PGI 7th

Personal
G E N E R A L
INSURANCE
7TH EDITION
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PERSONAL GENERAL
INSURANCE
7th Edition, Version 1.0 – April 2022
7th Edition, Version 1.1 – April 2023
7th Edition, Version 1.2 – September 2023
© 2023 by Singapore College of Insurance Limited. All rights reserved.
Any reproduction or redistribution of this Study Text in part or in its entirety, without granted
permission, other than for the purpose of your examination preparation, is strictly prohibited
and will be tantamount to a copyright infringement. Legal action will be taken to protect our
copyright. Any website references are correct as of the time of publication.
This Study Text is designed as a learning programme. The SCI is not engaged in rendering legal,
tax, investment or other professional advice and the reader should consult professional counsel
as appropriate. We have tried to provide you with the most accurate and useful information
possible. However, the information in this publication may be affected by changes in law or
industry practice, and, as a result, information contained in this publication may become
outdated. This material should in no way be used as an original source of authority on legal
matters. Any names used in this Study Text are fictitious and have no relationship to any persons
living or dead.
1st Edition published in 2002.

2nd Edition published in 2007.
3rd Edition published in 2010.
3rd Edition reprinted in April 2012.
4th Edition published in June 2013.
5th Edition published in April 2017.
6th Edition published in July 2020.
Table of Contents
Chapter 1 Private Motor Car Insurance 1

(Including Private Motorcycle Insurance)
Chapter Outline
Learning Outcomes
1. Introduction
2. Types Of Coverage
3. Motor Insurance Documents
4. Scope Of Cover
5. Other Policy Provisions
6. Underwriting Considerations
7. Motor Claims
8. Motor Insurance - Related Issues And Organisations
9. Private Motorcycle Insurance
Appendix 1A – Proposal Form For Motor Insurance
Appendix 1B – Private Motor Car Insurance Policy
Appendix 1C – Form For Report Of Motor Vehicle Accident/Loss
Appendix 1D – Private Motorcycle Insurance Policy
Chapter 2 Personal Property Insurance 59

Chapter Outline
Learning Outcomes
1. Definition Of Property
2. Introduction To Personal Property Insurance
3. Types Of Personal Property Insurance
4. Packaged Household Insurance
5. Valuable Articles Insurance
Appendix 2A – Packaged Household Insurance Policy
Appendix 2B – Packaged Household Insurance –
Sample Of Alternative Plans And Premiums Applicable
Appendix 2C – Proposal Form For Packaged Household Insurance
Appendix 2D – Packaged Household Insurance Claim Form
Appendix 2E – Valuable Articles Insurance
Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] i

Personal General Insurance
Chapter 3 Personal Accident Insurance 108

Chapter Outline
Learning Outcomes
1. Introduction
2. Differences From Life Insurance
3. Definition Of Accident
4. Scope Of Cover
5. Geographical And Age Limits
6. Family Policies
7. Exclusions
8. Extensions
9. Policy Conditions
11. Termination
12. Claim Documents
Appendix 3A – Personal Accident Insurance Policy
Appendix 3B – Summary Of Benefits
Appendix 3C – Personal Accident Claim Form
Appendix 3D – Proposal For Personal Accident Insurance
Chapter 4 Travel Insurance 136

Chapter Outline
Learning Outcomes
1. Introduction
2. Types Of Travel Insurance
3. Age Limits
4. Travel Insurance Providers
5. Scope Of Cover
6. Automatic Policy Period Extension
7. General Exclusions
10. Claim Documents
Appendix 4A – Summary Of Benefits And Premiums
- Travel Insurance Policy
Appendix 4B – Application Form For Travel Insurance
Appendix 4C – Travel Insurance Claim Form
ii Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

Table of Contents
Chapter 5 Personal Liability Insurance 165

Chapter Outline
Learning Outcomes
1. Introduction
2. How Liability Arises At Law
3. Types Of Liability Insurance
4. Personal Liability Insurance
Appendix 5A – Personal Liability Insurance Policy
Appendix 5B – Application Form For Personal Liability Insurance
Chapter 6 Health Insurance: Critical Illness And 183

Hospital Cash (Income)
Chapter Outline
Learning Outcomes
1. Introduction
2. The Critical Illness Framework 2019 (“The CI Framework”)
3. What is Critical Illness Insurance?
4. Benefits Offered Under Critical Illness Insurance
5. Features of CI Insurance
6. Types of CI Insurance Covers
7. Variations of Critical Illness Insurance
8. Underwriting
9. Factors To Consider In Determining Adequacy Of
Critical Illness Coverage
10. Exclusions
11. Termination Of Cover
12. Claims
13. Hospital Cash (Income) Insurance
Appendix 6A – Application Form for Hospital Cash Insurance
Appendix 6B – Hospital Income Insurance Claim Form
Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] iii
Chapter 7 Foreign Domestic Worker Insurance And 218

Golfer’s Insurance
Chapter Outline
Learning Outcomes
1. Introduction
2. Foreign Domestic Worker Insurance (FDWI)
3. Golfer’s Insurance
Appendix 7A – Security Bond Form
Appendix 7B – Letter Of Guarantee
Appendix 7C – Letter Of Counter Indemnity By Employer
Appendix 7D – Foreign Domestic Worker Insurance Policy
Appendix 7E – Pre-Contract Disclosure For Foreign Domestic Worker
Insurance Plan
Appendix 7F – Foreign Domestic Worker Insurance Brochure
Appendix 7G – Application Form For Foreign Domestic Worker
Insurance
Appendix 7H – Foreign Domestic Worker Insurance Claim Form
ACCESS TO ONLINE LEARNING RESOURCES
LIST OF CHANGES
iv Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

1. Private Motor Car Insurance (Including Private Motorcycle Insurance)
CHAPTER 1
PRIVATE MOTOR CAR INSURANCE
(INCLUDING PRIVATE MOTORCYCLE
INSURANCE)
CHAPTER OUTLINE
1. Introduction
2. Types Of Coverage
3. Motor Insurance Documents
4. Scope Of Cover
5. Other Policy Provisions
7. Motor Claims
8. Motor Insurance - Related Issues And Organisations
9. Private Motorcycle Insurance
Appendix 1A – Proposal Form For Motor Insurance
Appendix 1B – Private Motor Car Insurance Policy
Appendix 1C – Form For Report Of Motor Vehicle Accident/Loss
Appendix 1D – Private Motorcycle Insurance Policy
LEARNING OUTCOMES
After studying this chapter, you should be able to:

▪ understand compulsory motor insurance as stipulated under the Motor
Vehicles (Third-Party Risks and Compensation) Act 1960
▪ understand the four main types of Private Motor Car Insurance sold by
insurers in Singapore:
- Act Liability Only
- Third-Party Only
- Third-Party, Fire & Theft
- Comprehensive
▪ understand the purpose and functions of each of the following Private Motor Car
Insurance documents:
- Proposal Form
- Certificate of Insurance
- Cover Note
- Policy Document
- Endorsements
- Renewal Notice
- Claim Form
Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] 1

▪ understand the scope of cover and exclusions under the various sections of the Private
Motor Car Insurance policy:
- Section I – Insurance On The Motor Car
- Section II – Liability To Third Parties
- Section III – Medical Expenses
- Section IV – Personal Accident Benefits
▪ understand the other provisions included in the Private Motor Car Insurance policy:
- Excess
- Insurance Discounts
- Conditions
- Other Conditions
- General Exclusions
- Extensions
▪ understand the underwriting considerations for Private Motor Car Insurance
▪ understand Usage Based Insurance (UBI)
▪ know the issues related to insuring electric cars and electric car sharing.
▪ know the Motor Claims Framework (MCF) and other motor claims related issues
▪ understand the following Motor Insurance related issues and/or organisations:
- Motor Insurers’ Bureau Of Singapore (MIB)
- Non-Injury Motor Accident Reporting Scheme
- Financial Industry Disputes Resolution Centre Ltd (FIDReC)
- Barometer Of Liability Agreement (BOLA)
- Motor Accident Guide (MAG)
- Motor Accident Claims Online (Maco)
▪ understand the coverage under the various sections of the Private Motorcycle Insurance
policy:
- Section I – Loss Of Or Damage To The Insured Vehicle
- Section II – Liability To Third Parties
2 Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

Contents
PRIVATE MOTOR CAR INSURANCE (INCLUDING PRIVATE MOTORCYCLE
INSURANCE) ................................................................................................. 1
CHAPTER OUTLINE .................................................................................................. 1
LEARNING OUTCOMES ........................................................................................... 1
1. INTRODUCTION ............................................................................................ 5
2. TYPES OF COVERAGE .................................................................................. 5
3. MOTOR INSURANCE DOCUMENTS............................................................ 7
A. Proposal Form ................................................................................... 7
B. Certificate Of Insurance .................................................................... 8
C. Cover Note......................................................................................... 8
D. Policy Document ............................................................................... 8
E. Endorsements ................................................................................... 9
F. Renewal Notice ................................................................................. 9
G. Claim Form ........................................................................................ 9
4. SCOPE OF COVER....................................................................................... 10
A. Section I - Insurance On The Motor Car......................................... 10
B. Section II - Liability To Third Parties .............................................. 12
C. Section III - Medical Expenses ........................................................ 13
D. Section IV - Personal Accident Benefits ......................................... 14
5. OTHER POLICY PROVISIONS ..................................................................... 15
A. Excess .............................................................................................. 15
B. Insurance Discounts ........................................................................ 17
C. Conditions ....................................................................................... 19
D. Other Conditions ............................................................................. 21
E. General Exclusions ......................................................................... 23
F. Extensions ....................................................................................... 24
6. UNDERWRITING CONSIDERATIONS ........................................................ 27
A. Car Usage ........................................................................................ 28
B. Make & Model Of The Car .............................................................. 29
C. Car Engine Capacity ........................................................................ 29
D. Car Age ............................................................................................ 29
E. Driver Characteristics ...................................................................... 29
F. Types Of Private Motor Car Insurance Cover ................................ 30
G. Usage Based Motor Insurance ....................................................... 30
H. Electric Cars Insurance.................................................................... 32
7. MOTOR CLAIMS ......................................................................................... 33
A. Motor Claims Framework (MCF) .................................................... 33
B. Motor Insurance Fraud ................................................................... 34
8. MOTOR INSURANCE – RELATED ISSUES AND ORGANISATIONS ........ 35
A. Motor Insurers’ Bureau Of Singapore (MIB) .................................. 35
B. Non-Injury Motor Accident Reporting Scheme ............................. 36
C. Financial Industry Disputes Resolution Centre Ltd (FIDReC) ........ 37
D. Barometer Of Liability Agreement (BOLA) .................................... 38
E. Motor Accident Guide (MAG) ......................................................... 39
9. PRIVATE MOTORCYCLE INSURANCE ....................................................... 40

A. Section I - Loss Of Or Damage To The Insured Vehicle ................ 40

B. Section II - Liability To Third Parties .............................................. 40
C. Limitation Of Use ............................................................................ 41
Appendix 1A ........................................................................................................... 42
Appendix 1B ........................................................................................................... 44
Appendix 1C ........................................................................................................... 51
Appendix 1D ........................................................................................................... 55

1. INTRODUCTION
1.1 Under the Motor Vehicles (Third-Party Risks and Compensation) Act 1960 [“the
Act”], every user of a motor car in Singapore must have in force an insurance
policy, which provides him with indemnity for legal liabilities arising from death
or bodily injuries to a third party in connection with the use of a motor car on
the road. It is an offence to drive or to be in charge of a motor car on a public
road without Motor Insurance coverage in force. Insurance coverage is required
before registration of a new motor car by the Land Transport Authority of
Singapore (LTA).
2. TYPES OF COVERAGE
2.1 There are four main types of Private Motor Car Insurance coverage generally
sold by insurers in Singapore. These are:
▪ Act Liability Only;
▪ Third-Party Only;
▪ Third-Party, Fire & Theft; and
▪ Comprehensive.
2.2 The type of insurance that is compulsory for the motor car owner to take up, as
mentioned earlier, is the Act Liability Only policy. Under such a policy, the
insurer agrees to indemnify the insured for his liability arising from using his
motor car on the road. This policy covers only the insured’s liability arising from
death or bodily injuries to third parties (including passengers). It does not cover
property damage to third parties, nor does it cover bodily injuries to the driver
or damage to the insured motor car. This policy also does not cover accidents
that happen in other places (e.g. on private property) which are not included in
the definition of a “road” under the Act. Under Section 2 of the Act, “road”
means “any public road and any other road to which the public has access and
includes bridges over which a road pass”.
2.3 The Act Liability Only policy is generally not sold as a separate cover but is
embedded in the other policies sold (e.g. Third-Party Only, Third-Party Fire &
Theft, and Comprehensive policies). The reason is that most motor accidents
on the road involve damage to the insured motor car and/or third-party motor
cars. In view of the financial strains that the motorists can be subject to, if they
have to meet the costs of such repairs, many of them will opt to extend the
scope of their insurance policies to cover such damage.

2.4 The three types of covers, as described below, provide more coverage than the
Act Liability Only policy, but do take note that any insurance coverage, other
than the Act requirements, will be an optional consideration for the insured
motorist, subject to underwriting by the insurer.
(a) Third-Party Only
This cover provides indemnity to the insured for:
▪ Death or bodily injuries to third parties and/or passengers; and
▪ Damage to property belonging to third parties.
Unlike an Act Liability Only policy, a Third-Party Only policy, in addition to

providing cover for death or bodily injuries to third parties (including
passengers), also provides cover against damage to property belonging
to third parties. The policy also covers any accident occurring on the road
and on private property. However, it does not provide cover against
damage to the insured’s own motor car, whatever the cause.
(b) Third-Party, Fire & Theft

This is an extension of the Third-Party Only policy in that it additionally
protects the insured’s own motor car against loss or damage which may
result directly from fire or theft. The loss does not need to be total, as this
policy covers partial damage to the insured’s own motor car. This type of
coverage is usually purchased for older cars (e.g. above 10 years of age),
although the premium may not be significantly less, as insurers believe
that repair costs do not vary significantly between newer and older
vehicles.
As the insured perils are limited to fire and theft, damage to the insured’s
own motor car by any other perils is not covered by this policy. Hence, a
motorist who wants additional protection for his motor car against loss or
damage by other perils must purchase a Comprehensive policy.
(c) Comprehensive
This type of policy offers the broadest protection against loss of or
damage to the motor car, up to its market value. In addition to covering
the insured’s liability for causing bodily injuries (including death and
bodily injuries to passengers or property damage to third parties), the
Comprehensive policy also covers accidental and malicious damage to
the motor car that the insured owns.
Comprehensive cover is a requirement when the purchase of a car is

financed by a loan. The policy also offers additional benefits in connection
with the use of the motor car. For example, the insurer can provide for
reasonable medical expenses that the insured has necessarily incurred
arising out of his own bodily injuries. These medical expenses benefit can
be extended to cover bodily injuries sustained by any named driver,
authorised driver, or passenger of the insured’s motor car.

There is also a personal accident benefits section, which provides benefits

for death or permanent disability sustained by the insured and/or any
passenger of the insured’s motor car, following an accident arising out of
the use of the motor car.
Figure 1.1 - Summary Of Levels Of Cover
Comprehensive
In addition to the
Third-Party, Fire cover granted by
&Theft Third-Party, Fire &
Theft policy, this
Third-Party Only In addition to the policy also covers
cover granted by a number of other
Third-Party Only risks.
Act Liability Only In addition to the policy, this policy
cover granted by also covers: ▪ Accidental and
Act Liability Only malicious damage to
Minimum cover policy, this policy ▪ indemnity to the the motor car that
as required by also covers: insured for loss of the insured owns,
Motor Vehicles
or damage to the with some
(Third-Party Risks ▪ damage to third- insured’s motor exceptions.
and party’s property. car as a result of
Compensation)
fire or theft. Other coverage
Act, 1960:
includes:
▪ death or bodily
injuries of third ▪ Medical Expenses;
parties, including ▪ Personal Accident
liability towards Benefits.
passengers.
3. MOTOR INSURANCE DOCUMENTS
Proposal Certificate Cover

Form of Insurance Note
Policy Endorsements Renewal Claim

Document Notice Form
A. Proposal Form
3.1 A completed proposal form is always required when an individual seeks to

purchase a Private Motor Car Insurance policy. The Private Motor Insurance
underwriter relies on the completed proposal form as the main source of
information to assess the risk presented. It is common nowadays for individuals
seeking Motor Insurance coverage (or intermediaries seeking quotes on their

clients’ behalf) to first obtain quotations from insurers, by entering the required
key information into the insurers’ portals or systems without completing the
proposal form. Following submission of the quotation information, insurers
require the completion of a proposal form, when the insured eventually effects
the coverage with them.
Information Asked For

3.2 The Private Motor Car Insurance proposal form usually requests information
such as proposer’s details, driving experience, occupation, claims record, NCD
entitlement, year of manufacture and other details of the car, vehicle usage etc.
3.3 Appendix 1A of this chapter contains a specimen proposal form for Motor
Insurance1.
B. Certificate Of Insurance
3.4 The Certificate of Insurance plays an important role in the statutory scheme of
compulsory insurance. This Certificate must be obtained from the insurer to
show the existence of the Private Motor Car Insurance, so that it can be shown
to the police, as and when required.
3.5 The insured must make a statutory declaration if the Certificate of Insurance is
lost or destroyed. The insured must also return it to the insurer on or before the
date of cancellation of the policy.
C. Cover Note
3.6 In general, a cover note is an interim document, issued pending receipt of other
details required for the issue of a policy document and a Certificate of Insurance.
A cover note provides evidence of the contract of insurance and has the same
legal force as the Certificate of Insurance.
3.7 The Private Motor Insurance cover note will also carry the same certification
wording as contained in the permanent Certificate of Insurance.
D. Policy Document
3.8 The policy document is not the contract but an evidence of the insurance
contract. It contains the precise terms, provisions, limitations, exclusions and
conditions, details of the coverage provided, definitions of terms and
supplementary information, such as advice on the dispute resolution
procedures, as well as the claim procedures.
3.9 Later sections of this chapter provide more details on the policy sections.
Appendix 1B of this chapter provides a specimen Private Motor Car Insurance
policy.
1
This proposal form is applicable to both Private Motor Car Insurance and Commercial Motor Vehicle
Insurance.

E. Endorsements
3.10 Insurers use endorsements to record changes in the terms and conditions of
the standard insurance policy. For example, perils excluded in the standard
policy, such as flood, strike, riot, and civil commotion damage, can be included
using endorsements.
3.11 In Private Motor Car Insurance, endorsements may be included as a standard

wording in the policy document, and the Schedule of the Policy will specify
which endorsements are operative for that cover.
F. Renewal Notice
3.12 While there is no legal obligation on an insurer to issue a renewal notice, it is a

good practice to do so. A renewal notice serves as a reminder to the
policyholder that the cover is about to expire. In addition, it acts as an insurer’s
sales tool to help the insurer to retain business, with some insurers using it to
upsell policy extensions or cross sell its other insurances.
3.13 The renewal notice usually contains the following information:

▪ expiry date of the policy;
▪ renewal premium;
▪ name of the insured; RENEWAL
NOTICE
▪ vehicle details;
▪ permitted use; and
▪ any applicable exclusions or restrictions.
3.14 The renewal notice also requests that an insured update their particulars, as
well as asking for details of any changes required upon renewal. The insurer
usually sends out the renewal notice to the policyholder at least 30 or 45
business days before the expiry date of the policy. Should the insurer decide
not to renew the policy in question, the renewal notice sent to the policyholder
must clearly indicate the insurer’s intention.
G. Claim Form
3.15 The basic document required of the insured when making a claim is the claim
form (see Appendix 1C for a sample). Claim forms are generally standardised
and available online as an accident report from any approved reporting centre
or authorised workshop for e-filing and reporting purposes, through the GIA
Record Management Centre system, in the event of an accident involving the
insured motor car. A later section of this chapter will discuss the reporting of
motor accidents under the Motor Claims Framework.
3.16 The motor claim form essentially contains questions on the:

▪ details of the policy (insured’s name, policy number, type of coverage, etc.);

▪ particulars of the driver at the time of the accident (name, driver licence,
contact details, etc.);
▪ material facts of the accident (date and time, place and occurrence of the
accident, etc.);
▪ damage to the insured motor car, third-party property and personal bodily
injuries sustained during the accident;
Section I
▪ particulars of the witnesses, if any; and Section II
Section III
▪ photographs taken at the scene of the accident. Section IV
4. SCOPE OF COVER
4.1 Each Private Motor Car Insurance policy contains a number of sections covering
different aspects of the risks concerned. The four basic sections are:
▪ Section I - Insurance On The Motor Car;
▪ Section II - Liability To Third Parties;
▪ Section III - Medical Expenses; and
▪ Section IV - Personal Accident Benefits.
4.2 Most insurers issue one standard policy with the above-mentioned sections and
a policy Schedule, which identifies the sections applicable to that particular
insurance. The same policy form can then be used, whatever the level of cover
chosen by the insured.
4.3 You can refer to Appendix 1B for the sample policy wording under the various
sections. Take note that insurers may differ in their naming of these sections,
or have different section classifications, but they mostly provide cover for these
four basic sections.
4.4 We will now look into each of these sections in detail.
A. Section I - Insurance On The Motor Car
4.5 This section is generally termed the “Own Damage” section. It covers:
(a) Accidental Loss Of Or Damage To The Motor Car
The insurer will indemnify the insured against accidental loss or damage
to the insured’s motor car and its factory-fitted accessories2 and spare
parts caused by:
▪ accidental collision or overturning;
▪ fire, external explosion, self-ignition, lightning, theft, burglary,
housebreaking, or being hit by a falling object;
▪ a malicious act;
▪ strike, civil commotion or riot; or
2
Refers to original accessories from the motor car manufacturer or distributor, unless declared, and an
additional premium is paid for enhancements, if any.

