedant, reflecting the cedant's expenses in acquiring and administering the business ceded

Ceding commission is paid by the reinsurer back to the cedant to reimburse the cedant's acquisition costs (agent commissions, expenses) for the business being ceded. It reflects that the cedant does the distribution work.

Question 37: What is the windscreen cover in a Singapore motor insurance policy?

Optional coverage for windscreen damage, typically with its own excess, that can be claimed without affecting the NCD (depending on the insurer) (Correct answer)
Only covers the rear windscreen
Not available in Singapore
Always included at no extra cost

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 38: Which legislation governs marine insurance contracts in Singapore?

Maritime and Port Authority Act
Insurance Act (Cap. 142)
Merchant Shipping Act (Cap. 179)
Marine Insurance Act (Cap. 387) (Correct answer)

Correct answer: Marine Insurance Act (Cap. 387)

The Marine Insurance Act (Cap. 387) is the primary statute governing marine insurance contracts in Singapore, based on the UK Marine Insurance Act 1906.

Question 39: What is 'material damage warranty' in a business interruption policy?

A warranty that the insured will maintain all property in repair
A warranty that all insured property is in good condition
A clause requiring damage to be reported to police first
A requirement that the BI policy is triggered only if there is first a valid material damage claim under the property policy covering the same premises (Correct answer)

Correct answer: A requirement that the BI policy is triggered only if there is first a valid material damage claim under the property policy covering the same premises

The material damage warranty requires that a BI claim is only valid if there is also an insured physical damage loss under the linked property policy. It prevents BI coverage from responding to purely financial or non-physical causes of business interruption.

Question 40: What is 'accumulation risk' in underwriting and why is it a concern?

Risk of accumulating too many renewal policies
The concentration of insured risk in one location or from one peril, which could cause multiple policies to produce large simultaneous losses (Correct answer)
The risk of agents accumulating too many clients
Risk of accumulating unpaid premiums

Correct answer: The concentration of insured risk in one location or from one peril, which could cause multiple policies to produce large simultaneous losses

Accumulation risk occurs when multiple insured risks share the same geographic area, industry, or peril. A single catastrophic event could trigger massive simultaneous claims across the accumulated portfolio, threatening the insurer's financial position.

Question 41: What is 'travel disruption' or 'travel delay' coverage in Singapore travel insurance?

Coverage for traffic jams
Coverage for jet lag
Coverage for missing your flight due to oversleeping
Compensation for expenses incurred when your departure is delayed beyond a specified period, such as meals, accommodation, and transport (Correct answer)

Correct answer: Compensation for expenses incurred when your departure is delayed beyond a specified period, such as meals, accommodation, and transport

Travel delay coverage compensates for additional expenses (meals, accommodation) when your departure is delayed beyond the trigger period (typically 6 hours) due to weather, strikes, or mechanical breakdown.

Question 42: What is 'claims-made' vs 'occurrence-based' liability insurance?

Claims-made covers claims reported during the policy period regardless of when the event occurred; occurrence-based covers events during the policy period regardless of when claims are filed (Correct answer)
Occurrence-based has no time limits
Claims-made is always cheaper
They are the same thing

Correct answer: Claims-made covers claims reported during the policy period regardless of when the event occurred; occurrence-based covers events during the policy period regardless of when claims are filed

Occurrence-based policies cover incidents that happen during the policy period, no matter when the claim is filed. Claims-made policies cover claims reported during the policy period, regardless of when the incident occurred (subject to retroactive date).

Question 43: What is the significance of MAS's Individual Accountability and Conduct (IAC) standards for insurers?

Only compliance officers are affected by IAC
IAC standards are voluntary guidelines with no enforcement consequence
IAC only applies to insurance agents, not management
Senior managers and board members bear primary responsibility for their institution's conduct and must be individually accountable for their responsibilities (Correct answer)

Correct answer: Senior managers and board members bear primary responsibility for their institution's conduct and must be individually accountable for their responsibilities

Under MAS's IAC standards, senior managers and board directors bear primary individual responsibility for ensuring their areas of the business are conducted with integrity and in compliance with regulations — promoting a top-down accountability culture.

Question 44: Under the Institute Hull Clauses, what is the meaning of 'Total Loss Only' (TLO) cover?