▪ flood, hurricane, typhoon, earthquake, volcanic eruption, or other

natural disaster.
(b) Replacement Parts

In the event of loss, the policy will provide cover for damage to the motor
car, its accessories, or spare parts and:
▪ if the parts are not obtainable from stocks held in the country in which
the motor car is held for repair; or
▪ if the insurer exercising the option to pay in cash for the amount of the
loss or damage, the liability of the insurer in respect of any such part is
limited to:
(i) the price quoted in the latest catalogue or price list issued by the
manufacturer or his agent for the insurer in which the motor car
is sent for repair; or if no such catalogue or price list exists, the
price last obtained at the manufacturer’s works, plus the
reasonable cost of bringing in the part from overseas, including
the amount of import duty; and
(ii) the reasonable labour cost of fitting such parts.
(c) Cost Of Removal After Accident

If the insured motor car is disabled and cannot be moved under its own
power, as a result of loss or damage caused by one of the insured perils,
the insurer will pay for the reasonable cost of removing or towing the
motor car to its nearest authorised workshop or repairer.
(d) Authority To Repair

The insured may authorise repair to the damaged motor car, provided:
▪ the estimated cost of repair is not more than S$300 (after deduction of
the Own Damage Excess); and
▪ the insurer is informed of the detailed estimate of the cost of repair as
soon as possible.
(e) Hire Purchase

If the insured vehicle is the subject of a hire purchase or leasing
agreement, the legal owner named in the policy Schedule will receive any
cash settlement. The two parties to any hire purchase agreement will then
settle any difference in the amount of the settlement and residual loan
value.
4.6 Next, we shall consider the exclusions applicable to Section I. Exclusions or

exceptions are important considerations because they determine the scope of
cover (by reducing or restricting the cover). The usual exclusions under Section
I include:
▪ depreciation or wear and tear;
▪ consequential loss or loss of use;

▪ mechanical or electrical breakdown, failure or breakage; and

▪ damage to tyres, unless the insured motor car is also damaged at the same
time.
B. Section II - Liability To Third Parties
4.7 The insurer will indemnify the insured, named driver or authorised driver
against liability arising from any accident involving the insured motor car,
including the claimant’s costs and expenses which the insured, named driver
or authorised driver is legally liable to pay in respect of:
▪ death of or bodily injury to any person (including any passenger); and
▪ damage to third-party property.
4.8 For instance, in a fatal traffic accident that occurred as a result of dangerous
driving, the passengers’ families can bring claims against the driver under the
Motor Vehicles (Third-Party Risks and Compensation) Act 1960. However, the
insurer may be able to claim for contribution if it can be proved that the
passengers were aware that a car was going to be engaged in dangerous acts
like speeding or racing, and still consented to boarding the car. This doctrine is
known as “volenti” which states that if a person who knowingly puts himself in
a dangerous situation, would not be able to bring a claim against the other party
for any resulting injuries. Also, the degree of the driver’s culpability and the
court’s award of damages might be lowered if it was discovered that the
passengers willingly assumed risk by not wearing a seat belt and accompanied
the driver to drink even though the passengers are mindful that they will be
given a lift in the car.
4.9 While the limit of indemnity is unlimited for liability under death or bodily injury
(as required under the Act), it is common for an insurer to place a limit in respect
of the claim arising from damage to third-party property, usually up to S$5
million in respect of any one claim or series of claims arising out of any one
event.
4.10 The following subsections further clarify the coverage under Section II:
(a) Indemnity To Authorised Driver
An authorised driver or unnamed driver is someone who has permission
from the motor car owner to drive the insured motor car but is not
specifically named in the Schedule of the Policy. The policy provides the
same level of indemnity to the authorised driver as the insured, provided
the authorised driver:
▪ is not entitled to indemnity under any other policy; and
▪ shall, as though he were the insured, observe, fulfil, and be subject to
the terms and conditions of the policy, insofar as they would apply.
Insurers usually impose an additional excess, Unnamed Driver Excess, for

any authorised driver not specifically named in the Schedule of the Policy.
On the other hand, a named driver will usually have the same excess as
the insured driver, provided that the named driver does not fall within the

term “Elderly, Young And/Or Inexperienced Drivers” (as described in a

later section), in which case, such excess will also apply. Insurers usually
allow up to two named drivers who are qualified family members or
partners, without charging extra premiums.
(b) Indemnity To The Insured While Driving Another Motor Car

The policy also covers the insured against his legal liability when he is
driving a private car, not owned by him, but in his control or legal custody.
However, the car must not be one that is hired to him, his employer or
partner under a hire purchase agreement or otherwise. Only individuals
are entitled to this benefit and it does not apply if the insured is a
company.
(c) Expenses & Legal Costs For Defence

The insurer will also pay for all legal costs and expenses incurred by the
insured, with the insurer’s written consent, in the event of court
proceedings against the insured arising from the use of the insured motor
car.
4.11 However, the insurer may, in lieu of such payments:

▪ arrange for legal representation at any inquest or inquiry; and
▪ undertake the defence proceedings in a Court of Law within the jurisdiction,
as specified in the conditions of the policy.
4.12 Sometimes, the insurer may arrange – at the request of the Insured and subject
to a limit of S$3,000 – payment for legal services for the defence of any charge
of causing death by driving the insured motor car (other than murder) that may
be brought against the Insured or any other person who is driving on the
Insured’s order or with his permission in respect of any death which may be the
subject of indemnity under Section II.
4.13 Specific exclusions under Section II are:

(a) death or bodily injury to:
(i) a person (including the insured) driving the insured car;
(ii) any employee employed by any person covered under the Policy if
the death or bodily injury arises out of and during the former’s
employment; and
(b) loss of or damage to property that:

(i) belongs to or is in the care, custody or control of or is held in trust by
any person covered by the Policy or any member of his household; or
(ii) is being carried in the insured’s car.
C. Section III - Medical Expenses
4.14 The insurer will reimburse all reasonable medical expenses necessarily
incurred by the insured driver, named driver, authorised driver or any

passenger of the insured motor car for bodily injuries sustained in an accident
involving the use of the insured motor car.
4.15 The reimbursement sum is subject to a maximum limit, which usually ranges
from S$300 to S$1,000 per person, per accident.
D. Section IV - Personal Accident Benefits
4.16 Under this section, the insurer undertakes to pay the insured (or his personal
representative) a lump sum payment for accidental death or bodily injuries
caused solely by violent, accidental, external, and visible means sustained by
the insured and occurring within three calendar months from the date of the
accident:
▪ in direct connection with the insured motor car; or
▪ while travelling in, or mounting into, or dismounting from any private motor
car.
4.17 The benefits paid are in accordance with the Scale of Compensation as specified
in the policy. See Appendix 1B of this chapter.
An example of the Scale of Compensation is as follow:

(a) Death S$20,000
(b) Total and irrecoverable complete loss of sight in both eyes S$20,000
(c) Total loss by physical severance at or above the wrist or S$20,000
ankle of both hands or both feet or one hand together with
one foot
(d) Total loss by physical severance at or above the wrist or S$20,000
ankle of one hand or one foot together with the total and
irrecoverable loss of all sight in one eye
(e) Total and irrecoverable loss of all sight in one eye S$10,000
(f) Total loss by physical severance at or above the wrist or S$10,000
ankle of one hand or one foot
4.18 However, the insurer will make payment under only one of the sub-sections (a)
to (f) and may limit the claim to one accident during any one period of insurance
(usually 12 months).
4.19 If the insured has more than one Private Motor Car Insurance policy with the
insurer, the insured will only be entitled to a payment from one policy.
4.20 Subject to the legal seating capacity of the motor car, any named driver,
authorised driver, and passengers are also covered in this section under the
same conditions, but are each usually entitled to half of the respective amounts
as specified in the Scale of Compensation (unless increased by way of
additional premiums):
▪ (a) to (d) - S$10,000,
▪ (e) and (f) - S$5,000.

4.21 Some insurers pay 50% of the amount specified in the Scale of Compensation
for named drivers, but 100% for the rest.
4.22 The insurer will not pay for death or bodily injury arising from:
▪ self-inflicted injury, suicide, attempted suicide, physical or mental defect or
infirmity;
▪ any accident occurring while the insured driver is under the influence of
intoxicating liquor or drugs, or
▪ pregnancy or childbirth.
4.23 If the number of people (including the driver) in the insured motor car at the
time of the accident is more than the vehicle’s legal seating capacity, some
insurers will not pay any benefit under this Section, while other insurers will be
liable only for a rateable proportion of the compensation that would otherwise
be payable.
5. OTHER POLICY PROVISIONS
5.1 Other than the four main sections specifying the coverage, the Private Motor
Car Insurance policy includes some other important provisions. As mentioned
earlier, you may refer to Appendix 1B to see a sample of the wording used.
A. Excess
5.2 Excess clauses are often included in Private Motor Car Insurance to curb small
claims. Excess (also called deductible) is the first part of any claim that the
insurer will not pay. Instead, the insured will have to bear the amount himself.
If the total claim amount is less than or equal to the excess, nothing is payable
by the insurer.
5.3 When the insurer imposes an excess, the insured will tend to be more careful
because, if a claim occurs, the insured will also have to contribute towards the
claim. In general, the higher the excess, the more careful will be the insured
and, hence, the lower risk of having a claim. This often limits the liability of the
insurer, as well as to avoiding small claims.
5.4 The reasons for imposing an Excess clause under Private Motor Car Insurance
are the same ones as those for the other classes of insurance, as described
below:
▪ By making the insured responsible for a portion of the loss, the insurer hopes
to encourage a greater sense of care and diligence on the part of the insured
than he would without it.
▪ Any large claim reduces by the excess amount, thus reducing the insurer’s
liability.
▪ It does not make economic sense for the insurer to pay for very small claim
amounts, since there is usually a fixed cost involved in servicing each claim.

▪ Rather than terminating the policies of insureds with bad claims experience,
insurers may offer a higher excess, so that the insurance coverage can
remain in force, while keeping the premium affordable.
5.5 An insured may request the insurer to remove or reduce the amount of excess
by agreeing to pay a higher premium. The insured may also volunteer for a
higher amount of excess than that imposed by the insurer, in exchange for a
lower premium payment. Some insurers will waive the excess for the first claim
for one time only, if an approved or authorised workshop undertakes the repair
to the damaged car.
5.6 The following, depending on the policy wording, describe the relevant types of
excesses applied to the policy under their respective headings:
(a) Excess All Claims
If the Excess is on an “All Claims” basis, it means that the policyholder
must pay the excess if a claim is either made by the policyholder for an
own damage claim, or if a claim is made against the policyholder by a
third party, The excess is generally only payable once per event,
regardless of the number of claims made due to that event. An example
of the wording is as follows: “Notwithstanding anything to the contrary
contained in Section I “Insurance On The Motor Vehicle” and Section II
“Liability To Third Parties - damage to third-party property”, the insured
is responsible for the initial fixed amount of claims (less any expenses
already incurred, say, for the protection of the damaged vehicle) for each
and every loss event. However, if the expense incurred by the insurer
includes the amount for which the insured is responsible, the insured will
be asked to repay such amount to the insurer.”
(b) Excess – Own Damage Claims

The policyholder will be charged an excess if a claim under Section I, for
own damage repairs to the vehicle. If the policyholder does not make an
own damage claim but there is a third party claim made against the
policyholder, the policyholder will not have to pay the excess.
(c) Elderly, Young And/Or Inexperienced Drivers Excess

This excess usually applies to any claim arising from Section I, and for any
claim arising from a driver being:
▪ an elderly person who is usually above the age of 70 years (or lower for
some insurers); or
▪ a young person who is usually under the age of 27 years (or lower for
some insurers); and/or
▪ an inexperienced driver who usually has driving experience of less than
two years (or one year for some insurers).
The amount of this excess, which is usually high (e.g. S$3,000) varies from
insurer to insurer and usually applies in addition to any other existing
excess.

(d) Unnamed Driver Excess

Similarly, this excess applies to any claim arising from Section I only but
is operative for any claim arising from the car while driven by any person
other than the insured and any named driver as stated in the Schedule of
the Policy.
(e) Excess – Third-Party Property Damage

This excess applies to any claim arising from third-party property damage
(see Section II).
The excess as described in (a) to (e) usually does not apply to loss or
damage caused by fire, external explosion, self-ignition, lightning,
burglary, housebreaking, or theft.
B. Insurance Discounts
5.7 These are described below:
B1. No Claim Discount (NCD)
5.8 No Claim Discount (NCD), also termed as “No Claim Bonus” or “No Claim
Entitlement”. A NCD is a financial reward for the insured that has not made a
claim under the policy. In Singapore, if there is no claim made during the period
of insurance immediately before the renewal date of the policy, the insurer will
usually grant a NCD on the renewal premium. This is one way to incentivise the
driver to drive safely and cautiously.
5.9 The following Table 1.1 shows the rate of discount for a private motor car:
Table 1.1
Period Of Insurance Discount

The preceding year 10%
The preceding two consecutive years 20%
The preceding three consecutive years 30%
The preceding four consecutive years 40%
The preceding five consecutive years 50%

5.10 Following a claim during the policy year, while the insured is enjoying a NCD,
the NCD will be reduced at the next renewal of the policy, as shown in Table
1.2:
Table 1.2
Upon Policy
NCD At The Number Of Claims During
Renewal,
Time Of Claim Period Of Insurance
NCD Reduced To
50% 1 20%
40% 1 10%
30% or less 1 Nil
50% or less 2 Nil
Example: During the current period of insurance, Andy has made two accident
claims. His current NCD is 30%. Upon renewal of his policy, what
percentage of NCD will Andy receive?
Answer: Nil
5.11 The NCD applies to the insured and not to the motor car. For example, if the
insured sells his existing motor car and buys another one, he will retain his
existing NCD. However, if he owns more than one motor car, he may have a
different NCD for each motor car.
5.12 Generally, the insured cannot transfer his NCD to another person. However,
some insurers may allow a one-time transfer between spouses, provided the
Private Motor Car Insurance policy for that spouse is placed with the same
insurer.
5.13 Also, the NCD cannot be transferred from one motor car class to another. For
example, if the NCD entitlement is for a motorcycle, it cannot be transferred to
a motor car or vice versa.
5.14 The NCD is transferable from one insurer to another. For administrative
purposes, the insured will have to provide the new insurer with the:
▪ name of the previous insurer; and
▪ policy number;
so that the new insurer can confirm the precise NCD with the previous insurer
through an online system.
5.15 If there is a break in car ownership, the insurer will allow the insured to retain
his prevailing NCD entitlement, usually for a period of 12 to 24 months.
5.16 As described in a later section, some insurers allow the insured to purchase the
NCD Protector to preserve his NCD to a certain extent, usually when his NCD
entitlement is 50%.
5.17 If the policyholder makes a claim, will he automatically lose his NCD? The
answer is not necessarily.

5.18 All insurers in Singapore use a guide called the Barometer of Liability
Agreement (BOLA) to determine the degree of liability attaching to each party
in a motor accident.
5.19 The intention of the BOLA is to speed up claims processing. It does not diminish
the insured’s right to contest liability under the law. No Claim Discount (NCD)
may not be affected if driver is found totally not at fault in an accident involving
another vehicle. In all other cases, the insured’s NCD may be affected.
B2. Certificate Of Merit (COM) Discount
5.20 A motor car driver with a Certificate of Merit (COM) will be entitled to a 5%
discount (also known as Safe Driver Discount) on his Motor Insurance premium
from participating insurance companies, over and above his NCD. He is eligible
for a COM if, at the point of purchasing or renewing a Private Motor Car
Insurance policy, he has maintained a continuous demerit-point-free driving
record for the last three years.
B3. Loyalty Discount
5.21 Some insurers offer a loyalty discount to their policyholders after a certain
period of insurance, usually one to three years. This premium discount varies
from insurer to insurer and usually ranges from 5% to 15%, or a flat amount of
rebate, e.g. S$30, upon renewal of the policy.
B4. Off-peak Car Discount
5.22 Some insurers also offer a premium discount (e.g. 5% to 25%) for insuring an
off-peak car in view of its usage being at times when traffic volumes are lower.
C. Conditions
5.23 Policy conditions are common for all forms of Private Motor Car Insurance
policies. They deal with the conduct between the two parties (i.e. the insured
and the insurer) to the insurance contract.
5.24 The majority of these conditions are listed under their individual headings, but
sometimes may be found under the general heading of “CONDITIONS”. The
order of the conditions may vary among insurers, but they normally deal with
the following matters:
C1. Geographical Area Of Coverage
5.25 A Private Motor Car Insurance policy applies to loss or damage or liability
incurred or sustained within the geographical area, as defined in the Schedule
of the Policy.

5.26 In Singapore, Private Motor Car Insurance applies only to the following
countries and geographical areas:
▪ when the motor car is in the Republic of Singapore, West Malaysia and that
part of Thailand within 80.5 km (50 miles) of the border between Thailand
and West Malaysia; or
▪ while in transit by sea during direct sea route across:
(i) the straits between the island of Penang and mainland West Malaysia;
or
(ii) the straits between Changi Point, Singapore and Tanjong Berlungkor,
Johor.
C2. Jurisdiction Clause
5.27 The insurers will not be bound by judgements not in the first instance delivered
or obtained from a Court of Law within the Republic of Singapore or West
Malaysia.
C3. Transfer Of Policy
5.28 This provision relates to the assignment of a Private Motor Car Insurance policy.
It generally states that, if the insurer consents to a transfer of interest in a Private
Motor Car Insurance policy, the period during which the interest has been
vested with the transferor will not accrue to the transferee.
5.29 That means that once the ownership of a motor car has been changed, the
former owner needs to cancel his policy, and the new owner must purchase a
new Private Motor Car Insurance policy.
C4. Avoidance Of Certain Terms & Right Of Recovery
5.30 This condition means that, if legislation or any other instrument requires the
insurer to pay a claim for which the insurer is not otherwise liable under the
policy, the insurer can recover the amount of the paid claim from the insured.
5.31 Such obligations may arise by virtue of the legislation or the agreement made
between:
▪ the Minister of Transport of Malaysia and the Motor Insurers’ Bureau of
West Malaysia on 30 March 1992; or
▪ the Minister for Finance of Singapore and the Motor Insurers’ Bureau of
Singapore on 22 February 1975.
5.32 For example, if the insured’s driver is driving under the influence of alcohol and
knocks down a cyclist or pedestrian, the insurer will be required by legislation
to pay a claim for bodily injury or death, which it is otherwise not liable under
the Private Motor Car Insurance policy because of a breach of terms and
conditions by the insured. Upon payment of any such claim, the insurer will
then seek recovery from the insured.

C5. Payment Before Cover Warranty
5.33 This condition requires the insured to pay the premium in full on or before the
effective date of insurance under the policy, renewal certificate, cover note,
and/or endorsement.
5.34 To meet this requirement, the premium must be paid and actually received in
full by the insurer, the registered broker, or registered agent through whom the
policy is affected.
5.35 A failure to comply with this warranty will mean that the policy will not be valid.
As such, no benefit will be payable by the insurance company. Any payment
received thereafter will be of no effect, as the cover has not attached.
C6. Limitations As To Use
5.36 The Private Motor Car Insurance policy provides protection when the motor car
is used only for social, domestic and pleasure purposes and for the insured’s
business.
5.37 The policy does not cover use of the motor car for hire or reward, tuition, driving
test, racing, pace-making, reliability trial, speed-testing, or for the carriage of
goods (other than samples) in connection with any trade or business, or use for
any purpose in connection with the motor trade or business.
5.38 Hence, private motor car owners who use their cars to transport passengers in
return for a fare should purchase expanded Motor Insurance coverage, since
private insurance coverage restricts vehicle use to "social, domestic and
pleasure purposes". Given that most cases of injury claims may be of
substantial amounts, a policyholder will suffer a heavy financial loss if the
Motor Car Insurance policy has not been extended correctly.
C7. Death Of The Insured
5.39 In the event of death of the insured, a Motor Car Insurance policy covers:
▪ any member of the insured’s family or a paid driver who has been driving
the motor car during the lifetime of the insured, and the permission to drive
has not been withdrawn prior to the death of the insured; and
▪ any other person who has been given permission to drive the motor car prior
to the death of the insured, and such permission has not been withdrawn by
the insured.
D. Other Conditions
5.40 The policy heading of “CONDITIONS” will usually include the following
conditions:
(a) Interpretation: The policy, the schedule, and any endorsement form one
contract, which must be read as a whole. In addition, any word or
expression to which a specific meaning has been attached shall bear the
same specific meaning wherever it may appear.

(b) Written Notice: Every notice or communication given or made under this
policy must be delivered in writing to the insurer.
(c) Care Of Motor Car: The insured must take all reasonable steps to
safeguard the motor car from loss or damage, and to maintain the motor
car in an efficient and roadworthy condition. The insurer shall also at all
times have free and full access to examine the motor car or any part
thereof, and to obtain details from any driver or family member of the
insured.
In the event of any accident or breakdown, the motor car should not be
left unattended, without any proper precaution being taken to prevent
further loss or damage. If the motor car is driven before the necessary
repairs are carried out, any extension of the damage or any further
damage to the motor car will be excluded from the scope of the indemnity
granted by the insurer under the Private Motor Car Insurance policy.
(d) Notification Of Accident: This standard condition covers four basic

requirements, namely that the insured must:
▪ notify the insurer as soon as possible (within the required notification
period) of any accident which may give rise to a claim;
▪ forward immediately to the insurer all written documents (letters,
statements, reports, claims, writs, summons, photographs, video
footage, etc.) received by the insured, noted or taken as a result of the
accident;
▪ advise the insurer immediately on knowledge of any impending
prosecution, inquest, inquiry or offer of compensation in connection
with any such occurrence; and
▪ make a police report and co-operate with the insurer in securing the
conviction of the offender – in the case of theft or other criminal acts,
that may give rise to a claim under the policy; or any motor accident
involving any injury, cyclist, pedestrian, foreign vehicle, hit-and-run
vehicle, government vehicle, or damage to government property, as
well as any motor accident outside of Singapore.
Some insurers have a team of motorcyclists, trained in claims

assistance, to render help on the spot, in the event of any of their
policyholders’ cars being involved in a traffic accident, through the
activation of a 24-hour hotline. In addition, some insurers have made it
easier for their insured drivers by providing a mobile phone application
to record motor accident details on the spot.
(e) Claim Procedures: This condition tells the insured how he should behave
when a third-party claim arises – e.g. he should not admit liability or offer
or promise payment, without the written consent of the insurer. It also
gives the insurer the right to handle the claim, to deal with it as efficiently
as possible and without prejudicing the insurer’s position.

The website of the insurer will usually specify the claim procedures and
the availability of the relevant forms for necessary downloading and
submission, within the required notification period.
(f) Cancellation: This condition provides for the cancellation of the contract
by either the insurer or the insured.
If the insurer wishes to cancel the policy, then it usually has to give the
insured seven days’ written notice by registered letter, to the insured’s last
known address. The insurer will return to the insured the pro-rated
premium, reflecting the remaining period of the policy.
The insured may also cancel the policy by giving seven days’ written
notice to the insurer. He would then be entitled to a return of the pro-rated
premium for the remaining period of insurance, subject to the insurer’s
short period rate charge and minimum premium retention (e.g. S$25 or
S$50), provided that no claim was made before the cancellation. The
insured must also return the Certificate of Insurance on or before the date
of cancellation and pay any outstanding premium due.
(g) Other Insurance: If, at the time of any claim under the Private Motor Car
Insurance policy, there is any other insurance covering the same loss,
damage or liability, the insurer will not be liable to pay or contribute more
than its rateable proportion of any loss, damage, compensation, costs or
expenses.
(h) Arbitration: A typical condition may state that any disputes arising out of
the Policy shall be referred to the decision of an Arbitrator, to be appointed
in writing by the parties in dispute. The condition usually states that
mediation will be carried out at the Singapore Mediation Centre with
arbitration conducted in accordance with the Arbitration Rules of the
Singapore International Arbitration Centre.
E. General Exclusions
5.41 In addition to the specific exclusions under each section, there are a number of
general and market exclusions applicable to all sections of the policy.
5.42 The insurer is not liable for any loss, damage, or liability sustained or incurred:
▪ outside the defined geographical area of coverage; and
▪ while the motor car is being:
- used not in accordance to its “Limitations As To Use”;
- used or driven when it is not registered under the Road Traffic Act 1961 or
when its registration has been cancelled; or used or driven with
modifications not approved by LTA in accordance with the Road Traffic
(Motor Vehicles, Registration and Licensing) Rules;
- driven by any unauthorised driver; or

- driven by the insured, his named driver or his authorised driver while
under the influence of intoxicating liquor or drugs.
5.43 The insurer is not liable for any accident, loss, damage, or liability (except those
which meet the requirements of the legislation) arising out of or in connection
with:
▪ war, invasion, act of foreign enemies, hostilities or warlike operations
(whether war be declared or not), civil war, mutiny, rebellion, revolution,
insurrection, military or usurped power; or
▪ detention, seizure, confiscation or any attempt thereat.
5.44 The insurer is not liable under the law, the policy, or otherwise, for any special
agreement made by the insured with a third party that gives rise to liability that
would not have existed but for that agreement.
5.45 The insurer will not pay any accident loss or damage to any property
whatsoever or any loss or expense whatsoever resulting or arising therefrom
for any consequential loss. Neither will they be liable for any accident loss
damage or liability if the insured vehicle does not have a valid Certificate of
Entitlement.
5.46 The insurer will not pay for any accident loss damage or liability caused
sustained or incurred whilst the insured vehicle is being used at the Airside in
any airport or aerodrome. The term “Airside” shall mean the manoeuvring
areas and aprons of the airport and service roads which are directly associated
therewith.
5.47 As with war risks, all nuclear risks, including ionising, radioactivity, existence,
or escape of any nuclear fuel, material or waste are considered to be
catastrophic risks that cannot be provided for or covered by insurance.
5.48 The insurer will not pay for any loss, damage, cost, or expenses caused by or
resulting from any act of terrorism, regardless of any other cause or event
contributing at the same time, or in any other sequence to the loss. The insurer
will also not pay for any loss, damage, cost or expense of whatsoever nature
directly or indirectly caused by, resulting from or in connection with any action
taken in controlling, preventing, suppressing or in any way relating to any act
of terrorism.
5.49 If there is justification for the insurer to reject the insured driver’s policy
coverage, the insurer may recover the outlay from the driver’s estate. However,
the recovery may be difficult if the driver does not have sufficient money to pay
off anyone.
F. Extensions
5.50 Let us now consider the common additional benefits, or policy extensions,
typically available to the insured under a Private Motor Car Insurance policy.
Note that some of these extensions may be offered under the basic coverage
package.

F1. Legal Liability Of Passengers
5.51 This extension provides cover for liability incurred owing to the negligent acts
of passengers. One of the most common negligent acts of a passenger is when
he opens the door of the motor car, without due care or proper lookout for any
passing pedestrian, cyclist, motorcyclist, or motor vehicle.
5.52 The cover includes liability for passengers who are mounting into, dismounting
from, and travelling in the motor car, provided that they:
▪ are not driving the motor car or in charge of the motor car for the purpose of
driving;
▪ are not entitled to indemnity under any other policy; and
▪ observe, comply, and are subject to the terms of the policy.
F2. Windscreen Damage
5.53 The standard policy provides cover for damage to the windscreen of a motor
car. However, if there is any claim for such damage, the excess will apply and
the NCD entitlement affected, like any other claim.
5.54 If the windscreen extension cover has been purchased, it will be treated as a
separate issue. Hence, the excess will not apply and the NCD entitlement will
not be affected.
5.55 Under this extension, the insurer will pay the cost of replacing any broken
windscreen or window glass – a glass roof or sunroof may be included for
coverage by the insurer concerned – on the insured motor car, provided that:
▪ there is no other damage to the insured motor car; and
▪ unless the insured motor car is under a Manufacturer’s and/or Distributor’s
Warranty, the repairs are carried out at a workshop appointed or approved
by the insurer.
5.56 However, the costs of repairs for chipped or scratched windscreen or window
glass are not covered.
5.57 It is also worth noting that, following the settlement of a claim, the benefit under
this extension terminates, unless the insured pays a further additional premium
to reinstate cover.
5.58 Some insurers may not charge for this extension, while others may impose a
small amount of excess (e.g. S$100) for reinstatement, without affecting the
NCD entitlement.
5.59 For claims under this extension, the insurer will usually require the insured to
complete and submit a Windscreen Claim Form.

F3. Third-Party Indemnity To Employer
5.60 This extension indemnifies the insured’s employer for benefits under Section II
“Liability To Third Parties”, while the vehicle is used in relation to the business
of the employer. However, such indemnity does not include liability for death
or bodily injury sustained by any person arising out of and in the course of the
employment of such person by the employer. Work Injury Compensation
Insurance or Employers’ Liability Insurance are the appropriate policies to
provide this liability cover.
F4. Other Miscellaneous Common Extensions
(a) Strike, Riot & Civil Commotion (SRCC)

Most insurers offer this SRCC extension without any additional premium
charge. This extension does not apply to the personal accident benefits
under Section IV of the policy.
(b) Windstorm & Flood Damage

Insurers may grant this extension with or without an additional premium
charge.
(c) Additional Personal Accident Benefits

The limit of compensation of the Personal Accident benefits of the
standard comprehensive policy may be increased. For example, if the
existing capital sum insured is S$20,000, an insurer may increase the
amount to S$30,000 for the insured and S$15,000 for each passenger.
(d) Loss Of Use (Or Courtesy Car)

This extension provides the use of a rental car, usually up to 10 to 14 days,
when the insured motor car is laid-up for repairs – normally for more than
three days – at the workshop appointed by the insurer, following an
insured motor accident.
Alternatively, instead of providing a courtesy car, some insurers specify

that they will pay a daily sum (transport allowance), which usually ranges
from S$50 to S$100, depending on the cubic capacity of the insured motor
car, for its loss of use. Some insurers impose a total payment limit (e.g.
S$1,000) for the period of insurance. This benefit shall not apply for a
claim arising under Section I of the Policy settled on total loss basis and/or
windscreen claim.
This loss of use benefit will not be applicable:

▪ when the repairs are delayed due to non-availability of spare parts;
▪ when the motor car is returned to the workshop due to repairs not
meeting the insured’s satisfaction; or
▪ for any delay in collecting the car upon completion of repair.

(e) Loss Of Personal Effects & Other Car Accessories

The benefits offered under this extension are available only to a
comprehensive policy. The term “personal effects” can include any item
within or on the motor car that is not an accessory. Accessories are those
items that are sold with and fitted into the insured motor car.
(f) No Claim Discount (NCD) Protector

This policy extension, which comes with an extra premium, protects the
private motor car owner’s NCD entitlement. It allows the insured to make
a claim on his Private Motor Car Insurance policy, without losing his NCD
entitlement. This extension is usually available to him when his NCD
entitlement is already 50% (or even 30% or 40% allowed by some
insurers). However, as a further incentive, some insurers will offer this
extension free of charge upon the next policy renewal, if the insured’s
NCD entitlement of 50% has remained unchanged for the preceding two
or three years of insurance with the same insurer.
The NCD protector policy extension offers protection as shown below:
Number Of Claims During NCD Entitlement Upon Policy

Period Of Insurance Renewal
One 50% (Instead of 20%)
Two 20% (Instead of Nil)
Three Nil
For example, if the insured has currently earned a maximum NCD of 50%
and meets with an accident, the NCD upon the next policy renewal will be
reduced to 20%. However, by buying the NCD protector at the inception
of the Private Motor Car Insurance policy, the insured will be able to
preserve his NCD of 50%. The NCD protector cannot be transferred from
one insurer to another insurer. This means that if the insured wants to
retain the NCD at 50% after an accident, he will have to renew with the
existing insurer. The NCD protector is not applicable to cases involving
the loss of NCD as a result of not reporting or late reporting of accidents
as set out under the Policy.
Having the NCD protector does not mean that renewal invitation or
renewal terms are guaranteed for the next period of insurance.
6. UNDERWRITING CONSIDERATIONS
6.1 When a motor insurance risk is presented to an insurance company, the

underwriter has to recognise that each insured presents a different risk to the
common pool. Hence, a prudent insurer must exercise judgement in the
selection of risks and charge each potential policyholder a “fair” premium that
represents the degree of risk they bring to the pool.

6.2 The following tend to be the main underwriting considerations for Private
Motor Car Insurance:
▪ Car Usage
▪ Make and Model of the Car
▪ Car Engine Capacity
▪ Car Age
▪ Driver Characteristics
▪ Age and Gender
▪ Driving Experience
▪ Occupation
▪ Claims Experience
▪ Types of Private Motor Car Insurance Cover
A. Car Usage
6.3 The degree of risk exposure depends on how frequently the car is being used
on the road. A car used by a housewife for shopping and for sending the
children to school is on the road less than a car used by a salesman travelling
over large areas of the country. The more the car is on the road, the greater
would be the exposure to the risk of accidents with the consequence being that
the risk should be rated higher.
6.4 Basically, the degree of car usage can be categorised under the following three
classes in ascending premium order:
(a) Private Motor Car: Motor car used for social, domestic and
pleasure purposes and used by the insured
himself, in connection with his occupation or
profession;
(b) Company Car: Motor car used for the business of the
insured (corporation or partnership) and the
insured’s employer, partner and any
employee; and
(c) Commercial Motor vehicle used for transportation,

Motor Vehicle: carrying goods and “hire and reward”.
6.5 A motor car used for commercial purposes is likely to warrant a higher premium
rate than a motor car used for social, domestic and pleasure purposes.
6.6 A private motor car owner may participate in the Private Car Rental Scheme or
any car-pooling scheme approved by LTA, subject to its guidelines, terms and
conditions as specified. He must notify the insurer accordingly, and must
purchase any additional insurance coverage needed, subject to any additional
premium payable as required by the insurer. Refer to details available on the
LTA Website at: www.lta.gov.sg.

6.7 There have been several initiatives to promote car-sharing and the use of
private cars for commercial transport purposes. As mentioned above,
motorists’ Private Motor Car Insurance policies have a “limitation to use”
condition, which restricts usage to social, domestic and pleasure purposes and
for the insured’s business.
6.8 However, insurers will consider their policyholders’ requests to broaden their
policies to cover “hire and reward” usage, which is essential for drivers who
transport people or property in exchange for a fee. This risk will be assessed on
a case-by-case basis, depending on the car seating capacity and other factors.
B. Make & Model Of The Car
6.9 The make and model of the car provide an indication of the performance, risk
potential, and – to some extent – the market value of the car.
C. Car Engine Capacity
6.10 The car engine capacity also affects premium rating. For instance, “high
performance cars” attract higher premiums owing to their higher risk factors.
D. Car Age
6.11 The age of a car can have a bearing on the premium. Where the value of a
vehicle relates to premium, the reduced value of an older car will result in a
lower premium. Some underwriters take the view that older cars are less
attractive to thieves and repairs may be cheaper than with newer cars. This can
mean a more favourable rate for a car that is more than two or three years old.
However, other underwriters do not share that view and give no special terms
for older cars, in part because of the cost of repair issue, but also because the
third-party risk remains unchanged, even as the car ages.
E. Driver Characteristics
6.12 These characteristics refer to the driver’s:

▪ age and gender;
▪ driving experience;
▪ occupation; and
▪ claims experience.
E1. Age & Gender
6.13 As mentioned above, to discourage careless driving, the insurer imposes an

excess, whereby the insured pays part of the loss of or damage to the car.
6.14 Statistics shows that young drivers have higher accident rates than more
mature drivers. Some insurers may also offer discounts to drivers over a certain
age group, as experience shows that they are likely to encounter fewer
accidents than younger drivers; although driving ability may diminish with old
age.

6.15 The driver’s gender also affects the premium rating, as the driving patterns or
traits of males and females differ.
6.16 Starting from the age of 65 years and every three years thereafter, the Traffic
Police Department (TPD) of the Singapore Police Force requires such motor car
driver (holding Class 3/3A driving licence) to undergo a medical examination
with a Singapore registered medical practitioner and submit the successful
medical report (in its prescribed form) to the TPD, before he can continue to
drive the motor car from the relevant birthday.
E2. Driving Experience
6.17 The excesses imposed by insurers do not always take driving experience into
account, but sometimes, an additional excess may be imposed on
inexperienced drivers. “Inexperienced drivers” usually refer to drivers who
have less than one or two years of driving experience. The “Elderly, Young
And/Or Inexperienced Driver Excess” has already been mentioned in an earlier
section of this chapter.
E3. Occupation
6.18 The occupation of the insured driver is of concern to an underwriter. A higher

rating may apply to an outdoor occupation, compared to that of an indoor
occupation. Some occupations may indicate to an underwriter a greater or
lesser risk. For example, a marketing executive who entertains clients
frequently may run the risk of being involved in accidents because of drunk
driving. On the other hand, occupations such as university professors, lawyers,
doctors, and the like, may represent a lower risk, attracting lower premiums.
E4. Claims Experience
6.19 Generally, insurers are concerned with drivers having a history of multiple
motor accidents within a short period, and they are unwilling to accept Private
Motor Car Insurance proposals that have poor claim histories. Some insurers
adopt a “two strike” rule in that they are likely to turn away any driver who has
made two or more claims in the same period of insurance.
6.20 For those drivers with good driving records, they will be entitled to discounts
on premiums as incentives to encourage continued good driving records.
F. Types Of Private Motor Car Insurance Cover
6.21 Rating also differs among the different types of Private Motor Car Insurance
offered in the Singapore insurance market. In general, the wider the scope of
coverage, the higher will be the amount of insurance premium payable.
G. Usage Based Motor Insurance
6.22 As technological advances continue to shape the insurance industry, it is

increasingly more common to see usage-based options adopted by insurers
and their customers in Singapore.

6.23 In traditional Motor Insurance, much emphasis is placed on a motorist's age

and years of driving experience when an underwriter derives the policy
premium and excess. Little consideration (if any) is given to the driver’s habits
and usage patterns in this regard.
6.24 In this section, we shall discuss Usage-based insurance (UBI). Other terms for
UBI include pay as you drive (PAYD), pay how you drive (PHYD) and distance-
based motor insurance. Basically, in UBI, the motor insurance costs depend on
the type of vehicle used in conjunction with time, distance, behaviour and place.
This is a very different approach from traditional motor insurance. The latter
aims to differentiate and reward "safe" drivers, by charging lower premiums
and granting the drivers a no-claims discount.
6.25 In its most basic form, the insurance premiums of UBI are based on distance
driven. However, PAYD goes beyond this. In PAYD, the premiums do not
depend on just how much is driven but also on how, where, and when one
drives. PAYD involves the insurance premium being calculated dynamically.
The premium varies with the amount driven.
6.26 There are three types of coverage afforded under UBI:

(a) basic coverage based on the odometer reading of the vehicle
(b) coverage derived from mileage aggregated from GPS data, or the duration
of usage of the vehicle as recorded by a vehicle-independent module
transmitting data via mobile devices or radio frequency (RF) technology
(c) coverage based on other data collected from the vehicle, including speed,
time of the day, historic road data, driving behaviour in addition to distance
or duration travelled.
6.27 The last two types of coverage are via telematic UBI. This involves vehicle data
being automatically transmitted to the system. It enables rapid feedback to the
driver facilitating a dynamic insurance costing that varies with a change of risk.
This incentivises drivers to drive more carefully. For example, if the driver stops
driving for a period and works at home, this means a much lesser risk of motor
accidents especially during peak traffic periods. With UBI, the savings in
premium can be drastic not to mention immediate.
6.28 As for PHYD (Pay How You Drive), it works like PAYD, but it also incorporates
additional sensors like accelerometer to monitor driving behaviour.
6.29 So, besides lower premiums, what benefits do UBI offer to motorists? The
benefits include:
• Telematics technology track the status of the vehicle. Both the insured and
the insurer are kept abreast of the safety and maintenance of the car
• Accident services can be offered. For example, emergency services can be
dispatched. It is also possible to render on-the-spot claims assessment at
the accident site.
• Driver safety awareness can be enhanced. Telematics are useful in
tracking driving speeds. Road conditions and driver responses can be
tracked as well.

H. Electric Cars Insurance
H1. Introduction
6.30 Electric cars are plug-in electric vehicles (EVs) which are environmentally
friendly as they can reduce emissions. The impact of air pollution and emission
of harmful gases is dependent on the type of vehicle as well as the source of
electricity.
6.31 Emission free EVs are usually charged with renewable energy like solar or wind.
In general, electric cars cost more than conventional ones. However, the cost of
maintaining an EV may be lesser as it helps owners save on petrol.
6.32 With regards to EVs and insurance, the premiums are likely to be higher than
conventional cars as it is more costly to repair electric cars given that they are
damaged easily. However, the total amount that car owners pay for their EV
insurance might be lower as there may be insurance discount for EVs.
6.33 One of the common issues that arise when it comes to claims on electric cars
arises from the EV part that was damaged, which often results in an increase in
the overall cost of claims. This can be substantiated by the fact that the parts
perform more than one function as compared to parts in a conventional car.
High costs can also be incurred due to the finding of right expertise to repair
damages to the EV. As the technology for EVs are rather new, this also serves
as one of the drivers for the high cost for this category of insurance.
6.34 Another major factor that determines the rate for car insurance for EVs is the
type of batteries used in the electrical car. Repair costs may be higher due to
the damaged or leaking batteries which typically require extra safety
precautions. However, such repair costs are decreasing according to studies.
H2. Electric Car Sharing
6.35 BlueSG is a Singapore based company that provides local electric car sharing
services. The company has about a thousand shared electric Bluecar vehicles
that are located around the island, such as HDBs and commercial estates.
6.36 Users of BlueSG are insured under the Insurance Cover provided by BlueSG.
The Insurance Cover insures the user against liability against a third party
caused by or arising out of a BlueSG car on the road in accordance with the
terms of the Contract, in respect of death, personal injury and/or damage to
property suffered by such third party, pursuant to the Motor Vehicles (Third-
Party Risks and Compensation) Act 1960.

7. MOTOR CLAIMS
A. Motor Claims Framework (MCF)
7.1 The GIA initiated the industry-wide Motor Claims Framework (MCF) in
Singapore on 1 June 2008, to provide clear and common procedures for the
reporting of motor accidents. All insurers in Singapore fully support the MCF.
The MCF provides motorists with an enhanced claims experience and helps
contain claims costs for insurers.
A1. Key Points Of The MCF
7.2 In the event of an accident, the insured should avoid all unauthorised tow-truck
operators and repair workshops.
7.3 Exchange particulars of involved parties including:

▪ Name;
▪ NRIC/FIN;
▪ Telephone Number;
▪ Address; and
▪ Insurer.
7.4 Take note of the vehicle numbers.
7.5 Take pictures at the accident scene and submit all pictures to the motorist’s
authorised accident reporting centre when reporting the accident.
(a) What to photograph?
▪ Scene: Take pictures of the accident scene capturing the accident
vehicles and surrounding areas.
▪ Own Car: Take pictures of the damages to the motorist’s own car and
capture the licence plate.
▪ Other Damaged Car(s)/Vehicle(s): Take pictures of damages to all other
cars/vehicles involved in the accident capturing licence plates. For
multiple cars/vehicles collision, take pictures of those with direct
contact, e.g. immediate front and immediate rear cars/vehicles.
7.6 Call the insurer’s hotline for a tow truck or for further advice on the accident.
7.7 Report and bring the accident car (whether damaged or not) to the approved
reporting centre/authorised workshop within 24 hours or by the next working
day.
A2. Benefits Of Reporting
7.8 Under the MCF, insurers assist policyholders in handling repairs of the
damaged vehicle but will not file a third-party claim on the policyholder’s
behalf. However, their approved reporting centres can assist them to file a third-
party claim.

7.9 Insurers will provide a comprehensive service (via their approved reporting
centres or workshops) to encourage the insured to report his accident with his
accident car/vehicle as well as have the repairs carried out at the approved
workshops.
7.10 By reporting the accident within the stipulated time, the motorist enjoys hassle-
free and quality-certified repair services as provided under the MCF and avoids
potentially higher costs from exaggerated claims.
A3. Consequences For Failure To Report An Accident To The Insurer
7.11 If the motorist fails to report an accident to his insurer within the stipulated
period of 24 hours or by the next working day after the accident, he may face
any of the following consequences:
(a) His insurer may repudiate liability because the insured has breached the
policy condition to report an accident. Therefore, the policy will not
provide protection and the insured will have to deal with his own repair
costs and any third-party claims made against him.
(b) His No Claims Discount will be reduced upon the renewal of his policy.
(c) His insurer may cancel or decline renewal of his policy if he blatantly
ignores the insurer’s requests to file an accident report.
A4. Does The Motorist Have To Inform His Insurer Even Though There Is No
Damage To His Car?
7.12 Yes, he must always report all accidents to his insurer no matter how minor the
accident may be, even if there is no visual damage or even if he has made a
private settlement with the other driver.
7.13 This is because he cannot be certain that the other party will not file a claim
against him later. He may find himself in a position of having his claim
prejudiced or declined later by insurers.
A5. What Happens If The Motorist Chooses Not To Report The Accident To His
Insurer?
7.14 Failure to do so will affect his NCD upon renewal of his motor insurance and
will prejudice his claim.
A6. If The Motorist Brings His Accident Vehicle To The Authorised Reporting
Centre Or Workshop, How Much Does He Has To Pay For The Inspection,
Survey And Accident E-Filing Process?
7.15 There are no fees or charges involved in the reporting process.
B. Motor Insurance Fraud
7.16 Motor insurance fraud involves conspiring to make false or exaggerated claims
involving property damage or personal injuries. Some common examples
include staged accidents, where fraudsters deliberately “arrange” for accidents

to occur, the use of phantom passengers where persons who were not at the
scene of the accident claimed to have suffered grievous injury, and making false
personal injury claims where personal injuries are grossly exaggerated.
7.17 In March 2019, the General Insurance Association of Singapore (GIA)

introduced the GIA Insurance Fraud Tip-off (GIFT) scheme which rewards
individuals up to S$10,000 - based on the equivalent value of the fraudulent
claim - for reporting insurance fraud cases that lead to successful prosecution
and conviction of offenders. If there is more than one informant for a case, the
panel of investigators will decide on the reward allocation to each informant.
7.18 GIFT is part of GIA’s efforts to increase participation of all stakeholders -

including general insurers, regulators, and members of the public - to
collectively combat insurance fraud and mitigate claims costs inflation.
7.19 GIA introduced this scheme to encourage members of the public to play a more
pro-active role in tackling this problem together so that insurance in Singapore
remains accessible. Members of the public who have been approached to get
involved in insurance fraud or are currently holding relevant evidence of others
committing fraud should participate in the scheme.
7.20 To qualify for the reward scheme, individuals are required to provide
documentary evidence such as detailed descriptions of how the fraud was
conducted, electronic document trails, actual copies of forged or tampered
documents, or any another physical evidence that can prove the suspected
fraud.
7.21 The GIFT scheme builds on the success of the GIA Fraud Management System
(FMS) which employs data analytics and artificial intelligence to detect fraud
cases for motor and travel insurance. The system which was implemented in
2017 has since played a key role in helping the industry mitigate underwriting
losses for the motor insurance segment.
8. MOTOR INSURANCE – RELATED ISSUES AND ORGANISATIONS
A. Motor Insurers’ Bureau Of Singapore (MIB)
8.1 Set up by insurers on 22 February 1975, the Motor Insurers’ Bureau (MIB) is an
independent body supported by all motor insurers in Singapore. Its main
purpose is to compensate people injured in road accidents caused by negligent
untraced or uninsured motorists. The MIB only provides cover for bodily injury
claims in accordance with the Untraced Drivers' Agreement and the Uninsured
Drivers' Agreement made by the Government, the MIB, and the general
insurance companies.
8.2 The Untraced Drivers' Agreement requires the MIB to consider compensation
for victims of hit-and-run accidents where the vehicles are untraced. The
Uninsured Drivers' Agreement requires the MIB to meet unsatisfied Court
Judgements against identified motorists who are uninsured.

8.3 The MIB Council, which comprises representatives from the leading motor
insurers and the Government, assesses all claims and determines their validity.
8.4 The MIB deals with all claims in accordance with service standards. However, if
the claimant is dissatisfied, he can write to the MIB through his solicitor. The
MIB will then forward his appeal to the Public Trustee, whose decision is final.
8.5 The MIB obtains its funding from a levy imposed on its members, and
membership is compulsory for all motor insurers in Singapore. This levy is
based on each member’s motor premium income in proportion to the
aggregate motor premium income in the general insurance market.
B. Non-Injury Motor Accident Reporting Scheme
8.6 Contrary to common belief, there is no necessity for motorists to report every
motor accident to the police, especially if the accident involves a “non-injury”
situation.
8.7 In the event of a motor accident, a police report is not necessary under the
present “Non-Injury Motor Accident Report Scheme” (which was introduced by
GIA, in collaboration with the Singapore Traffic Police, on 1 May 1999), unless
the accident involves:
▪ an injury case;
▪ a government vehicle or damage to government property;
▪ a foreign vehicle3;
▪ a pedestrian or cyclist; or
▪ a “hit-and-run” case.
8.8 An “injury” accident is defined as one in which:

▪ at least one party involved in the motor accident is conveyed to the hospital
from the accident scene by an ambulance; or
▪ conveyance to the hospital is done through other transport, and the party is
subsequently hospitalised, or given outpatient medical leave of three days
or more; or
▪ no one is conveyed to the hospital from the scene, but a latent injury has
subsequently developed which entailed hospitalisation, or outpatient
medical leave of three days or more.
8.9 The motorists involved in non-injury accidents need to exchange only their
details, complete the “GIA Non-Injury Motor Accident Report Form”, and
submit it to their insurers. The insurers will process this Form and submit it to
the GIA Record Management Centre system via e-filing. This can also be done
through one of the approved reporting centres or authorised workshops.
3
Foreign vehicles are defined as all vehicles registered in another country, all vehicles owned by visiting
forces present in Singapore, all vehicles with USN or USG prefixes etc.

C. Financial Industry Disputes Resolution Centre Ltd (FIDReC)
8.10 In this section, we will examine the role of FIDReC, including the set-up of
FIDReC and its dispute resolution process.
C1. Mission And Background Of FIDReC
8.11 FIDreC was launched in August 2005, as part of an initiative by the Monetary
Authority of Singapore (MAS) to create a one-stop centre for the resolution of
all retail disputes with financial institutions.
8.12 FIDReC’s mission is to provide an affordable alternative dispute resolution

scheme that is independent and impartial, so as to encourage and assist in the
resolution of disputes between consumers and financial institutions in an
amicable and fair manner. Disputes lodged with FIDReC are usually resolved
within 6 months, without the involvement of external lawyers.
C2. Jurisdiction Of FIDReC
8.13 FIDReC's jurisdiction is set out in its Terms of Reference which can be found at
its website. There is no claim limit for mediation at FIDReC, but the jurisdiction
for adjudications at FIDReC is up to $100,000 per claim.
8.14 Generally, FIDReC only handles disputes between financial institutions who are
its subscribers and consumers. The financial institution must also have had the
opportunity to resolve the dispute with the consumer first.
8.15 The following qualify as consumers:

(a) Individuals or sole proprietors who have a customer relationship with a
financial institution;
(b) Persons who have a beneficial interest in the activity;
(c) A trustee or personal representative;
(d) An insured; or
(e) Third parties who have third-party coverage under an insurance contract.
8.16 The following complaints cannot be brought before FIDReC:

▪ Commercial decisions;
▪ Pricing policies and other policies such as interest rates and fees;
▪ Cases under investigation by any law enforcement agency;
▪ Cases concerning principal agent issues;
▪ Complaints that are more than 6 months after the financial institution's final
reply;
▪ Complaints that have been settled between the consumer and the financial
institution; and
▪ Cases that have been subjected to a court hearing and for which a court
judgment or order has been passed.

C3. FIDReC’s Dispute Resolution Process
8.17 The dispute resolution process of FIDReC comprises the following stages:
(a) Complaint Filing (1st Stage)

Consumer lodges complaint at FIDReC and Case Manager verifies if the
complaint is within FIDReC’s jurisdiction.
(b) Mediation (2nd Stage)

When a complaint is first received, the Case Manager will arrange
mediation to facilitate discussions between disputants with the objective of
reaching a settlement. For fees and costs details, please see table below.
(c) Adjudication (3rd Stage)

Where the dispute is not settled by mediation, the consumer can choose to
allow an Adjudicator to decide the case on the facts and merits. For fees
and costs details, please see table below.
8.18 The decision of the Adjudicator or Panel is final and binding on the financial
institution, but not on the consumer. If the consumer is not satisfied with the
decision, he has the option to continue to pursue the complaint through other
channels or means such as litigation.
C4. FIDReC-NIMA Scheme
8.19 The FIDReC Non-Injury Motor Accident Scheme (FIDReC-NIMA Scheme) helps
consumers resolve non-injury motor accident disputes with insurance
companies in which the amount claimed is below S$3,000. The FIDReC-NIMA
Scheme covers claims by complainants against a third-party insurance
company.
D. Barometer Of Liability Agreement (BOLA)
8.20 Since 13 May 2003, the Barometer of Liability Agreement (BOLA) has replaced
the Knock-For-Knock Agreement (KFKA) to speed up motor accident claims
processing among insurers. Going online from 1 May 2012, the BOLA
centralised system simplifies the workflow of the subrogation recovery process
among motor insurers and allows for a better management of claims
settlement, and recoveries that are more efficient. However, BOLA does not
diminish the right to contest liability under the law.
8.21 Insurers use BOLA to determine how much each involved party is liable in the
event of a motor accident, through the use of predetermined charts of various
motor accident claims scenarios in which the apportionment of liability has
been agreed by all motor insurers in Singapore. If the motor accident occurs
within the scenarios as listed, the insurers will settle the subrogation claim
among themselves in accordance with the predetermined apportionment of
liability.