The policy applies only on the final voyage before a vessel is scrapped
The policy covers total loss of freight but not the vessel
The policy pays only in the event of actual or constructive total loss of the vessel (Correct answer)
The policy covers only losses where the cargo is fully destroyed by fire

Correct answer: The policy pays only in the event of actual or constructive total loss of the vessel

TLO cover responds only when there is an actual total loss (vessel physically destroyed) or a constructive total loss (cost of repair exceeds the insured value), excluding partial losses.

Question 45: Does Singapore travel insurance cover adventure sports and activities?

Only swimming is covered
All activities are automatically covered
Many adventure activities (scuba diving, skiing, bungee jumping) are excluded from standard policies but can be covered with add-ons or specialised plans (Correct answer)
Adventure sports are always excluded

Correct answer: Many adventure activities (scuba diving, skiing, bungee jumping) are excluded from standard policies but can be covered with add-ons or specialised plans

Standard travel insurance often excludes high-risk activities. If you plan to do adventure sports, check the policy exclusions and purchase additional coverage or a specialised adventure travel plan.

Question 46: What does 'domestic helper insurance' cover in Singapore?

Coverage for the employer's liability for the domestic worker's medical expenses, personal accident, and repatriation as required by MOM regulations (Correct answer)
Insurance for the helper's belongings
Health insurance for the employer
Insurance against the helper quitting

Correct answer: Coverage for the employer's liability for the domestic worker's medical expenses, personal accident, and repatriation as required by MOM regulations

Singapore employers of foreign domestic workers must provide insurance covering medical expenses, personal accident, hospitalization, and repatriation costs as required by MOM, with a minimum coverage of SGD 60,000.

Question 47: What is 'large loss management' in commercial insurance claims?

Automatically referring large claims to MAS
Delegating all large claims to reinsurers
A structured approach to handling significant claims involving early notification, dedicated claims handlers, expert appointments, and proactive communication (Correct answer)
Managing claims only above S$1 million

Correct answer: A structured approach to handling significant claims involving early notification, dedicated claims handlers, expert appointments, and proactive communication

Large loss management involves a structured protocol for significant claims: immediate notification up the chain, appointment of dedicated claims professionals, early engagement of forensic accountants or adjusters, proactive communication, and coordination with reinsurers.

Question 48: Under the Personal Data Protection Act (PDPA), what must Singapore insurers do with customer personal data?

Store data indefinitely for audit purposes
Share data freely with all business partners
Collect, use, and disclose data only with customer consent and for notified purposes (Correct answer)
Transfer data overseas without restriction

Correct answer: Collect, use, and disclose data only with customer consent and for notified purposes

Under PDPA, insurers must obtain customer consent before collecting, using, or disclosing personal data, and can only use it for the purposes notified to the customer. Data protection obligations are ongoing.

Question 49: What does 'personal liability' coverage in Singapore travel insurance protect against?

Legal liability if you accidentally injure someone or damage their property while travelling overseas (Correct answer)
Liability for lost travel documents
Liability for business losses
Liability for missed flights

Correct answer: Legal liability if you accidentally injure someone or damage their property while travelling overseas

Personal liability covers your legal responsibility if you accidentally cause injury to a third party or damage their property while overseas. It pays for compensation and legal defence costs.

Question 50: What is 'trip cancellation' coverage in Singapore travel insurance?

Reimbursement of pre-paid, non-refundable travel costs if you must cancel your trip for covered reasons such as illness, injury, or death of a family member (Correct answer)
Only hotel cancellation fees
Coverage for airline bankruptcy only
Coverage for cancelled flights only

Correct answer: Reimbursement of pre-paid, non-refundable travel costs if you must cancel your trip for covered reasons such as illness, injury, or death of a family member

Trip cancellation reimburses non-refundable travel costs (flights, hotels, tours) when you must cancel for covered reasons. Common covered reasons include illness, injury, death of a travel companion, and jury duty.

PGI - Personal General Insurance

The PGI exam tests knowledge of personal lines insurance products in Singapore, covering motor, property, accident, travel, liability, health, and foreign domestic worker insurance. It is administered by the Singapore College of Insurance (SCI) and required by MAS for individuals selling personal general insurance products.

Questions

75 min

Time Limit

70%

To Pass

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Exam Rules

You can skip questions and return to them later
Flag questions for review before submitting
No feedback shown until you submit the entire exam
Unanswered questions count as wrong — answer everything
10 pretest questions are mixed in and don't affect your score
Timer auto-submits when time runs out
Your progress is auto-saved every 30 seconds