8.22 Although BOLA does not stop an insurer from exercising its subrogation rights,
it helps to reduce and resolve disputes to reach amicable settlement among
insurers, pertaining to the liability of their insured drivers in any given
circumstances. Thus, this leads to very few cases in which the insurers need to
resort to litigation to seek subrogation recovery.
8.23 No Claim Discount (NCD) may not be affected if driver is found totally not at
fault in an accident involving another vehicle. In all other cases, the NCD may
be affected.
E. Motor Accident Guide (MAG)
8.24 The State Courts of Singapore has published the “Motor Accident Guide”
(MAG) in 2014, which serves a reference to the guidelines that the courts use to
assess liability in different scenarios commonly encountered in road traffic
accidents. This guide helps motor insurers, lawyers, and road users to assess
the likely level of liability in any given road traffic accident scenarios using
clearly illustrated diagrams and pictures followed by simple text. In this
manner, the MAG will improve the negotiation between parties attempting to
settle personal injury or property damage claims arising from the road traffic
accidents. For more details on these guidelines, please refer to a copy of the
MAG.
E1. Motor Accident Claims Online (Maco)
8.25 In March 2022, it was reported that an online traffic accident claims simulator
had been developed by the Singapore Courts and the Singapore Academy of
Law. The simulator is called the Motor Accident Claims Online (Maco) which
generates approximate figures for claimants very quickly through the
application of technology that considers current laws and case precedents.
8.26 Motorists involved in an accident are now able to have a good idea of the
amount of damages they can claim from a legal perspective in a matter of
minutes, by merely answering a series of multiple-choice questions. Maco can
determine how liable a person is, depending on where the accident took place
and the relative positions of the two vehicles, and how much a victim suffering
from a specific type of injury can claim.
8.27 This will enable parties involved in motor accidents to decide on the viability of
pursuing legal action against each other or insurers when there are differing
accounts or evidence offered by the parties concerned, or if the parties are not
happy with the compensation offered by the insurers.
8.28 Maco can enable parties to reach an out of court settlement thereby avoiding
the need for legal proceedings. In this manner, time and court resources can be
better used. It is envisaged that this simulator will help manage motorists'
expectations of their legal position or exposure and allow them to decide next
steps accordingly.
8.29 Maco can be accessed at https://motoraccidents.lawnet.sg/

8.30 Maco is currently non-binding and is not meant as a perfect substitute for legal
advice. At this moment, it cannot consider non-injury claims such as loss of
income or vehicle or property damage. Maco is part of the industry's plans in
having low-level motor accidents entirely adjudicated by artificial intelligence
(AI).
9. PRIVATE MOTORCYCLE INSURANCE
9.1 Many of the considerations and requirements for Private Motorcycle Insurance
are similar to those for Private Motor Car Insurance. Both are subject to the
Motor Vehicles (Third-Party Risks and Compensation) Act 1960 and the issue of
Certificates of Insurance. Many of the Motorcycle Insurance terms of coverage,
exclusions and conditions are similar to those of Private Motor Car Insurance
policies.
9.2 The insurance market for motorcycles, however, is comparatively limited owing
to some aspects of Private Motorcycle Insurance, which are unique to that class
of vehicles, such as the following:
▪ There are many more young drivers owning or riding motorcycles than
private cars; and
▪ The risk of a pillion rider suffering a serious injury in an accident.
9.3 Intended for two-wheeled (and scooter-type three-wheeled) vehicles, Private

Motorcycle Insurance policies are similar to Private Motor Car Insurance
policies, but covers “Loss Of Or Damage To The Insured Vehicle” and “Liability
To Third Party” only (see sample Motorcycle policy in Appendix 1D).
A. Section I - Loss Of Or Damage To The Insured Vehicle
9.4 This is similar to Section I of the Private Motor Car Insurance, but with one
significant difference – the loss of or damage to accessories and spare parts by
burglary, housebreaking or theft is not covered, unless the insured motorcycle
is stolen at the same time.
9.5 If the motorcycle is stolen outside of Singapore, some insurers will pay a lower
amount, such as 50% of the market value of the motorcycle up to S$2,500.
B. Section II - Liability To Third Parties
9.6 As with Private Motor Car Insurance, the insurer will indemnify the insured or
the named driver for unlimited legal liability arising from death of or bodily
injury to a third party (including pillion rider), as well as damage to property of
a third party. The property damage limit is much lower than that of Private
Motor Car Insurance, e.g. usually up to S$500,000 for any one claim or series of
claims arising out of any one event. However, unlike Private Motor Car
Insurance, this section does not cover the insured when he is driving another
motorcycle.

C. Limitation Of Use
9.7 The standard Private Motorcycle Insurance policy protects the insured while
using the motorcycle for social, domestic and pleasure purposes and in
connection with the insured’s business only. It excludes property damage or
bodily injury arising from the use of the vehicle for hire, reward, tuition, driving
test, racing, pace-making, reliability test or speed-testing, carriage of goods
(other than samples) in connection with any trade or business, and any purpose
in connection with the motor trade.

Appendix 1A
ABC INSURANCE COMPANY (SINGAPORE) LIMITED
(Registration No: 2009-12345-A)
21 Any Street, ABC Centre, Singapore 654321
Tel: (65) 6789 8181 Fax: (65) 6789 8282
E-mail: [email protected]
Website: www.abcinco.com.sg
PROPOSAL FORM FOR MOTOR INSURANCE

STATEMENT PURSUANT TO SECTION 23(5) OF INSURANCE ACT 1966 (OR ANY SUBSEQUENT AMENDMENTS
THEREOF)
You are to disclose in this proposal form, fully and faithfully all the facts which you know in respect of the risk that is being proposed, otherwise the policy
issued hereunder may be void.
PARTICULARS OF REGISTERED OWNER

Name Sex Male Female
NRIC/Passport No. Driving Licence No. Driving Experience
Nationality Singaporean Others (Please attach documentary proof) Email address
Address Singapore
Contact No. (H) (O) Date of Birth

(Hp) (e-mail)
Occupation Indoor Outdoor Name of Employer Language/Dialect
Details of primary driver if registered owner is not driving

(Name, NRIC No. date of birth, gender, driving experience, occupation - indoor/outdoor).
PARTICULARS OF NAMED DRIVERS

1. Name NRIC/Passport No. Sex Date of Birth
Male Female
Registration Date of Driving Licence Occupation Relationship to registered owner

Indoor Outdoor
2. Name NRIC/Passport No. Sex Date of Birth

Male Female
Registration Date of Driving Licence Occupation Relationship to registered owner
Indoor Outdoor
DETAILS OF INSURANCE COVER

Period: From to No Claim Discount entitlement %
To enable us to confirm your NCD entitlement, please provide the details below:
Previous Insurer Policy No.
Vehicle No. Expiry Date
I undertake to pay any difference in the premium payable under the policy issued by ABC if my previous insurer state that I am not entitled to a No Claim
Discount or that my NCD entitlement is lower than what is stated here.
Cover required
Quality Applicable to private car only. Repair must be carried out by our quality workshop (except for cars under warranty).
Comprehensive Third Party Fire & Theft Third Party

Do you wish to insure COE and PARF value? (Applicable to Quality Comprehensive and Third Party Fire & Theft Cover only)
Yes No
ADDITIONAL OPTIONS
For Quality and Comprehensive plans only Accessories (other than factory-fitted)
 Plus (waiver of basic excess and courtesy car benefit) i) description
 NCD Protection (applicable only for 50% NCD)
Additional Excess Premium Reduction
ii) value
 $ 500 8%
 $ 1,000 12%
 $ 1,500 15%
Only Applicable to Motorcycle: Details of additional authorised driver (1 driver only) (Name, NRIC No., date of birth, driving experience, occupation – indoor/outdoor)

TYPE AND DETAILS OF VEHICLE

Type Private car Saloon Off-peak car SUV
Station Wagon / MPV Coupe Turbo
Anti-theft device (Car Tracker, please describe)
Commercial vehicle Standard Van Standard Lorry/Pickup Garbage Truck Hood/Canopy
Standard Lorry with Refrigerated Vehicle Tanker Ambulance

Crane/Tailgate
Trailer Tipper Mixer Prime Mover
Tow Truck Others (Please Specify)
Bus  School children only

 General purposes
Motor-cycle Side Car Reconditioned Bike
Model Registration No. Usage Private Company
Others (Please Specify) ________________
Registration Date Original Registration Date Engine No. Chassis No.
Seating Capacity (including driver) CC/Tonnage (For commercial vehicle only)
Unladen Weight Laden Weight
Name of finance company (if under hire-purchase)
OTHER PARTICULARS
Have you or your named driver(s) been convicted of any driving offences for the past 3 years? Yes No
If Yes, please give details.
Have you or your authorised driver(s) been involved in any motor accident for the past 3 years? Yes No
If Yes, please give details below:
Date of Accident Name of Insurance Company Details of Claim Amount of Claim

$ *(OD/TP)
$ *(OD/TP)
$ *(OD/TP)
$ *(OD/TP)
$ *(OD/TP)
* Delete where appropriate
DECLARATION
I/We hereby declare that the Motor Vehicle described, shall be kept in GOOD CONDITION and that the information
given above are in every respect true and correct. I/We hereby agree that this Declaration shall be the basis of the
Contract of Insurance between me/us and ABC Insurance.
Signature of Proposer/Company Stamp Date
IMPORTANT
1. Please note that the liability of ABC does not commence until this proposal has been accepted by ABC and the premium paid.
2. Please do not leave any answer blank. Fill “Nil” or “NA” where applicable.
3. The policy will carry a Payment Before Cover Warranty which requires the premium to be paid in full on or before the commencement of cover otherwise there would be no liability
under the policy.
4. If the Registered Owner is not driving the vehicle, the particulars of the Primary Driver must be stated in this Application Form.
5. All private car policyholders shall be responsible for Unnamed Driver Excess of $2,500, in addition to the Excess stated under the Policy, if the said driver is aged 26 years and below
or has less than 1 year relevant driving experience. The Unnamed Driver Excess is $500 if aged above 26 years.
6. All motorcycle policyholders shall be responsible for Named Driver Excess of $500, in addition to the Excess stated under the Policy, if the said driver is less than 21 years or has less
than 2 years relevant driving experience.
FOR OFFICIAL USE ONLY

Agent/Representative: Code No.:
Policy No.: Date: Premium: Excess:
Entry by: Date: Checked by: Date:
Policy Delivery: HAND/MAIL Remarks:

Appendix 1B
PRIVATE MOTOR CAR INSURANCE POLICY
TERMS AND CONDITIONS
This Policy ("Policy") sets out the terms, conditions, limitations, and exclusions of this Policy between ABC Insurance Company (Singapore)
Limited and you. Please read this Policy carefully as it is a legal document.
Your Application Form submitted to us, any declarations made by you, the Certificate of Insurance and any Endorsement(s) issued by us
in respect of this Policy shall form part of this Policy.
In consideration of the full payment of premium received and accepted by us, we will provide the cover listed in this Policy to the extent
of the type of cover you have chosen and which is specified in the Schedule.
The due observance and fulfilment of the terms of this Policy in so far as they relate to anything to be done or complied with by you and
the truth of the statements and answers in the Application Form made by you shall be a condition precedent to any liability on our part.
SCOPE OF COVER
SECTION I – INSURANCE ON THE MOTOR VEHICLE
1. (a) We will indemnify you against loss of or damage to the Insured Vehicle and its Accessories and parts whilst thereon caused by:
(i) accidental collision or overturning
(ii) fire, external explosion, self-ignition, lightning, burglary, housebreaking or theft
(iii) malicious act
(iv) strike, riot or civil commotion
(v) flood, typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature.
(b) Our maximum liability shall be limited to the prevailing Market Value of the Insured Vehicle at the time of the loss or damage.
2. (a) We will at our option repair, reinstate, replace or make a cash settlement for the loss of or damage to the Insured Vehicle or its
Accessories or parts and our liability shall not exceed the Market Value of the Insured Vehicle or its Accessories or parts lost or
damaged and the reasonable cost of fitting such parts.
(b) In the event that we elect to repair the Insured Vehicle, we shall:
(i) be entitled to have the repairs carried out at a workshop selected by us or
(ii) allow the repairs to be carried out at the manufacturer's appointed workshop if the Insured Vehicle is still under the
manufacturer's warranty and if we consider it necessary that specialised skills or tools be used to carry out the repairs.
(c) It is a condition precedent to our liability under this Section provided:

(i) we are allowed to examine the nature and extent of the loss or damage to the Insured Vehicle prior to its repairs
(ii) you have not made any prior attempt to recover from any other person
(iii) we agree to repair, reinstate, replace any part of the damage or loss to the Insured Vehicle or its Accessories or parts.
(d) If the Insured Vehicle is the subject of a hire purchase or leasing agreement any cash settlement will be paid to the legal owner
of the Insured Vehicle named in the Schedule.
3. (a) If the Insured Vehicle is damaged in an accident, we will pay up to S$200 the reasonable cost of moving it to the nearest repairer.
We also reserve the right to arrange for the damaged Insured Vehicle to be repaired at another workshop.
(b) If the Insured Vehicle is damaged in an accident, you may authorise the repair provided:
(i) the estimated cost of the repair is not more than S$300 after deduction of the Excess as stated in the Certificate of Insurance
when you made a claim under Section I of this Policy and
(ii) you forward us the detailed estimated cost of repair without delay.
4. (a) We will not pay for:

(i) daily transport allowance or any losses due to unavailability of Accessories and/or parts
(ii) depreciation, wear and tear, mechanical or electrical breakdowns, failures or breakages of the Insured Vehicle
(iii) damage to tyres unless the Insured Vehicle suffers other damage at the same time
(iv) loss or damage to the Insured Vehicle whilst in transit (including loading and unloading incidental to such transit) except
where such transit is between West Malaysia and Penang; Changi Point, Singapore and Tanjong Berlungkor, Johore
(v) Excess and Additional Excess inclusive of GST if applicable
(vi) the Unnamed Driver Excess inclusive of GST if applicable. The Unnamed Driver Excess is to be applied as follows:

The Unnamed Driver Excess applicable

Either age 26 years old and below or has less than S$2,500
one year driving experience
Age 27 years old and above S$500
(b) Notwithstanding 4(a) above, the Excess, Additional Excess or Unnamed Driver Excess will not apply to any loss or damage to the
Insured Vehicle caused by fire, external explosion, self-ignition, lightning, burglary, housebreaking or theft.
5. We will pay the cost of replacing any broken windscreen or window glass on the Insured Vehicle provided that:
(i) there is no other damage to the Insured Vehicle
(ii) the repairs are carried out at the windscreen repairer appointed or approved by us
(iii) you are to notify us prior to any repairs or for any replacement of your windscreen or window glass.
Notwithstanding the coverage provided above, we will not pay for:

(a) the amount specified as Windscreen Excess in the Schedule and/or Certificate of Insurance
(b) the cost of repairs for chipped or scratched windscreen or window glass on the Insured Vehicle which does not require a
replacement
(c) for transport allowance or any losses due to unavailability of parts.
This payment shall not be construed as a claim for purposes under Conditions Clause 10 (No Claim Discount) of this Policy.
SECTION II - LIABILITY TO THIRD PARTIES
1. We will indemnify you against legal liability arising from any accident involving the Insured Vehicle in respect of:
(a) death of or bodily injury to any person
(b) damage to property up to S$5,000,000 in respect of any one claim or series of claims arising out of any one event.
2. We will also indemnify against the same liability:

(a) whilst you are driving any other car not belonging or hired to you, your employer or partner, provided that the said car is not
covered by any other insurance for any loss or liability
(b) any Person or Classes of Persons entitled to drive under your current Certificate of Insurance whilst driving the Insured Vehicle,
provided that such Person or Classes of Persons is not entitled to indemnity under any other policy
(c) any passenger mounting into, dismounting from or travelling in the Insured Vehicle.
3. We will pay all costs and expenses incurred with our written consent in connection with any claim under this Section.
4. This Section does not insure legal liability for:

(a) death of or bodily injury to an employee arising out of and in the course of employment by anyone indemnified under this Section
(b) loss of or damage to the Insured Vehicle or any property owned by or in the care of anyone indemnified under this Section
(c) any Act of Terrorism.
SECTION III - MEDICAL EXPENSES
We will pay you, your authorised driver, named driver or passenger up to S$300 for reasonable medical expenses incurred by each person
who is injured whilst in the Insured Vehicle as a direct and immediate result of an accident involving the Insured Vehicle.
The benefit is payable under this Section provided the number of persons in the Insured Vehicle at the time of the accident does not
exceed its seating capacity.
SECTION IV - PERSONAL ACCIDENT BENEFITS
1. We will pay:
(a) you or your personal representative the amount stated in the Scale of Compensation for death or bodily injury arising out of an
accident while you are the driver of or a passenger in the Insured Vehicle or any private car
If you have more than one private car policy with us, payment will be made under one Policy only.
(b) each of the passengers and authorised driver in the Insured Vehicle or their personal representatives half of the amount stated
in the Scale of Compensation for death or bodily injury arising out of an accident involving the Insured Vehicle.
2. We will not pay for death or bodily injury:

(a) arising from intentional self-injury, suicide, attempted suicide, physical or mental defect or infirmity
(b) arising from any accident happening whilst the person who is claiming compensation under this Section is under the influence
of intoxicating liquor or drugs
(c) if the number of persons (including the driver) in the Insured Vehicle at the time of accident exceeds the seating capacity stated
in the Schedule.

SCALE OF COMPENSATION
(i) Death S$20,000
(ii) Total and irrecoverable loss of all sight in both eyes S$20,000
(iii) Total loss by physical severance at or above the wrist or ankle of both hands or S$20,000
both feet or of one hand together with one foot
(iv) Total loss by physical severance at or above the wrist or ankle of one hand or S$20,000
one foot together with the total and irrecoverable loss of all sight in one eye
(v) Total and irrecoverable loss of all sight in one eye S$10,000
(vi) Total loss by physical severance at or above the wrist or ankle of one hand or S$10,000
one foot
We will make payment under only one of the sub-sections (i) to (vi) above in respect of any occurrence and in the event of multiple
injuries sustained, we will pay for the event that gives the highest benefit. Our total liability in the aggregate shall not exceed S$20,000
during any one period of insurance.
GENERAL EXCLUSIONS
1. Driving And Use
This Policy does not insure any accident, loss, damage, injury or liability where any motor vehicle in respect of which this Policy
provides indemnity is:
(a) being used outside the Limitations as to Use as stated in the Certificate of Insurance
(b) being driven by anyone other than the Person or Classes of Persons entitled to drive under your Certificate of Insurance
(c) being driven by anyone whilst under the influence of intoxicating liquor or drugs
(d) being used or driven when it is not registered under the Road Traffic Act 1961 or when its registration under the Road Traffic Act
1961 has been cancelled under the relevant provisions as amended from time to time
(e) being used or driven with modifications that have not been approved by the Registrar of Vehicles in accordance with the Road
Traffic (Motor Vehicles, Registration and Licensing) Rules or by any relevant regulatory authority.
2. Contractual Liability
This Policy does not insure any liability which attaches because of an agreement which you have made with any other party but which
would not have attached in the absence of such agreement.
3. War And Civil War Risks
This Policy does not cover any liability for loss or damage directly or indirectly occasioned by, happening through or in consequence
of:
(a) war, invasion, act of foreign enemy, hostilities or war-like operations (whether war be declared or not), civil war
(b) mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion,
revolution, military or usurped power, or any act of any person or persons acting on behalf of or in connection with any
organisation the objects of which are to include the overthrowing or influencing of any de jure or de facto government by
terrorism or by any violent means.
4. Nuclear Risks
This Policy does not insure loss, damage, injury or death caused by or arising from radioactivity or from the use, existence or escape
of any nuclear fuel, material or waste.
5. Terrorism
This Policy does not cover any liability for loss or damage directly or indirectly occasioned by, happening through or in consequence
of any Act of Terrorism.
This also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection
with any action taken in controlling, preventing, suppressing or in any way relating to any Act of Terrorism.
We will not pay for any losses directly or indirectly arising out of, contributed to or caused by, or resulting from or in connection with
any act of Nuclear, Chemical or Biological terrorism regardless of any other cause or event contributing at the same time as or in any
other sequence to the loss.
If we allege that by reason of this exclusion, any loss damage, cost or expense is not covered by this insurance the burden of proving
the contrary shall be upon you.
6. Jurisdiction
We will not be bound by judgements not in the first instance delivered by or obtained from a court within West Malaysia or the
Republic of Singapore.

CONDITIONS
1. Observance Of Terms
It is a condition precedent to our liability that anyone claiming indemnity or benefit complies with the terms of this Policy.
2. Geographical Limits
This Policy provides cover for any accident, loss, damage, injury or liability arising within the following geographical areas:
(i) the Republic of Singapore
(ii) West Malaysia
(iii) that part of Thailand within 80km of the border between Thailand and West Malaysia.
3. Precautions
You must take all reasonable precautions to reduce or remove the risk of damage, loss or injury. In the event of any accident or
breakdown to the Insured Vehicle, it shall not be left unattended unless all necessary and proper precautions are taken by you to
prevent any further loss or damage to the Insured Vehicle or to any third party. We shall also not be liable for any loss or damage
caused to the Insured Vehicle arising from its use prior to all necessary repairs being effected.
4. Maintenance Of Insured Vehicle
You must maintain the Insured Vehicle in an efficient and roadworthy condition. We shall have at all reasonable times free and full
access to examine the Insured Vehicle or any part thereof.
5. Notification Of Accident
(a) If the Insured Vehicle is lost, damaged or involved in an accident, irrespective of whether it would give rise to a claim, you must:
(i) within 24 hours thereafter or latest by the next working day, report the accident, loss or damage to us and make available
the Insured Vehicle for inspection at an Accident Reporting Centre, whether or not the Insured Vehicle has suffered any visible
damage and whether or not you intend to claim under this Policy or claim against any other party
(ii) notify us immediately of any claim by a third party or any writ, summons, offer of composition or notice of any other
proceedings received by you
(iii) not admit liability or make any offer or payment without our written consent and
(iv) report to the Police and co-operate with us in securing the conviction of the offender in the case of theft or other criminal act
that may give rise to a claim under this Policy.
(b) If you fail to comply with above Condition 5(a)(i) of this Policy, your No Claim Discount (NCD) will be reduced in accordance with
Condition 10(iii) of this Policy.
6. Conduct Of Proceedings
We are entitled:
(i) to conduct all proceedings relating to a claim, summons, criminal prosecution, inquest or any other inquiries
(ii) to pursue in your name for our benefit any claim for indemnity or damages and you shall give us all such information and
assistance as we may reasonably require.
7. Other Insurance
If any other insurance covers the same damage loss or liability we will pay only our rateable proportion of any claim.
8. False Or Exaggerated Claims
No payment will be made under this Policy if the claim is:

(i) in any respect fraudulent
(ii) intentionally exaggerated
(iii) supported by false declaration
(iv) due to loss or damage intentionally caused by you or a person acting with your express or implied consent
(v) due to an act committed in violation of any law.
9. Cancellation
(a) We may cancel this Policy by giving you seven days' notice at your last known address and you must return your original
Certificate of Insurance to us. You may also cancel this Policy by notifying us in writing or through the phone and returning your
original Certificate of Insurance to us, and the cancellation will take effect from the date we receive your original Certificate of
Insurance. Upon the cancellation of this Policy and subject to Clause 9(b) below, any refund of premium will be calculated as
follows:
If you take up another insurance policy with us within 90 days from the effective date of cancellation of this Policy
Premium Refund = Premium X Unexpired Period of Insurance (days)

Original Period of Insurance (days)

If you do not take up another motor insurance policy with us
Premium Refund = (85% of Premium) X Unexpired Period of Insurance (days)

Original Period of Insurance (days)
Any premium below the minimum sum of S$25 (subject to GST) upon cancellation is not refundable. This minimum sum will
also be imposed if the Policy is not taken up after issuance.
(b) You will not receive any refund of premium if:

(i) any claim has been made or has arisen under this Policy; or
(ii) we have paid one or more claims under or in connection with this Policy.
10. No Claim Discount (NCD)
(i) If no claims are made under this Policy, we will reduce your premiums payable during renewal according to the following scale:
Period of Insurance Discount

The preceding four consecutive years 40%
The preceding five consecutive years 50%
(ii) If at the time of a claim the NCD is 40% or 50%, the NCD shall be reduced to 10% or 20% respectively at the next renewal of the
Policy. If the NCD is 30% or less, there will be no NCD at the next renewal of the Policy
(iii) Notwithstanding the above, in the event you fail to comply with the Notification of Accident pursuant to Condition 5(a)(i) set out
above, your NCD will be further reduced by an additional 10% as shown in the following table:
Existing NCD Non-Reporting NCD

(this is your resulting NCD after such 10% reduction)
50% 40%
40% 30%
30% 20%
20% 10%
10% 0%
0% 0%
11. Governing Laws
This Policy is governed by the laws of Singapore and the Road Transport Act 1987 of Malaysia and any subsequent revisions of the
legislations thereof.
12. Avoidance Of Certain Terms And Right Of Recovery
In the event, we are obliged to pay by virtue of the following agreements:

(a) Motor Vehicles (Third Party Risks and Compensation) Act 1960
(b) the Agreement executed between the Minister of Transport of the Government of Malaysia and the Motor Insurers' Bureau of
West Malaysia on 30 March 1992
(c) the Agreement executed between the Minister of Finance of the Republic of Singapore and the Motor Insurers' Bureau of
Singapore on the 22 February 1975
(d) and any subsequent revisions to the legislation or agreement thereof which we would not otherwise be liable under this Policy,
you or your authorised driver shall repay the amount to us.
13. Exclusion Of Third Party Rights
A person who is not party to this agreement shall have no right under the Contracts (Right of Third Parties) Act 2001 to enforce any
of its terms.
14. Payment Before Cover Warranty

(a) The premium due must be paid to the insurer (or the intermediary through whom this Policy was effected) on or before the
inception date (“the inception date”) or the renewal date of the coverage. Payment shall deemed to have been effected to the
Insurer or the intermediary when one of the following acts takes place:
(i) Cash or honoured cheque for the premium is handed over to the Insurer or the intermediary;
(ii) A credit or debit card transaction for the premium is approved by the issuing bank.
(iii) A payment through an electronic medium including the internet is approved by the relevant party.
(iv) A credit in favour of the insurer or the intermediary is made through an electronic medium including the internet.
(b) In the event that that the total premium due is not paid and actually received in full by the Insurer (or the intermediary through
whom this Policy was effected) on or before the inception date or renewal date, then the insurance shall not attach and no benefits
whatsoever shall be payable by the insurer. Any payment received thereafter shall be of no effect whatsoever as cover has not
attached.

15. Arbitration
Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination,
shall be referred to and finally resolved by arbitration in Singapore in accordance with the Arbitration Rules of the Singapore
International Arbitration Centre for the time being in force, which rules are deemed to be incorporated by reference in this Arbitration
Clause.
DEFINITION OF TERMS IN POLICY
Any word or expression which has a specific meaning should have this meaning attached to the word or expression found in the Policy,
Schedule and/or Certificate of Insurance and any Endorsement(s).
Accessories refer to all audio, video and other like equipment fitted into the car by the manufacturer or distributor. These standard fittings
are covered under the Policy. Any future additions will not be covered unless declared and notified to us. There may be additional premium
to be paid for subsequently fitted accessories.
Act of Terrorism refers to an act, including but not limited to use of force or violence and/or threat, of any person or group(s) of persons,
whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious,
ideological or similar purposes including the intention to influence any government and/or to put the public or any section of the public,
in fear.
Additional Excess refers to the amount that you have to pay in addition to the Excess amount stated in the Schedule and/or Certificate of
Insurance when you make a claim on your Policy.
Application Form refers to the completed application form signed by you for a motor insurance policy.
Biological Agent refers to any pathogenic (disease producing) micro-organism(s) and/or biologically produced toxin(s) including
genetically modified and chemically synthesised toxins which cause illness and/or death in humans, animals or plants.
Chemical Agent refers to any compound which, when suitably disseminated, produces incapacitating, damaging or lethal effects on
people, animals, plants or material property.
Endorsement refers to an amendment to the Policy that becomes part of the document. The Endorsement which applies to your Policy is
indicated in the Schedule and/or the Certificate of Insurance.
Excess refers to the amount shown in the Schedule and/or Certificate of Insurance which you shall bear in respect of each and every
accident.
Insured Vehicle refers to the vehicle which is described in the Schedule and/or Certificate of Insurance.
Market Value refers to the cost of replacing the Insured Vehicle with one of the same make and model, of similar condition and age as
prevailing immediately prior to the date of the loss or accident.
Named Driver refers to the driver(s) named in the Schedule and/or Certificate of Insurance who will enjoy the same Excess as you.
Authorised drivers not named in the Schedule are subject to an Unnamed Driver Excess as
stated in the Policy.
No Claim Discount (NCD) refers to the discount percentage given to you each policy year where no claim is made against the Policy in
the preceding year.
Non-Reporting NCD refers to the loss of No Claim Discount as a result of not reporting or late reporting of an accident.
Nuclear, Chemical or Biological Terrorism refers to the use of any nuclear weapon or device or the emission, discharge, dispersal, release
or escape of any solid, liquid, gaseous Chemical Agent and/or Biological Agent in an Act of Terrorism.
Period of Insurance refers to the Period of Insurance which the Insured Vehicle is insured under this Policy as stated in the Schedule and/or
Certificate of Insurance.
Preferred Workshop refers to a workshop of your choice where you can repair the Insured Vehicle in the event of an accident damage for
which a claim is to be made.
Policy refers to this Policy, your Application Form submitted to us, any declarations made by the Insured Persons, the Schedule, the
Certificate of Insurance and any Endorsement(s) issued by us in respect of this Policy.
Policyholder refers to the person named in the Certificate of Insurance and under whose name this Policy has been issued.
Primary Driver refers to the owner of the Insured Vehicle as stated in the Schedule. If the owner is not licensed to drive, the person
designated as the main driver will be deemed the Primary Driver.
Unnamed Driver refers to any person who is not named in the Schedule and/or Certificate of Insurance but is authorised by the
Policyholder to drive the Insured Vehicle.
Unnamed Driver Excess refers to the excess that you have to pay in addition to the Excess and Additional Excess, if applicable, as stated
in the Schedule and/or Certificate of Insurance when you make a claim on your Policy.
We, we, Our, our, Us, us or ABC Insurance refers to ABC Insurance Company (Singapore) Limited.
You, you, Yours or yours refers to the Policyholder.

ENDORSEMENTS
EACH OF THE FOLLOWING ENDORSEMENTS IS OPERATIVE ONLY WHEN THE ENDORSEMENT NUMBER IS SHOWN IN THE
SCHEDULE UNDER THE HEADING "ENDORSEMENT OPERATIVE".
M1 THIRD PARTY COVER
We are only liable under Section II of the Policy. Sections I, III and IV of the Policy are not operative.
M2 THIRD PARTY FIRE AND THEFT COVER
We are only liable under Section I of the Policy in respect of loss or damage by fire or theft of the Insured Vehicle. We are also liable under
Section II of the Policy. Sections III and IV of the Policy are not operative.
M3 COE/PARF VALUE COVER
In the event of an indemnity for theft or total loss, we are not liable for the residual value of the COE established PARF value of the Insured
Vehicle at the time of loss.
M4 NO CLAIM DISCOUNT PROTECTION
Notwithstanding Condition 10(ii) of this Policy, your 50% No Claim Discount is protected as follows:
Number of claim(s) made or arisen during the No Claims Discount (NCD) on renewal
current Period of Insurance
One 50%
Two 20%
Three or more 0%
In the event that you fail to comply with Condition 5(a)(i) of this Policy, this No Claim Discount Protection does not protect your NCD from
being reduced pursuant to Condition 10(iii) of this Policy.
M5 WAIVER OF EXCESS AND DAILY TRANSPORT ALLOWANCE BENEFIT
1. In the event that we select to repair the Insured Vehicle as provided for under Section I, we will waive the Excess payable by you for
each of your first two claims submitted during the Period of Insurance.
2. If the Insured Vehicle is driven by an Unnamed Driver at the date of the occurrence of the damage or loss we will only waive the
amount specified as Excess in the Schedule, and not the Additional Excess and/or the Unnamed Driver Excess and/or Windscreen
Excess provided for under Section I of the Policy.
3. If the period of repairs exceeds 3 days, we will pay you a daily transport allowance of S$50 up to a maximum of 7 days, for each of
your first two claims submitted during the Period of Insurance.
However no daily transport allowance will be paid:

(a) for the first working day of the repairs
(b) for a windscreen claim
(c) for a total loss claim
(d) when the repairs to the Insured Vehicle is delayed due to unavailability of replacement parts.
4. You undertake and agree to:

(a) assign absolutely to us all rights which you may have against any third party arising from any loss or damage to your Insured
Vehicle caused by accident or collision
(b) irrevocably appoint us, our agents or any persons authorised by us to be your lawful Attorney and in your name and on behalf
to do all or any acts and things necessary for the above purpose.
Paragraph 5 of Section I is not operative.
M6 GEOGRAPHICAL LIMIT
Section I Clause 4(a)(iv) is amended to read as "Loss or damage whilst in transit (including loading and unloading incidental to such
transit)".
Condition Clause 2 is amended to read as "We do not pay for any accident, loss, damage, injury or liability arising outside the Island of
Singapore".
M7 VEHICLE REPAIR AT OWNER'S PREFERRED WORKSHOP
Clauses 2(b) and 5(ii) of Section I of the Policy are not applicable.

Appendix 1C
Tel: (65) 6789 8181 Fax: (65) 6789 8282
FORM FOR REPORT OF MOTOR VEHICLE ACCIDENT/LOSS
Please do not admit any liability or make any payment to or compromise with any third party or anyone else without the written consent
of the Company. Please send immediately without replying thereto any communication you may receive regarding the accident. Answer
all questions fully in order to avoid unnecessary correspondence and consequent delay in the settlement of this claim. We accept fax
copies if they are clear.
Broker / Agent : ________________________________________________________ Claim No.: ___________________________________
PARTICULARS OF POLICY & POLICYHOLDER

Name (in Full)
Home Address Home Tel. No.
Singapore _________________________
Office Address Office Tel. No.
Singapore _________________________
Policy No. Date of Expiry
Amount Insured Terms of Cover
PARTICULARS OF INSURED VEHICLE

Make H.P or C.C Year of Manufacture Type of Body & Carrying Capacity Registered No.
Engine No. Chasis No.
PARTICULARS OF PERSON DRIVING OR INCHARGE OF VEHICLE

AT THE TIME OF ACCIDENT/LOSS
Name (in Full) Occupation Age
Home Address NRIC
Singapore _________________________
Licence No. Expiry Date Is it a Provisional License?
Yes No
Did he/she display “L” Plates as required by law?
Is the driver (a) your relative, (b) your friend, (c) in your employ?
How long in your employ in the case of (c)
Was he/she engaged upon your business at the time of the accident?
Was the person driving with your knowledge and consent?
Has he/ she ever been fined in connection with the use of Motor Vehicles or Motor Cycles or had his/her license endorsed?
If so, state date and for what offence?

OTHER INSURANCE
If the person driving or in charge of the vehicle at the time of accident is NOT the Policyholder, please furnish the following particulars:
Does he/ she own a car?
Yes Which Company is he/she insured? ____________________________________________________________________________
No
DETAILS OF ACCIDENT / LOSS

Date Time
Place
Was the driver perfectly sober?
For what purpose was the vehicle being used?
If the vehicle was loaded, what was the cargo?
Speed of the vehicle
Was the Vehicle on its near side? If not, state exact position
Were you in the vehicle? When was the accident reported to you?
Explain fully how the accident happened (you need not complete this portion if the accompanying police report has sufficient details):
Please give a sketch on the next page of this form

State who in your opinion was to blame, and why?
Name of person responsible for the accident Address of person responsible for the accident

DETAILS OF ACCIDENT / LOSS

POSITION BEFORE ACCIDENT
Please make a sketch

showing position of
Vehicles and Persons
concerned both before
and after the accident,
and show the direction POSITION AFTER ACCIDENT
in which they were
travelling.
DAMAGE TO YOUR VEHICLE (if any, please state details of damage)
Where is the damaged vehicle now lying, and in whose charge?
Have you obtained an estimate for the repairs? If so, from whom?
Are you claiming for the repairs under the policy?
DAMAGE TO THIRD PARTY PROPERTY AND PERSONAL INJURIES
Vehicle Reg. No. or Owner’s Name & Address Nature of Damages Estimated Cost of Damage
Description of Third Party
Property
DAMAGE TO
THIRD PARTY
PROPERTY
Name & Age of Injured Address of Injured State nature of injuries What was he/ she doing at
briefly the time of accident
INJURIES
TO PERSONS
Has a claim been made against you?

Yes What is the amount? __________________________________________________________________________________________
No
Have you admitted liability?
Yes
(All communication received from or on behalf of the claimant should be forwarded to the Company for attention)
No

WITNESS
Name Gender Address Relationship
WITNESS
(PASSENGERS IN
INSURED VEHICLE OR
PILLION PASSENGERS)
Name Address Was he/she a passenger in the Third Party

Vehicle?
If so, please give details
INJURIES
TO PERSONS
Number of Police Constable who took particulars of the Did he witness the accident? Yes
accident? No
Has the accident been reported to the Police?

Yes Which station? _______________________________________________________________________________________________
No
Is police action pending against any person as a result of the accident?
Yes Against whom, and what is the charge? ________________________________________________________________________
No
DECLARATION
I declare the foregoing particulars to be true in every respect.
Signature of Policyholder Date
Name of Policyholder (Company Stamp, where applicable)
Signature of Driver Date
Name of Driver
9. Signatures are not necessary if the completed form is sent to the Company electronically by the policyholder.
10. It is further understood that the driver [if applicable] was authorized by the policyholder to drive the vehicle.
THE COMPANY DOES NOT ADMIT

ANY LIABILITY BY THE ISSUE OF THIS FORM

Appendix 1D

Tel: (65) 6789 8181 Fax: (65) 6789 8282
PRIVATE MOTORCYCLE INSURANCE POLICY
SCOPE OF COVER
SECTION I – LOSS OF OR DAMAGE TO THE INSURED VEHICLE
1. We will indemnify you against loss of or damage to the Insured Vehicle and its accessories and parts whilst thereon caused by
(a) accidental collision or overturning
(b) fire, external explosion, self-ignition, lightning, burglary, housebreaking or theft
(c) malicious act
(d) strike, riot or civil commotion
(e) flood, typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature.
2 (a) We will at our option repair, reinstate replace or make a cash settlement for the loss of or damage to the Insured Vehicle or its
accessories or any of its parts of not more than the market value of the Insured Vehicle at the time of loss or damage, regardless
of whether you are liable for the loss or damage to the Insured vehicle.
(b) In the event that we elect to repair the Insured Vehicle, we shall be entitled to have the repairs carried out at a workshop
selected by us.
(c) We are liable under this Section provided:
(i) we are allowed to examine the nature and extent of the loss or damage to the Insured Vehicle prior to its repairs.
(ii) you have not made any prior attempt to recover against any other person.
(d) If the Insured vehicle is the subject of a hire purchase or leasing agreement any cash settlement will be paid to the legal owner
named in the Schedule.
3. We will not pay for

(a) loss of use or any other consequential loss
(b) depreciation, wear and tear, mechanical or electrical breakdowns, failures or breakages
(c) damage to tyres unless the Insured Vehicle suffers other damage at the same time
(d) loss or damage whilst in transit (including loading and unloading incidental to such transit) except where such transit is
between West Malaysia and Penang; Changi Point, Singapore and Tanjong Berlungkor, Johore
(e) loss or damage to accessories or parts by burglary, housebreaking or theft unless the Insured Vehicle is stolen at the same
time
(f) the amount specified as Excess in the Schedule and a further Excess of $500 in addition to the Excess specified in the Schedule
if the Insured Vehicle is driven by a Named Driver specified in the Schedule and Certificate of Insurance who is below 21 years
of age or who has held a full motor cycle driving licence for less than 2 years.
The Excess will not apply to loss or damage by fire, external explosion, self-ignition, lightning, burglary, housebreaking or
theft.
(g) any loss or damage exceeding $300 unless a detailed estimated cost of repair is forwarded to us without delay for approval of
repair.
Definition
"Excess" shall mean the relevant amount specified in the Schedule which you must bear in respect of each and every claim before we
indemnify you.
SECTION II - LIABILITY TO THIRD PARTIES

1. We will indemnity you against legal liability arising from any accident involving the Insured Vehicle in respect of
(a) death of or bodily injury to any person
(b) damage to property up to a limit of $500,000 for each accident
2. We will also indemnify against the same liability

(a) to Persons or Classes of Persons entitled to drive under your current Certificate of Insurance whilst driving the Insured Vehicle

(b) any passenger mounting into, or dismounting from or travelling in the Insured Vehicle. Provided that the passenger
(i) is not driving the Insured Vehicle or in charge of the Insured Vehicle for the purpose of driving its repairs.
(ii) is not entitled to indemnity under any other policy.
3. We will pay all costs and expenses incurred with our written consent in connection with any other claim under this Section.
4. This Section does not insure legal liability for
(a) death of or bodily injury to an employee arising out of and in the course of employment by anyone indemnified under this
Section
(b) loss of or damage to the Insured Vehicle or any property owned by or in the care of anyone indemnified under this Section
(c) Any act of terrorism.
Definition
Act of terrorism means an act, including but not limited to use of force or violence and/or the threat thereof, of any person or group(s) of
persons, whether acting alone or on behalf of or in connection with any organization(s) or government(s), committed for political,
religious, ideological or similar purposes including the intention to influence any government and/or to put the public or any section of
the public, in fear.
GENERAL EXCLUSIONS
1. Driving and Use

This Policy does not insure any accident, loss, damage, injury or liability where any motor vehicle in respect of which this Policy
provides indemnity is
(a) being used outside the Limitations as to Use in your current Certificate of Insurance
(b) being driven by anyone other than the Person or Classes of Persons entitled to drive under your current Certificate of Insurance
(c) being driven by anyone whilst under the influence of intoxicating liquor or drugs.
2. Geographical Limits
This Policy does not insure any accident, loss, damage, injury or liability arising outside West Malaysia, the Republic of Singapore
and that part of Thailand within 80.5km of the border between Thailand and West Malaysia.
3. Contractual Liability
This Policy does not insure any liability which attaches because of an agreement which you have made with any other party but which
would not have attached in the absence of such agreement.
4. War Risks
This Policy does not insure any consequence, whether direct or indirect, of war, invasion, act of foreign enemies, hostilities or warlike
operations (whether war be declared or not), civil war, mutiny, military or popular uprising, insurrection, rebellion, revolution, military
or usurped power or martial law.
If we allege that by reason of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden of proving
the contrary shall be upon the Insured.
5. Nuclear Risks
This Policy does not insure loss, damage injury or death caused by or arising from radioactivity or from the use, existence or escape
of any nuclear fuel, material or waste.
6. Nuclear, Chemical or Biological Terrorism

We will not pay for any losses directly or indirectly arising out of, contributed to or caused by, or resulting from or in connection with
any act of Nuclear, Chemical or Biological terrorism regardless of any other cause or event contributing at the same time as or in any
other sequence to the loss.
7. Jurisdiction
We will not be bound by judgements not in the first instance delivered by or obtained from a court within West Malaysia or the
Republic of Singapore.
Definition
"Nuclear, Chemical, Biological Terrorism" shall mean the use of any nuclear weapon or device or the emission, discharge, dispersal,
release or escape of any solid, liquid, gaseous Chemical agent and/or Biological agent in an Act of Terrorism.
"Chemical agent" shall mean any compound which, when suitably disseminated, produces incapacitating, damaging or lethal effects on
people, animals, plants or material property.
"Biological agent" shall mean any pathogenic (Disease producing) micro-organism(s) and/or biological produced toxin(s) including
genetically modified and chemically synthesized toxins which cause illness and/or death in humans, animals or plants.

CONDITIONS
1. Observance of Terms
It is a condition precedent to our liability that anyone claiming indemnity or benefit complies with the terms of this Policy.
2. Precautions
You must take all reasonable precautions to reduce or remove the risks of damage, loss or injury. In the event of any accident or
breakdown to the Insured Vehicle, it shall not be left unattended unless all necessary and proper precautions are taken by you to
prevent any further loss or damage to the Insured Vehicle or to any third party. We shall also not be liable for any loss or damage
caused to the Insured Vehicle arising from its use prior to all necessary repairs being effected.
3. Maintenance of Insured Vehicle

You must maintain the Insured Vehicle in an efficient and roadworthy condition. We shall have all reasonable times free and full
access to examine the Insured Vehicle or any part thereof.
4. Notification
4.1 If the Insured Vehicle is lost, damaged or involved in an accident, you must:
(i) within 24 hours thereafter or latest by the next working day, report the accident, loss or damage to us and make available the
Insured Vehicle for inspection at an Independent Damage Assessment Centre (IDAC), whether or not the Insured Vehicle has
suffered any visible damage and whether or not you intend to claim under this Policy or claim against any other party. You are
not required to have the Insured Vehicle inspected by an IDAC if only the windscreen of the Insured Vehicle is damaged;
(ii) notify us immediately of any claim by a third party or any writ, summons, offer of composition or notice of any other proceedings
received by you;
(iii) not admit liability or make any offer or payment without our written consent; and
(iv) report to the Police and co-operate with us in securing the conviction of the offender in the case of theft or other criminal act that
may give rise to a claim under this Policy.
4.2 If you fail to comply with above Condition 4.1(i) of this Policy, your NCD will be reduced in accordance with Condition 9(ii) of this
Policy.
5. Conduct of Proceedings
We are entitled
(i) to conduct all proceedings relating to a claim, summons, criminal prosecution, inquest or any other inquiries
(ii) to pursue in your name for our benefit any claim for indemnity or damages
and you shall give us all such information and assistance as we may reasonably require.
6. Other Insurance
If any other insurance covers the same damage loss or liability we will pay only our rateable proportion of any claim.
7. False or Exaggerated Claims

No payment will be made under this Policy if the claim is
(i) in any respect fraudulent
(ii) intentionally exaggerated
(iii) supported by false declaration
(iv) due to loss or damage intentionally caused by you or a person acting with your express or implied consent
(v) due to an act committed in violation of any law.
8. Cancellation
(i) We may cancel this Policy by giving you seven days' notice at your last known address. You may also cancel this Policy by
notifying us in writing or through the phone and returning your original Certificate of Insurance to us, and the cancellation will
take effect from the date we receive your original Certificate of Insurance. Upon the cancellation of this Policy and subject to
Clause 8(2) below, any refund of premium will be calculated as follows:
If you take up another motor insurance policy with us within 90 days from the effective date of cancellation of this Policy
Premium Refund = Premium Unexpired period of insurance (days)

X Original period of insurance (days)
If you do not take up another motor insurance policy with us
Unexpired period of insurance (days)

Premium Refund = (85% of Premium) X
Original period of insurance (days)
(ii) You will not receive any refund of premium if:

(i) any claim has been made or has arisen under this Policy; or
(ii) we have paid one or more claims under or in connection with this Policy.
9. No Claim Discount
(i) If no claim is made under this Policy during a period of insurance of one year or more immediately preceding the renewal of this
Policy, the No Claim Discount will be given on renewal according to the following scale:
Period of Insurance Discount
(ii) If at the time of a claim the No Claim Discount is 20% or less, the No Claim Discount shall be reduced to Nil at the next renewal
of the Policy.

(iii) If you fail to comply with Condition 4.1(i) of this Policy, your Accident NCD will be reduced as shown in the following table:
Non-Reporting NCD
Accident NCD (this is your resulting NCD after such reduction)
20% 15%
15% 10%
10% 0%
0% 0%
10. Avoidance of Certain Terms and Right of Recovery

If we are required by legislation or any other instrument to pay a claim for which we would not otherwise be liable under this Policy,
you shall repay the amount of the claim to us.
11. Exclusion of Third Party Rights

A person who is not party to this agreement shall have no right under the Contracts (Rights of Third Parties) Act 2001 to enforce any
of its terms.
12. Payment before Cover Warranty
(a) The premium due must be paid to the insurer (or the intermediary through whom this Policy was effected) on or before the
inception date (“the inception date”) or the renewal date of the coverage. Payment shall deemed to have been effected to the
Insurer or the intermediary when one of the following acts takes place:
(b) In the event that that the total premium due is not paid and actually received in full by the Insurer (or the intermediary through
whom this Policy was effected) on or before the inception date or renewal date, then the insurance shall not attach and no
benefits whatsoever shall be payable by the insurer. Any payment received thereafter shall be of no effect whatsoever as cover
has not attached.
13. Arbitration
All disputes or differences under this Policy shall be referred to arbitration in accordance with the Arbitration Act or any statutory re-
enactment thereof and the making of an Award shall be a condition precedent to any right of action against us.
ENDORSEMENT
EACH OF THE FOLLOWING ENDORSEMENTS IS OPERATIVE ONLY WHEN THE ENDORSEMENT NUMBER IS SHOWN IN THE SCHEDULE
UNDER THE HEADING “ENDORSEMENT OPERATIVE”.
M1 THIRD PARTY COVER
We are liable under Section II only. Section I is not operative.
M2 THIRD PARTY FIRE AND THEFT COVER
We are liable under Section I in respect only of loss or damage by fire, external explosion, self-ignition, lightning, burglary, housebreaking
or theft. We are also liable under Section II.
M3 COE/PARF VALUE COVER
In the event of an indemnity for theft or total loss, we are not liable for the residual value of the COE and established PARF value of the
Insured Vehicle at the time of loss.
M9 EXCESS - Theft Outside Singapore
If loss of the Insured Vehicle is caused by theft outside Singapore, in addition to any Excess borne by you under Section I (3)(f) you must
also bear a further Excess of an amount equal to 50% of the market value of your Insured Vehicle at the time of loss subject to a maximum
of $2500.

2. Personal Property Insurance
CHAPTER 2
PERSONAL PROPERTY INSURANCE
CHAPTER OUTLINE
1. Definition Of Property
2. Introduction To Personal Property Insurance
3. Types Of Personal Property Insurance
4. Packaged Household Insurance
5. Valuable Articles Insurance
Appendix 2A – Packaged Household Insurance Policy
Appendix 2B – Packaged Household Insurance - Sample Of Alternative Plans And
Premiums Applicable
Appendix 2C – Proposal Form For Packaged Household Insurance
Appendix 2D – Packaged Household Insurance Claim Form
Appendix 2E – Valuable Articles Insurance
LEARNING OUTCOMES
▪ define what property is
▪ know the types of Personal Property Insurance available:
- Buildings Insurance
- Contents Insurance
- Buildings and Contents Combined (or Packaged Household) Insurance
- Valuable Articles Insurance
▪ understand the common sections covered under a single Packaged Household
Insurance policy offered by insurers:
- Buildings
- Contents and
- Other Contingencies
▪ understand the general exclusions, policy conditions, and underwriting
considerations of a Packaged Household Insurance policy
▪ discuss the various claims documents required from the insured to substantiate a
claim under a Packaged Household Insurance policy
▪ recognise the features, scope of cover, and exclusions of a Valuable Articles
Insurance policy
▪ know the basis of claims settlement under a Valuable Articles Insurance policy
▪ understand the common conditions, underwriting considerations, and claims
documents of a Valuable Articles Insurance policy

Contents
PERSONAL PROPERTY INSURANCE ............................................................................... 59
CHAPTER OUTLINE ........................................................................................................... 59
LEARNING OUTCOMES .................................................................................................... 59
1. DEFINITION OF PROPERTY ..................................................................................... 61
2. INTRODUCTION TO PERSONAL PROPERTY INSURANCE .................................... 61
3. TYPES OF PERSONAL PROPERTY INSURANCE .................................................... 62
A. Buildings Insurance............................................................................................ 62
B. Contents Insurance ............................................................................................ 63
C. Buildings & Contents Combined (Or Packaged Household) Insurance........... 64
D. Valuable Articles Insurance ............................................................................... 64
4. PACKAGED HOUSEHOLD INSURANCE .................................................................. 64
A. Buildings…. ........................................................................................................ 65
B. Contents….. ........................................................................................................ 70
C. Other Contingencies .......................................................................................... 74
D. General Exclusions............................................................................................. 76
E. Policy Conditions................................................................................................ 77
F. Underwriting Considerations ............................................................................ 79
G. Claim Documents ............................................................................................... 81
5. VALUABLE ARTICLES INSURANCE ........................................................................ 82
A. Basic Features .................................................................................................... 82
B. Scope Of Cover .................................................................................................. 82
C. Exclusions.. ......................................................................................................... 84
D. Basis Of Settlement............................................................................................ 85
E. Extra Coverage For Newly Acquired Valuable Articles .................................... 86
F. Policy Conditions................................................................................................ 87
G. Underwriting Considerations & Claim Documents .......................................... 87
Appendix 2A ...................................................................................................................... 88
Appendix 2B .................................................................................................................... 100
Appendix 2C .................................................................................................................... 102
Appendix 2D .................................................................................................................... 103
Appendix 2E .................................................................................................................... 105

1. DEFINITION OF PROPERTY
1.1 In law, the word “property” embraces both tangible and intangible property
and may refer to either Real Property and/or Personal Property. Tangible
property is something one can touch, e.g. a building. Intangible property has
no physical existence; e.g. goodwill, patents, copyrights, professional
reputation. Real Property refers to land and things permanently attached to the
land; thus, the term “realty”, while Personal Property generally refers to
everything else; the items which are moveable and not part of the land.
1.2 In the context of Property Insurance, the word “property” covers every material
thing or physical object that may suffer a fortuitous loss or damage by an
insured peril. The term “property” includes:
▪ Moveable Property - such as household contents, cash, jewellery,
silverware, and cargo being shipped or transported; and
▪ Immoveable Property - such as buildings, land, swimming pools, and tennis
courts.
1.3 In the context of “Personal Property Insurance”, property simply refers to

property, whether moveable or immoveable, belonging to or associated with
individuals and families, as opposed to property that belongs to or is associated
with a business.
2. INTRODUCTION TO PERSONAL PROPERTY INSURANCE
2.1 The most valuable property or physical assets an individual may own are
usually his home and household contents. Even if the person does not own the
home, he is likely to possess furniture and other household contents. These are
potentially at risk from perils, e.g. fire and theft.
2.2 Today, most insurers offer a wide range of personal property insurance covers
under a single Packaged Household Insurance policy that includes cover for
liability exposures, medical expenses, and personal accident benefits. Some of
these policies may extend to include, amongst others, the reimbursement of
expenses for alternative accommodation and compensation for loss of rent.

3. TYPES OF PERSONAL PROPERTY INSURANCE
A. Buildings Insurance
3.1 This policy covers the structure of the building and is available to the owner of
the building or flat, whether they are owner-occupied or tenanted.
3.2 The popularity of stand-alone building insurance has reduced in the insurance
market with the introduction of the more comprehensive and attractive
Packaged Household Insurance.
3.3 A notable policy covering buildings is the “HDB1 Fire Insurance Scheme”. This
is a compulsory insurance scheme for every HDB homeowner with a mortgage
loan taken after 1 September 1994.
3.4 This low-cost, five years’ term policy is underwritten by an insurer appointed
by the Housing & Development Board (HDB). The policy provides coverage
against the following insured perils:
▪ fire;
▪ lightning;
▪ explosion;
▪ aircraft damage;
▪ bursting and overflowing of water pipe, water apparatus or water tank;
▪ earthquake;
▪ smoke damage;
▪ vehicle impact damage;
▪ riot and strike;
▪ malicious damage;
▪ landslide and subsidence;
▪ spontaneous combustion; and
▪ sprinkler leakage.
3.5 This insurance covers the cost of reinstating or repairing the damaged internal
areas of the flat as built by HDB [including those built by HDB approved
developer under the Design, Build and Sell Scheme (DBSS)]. The policy also
covers fixtures and fittings as originally provided by HDB (based on current
standard and specifications as defined by HDB) and the approved developer in
the case of flats under DBSS. The HDB Fire Insurance Scheme specifically
excludes any of the previous or current owner’s renovations or addition to the
flat and all household contents (such as built-in kitchen cabinets, cooker
1
Housing & Development Board – Singapore's public housing authority and a statutory board under the
Ministry of National Development.

hood/hob, air-conditioning system and built-in wardrobes), including those

provided by HDB or the approved developer.
3.6 This Insurance Scheme is not compulsory on any HDB homeowner who took a
mortgage loan with HDB before 1 September 1994, or for anyone with no
outstanding HDB mortgage loan. For any of these owners, the insurance is
available on an optional basis.
3.7 There is a fixed sum insured under the HDB Fire Insurance Scheme, according
to the apartment type, as the HDB has pre-determined the sum that would be
adequate to cover the rebuilding or reinstatement cost of the flat. The premiums
are also standard and only vary according to the apartment type: whether 1, 2,
3, 4 or 5-rooms, Executive (Apartment or Maisonette)/Multi-Generation or
Studio Apartment. The Average Clause does not apply under this Insurance
Scheme.
3.8 The policy excludes improvements (i.e. the renovations and additions) and
household contents. As its name implies, the policy is available only to HDB
apartments.
3.9 Despite being a basic policy that does not insure household contents or
renovations, the comparatively low premiums make it an attractive option. This
is especially so for those who are on very tight budgets and who want only a
basic policy to insure the structure. However, for more complete personal
property coverage, the owner should purchase some form of Contents
Insurance.
3.10 For private apartment homeowners, it is the legal responsibility of the

Management Corporation to insure the building and the common property for
damage resulting from fire, if the private apartment block has been registered
as a Management Corporation Strata Title (MCST) property. The Fire Insurance
policy taken up by MCST does not usually cover home renovations, such as
built-in cabinets, wardrobes, air-conditioners, and other improvements made
to the apartment.
B. Contents Insurance
3.11 This covers only the owner’s household contents, usually with other
supplementary covers (such as personal liability and personal accident), to
make it more attractive to buyers. This policy is useful for those who already
have some form of Buildings Insurance, and who wish to insure only their
household contents.

C. Buildings & Contents Combined (Or Packaged Household) Insurance
3.12 This is the most common property insurance product. These products provide
cover for buildings and household contents, in addition to providing additional
sections of cover such as family liability, personal accident, and pet protection.
The policy is usually flexible enough to allow insureds to insure Buildings only,
Contents only, or both. Insurers have their own brand names, such as “Home
Safe”, “Home Secure”, and “Home Multi-Protector”, which all fall within the
definition of “Packaged Household Insurance” in the context of this Study
Guide.
D. Valuable Articles Insurance
3.13 This policy covers the insured’s antiques, paintings, sculptures, ceramics,
clocks, and any such items of high monetary value. A Contents policy often
includes cover for these valuable articles; however, because the coverage is
normally limited to a small percentage of the total sum insured for Contents, it
may not be sufficient to cover the full cost of the valuable items. It is therefore
advisable to purchase a Valuable Articles Insurance policy to provide cover for
high-value items.
3.14 We shall examine the Valuable Articles Insurance policy in more detail at the
end of the chapter.
4. PACKAGED HOUSEHOLD INSURANCE
4.1 The Packaged Household Insurance policy, which is a multi-protection

coverage, usually consists of numerous sections, each with its own specific
limits and exclusions. Appendix 2A provides a sample policy. However, as there
is no standard policy wording, coverage or policy structure for the Packaged
Household Insurance each insurer’s policy will vary. The sample policy will
therefore serve as a reference guide. This Study Guide provides an overview of
the main coverage sections found in most insurers’ policies. As such, this Study
Guide does not discuss all coverage sections. Therefore, insurance
agents/representatives should carefully study the insurers’ policy documents
relating to such products that they are advising on and selling to their
prospective clients.
4.2 The two key sections of the Packaged Household Insurance policy will be the
coverage for Buildings and Contents – the two main areas that insureds seek
protection. Being a packaged policy, it also contains several other sections
covering “Other Contingencies”, such as personal legal liability, personal
accident benefits, and medical expenses.

A. Buildings
4.3 This section of the Packaged Household Insurance intends to cover the
insured’s building, from a list of defined perils, generally known as fire and
extraneous perils. The Packaged Household Insurance specifically defines the
word “building”, so that the insured knows exactly what property the policy
protects.
4.4 The definition of building may depend on the type of house/flat insured. If the
insured house is a private house, “building” will be commonly defined as the
building structures, including all domestic offices, swimming pools, tennis
courts, gardens, terraces, footpaths, driveways, garages and outbuildings used
solely in connection with and on the same premises, and walls, gates, and
fences. Customarily, building will also include its improvements (i.e.
renovations and additions), so long as these are declared and included for
insurance. In addition, it is quite common to include the built-in fixtures and
fittings, such as kitchen cabinets, cooker hood/hob, air-conditioning system,
and built-in wardrobes under the “building” definition.
4.5 This is different from the HDB Fire Insurance Scheme, which does not provide
cover for improvements or built-in fixtures.
4.6 Whatever the definitions, it is clear that no household contents are included.
A1. Scope Of Cover
4.7 When an insured purchases a Packaged Household Insurance to insure the

building it is customarily insured on a “Named Perils” basis. The policy will
state exactly what perils are covered. Any perils not named in the policy are not
included for coverage. Some insurers provide building cover on an “All Risks”
basis, which is a more extensive form of cover, and will cover all contingencies,
unless specifically excluded.
4.8 The perils covered are usually summarised in the insurers’ product brochures
and other marketing materials and provided by the insurers on their websites.
The policy document will specify the complete details of cover and most
insurers make the policy document available for downloading from their
website.
4.9 Typically, there will also be some exclusions, which represent those perils that
the policy will not cover.

4.10 Insurers are free to decide what perils to cover for buildings, but they will
normally include cover for loss of or damage to the building caused by the
following insured perils:
(a) Fire, Lightning, Thunderbolt Or Subterranean Fire
Example 2.1:
Benny had just completed the construction of his wooden
garage to house his sports car. Unfortunately, a flash of
lightning caused the garage to burn down. Initially, Benny
was worried about the cost of building another garage.
However, he was relieved to know that his Packaged
Household Insurance policy actually covered such damage.
Some policies also cover damage to the property directly caused by

smoke resulting from of a sudden, unusual, and faulty operation of any
heating or cooking unit.
Most policies also provide cover for the damage caused in fighting a fire
such as water damage from the fire hoses or damage to doors caused by
fire fighters breaking into the house to fight the fire.
(b) Explosion
Some policies exclude loss of or damage resulting from explosion in
boilers, economizers, machinery, or apparatus in which pressure is used.
(c) Aircraft & Other Aerial Devices & Articles Dropped Therefrom
Example 2.2:
Michael was gliding happily in the blue sky when he suddenly lost
control of the glider owing to a gust of strong wind. As a result, he
plunged right into a private pool owned by Danny. Michael was slightly
injured, but the glider badly damaged the pool. If Danny had purchased
a Houseowner’s Insurance policy, then the damage to the pool would
be covered. However, Michael’s bodily injuries and the damage to the
glider would not fall within the policy coverage.
Some policies also cover falling television or radio antennae, antennae

fittings, masts, towers or solar heating panels resulting from breakage or
collapse.

(d) Collision Or Impact

This includes collision or impact by any falling tree or branch, animal, or
road vehicle, but such tree, branch, animal or vehicle must not belong to
or be under the care, custody or control of the insured or any member of
the insured’s family or household.
(e) Bursting Or Overflowing Of Domestic Water Tank, Apparatus Or Pipe

This includes water damage caused by bursting or overflowing of any
domestic water tank, apparatus or pipe or conduit, but excluding loss or
damage occurring while the building is unfurnished or left unoccupied for
more than a stipulated number of days, e.g. 60 consecutive days.
(f) Theft Accompanied By Actual Forcible & Violent Entry Or Exit

Insurers offer the removal of the restriction “forcible and violent entry or
exit” upon payment of an additional premium to cover thefts which do not
involve elements of force and violence. Some insurers exclude loss or
damage by theft occurring while the building is left unoccupied for more
than a stipulated number of days, e.g. 60 consecutive days.
(g) Hurricane, Cyclone, Typhoon, Windstorm & Flood

The flood cover (including overflow of the sea) is restricted to damage
caused by earthquake, volcanic eruption, hurricane, cyclone, typhoon, and
windstorm.
Some policies exclude loss or damage caused by subsidence or landslip.
Others may cover such events but exclude the first S$10,000 or 10% of the
claim cost, whichever is the greater, or may impose a sub-limit on the loss.
(h) Earthquake Or Volcanic Eruption

Earthquake shock is also covered.
(i) Riot, Strike & Malicious Act

These include acts of locked-out workers or persons taking part in labour
disturbances.
4.11 Besides covering the building against damage caused by the above-mentioned
perils, the insurer may also provide other related extensions, such as payment
of any of the items described below:
▪ Architect, surveyor, and consultant fees, which are necessarily incurred in
the reinstatement of the building consequent upon its loss or damage.
▪ Expenses necessarily incurred in the removal of debris, dismantling or
demolishing, temporary shoring or propping up of the destroyed or
damaged portions of the property.

▪ Alternative accommodation/loss of rent, to indemnify the insured for any

loss of rent and/or necessary and reasonable temporary accommodation
(such as hotel) expenses, as a result of the building, house or flat being
damaged by any of the insured perils that makes it uninhabitable.
▪ Expenses necessarily incurred to engage home cleaning services to clean
the building following a loss owing to flood, or a defined disease (such as
avian influenza, dengue fever, pulmonary tuberculosis, or hand, foot and
mouth disease) suffered by insured or any member of his family or
household, including his domestic maid.
4.12 However, there is a limit on how much the insurer will pay for these other
related extensions, which is usually up to a percentage (such as 10%) of the
sum insured, or limited to an amount (e.g. S$500), for each such benefit.
Appendix 2B provides a sample of Alternative Plans and Premiums Applicable.
A2. Exclusions
4.13 Although the perils covered for buildings are quite comprehensive, one must
also consider the exclusions. Exclusions or exceptions are important
considerations because, like the insured perils, they determine the scope of
cover (by reducing or restricting the cover).
4.14 Since there are no standard exclusions, it is worthwhile to compare the perils
and exclusions of various Buildings Insurance policies in the market.
4.15 The policy may exclude loss of or damage to the building arising from the
following:
▪ Theft or any attempt thereat by the insured, any of the insured’s family
members or the insured’s domestic servants; and theft during or after the
occurrence of a fire;
▪ The burning of property through the order of any public authority;
▪ Malicious act by any of the insured’s family members or any person
lawfully in the insured’s home; and
▪ Any malicious act, bursting or overflowing of water tank, pipe or apparatus
and theft or any attempt thereat, if the insured’s home is left unoccupied
for more than a stipulated number of days, as mentioned above.
A3. Excess
4.16 Another consideration under the Buildings section of the Packaged Household
Insurance is the excess, because, while perils and exclusions determine the
scope of cover, the amount of excess will affect the specific dollar amount of
the claim payment.

4.17 For some of the named perils insured under Buildings, e.g. hurricane, cyclone,
typhoon, windstorm and flood, insurers will usually specify that an excess of
S$X will apply, or they will simply say: “Excluding the first S$X”. This means
that, if the building is damaged by flood, any resulting claim payment will have
S$X deducted from the amount of loss. If the claim amount is equal to or less
than S$X, nothing will be payable by the insurer. In other words, the insured
bears the first S$X of the claim.
How An Excess Works
INSURER TOTAL
PAYS AMOUNT
OF LOSS
EXCESS
AMOUNT
INSURED
PAYS
4.18 The purpose of the excess is not an attempt by the insurers to avoid paying
claims, but rather to eliminate small claims and confine their attention to larger
claims.
4.19 In addition, insureds benefit by paying a smaller amount of premium than they
would have, if there was no excess applied. Even if loss or damage occurs from
perils with an excess, the insured will not be financially burdened, as the excess
amount is usually kept low, such as ranging from S$100 to S$250 for each and
every claim.
A4. Basis Of Settlement
4.20 The policy document defines the manner in which the insurer will settle claims
– usually at the end of the section under the headings of “Basis of Settlement”
or “Special Conditions” and the like.
4.21 Usually, for buildings, the basis of settlement will be the cost of reinstatement
of the property destroyed or damaged. What this means is that the insurer will
pay for:
▪ the rebuilding of the insured’s house, if it is destroyed; or
▪ the repair of the damage and restoration of the damaged portion to its
original condition when new, if the building is damaged.
4.22 The maximum amount that the insurer will pay to the insured under any
circumstances will be limited to the sum insured.

4.23 The insurer will not take into account any depreciation – meaning that the
insurer will pay for the restoration of the property to a condition when new,
even though the property has been in use for many years.
4.24 Some insurers will require that the insured pays for the repairs first and then
claim the cost later; others will pay directly to the insured’s repairers/builders,
especially if the amount involved is too substantial for the insured to bear.
4.25 Whichever method of settlement is used, the condition of average2 will

commonly apply – meaning that, if the insured under-insures, the insurer will
not pay for the full reinstatement cost but will pro-rata the payment according
to the under-insurance. Therefore, to avoid such a situation, the insured must
ensure that the sum insured under the policy is sufficient to cover the
reinstatement cost of the building.
B. Contents
4.26 There is no standard definition for the word “contents” – some insurers define
it simply as “all moveable items”; others are more specific and define
household contents as follows:
“All descriptions of household goods, personal effects, possessions and
valuables belonging to the insured, his family members and domestic
employees living in the same household, or for which the insured is
legally responsible, but excluding:
(a) motor vehicles, watercraft, and their accessories and spare parts;
(b) livestock and pets;
(c) fixtures, fittings and renovations;
(d) securities, certificates and documents; and
(e) property used or held in trust for business purposes.”
4.27 The reason for excluding specific items is that there are other more appropriate
insurance covers for these items, and/or they are of high value items that are
not prevalent to every household. Money may or may not be included for
coverage depending on the policy, but will be subject to limits, even if included.
4.28 In practical terms, the policy will insure almost all items that are contained in
the insured’s house and for which the insured is responsible (excluding those
items specifically excluded and building structure). In addition, the insured need
not declare or list down all household contents; instead, the insured declares a
total value for the household contents, which will represent the sum insured for
the policy.
2
Discussion on average (including other important conditions) is in the “Basic Insurance Concepts &
Principles” Study Guide published by the Singapore College of Insurance Limited.

B1. Scope Of Cover
4.29 There are two ways to insure the household contents – on a Named Perils basis
or All Risks basis.
(a) Named Perils basis: The risks covered under the Contents section of the
policy are the same as those for the Buildings section, i.e. it insures the
household contents against fire, explosion, and other named perils. Some
insurers group the Buildings and Contents under the same section, with
the same set of insured perils and exclusions applicable to both.
(b) All Risks basis: The insurer will compensate the insured for any accidental
loss of or damage to the household contents caused by all perils, other
than those specifically excluded (see later section).
4.30 Similar to the Buildings section, the Contents section of the policy also provides
some other related extensions, including the items described below:
(a) Accidental breakage to fixed mirrors: Payment for cost of replacing fixed
mirrors (other than hand-held mirrors) and glass tops of furniture, usually
up to a specific amount (e.g. S$500).
(b) Replacement of locks and keys: Payment for replacing and installing
external door locks and keys (if keys are stolen), as well as damaged
security system, subject usually to a sub-limit (e.g. S$750).
(c) Spoilage of frozen food: Payment for replacing spoilt frozen food in the
refrigerator owing to its breakdown, explosion, or power failure. Cover
would usually be subject to the refrigerator being less than six years old.
Furthermore, cover is commonly subject to a sub-limit (e.g. S$2,000).
(d) Replenishment of fire extinguishing appliances: Payment for cost of

replenishment of firefighting appliances and accidental destruction to
such appliances, usually up to 10% of the Contents sum insured.
(e) Temporary removal: Covers loss of or damage to property temporarily

removed from the insured house. Usually, the cover will apply only if the
removal is within Singapore and payable up to a certain limit (e.g. not
exceeding 15% of Contents sum insured). Some insurers strictly apply the
extent that the property removed must remain inside a residential
building, hotel or boarding house, while some do provide a wider
geographical coverage – up to Malaysia or Brunei, and even worldwide,
but for lower limits (e.g. up to 5% of Contents sum insured only).

(f) Provision for emergency cash relief: Indemnifies the insured for the
purchase of essential items – such as clothing or personal effects – in the
event that the insurer’s appointed assessor deems the home
uninhabitable for at least five days owing to loss or damage caused by
any of the insured perils. This cover is usually limited to an amount (e.g.
S$500).
To relieve stress on the insured following a claim, some insurers will also
pay an additional limited amount (e.g. S$300) if there is a total loss of the
household contents owing to damage caused by any of the insured perils.
4.31 The list of extensions is not standard, and so the insured needs to be clear as
to whether the above payments or other benefits are applicable to his policy.
B2. Exclusions
4.32 If the Packaged Household Insurance policy provides cover for Contents on a
Named Perils basis, the exclusions will be similar to those under the Buildings
section. As mentioned previously, some insurers group the Buildings and
Contents under the same section, with the same set of perils and exclusions
applicable to both of them.
4.33 For policies arranged on an All Risks basis, the exclusions are especially
important, since all accidental losses not caused by those specified in the
exclusions are deemed covered by the policy.
4.34 Let us see the possible exclusions for Contents under an All Risks coverage:
(a) Theft
The policy does not cover any loss or damage resulting from theft:
▪ if the house is left unoccupied for more than a stipulated number of
days, such as 60 consecutive days (unless with the insurer’s consent);
▪ of money and credit cards above a stipulated amount;
▪ if the house or any part is lent or let, unless force is used to enter the
house;
▪ by deception; or
▪ by any person lawfully present in the insured house.

(b) Malicious Damage Or Vandalism

The policy does not compensate for loss or damage arising from
malicious damage or vandalism:
▪ if the house is left unoccupied for a specified number of days, such as
more than 60 consecutive days;
▪ by any person lawfully present in the insured house; or
▪ if the house or any part is tenanted or let out.
(c) Escape Of Water Or Oil

This refers to the escape of water or oil from any washing machine,
dishwasher or fixed domestic water or heating installation, if the insured
house is left unoccupied for longer than a specified number of days, e.g.
60 consecutive days.
B3. Excess
4.35 The payments under Contents are also subject to an excess but are generally
much lower than the excess under Buildings (e.g. S$50 for each and every
claim).
B4. Basis Of Settlement
4.36 Under Buildings, the basis of settlement is the reinstatement cost without taking
into account wear and tear.
4.37 Under Contents, the settlement basis is also the cost of replacement, although
it is usual to make a deduction for wear and tear for items such as clothing and
household linen. The replacement cost under Contents generally refers to the
purchase price of the items. Hence, to substantiate the claims, the insured is
often required to produce proof of purchase price, such as original payment
receipts or invoices.
4.38 There is an important provision under Contents, which relates to valuables.

Although valuables (e.g. jewellery, antiques, paintings, furs, etc.) are commonly
covered, the policy will specify that the insurer’s liability for such items is
limited – e.g. not exceeding 5% of Contents sum insured for any one article, and
one-third of Contents sum insured in total.
4.39 What this means is that the insured is unlikely to receive full protection for his
high-value items. Even if the insurer allows the insured to increase the limit for
valuables, in return for an additional premium, the insurer may still cap it at a
certain percentage (e.g. 10%) of the total sum insured for Contents.

C. Other Contingencies
4.40 Besides insuring the physical household property and contents, the Packaged
Household Insurance policy provides several other contingencies, often
provided as options for the insured to add to the basic policy in exchange for
additional premiums, or sometimes provided for “free”. The sub-sections
below describe some examples of Other Contingencies available.
C1. Liability To The Public
4.41 Most packaged household insurance policies include specific liability cover to
the insured as owner and/or occupier, including his family members and
domestic employees.
4.42 Liability cover is in respect of legal liability for accidental bodily injury or death,
or accidental damage to property, up to a limit of liability (e.g. S$1,000,000) per
occurrence, usually applicable on a worldwide basis.
4.43 In other words, the policy indemnifies the insured for sums that the insured is
legally liable to pay as compensation, in respect of:
▪ bodily injury to any person, except for family members; and/or
▪ damage to property not belonging to the insured or the insured’s family
members.
4.44 The following provide examples of liabilities payable under this cover:
▪ The insured’s dog bites and injures the insured’s neighbour.
▪ The insured’s friend goes to the insured’s house for a visit and slips on the
wet floor, injuring himself in the process.
▪ The insured’s child breaks an expensive vase of the insured’s neighbour.
4.45 A limit of liability (e.g. S$1,000,000) applies to any one claim. Legal costs and
expenses incurred by the insured, with the insurer’s consent, can be included.
4.46 However, the policy will not provide indemnity for liability arising from the
following:
▪ the insured’s profession or business;
▪ the use of lifts or vehicles;
▪ contractual liability;
▪ punitive damages awarded against the insured; and
▪ the carrying of alterations, additions, repairs or decorations to the building.

C2. Personal Accident Benefits
4.47 Personal Accident benefits are lump sum payments to the insured, the spouse
or any of the children of the insured (subject to certain age limits, such as from
one to 70 years) in the event of the insured person’s accidental death or
permanent disability, occurring within a certain period of time (e.g. three
calendar months or one year) from the date of the accident.
4.48 Depending on the insurer, Personal Accident benefits under a Packaged

Household Insurance policy are payable if the insured person suffers accidental
death or bodily injury caused by:
▪ any of the insured perils; or
▪ violent, accidental, external, and visible means.
4.49 Similar to the Personal Accident benefits provided under a Private Motor Car
Insurance policy, the benefits payable under this section are in accordance with
a “Table of Compensation” (see an example below), which specifies the
amounts (or the percentages of the capital sum insured) payable for death, total
permanent disability, loss of sight of both eyes, loss of limbs, etc.
Table 2.1: Table Of Compensation (Example)
Description Of Disability Percentage Of

Compensation Of Capital
Sum Insured
(a) Death 100%
(b) Permanent Total Disablement 100%
(c) Loss of two or more limbs or sight of both 100%
eyes
(d) Loss of one limb or sight of one eye 50%
4.50 Some insurers use absolute amounts (e.g. S$20,000, S$10,000) in their Table of
Compensation, instead of percentages as shown in Table 2.1. As the capital sum
insured is usually not significant, some policies do not differentiate it between
an adult and a child. However, other policies specify that the capital sum insured
for a child is half of that for an adult.
4.51 Exclusions usually include pre-existing physical or mental defect or infirmity,

self-inflicted injury, suicide or attempted suicide, pregnancy or childbirth,
disease or sickness, hazardous sports, or while the insured person is under the
influence of alcohol or drugs.

C3. Medical Expenses (Accident Only)
4.52 Depending on the policy terms, this section of the policy will indemnify the
insured for expenses incurred for medical treatment in the event of accidental
bodily injury. Most policies will also extend to cover usually the insured’s
spouse and children. The covered expenses will generally refer to medical,
surgical, hospital, nursing home and nursing fees or charges (excluding dental
charges).
4.53 The amount of indemnity for medical expenses is usually limited, e.g. S$1,000
per accident, subject to the same exclusions as specified for Personal Accident
Benefits.
C4. Domestic Servant’s Property
4.54 Under the Contents section, the insurer will indemnify the insured’s domestic
servant for loss of or damage to clothing and personal effects if such property
is not otherwise insured. To qualify for this cover, the property must be within
the boundaries of the insured’s house at the time of loss or damage. This
section will not cover cash, currency notes, bank notes, stamps, and stored
value cards belonging to the domestic servant.
D. General Exclusions
4.55 As with any other insurance, a Packaged Household Insurance policy contains
certain general exclusions that apply to the whole policy. The purpose of such
exclusions is to exclude catastrophes and uninsurable risks (such as risks that
are against public policy).
4.56 Apart from the usual war, nuclear and radioactive contamination risks, the
Packaged Household Insurance policy will not provide cover for the following:
▪ if the insured property is a HDB flat, any loss or damage which the HDB has
undertaken or is legally bound to make good at its own expense;
▪ confiscation or requisition of property by order of the government
authority;
▪ loss of or damage to the property owing to its own fermentation and natural
heating;
▪ any other consequential loss, other than the loss of rent;
▪ loss of or damage to the building under construction or repair caused by
hurricane, cyclone, typhoon or windstorm;
▪ loss of or damage to property by subsidence and landslip (unless
extended);
▪ any flood damage other than those covered by the policy;
▪ loss of or damage to:
- motor vehicles, watercraft and other accessories and spare parts;
- livestock and pets;
- property used or held in trust for business purposes;

- medals, coins, stamps, documents and manuscripts; or

- deeds, bonds, bills of exchange, promissory notes, cheques, securities
of money, cash, currency notes, bank notes and stored value cards.
E. Policy Conditions
4.57 No insurance contract will be complete without some form of conditions. A

number of conditions in the Packaged Household Insurance policy may be
familiar, as they are standard insurance conditions already seen under the
Private Motor Car Insurance policy.
4.58 The most important condition is that the policy and the schedule must be read
“together as one contract” and any word or expression to which a specific
meaning has been attached in any part of the policy must bear such specific
meaning, wherever it may appear.
4.59 Other commonly included policy conditions in the Packaged Household

Insurance policy are as follows:
(a) Reasonable Precautions

This condition simply states that the insured shall, at all times, take
reasonable precautions to prevent any accident, loss, or damage –
although the policy does not define the term “reasonable precautions”.
(b) Change Of Circumstances

During the period of insurance, the insured must inform the insurer in
writing of any change of circumstances that can increase the possibility of
loss, injury, or damage, and will pay such additional premiums as may be
required by the insurer.
(c) Claims Notification

Most insurers will include some form of claim notification procedures in
the policy that will commonly deal with the following:
▪ the time frame within which the insured must notify the insurer on the
happening of an accident or loss, otherwise the insurer will not be
liable (e.g. 7 or 14 days);
▪ the insured is to provide all details and documentary evidence to
support the claim at the insured’s own expense;
▪ how the insured must act in the event of a liability claim (normally,
the insured must not admit liability or promise payment, and must
immediately forward to the insurer any writ or summons, legal
process or any other communication served on the insured);
▪ the insured must provide all help, information, and evidence required
by the insurer; and

▪ the insured must make a police report if the loss or damage is caused
by theft or housebreaking, malicious damage, vandalism or any other
criminal or unlawful act.
(d) Salvage Condition

This defines the rights of the insurer concerning the damaged property on
the occurrence of a claim. It will specify that, upon the occurrence of loss
or damage that gives or is likely to give rise to a claim, the insurer may:
▪ enter, take and keep possession of the private dwelling or situation
where the loss or damage has happened; and
▪ deal with the salvage in a reasonable manner.
(e) Subrogation
This is a standard condition under Property Insurance. It gives the insurer
the right to pursue, in the insured’s name, the third party who caused
property damage and/or injury.
(f) Cancellation
This gives both the insurer and the insured the right to cancel the policy
by giving seven days’ notice, with the insurer refunding a portion of the
unused premium. While the insurer’s cancellation is usually subject to a
proportionate refund of the premium, the insured’s cancellation is subject
to a short-period rate charge.
(g) Fraudulent Claim

This condition allows the insurer to avoid paying any claim that is
fraudulent, intentionally exaggerated, or supported by a false declaration.
(h) Other Insurance

There are two conditions relating to other insurance:
▪ The insured is required to give written notice to the insurer if he has
other insurance policies covering the same property. This would
apply even if the insured had purchased them subsequently. In
addition, the insured must declare such other insurances in the claim
form; otherwise, the insured will forfeit all claim payments relating to
the property.
▪ If, at the time of loss, damage or liability covered by the policy, there
is any other insurance covering the same loss, damage or liability,
the insurer will not be liable for more than its rateable proportion.
(i) Arbitration
If the insurer admits liability for a claim, but the insured cannot agree to
the amount, the disagreement shall be referred to arbitration in
accordance with the prevailing statutory provisions [e.g. the Arbitration
Act 2001]. If the insured wishes to take an action in law against the insurer
over such disputes, the insured cannot do so until after the arbitrator has

made the award. In addition, the insured must litigate within three months
after the arbitrator has made the award, otherwise the insurer will not be
liable for any amount in excess of the award.
(j) Expiry Of Claim

The insurer specifies in this condition that it will not be liable for any loss
or damage, usually after 6 or 12 months from the happening of the loss or
damage, except when the claim is pending a court decision or arbitration.
4.60 As with any other insurance, each Package Household insurer has its own style
of presenting the wordings for its policy conditions. Hence, it will be advisable
to study the policies offered by different insurers.
F. Underwriting Considerations
4.61 An applicant normally completes a proposal form when proposing for a

Packaged Household Insurance. Insurers are free to design their own proposal
forms, so that the proposer may provide the insurer with the relevant
information concerning the risks proposed. Appendix 2C contains a sample
proposal form for Packaged Household Insurance.
4.62 The actual layout and the classification of the sections of the proposal form
differ among insurers, but they are relatively uncomplicated (often included
together with the product brochure). The proposal form seeks information as
described below:
(a) Details Of The Proposer Or Applicant
This includes the proposer’s:
▪ name;
▪ NRIC number; Proposal
▪ date of birth; Form
▪ correspondence address;
▪ contact numbers; and
▪ occupation.
(b) Location Of Risk

This means the address of the building or apartment that requires
insurance. Common terms for the location of the risk include:
▪ risk location;
▪ insured location; and
▪ address of property to be insured.

There is a potentially higher risk if, for example, the proposed dwelling is
adjacent to a timber factory or a paper manufacturing plant. This is
because timbers and papers are combustible materials. As such, if a fire
were to ignite in these factories, the fire could spread easily to the
surrounding area, causing disastrous losses and damage to the insured
property. Similarly, properties located in areas prone to flooding also
present a higher than normal risk of damage.
(c) Types Of Property

Insurers commonly include a few property types, so that the proposer may
select from the list, by way of “ticking” in the box provided. Each insurer
has its own way of classifying the types of property and includes:
▪ HDB/HUDC Flat;
▪ Private Apartment/Condominium;
▪ Bungalow;
▪ Terrace;
▪ Semi-Detached; and
▪ Others (which the insured specifies).
In Singapore, most of the dwellings are flats and condominiums. A small

percentage of them are terraces and bungalows. These dwellings are
mainly constructed of bricks, stone, or concrete and roofed with concrete,
slates, or tiles. They are of less concern to underwriters, since the
materials used to build these houses are generally non-combustible. A
total loss is not likely to result from the fire. In addition, their solid
construction allows them to withstand damage from natural perils and
provide greater protection against an attempted break-in by thieves.
(d) General Questions/Others

These questions relate mostly to the claims experience of the proposer,
on whether the proposer has made any claims relating to the property,
usually for the last three years. Details of any other insurance covering the
same risk, and whether there is a mortgage on the property may be
included.
(e) Details Of Insurance Cover

These relate to the type or level of cover that the proposer wishes to
purchase. Here, the proposer will indicate their preferred coverage -
whether to insure Buildings, Contents, other risks, or a combination, with
the proposer supplying the sum insured under each section. For example,
the proposer may wish to insure Buildings for S$500,000 and Contents for
S$50,000.

Some insurers simplify things by offering a few plans with varying levels
of coverage, such as those for HDB/HUDC flats. The insured simply selects
the desired plan.
The proposal will request the period of insurance sought by the proposer.
Insurers usually give a discount, such as 15% for three years of insurance.
(f) Payment Instructions

This refers to how the proposer intends to pay the premiums, if the
proposal is accepted. Insurers offer the following choices:
▪ Credit card (Proposer to provide his credit card number);
▪ Cash;
▪ Cheque (cheque number and name of bank needed); or
▪ Direct Debit from Bank Account (GIRO).
It is important to note that no cover will attach unless the insured has paid
the premium in full, prior to the inception date.
(g) Declaration
Finally, the proposer signs the proposal form to declare that the
information given is true to the best of the proposer’s knowledge and
belief, and that the proposer has not withheld any material information,
and further agrees that the proposal and declaration shall be the basis of
the contract between the proposer and the insurer.
G. Claim Documents
4.63 Other than the claim form, for any loss or damage to the property (including
Contents) insured, the information required from the insured to substantiate a
claim includes:
▪ a police report (for theft, malicious damage, vandalism or any other criminal
case);
▪ any invoice, receipt, quotation or valuation certificate of the (lost/damaged)
item;
▪ photographic evidence of the damaged items; and
▪ building plan and specifications (if the insurer wishes to reinstate the
building).
4.64 For a Packaged Household Insurance policy that covers liability, the insured
must forward to the insurer any writ or summons, legal process or other
communications served on him.

4.65 In the event of a bodily injury or death claim under a Packaged Household
Insurance policy that provides Personal Accident benefits, the insured will have
to provide all the necessary original medical invoices, receipts, certificates and
reports, and death certificates (at the insured’s expense).
4.66 Appendix 2D shows a sample Packaged Household Insurance claims form.
5. VALUABLE ARTICLES INSURANCE
5.1 The need for insurance to cover valuable items arises because Contents
Insurance does not adequately cover such items, as it will contain inner limits
that restrict the amounts payable in the event of loss or damage. Even with
good housekeeping practices (such as not storing too many valuables in the
house and installing proper security systems); nothing provides better “peace
of mind” than insurance.
A. Basic Features
5.2 A person can insure his collection of antiques, paintings, sculptures, ceramics,
clocks, watches, and any such items of high monetary value while they are at
specific locations, or anywhere in the world.
5.3 Depending on the insurer, an insured can choose to select itemised coverage
or blanket coverage (or a combination of the two). If he chooses itemised
coverage, the policy will list each insured article and the agreed-upon insured
amount. If the insured chooses blanket coverage, he selects a total or “blanket”
amount of coverage for each category of articles, such as jewellery, furs, or fine
arts. Blanket coverage will be more appropriate when insuring many items of
less substantial value.
5.4 Valuable Articles Insurance usually provides cover under an All Risks basis. This
protects the insured’s valuables against accidental or unforeseen losses, unless
a specific exclusion applies. Appendix 2E contains a sample Valuable Articles
Insurance policy.
B. Scope Of Cover
5.5 A Valuable Articles Insurance policy can insure many types of valuables
including jewellery, furs, fine arts, silverware, stamps and coins collections,
musical instruments, as well as cameras and related equipment, i.e. any items
of high monetary value.

5.6 As discussed above, there are three ways to insure property, namely itemised
coverage, blanket coverage, or a combination, as described below:
(a) Itemised Coverage

The insured lists each item individually with a respective sum insured
agreed upon, when the insured purchases the policy. Usually the agreed
amount should represent the cost of replacing such items (market value),
so that the insured can choose to replace the items in the event of a total
loss.
(b) Blanket Coverage

This method is useful if there is a need to insure many items of less
substantial value. The insured may select a blanket amount of coverage
for each of the following categories:
▪ Jewellery – articles of personal adornment containing gemstones,
silver, gold, platinum, or other precious metals or alloys;
▪ Furs – garments made of, or trimmed with, or consisting primarily of
fur;
▪ Fine arts – private collections of paintings, etchings, pictures,
tapestries, art glass windows, other bona fide works of art (such as
statues, sculptures, antiques, rare books and manuscripts, porcelain
and rare glass), and items of historical value or artistic merit;
▪ Silverware – sterling silver, gold or pewter, plates, tableware, trays,
trophies, and similar household articles other than jewellery;
▪ Stamps and coins – stamps and coins contained in an individually
owned stamp and coin collection, and not owned by dealers or
auctioneers. This includes other philatelic property, including books,
pages and mountings, and other numismatic property, including coin
albums, containers, frames, cards and display cabinets used for the
insured’s collection;
▪ Musical instruments – including musical equipment; and
▪ Cameras – including projection machines, films, and related
equipment.
However, there will be a per-item value limit (e.g. S$10,000), meaning that
the most that the insured can receive for any single lost or damaged item
will be S$10,000. Any items worth more than this limit are best covered
individually (itemised coverage).

(c) Combination
Under this policy, the insured uses a combination of the itemised and
blanket coverage methods. The insured lists very high value items
individually – using the per-item value limit under the blanket coverage as
a guide – while the remaining less substantial value items are insured
using the blanket coverage method.
5.7 Whichever the method, the valuables will be insured against All Risks of
physical loss while at specific locations – or worldwide, depending on the policy
- unless stated otherwise, or an exclusion applies.
C. Exclusions
5.8 There are no standard exclusions or wording. The common exclusions are:
(a) Loss or damage caused by or resulting from:
▪ wear an tear, gradual deterioration, inherent vice, rust or oxidation;
▪ moth or vermin;
▪ mechanical or electrical breakdown or derangement;
▪ work
▪ work done in the course of any refinishing, renovating, repairing,
restoring, reframing or similar process;
▪ breakage of picture glass, but damage caused by such broken glass
to property is covered;
▪ climatic or atmospheric conditions or extreme temperatures, unless
as a result of storm, tempest, cyclone, hurricane, tornado, flood,
earthquake or volcanic eruption;
▪ pressure waves cased by aircraft travelling at sonic or supersonic
speeds;
▪ misappropriation f the valuables from the insured or insured’s family
by the insured’s spouse or another family member
▪ war and related risks; and
▪ nuclear and radioactive risks
Note: The policy may or may not cover accidental breakage of articles of
a brittle or fragile nature, depending on the insurer. Some insurers cover
breakage of fragile articles arising from damage caused by burglars,
thieves, or fire.

(b) In addition, the policy excludes consequential losses. Blanket policies may
exclude the following valuables:
▪ musical instruments and photographic articles used for profit (except
for incidental business activity)
D. Basis Of Settlement
5.9 The method of arrangement – whether an itemised or blanket basis – will dictate
the basis of settlement.
D1. Itemised Coverage
5.10 There are different practices of payment among itemised coverage. The
differences arise because some insurers use the “agreed value” basis of
payment, whereas others take into account the sum insured in relation to the
market value of the article at the time of loss.
5.11 If the itemised article is lost or destroyed, the insurer will do the following:
▪ pay the sum insured for that article, without taking into account its market
value. This applies to those policies issued on an “agreed value basis”; or
▪ pay up to the market value of the item immediately prior to the loss, or the
sum insured, whichever is less. Usually, the Condition of Average will apply
for claims paid under this method.
5.12 In the event of a partial loss or damage to an itemised article, the insurer will:
▪ pay to restore the item to its condition just before the loss, or pay to make
up the difference between its market value before and after the loss (if the
restored value is less than the market value immediately before the loss,
the insurer will pay the difference, but subject to the sum insured for that
article); or
▪ in lieu of payment to restore the damaged article, at the insured’s option
and provided that the insurer also agrees, the insurer will pay the sum
insured for that article if the insured surrenders the damaged article to the
insurer; or
▪ pay the proportion of such loss or damage which the sum insured bears to
the market value of the item immediately before the loss.
D2. Blanket Coverage
5.13 For items insured under the blanket cover basis, the insurer will pay the amount
required to repair or replace the property, whichever is less, without deduction
for depreciation. Similarly, if the restored value is less than the market value
just before the loss, the insurer will pay the difference.

5.14 However, the insurer will not pay more than the amount of blanket coverage in
the category, and the insurer will not pay more than the blanket limit per item
for loss of any one article.
5.15 Commonly, at the insured’s option and provided the insurer also agrees, the
insurer may, in lieu of payment, repair or replace the damaged article. This is
subject to the blanket coverage limit and the per item limit.
D3. Pairs & Sets Clause
5.16 While discussing settlement, it is important to look at the Pairs & Sets Clause
applied under the Valuable Articles Insurance policy, to see how this clause
affects payment.
5.17 Most insurers apply a Pairs & Sets Clause for valuable items where one or more
of the pieces of a set may be lost, therefore, reducing the value of the remaining
items, because they are no longer part of a set. This clause states that the
insurer will pay a proportionate part of the sum insured for the lost or damaged
item. See below for the application of this clause.
Example 2.3: Application Of Pairs & Sets Clause

Eddy insured a pair of porcelain vases for S$10,000. His maid, while cleaning
the vases, accidentally dropped one of them. Subsequently, Eddy filed a
claim for the broken vase under his Valuable Articles Insurance policy. His
insurer would make a proportionate payment of S$5,000 for the vase after
having applied the Pairs & Sets Clause. The insurer would not take into
consideration that the remaining vase was now, as an individual item, worth
much less than S$5,000 and that Eddy’s loss was actually more than half of
S$10,000.
5.18 However, some insurers attempt to “soften” the impact of this clause for
valuables, such as jewellery and fine arts. Providing the insured agrees to
surrender the undamaged article(s) of the set, pair, or unit to the insurer, the
insurer will pay the full replacement cost of the entire pair, set or unit.
E. Extra Coverage For Newly Acquired Valuable Articles
5.19 The insurer may provide an automatic coverage for the insured’s newly
acquired articles, if the insured already has itemised articles insured in that
category. This extra coverage provided is a percentage of the total sum insured
for that category (e.g. 20% of the total sum insured for fine arts). However, the
insured must request coverage for these new articles within a specified number
of days (e.g. 30 days) after he has acquired them and must pay the additional
premium from the date acquired.

F. Policy Conditions
5.20 A Valuable Articles Insurance policy will contain the usual conditions applicable
to property insurance. Other than the Pairs & Sets Clause as mentioned earlier,
there are conditions applied that relate to fraud, subrogation, notice of
loss/claim, etc.
5.21 As this is a policy that protects valuables, there may also be a condition that
relates to alarm systems and security protection. This condition requires the
insured:
▪ to activate his alarm systems and other security protection (as specified in
the schedule at all times, when the premises are left unattended and at all
other reasonable times;
▪ to maintain his alarm systems regularly under a contract of service, with
the installing alarm company; and
▪ not to remove, alter or withdraw such protection to the detriment of the
interest of the insurer, without the prior consent of the insurer.
G. Underwriting Considerations & Claim Documents
5.22 The basic underwriting information required will be the:

▪ nature of the items to be insured;
▪ value of the items to be insured;
▪ usage of the items - whether they are for personal, professional or trade
use;
▪ security measures or precautions taken to keep or preserve the items; and
▪ submission of original purchase receipts and valuation reports to prove the
value of the items.
5.23 The claim documents are similar to those discussed in Section 4G of this
chapter.

Appendix 2A
Tel: (65) 6789 8181 Fax: (65) 6789 8282
PACKAGED HOUSEHOLD INSURANCE POLICY

WHEREAS the Insured has applied to the Company for the insurance hereinafter contained and has paid or agreed to pay the Premium
as consideration for such insurance.
NOW THIS POLICY WITNESSETH that in respect of events occurring during the Period of Insurance and subject to the terms, exceptions
and conditions contained herein or endorsed hereon (hereinafter collectively referred to as the Terms of this Policy) the Company will
indemnify the Insured in accordance with the Terms stated in the various Sections of the Policy.
DEFINITIONS
Wherever the following words are used in this Policy or on the SCHEDULE they shall have the meanings given below:
ACCIDENT / ACCIDENTAL
An event which is sudden, unforeseen or unexpected.
BODILY INJURY
Injury resulting solely and directly from accidental means and does not include any medical condition, sickness or disease, or any naturally
occurring condition, or the result of any gradually operating cause.
BUILDING
The building structure of the Insured Dwelling at the Situation of Risks as described in the SCHEDULE including garages, outbuildings,
hard courts and in-ground pools, drive paths, patios, terrace, landscaping and the walls, gates and fences around excluding foundations
and drains.
HOUSEHOLD CONTENTS
Any moveable household item and Personal Effects belonging to the Insured and/or members of his family including those belonging to
the landlord for which the insured is responsible but excluding:
(a) property more specifically insured under another policy.
(b) motor vehicles and accessories, pedal cycles and watercraft
(c) money, deeds, bonds, bills of exchange, promissory notes, cheques, traveller's cheques, securities for money, stamps, certificates or
documents of any kind, manuscripts, medals, contact lenses, hearing aids and livestock unless specially mentioned herein.
(d) any part of the structure or ceilings of the Building(s), wallpapers and the like or external television and radio antennae, aerials, aerial
fittings, masts and towers.
(e) any property the value of which is included in the Total Sum Insured on Renovation, Fixtures and Fittings or Building(s).
(f) landlord's fixtures and fittings.
(g) property owned or held in trust in connection with any business profession or trade.
(h) livestock and pets
INSURED DWELLING
A HDB flat, private flat or private dwelling house and its fenced-up compound around the house including all domestic offices (as approved
by the Company) insured in this policy which is built of brick, stone or concrete and roofed with concrete slates tiles and/or other
incombustible materials located at the Situation of Risks as described in the SCHEDULE.
INSURED PERILS
Refers to the following:
1. FIRE, LIGHTNING, THUNDERBOLT OR SUBTERRANEAN FIRE.
2. EXPLOSION excluding loss of or damage to boilers, economizers, or other vessels, machinery or apparatus in which pressure is used
or their contents resulting from their explosion and any act of any person acting on behalf of or in connection with any organization
with activities directed towards the overthrow by force of the Government de jure or de facto or to the influencing of it by violence.
3. AIRCRAFT OR OTHER AERIAL DEVICES or any article dropped therefrom.
4. BURSTING OR OVERFLOWING OF A DOMESTIC WATER TANK, APPARATUS OR PIPE or water or oil escaping from a fixed heating
or cooling installation excluding damage thereto and loss or damage occurring whilst the Insured Dwelling is left unoccupied for more
than sixty (60) consecutive days.
5. THEFT ACCOMPANIED BY ACTUAL FORCIBLE AND VIOLENT BREAKING into or out of the Insured Dwelling or any attempt thereat
excluding loss or damage occurring whilst the Insured Dwelling is left unoccupied for more than sixty (60) consecutive days.
6. IMPACT WITH THE BUILDING(S) by any road vehicle not belonging to nor under the control of the Insured or any member of his
family normally residing with him.
7. EARTHQUAKE OR VOLCANIC ERUPTION, including Flood or Overflow of the Sea occasioned thereby.
8. HURRICANE, CYCLONE, TYPHOON OR WINDSTORM, including Flood or Overflow of the Sea occasioned thereby, excluding any
building in the course of construction, reconstruction or repair (unless all outside doors, windows and other openings thereto are
complete and protected against such perils).
9. FALLING TELEVISION OR RADIO ANTENNAE, antennae fittings, masts, towers or solar heating panels due to breakage or collapse.
10. FALLING TREES or branches but not loss or damage caused by falling or lopping of trees by or on the Insured’s behalf.
11. RIOTS, CIVIL COMMOTION OR ACTS OF STRIKES or locked-out workers or persons taking part in labour disturbances.
12. MALICIOUS DAMAGE, loss of or damage to property insured directly caused by the malicious acts of persons, whether or not such
acts is in the course of a disturbance of public peace, excluding loss or damage occurring whilst the Insured Dwelling is left unoccupied
for more than sixty (60) consecutive days.
13. SUBSIDENCE OR LANDSLIP CAUSED BY FLOOD ONLY but excluding the first S$10,000.00 or 10% of claim cost whichever is greater

for each and every loss.
LOSS OF SIGHT
Physical loss of an eye, or permanent and total loss of sight, which shall be considered as having occurred in one or both eyes if the
degree of sight remaining after correction is 3/60 or less on the Snellen Scale (this means seeing at 3 metres what you should see at 60
metres) as confirmed by a fully qualified Ophthalmic Specialist.
LOSS OF SPEECH OR HEARING

Medically certified total and irrecoverable loss of the sense of speech and hearing.
LOSS OF USE
Loss in terms of physical incapacity or disability and not in terms of professional or occupation incapacity or disability of the Insured.
PERSONAL EFFECTS
Articles of personal use designed specifically to be worn or carried e.g. Clothing, Jewellery, Watches & Camera Equipment etc. Excluding
money, mobile phones, pagers, portable computers/diaries and items which are used in connection with any business profession or
employment, as well as items insured under a separate policy.
RENOVATIONS, FIXTURES AND FITTINGS

Internal improvements, additions, fixtures and fittings including landlord’s fixtures and fittings in the Insured Dwelling.
VALUABLES
Jewellery, watches, antiques, paintings, furs, works of art, curios, stamps or coin collections, items of gold, silver, platinum or other
precious metals and other collectable property.
DESCRIPTION OF BENEFITS
The following Sections will attach to and form part of the policy only when so specified on the SCHEDULE.
SECTION 1 - RENOVATIONS, FIXTURES AND FITTINGS

The Company will indemnify the Insured to the extent of the Insured’s insurable interest, against loss of or damage to the Renovations,
Fixtures and Fittings of the Insured Dwelling caused by an Insured Peril.
SECTION 2 - CONTENTS
(A) BASIC HOME COVER
The Company will indemnify the Insured against loss or damage to the Household Contents, Valuables and other Personal Effects
belonging to the Insured and/or any member of his family normally residing with him or for which he is legally responsible, whilst
contained in the Insured Dwelling caused by an Insured Peril.
(B) ENHANCED HOME COVER

The Company will indemnify the Insured to the extent of the Insured’s insurable interest against loss of or damage to the Household
Contents, Valuables and other Personal Effects belonging to the Insured and/or any member of his family normally residing with him or
for which he is legally responsible, whilst contained in the Insured Dwelling caused by an Insured Peril or accidental means. Subject to an
excess of S$100.00 on each and every claim except if due to an Insured Peril.
LIMITS OF INDEMNITY FOR SECTIONS 1 & 2
The Company’s maximum liability in the aggregate for all claims in respect of Section 1 & 2 shall not exceed the Sum Insured specified
in the SCHEDULE respectively.
The Company’s liability for loss or damage to Valuables shall not exceed
(a) S$2,500.00 for any one article unless specially agreed and specified in the SCHEDULE and
(b) one-third of the Sum Insured for Section 2 in the aggregate unless specially agreed and specified in the SCHEDULE.
MAIN EXCLUSIONS TO SECTIONS 1 & 2
The Company shall not be liable in respect of:

(a) any loss by theft
(i) by deception unless deception is used to enter the Insured Dwelling
(ii) of property in any part of the building to which any other tenant has right of access not involving entry to or exit from the Insured
Dwelling by forcible and violent means
(iii) if the Insured Dwelling is lent, let or sublet unless force is used to enter the Insured Dwelling
(b) scratching or denting of property.
(c) any loss, destruction or damage due to wear, tear, depreciation, the process of washing, cleaning, dyeing, alteration, repair or
restoration of any article, the action of light or atmospheric conditions, moth, insects, vermin or any other gradually operating cause.
(d) any loss or damage resulting from theft by deception and/or by any person lawfully in the Insured Dwelling.
(e) electrical electronic or mechanical breakdown except as provided for in Extension (P) – Deterioration of Foods and Drinks in
Refrigerator as stated below.
(f) breakage of strings in respect of any musical instrument.
(g) damage to films when in use in a camera or projector.
(h) breakage of tubes and or bulbs unless the apparatus is damaged at the same time.
(i) business or professional use in respect of photographic and sporting equipment and accessories and musical instruments.
(j) any loss or damage from the Insured Dwelling arising from Bursting or overflowing of a domestic water tank, apparatus or pipe, Theft
or any attempt thereat or Malicious acts during any period in excess of sixty (60) consecutive days during which the Insured Dwelling
is left unoccupied, unless written consent has been obtained from the Company.
(k) cost of reproducing data whether recorded on tapes, cards, discs or otherwise.
(l) delay, confiscation or detention by Customs Official or Authorities.
(m) any loss or damage of property left in the open outside the confinement of the Insured Dwelling.
(n) mysterious disappearance or unexplained loss.
(o) damage to sports equipment whilst in play.

(p) theft of property in:

(i) unoccupied touring or convertible vehicles or
(ii) other unoccupied vehicles unless all windows, doors, luggage compartment, boot, roof and windscreen are completely closed
and securely locked.
(q) loss or damage to any property as a result of inherent fault or defective workmanship or defective design or use of defective materials.
EXTENSIONS TO SECTION 1 & 2
(A) Awnings, Blinds and Signs Clause

This insurance extends to cover loss or damage to awnings, blinds and signs as a result of an Insured Peril up to S$5,000.00.
(B) Cost of Replacement for Locks and Keys

This insurance extends to cover cost of replacement of locks and keys of all external doors of the Insured Dwelling up to S$750.00
following a break-in.
(C) Damage to Security System

This insurance extends to cover loss or damage to security system up to S$500.00 as a result of theft or any attempt thereat.
(D) Fire Extinguishing Expenses

This insurance extends to cover cost of replenishment of fire fighting appliances and destruction to such appliances up to 10% of the
Total Sum Insured for Section 1 and 2 or the amount of loss whichever is lower.
(E) Loss of Rent and Additional Expense of Alternative Accommodation

In the event the Insured Dwelling is rendered uninhabitable by an Insured Peril, the Company will indemnify the Insured up to S$10,000
per month or in any one Period of Insurance, an aggregate limit of 10% of the Total Sum Insured for Section 1 and 2 or S$50,000
whichever is the lower, for:
(a) reasonable additional expense for alternative accommodation; and/or
(b) loss of rent payable to the Insured
actually incurred by the Insured during the period necessary for the reinstatement of the Insured Dwelling.
Where a claim is made under this extension under Sections 1, 2 or 8, the Company’s maximum liability is limited to S$50,000.
(F) Loss or Damage to Mobile Phones Pagers & Portable Computers/Diaries

This insurance extends to cover the loss of or damage to Mobile Phones, Pagers and Portable Computers/Diaries/Personal Digital
Assistants and the like caused by the Insured Perils, whilst contained in the Insured Dwelling, up to the replacement cost.
(G) Loss or Damage to Pedal Cycles

This insurance extends to cover loss or damage to pedal cycles belonging to the Insured and/or any member of his family normally
residing with him whilst contained in the Insured Dwelling caused by an Insured Peril excluding motor-assisted pedal cycles.
(H) Professional Fees Clause

This insurance extends to cover Architects’ Surveyors’ Consultants’ and Legal Fees as prescribed by the respective professional
institutes but excluding any fees incurred in preparing a claim up to 10% of the Sum Insured for Section 1.
(I) Removal of Debris Clause

This insurance extends to cover costs of Removal of Debris, dismantling or demolishing, shoring or propping-up of the damaged part
of the Insured Dwelling up to 10% of the Total Sum Insured for Section 1 and 2.
(J) Identity Fraud Expenses (strictly NOT applicable where the Policy is issued to a corporate entity)
1. Subject to the conditions herein below, this Policy extends to indemnify the Insured or members of the Insured’s family residing
with him for Identity Fraud Expenses incurred by the Insured as a result of a third party (who is not a member of the Insured’s
family) knowingly perpetuating an unlawful act by using their respective means of identity without their respective express
authority.
2. The Company will indemnify the Insured or members of the Insured’s family residing with him for Identity Fraud Expenses:
• up to 10% of the sum insured for Section 2 – Contents subject to a maximum aggregate sum of $7,500 for any one policy period
for the Enhanced Home Cover
or
• up to 10% of the sum insured for Section 2 – Contents subject to a maximum aggregate sum of $2,500 for any policy period
for the Basic Home Cover
3. Identity Fraud Expenses refer only to the following expenses reasonably incurred by the Insured or members of the Insured’s
family residing with him with the prior written approval of the Company:-
(A) reasonable lawyers’ fees and disbursements directly related to:-
• The defence of any legal proceedings by businesses or their collection agencies.
• Legal proceedings undertaken to challenge, remove, vary or set aside any criminal or civil judgments entered against
Insured or members of the Insured’s family residing with him, including any changes or variation to the information
regarding their respective consumer credit report.
(B) costs of notarising or certifying affidavits and other necessary documents, including the costs of sending all necessary
affidavits and documents to law enforcement agencies, financial institution, credit agencies or similar entities where
reasonably incurred.
but shall exclude the following:-

a. Any identity fraud expenses incurred whereby the unlawful act of the third party as stipulated in paragraph 1 above occurs
outside the policy period.
b. Any identity fraud expenses incurred 6 months after the expiry of the policy period in respect of an unlawful act of the third
party as stipulated in paragraph 1 occurring within the policy period regardless of when the unlawful act was discovered.
c. Any claim where the Insured or members of the insured’s family residing with him have experienced a third party
perpetuating an unlawful act on them as stipulated under paragraph 1 hereof before the commencement of the policy.
d. Any claim arising from or related directly or indirectly to any business activities of the Insured or members of the Insured’s
family residing with him.
e. Any claim arising from or related directly or indirectly to any fraudulent, dishonest or criminal act by Insured or members of
the Insured’s family residing with him or their authorized representative.

The following list of Extensions (K) to (U) shall apply only with ENHANCED HOME cover for Section 2 - Contents as specified in the
SCHEDULE
(K) Temporary Removal

This insurance extends to cover Accidental loss or damage to the Household Contents and Personal Effects, whilst temporarily
removed from the Insured Dwelling but remaining in Singapore. Provided that:
(a) this extension shall not apply to:
(i) property otherwise insured and/or
(ii) property removed for sale or exhibition or to a furniture depository.
(b) for the purpose of this extension only, “Household Contents” shall include pedal cycles (but not motor-assisted pedal cycles).
(c) the amount recoverable under this extension shall not exceed 15% of the Sum Insured for Section 2 subject to each article not
exceeding S$500.00.
(L) Accidental Breakage to Fixed Glass

This insurance extends to cover accidental damage to fixed glass at the Insured Dwelling up to the replacement cost.
(M) Cost of Replacement of Title Deeds

This insurance extends to cover accidental loss or damage to title deeds and other legal documents up to S$750.00 for the cost of
replacement.
(N) Loss or damage to Domestic Servant’s Property

This insurance extends to cover accidental loss or damage to Personal Effects of any domestic servant of the Insured and normally
residing with the Insured up to S$1,000.00 in any one period of insurance whilst contained in the Insured Dwelling provided that a
valid claim is also made for the Insured’s own contents.
(O) Visitors’ Personal Effects

This insurance extends to cover accidental loss or damage to visitors' personal effects whilst contained in the Insured Dwelling up to
S$500.00 in any one period of insurance.
(P) Loss of Money

This insurance extends to cover loss of money, ATM Cards, Credit Cards, belonging to the Insured and/or any member of his family
and/or domestic servant normally residing with him as a result of an Insured Peril whilst kept in the Insured Dwelling used solely for
private, social and domestic purposes up to S$1,000.00 in any one period of insurance.
(Q) Deterioration of Foods and Drinks in Refrigerator

This insurance extends to cover deterioration of food and drinks in any Refrigerator or Freezer whilst contained in the Insured Dwelling
due to breakdown or explosion up to S$200.00 in any one period of insurance excluding loss or damage resulting from the deliberate
act of any power supply authority or the withholding or restricting of power by such an authority, or deliberate act or neglect of that
of the Insured and/or any member of his family and/or domestic servant, and provided that the Refrigerator or Freezer is less than six
(6) years old.
(R) Household Removal By Professional Movers

This insurance extends to cover accidental loss of or damage to the Insured’s Household Contents in the course of removal which are
packed by professional packers between the Insured Dwelling and new permanent residence within Singapore of the Insured
excluding valuables, china, earthware and other items of brittle nature subject to a limit of up to S$1,500.00 in any one period of
insurance.
(S) Conservancy Charges

This insurance extends to cover conservancy charges payable by the Insured up to a maximum period of three (3) months subject to
a maximum limit of S$1,000.00 in the event that the Insured Dwelling suffers loss or damage by an Insured Peril, rendering it
uninhabitable.
(T) Accidental Loss or Damage to Pedal Cycles

Further to Extension (G), this insurance extends to cover accidental loss or damage to pedal cycles belonging to the Insured and/or
any member of his family normally residing with him whilst contained in the Insured Dwelling subject to a maximum limit of S$500.00
for any one period of insurance, excluding motor-assisted pedal cycles.
(U) Accidental Loss or Damage to Mobile Phones Pagers & Portable Computers/Diaries
This insurance extends to cover accidental loss of or damage to Mobile Phones, Pagers and Portable Computers/Diaries/Personal
Digital Assistants and the like, up to the replacement cost.
SECTION 3 - FAMILY PERSONAL LIABILITY
The Company will indemnify the Insured and/or members of his family and domestic servant permanently residing with him in Singapore
against all sums for which they may be legally liable to third party including legal costs and expenses in respect of:
(1) accidental bodily injury (whether fatal or not)

(2) accidental damage to property occurring during the period of insurance subject to the Territorial Limits as stated herein for this
Section.
The Company will also pay:

(a) legal liability as owner of the Insured Dwelling up to the limits of indemnity stated in this Section;
(b) legal liability as tenant and occupier of the Insured Dwelling up to a limit of S$100,000.00 for damage to landlord’s fixtures, fittings
and Building, subject to an excess of S$100.00 for each and every claim.
LIMITS OF INDEMNITY
The liability of the Company for compensation under this Section shall not exceed the limit of indemnity as stated in the SCHEDULE in
the aggregate for all claims in respect of or arising out of one occurrence or in respect of or arising out of all occurrences of a series

consequent on or attributable to one source or original cause.
In the event of the death of the Insured the Company will, in respect of the liability incurred by the Insured, indemnify the Insured's
personal representatives in the terms of and subject to the limitations of this Section provided that such personal representatives shall as
though they were the Insured observe, fulfil and be subject to the Terms of this Policy in so far as they can apply.
MAIN EXCLUSIONS TO SECTION 3

The Company shall not be liable in respect of
(a) bodily injury to any person being a member of the Insured's family or household or at the time of sustaining such injury engaged in
and under the service of the Insured.
(b) damage to property belonging to or in the charge of or under the control of the Insured or a member of the Insured's family or
household or of a person in the service of the Insured.
(c) bodily injury or damage arising out of or incidental to:-

(i) the Insured's profession or business.
(ii) the use of lifts, elevators, vehicles, watercraft, aircraft or aerial devices.
(d) any liability which attaches by virtue of an agreement but which would not have attached in the absence of such agreement.
(e) any liability resulting directly or indirectly from the transmission of any communicable disease by the Insured, a member of the
Insured's family, domestic maid or pets.
(f) any liability caused by or arising from or in connection with the Insured’s ownership of Category A dogs (as defined by the Agri-food
& Veterinary Authority of Singapore) or unlicensed dogs.
(g) any liability arising from ownership of any other Building or land other than the home occupied by the Insured solely as a private
residence.
(h) any liability arising from the occupation or use of any premises other than as a private residence unless specially agreed and specified
in the SCHEDULE.
(i) any liability in respect of bodily injury illness and/or loss or damage caused by or in connection with or arising from alterations,
additions and repairs to the Insured Dwelling and/or whilst the Insured Dwelling is undergoing renovation or construction.
TERRITORIAL LIMITS
Anywhere in Singapore and Worldwide excluding USA and/or Canada, its territories or possessions in respect of travel or stay overseas
provided such travel shall not exceed ninety (90) consecutive days in any one period of insurance.
SECTION 4 - PERSONAL ACCIDENT FOR INSURED & SPOUSE

For the purpose of this Section the expression “the Insured” shall be deemed to include the legal spouse of the Insured.
If the Insured shall suffer bodily injury caused by accidental means sustained whilst at the Insured Dwelling, and if such bodily injury shall
within three (3) calendar months result in the death or permanent disablement of the Insured, the Company will pay compensation in
accordance to the Table of Benefits stated below to the Insured or in the event of his death to his legal personal representatives.
Hospitalisation Allowance arising from accidents covered under this Section is payable up to sum insured specified in the SCHEDULE per
person where the Insured is hospitalised as an inpatient for more than twenty-four (24) hours during the period of insurance.
The death and permanent disablement benefit shall be payable in accordance to the Table of Benefits here below:
TABLE OF BENEFITS
DESCRIPTION OF PERMANENT DISABLEMENT PERCENTAGES OF THE SUM INSURED SPECIFIED

AS STATED IN SECTION 4 OF THE SCHEDULE
1. Death 100%
2. Total and Permanent Disablement from engaging in or attending to employment 100%
or occupation of any and every kind
3. Total & Permanent Loss of all sight in one or both eyes 100%
4. Total Loss by physical severance or Total & Permanent Loss of use of:
(a) one or both hands at wrist }
(b) arm at shoulder }
(c) arm between shoulder and elbow }
(d) arm at or below elbow } 100%
(e) leg at hip }
(f) leg between knee & hip }
(g) leg at or below knee }
5. Total and Permanent Loss of:
(a) sight in one eye except perception of light 50%
(b) lens of one eye 50%
6. Total Loss by physical severance or Total & Permanent Loss of use of:
(a) thumb & fingers of one hand 50%
(b) 4 fingers of one hand 40%
(c) thumb - 2 phalanges 25%
- 1 phalanx 10%
(d) index finger - 3 phalanges 15%
- 2 phalanges 10%
- 1 phalanx 5%
(e) middle finger - 3 phalanges 10%

- 2 phalanges 7%
- 1 phalanx 3%
(f) ring finger - 3 phalanges 10%
- 2 phalanges 7%
- 1 phalanx 3%
(g) little finger - 3 phalanges 10%
- 2 phalanges 7%
- 1 phalanx 3%
(h) all toes of one foot 18%
(i) great toe - 2 phalanges 6%
- 1 phalanx 3%
(j) any other toe 3%
7. Total & Permanent Loss of :
(a) hearing in both ears 75%
(b) hearing in one ear 20%
8. Total & Permanent Loss of speech 50%
9. Third Degree Burns
(a) Head – Damage as a Percentage of Total Body Surface Area
(i) equals to or greater than 2% but less than 5% 50%
(ii) equals to or greater than 5% but less than 8% 75%
(iii) equals to or greater than 8% 100%
(b) Body – Damage as a Percentage of Total Body Surface Area 50%
equals to or greater than 10% but less than 15%
The aggregate of all percentages payable under permanent disablement benefit in respect of any accident shall not exceed 100%. Any
claim payable under accidental death benefit shall be reduced by a sum equal to any claim payable under permanent disablement benefit
in respect of the same accidental injury.
PROVISOS
1. This Section does not cover Insured above seventy (70) years of age next birthday.
2. The cover under this Section will cease for the Insured upon any Permanent Disablement claim.
3. Before the Company will pay item (2) in the Table of Benefits above, Total and Permanent Disablement from all gainful employment of
any and every kind shall have lasted for twelve (12) months and have been proved to our satisfaction to be permanent and without
expectation of recovery. However, if it can be proved to the reasonable satisfaction of the company that total disablement from all
gainful employment is permanent, then the Company may at their discretion pay this item before the expiry of twelve (12) months.

This Company shall not be liable in respect of bodily injury sustained by the Insured
1. as a result of, or is contributed by any medical condition, pre-existing conditions, physical defect or infirmity;
2. as the result of intentional self-injury, suicide or attempted suicide (whether felonious or not) while sane or insane, provoked assault,
intoxication, drugs, insanity, venereal disease, childbirth or pregnancy (other than miscarriage caused by accidental falling of the
Insured with external injury or by traffic accident) or abortion or any complication following therefrom;
3. as the result of, or is contributed to by or attributable to HIV (Human Immunodeficiency Virus) and/or any HIV related illness including
AIDS (Acquired Immune Deficiency Syndrome) and/or any mutant derivative or variations thereof however caused;
4. whilst engaged in illegal acts.
SECTION 5 - TWENTY-FOUR (24) HOUR EMERGENCY HOME ASSISTANCE SERVICES

This policy is extended to provide Home Assistance Services available directly from International SOS Pte Ltd (hereinafter referred to as
“International SOS”). Any contracts entered into for such services or any request for such services shall be deemed to be made between
the Insured and International SOS.
The Company is authorized by International SOS to represent that International SOS will provide the Insured the services described in
Emergency Home Assistance Services but the Company does not in any way accept any liability to provide such services or for the
performance thereof.
Following a sudden and/or unforeseen event at the Insured Dwelling and the Insured is in need of Emergency Assistance Services, the
following Emergency Assistance Services benefits shall be available directly from the International SOS upon specific verbal notification
by the Insured to the specified International SOS twenty-four (24) hour Alarm Centre, provided that the Insured will not be entitled to the
reimbursement of any such expenses incurred or paid directly by the Insured without prior authorization of International SOS, subject to
the limitations as specified below.
International SOS undertakes to pay for the Services rendered as provided under Section 5 below subject to a limit of S$100 per event.
BASIC HOME ASSISTANCE
(i) Locksmith Assistance

In the event the Insured is unable to access the Insured Dwelling because:
(a) the Insured is locked out of his/her Insured Dwelling; and/or
(b) the Insured is not in possession of the keys to the Insured Dwelling,
the Insured shall contact International SOS and International SOS shall arrange for a locksmith to assist the Insured at the Insured
Dwelling.
Exclusion: International SOS shall not extend this Service to an Insured who is locked out of his/her bedroom in the Insured Dwelling.
(ii) Plumbing Assistance
In the event that the Insured Dwelling contains:

(a) a clogged water supply system;

(b) a clogged drainage system; and/or
(c) leaking water pipe(s)
Exclusions: International SOS shall not extend this Service to an Insured whose Insured Dwelling has (a) a leaking water tap which
requires refurbishing, or (b) leaking water heater/shower head, or (c) water leaking from the Insured Dwelling’s ceilings.
(iii) Electrical Assistance
In the event of an electrical power failure/wall switch failure in the Insured Dwelling, International SOS shall arrange for a competent
electrician to attend to and repair the problems.
Exclusion: International SOS shall not extend this Service to failure or malfunction of electrical appliances like televisions,
refrigerators, rice cookers, ovens, water heaters, etc.
(iv) Air-Conditioning Engineer Assistance
In the event that an air-conditioner unit in the Insured Dwelling is not working, International SOS shall arrange for an
engineer to repair the air-conditioning unit.
Exclusion: International SOS shall not extend this Service to an air-conditioning unit that is not cold or leaking because the said unit
has not been serviced for six (6) months prior to the date of call.
(v) Pest Control Services

In the event that Insured Dwelling is infested with pests, including but not limited to bees and termites, International SOS shall arrange
for a pest control services to remedy the situation.
SECTION 6 - PET DOG COVER

(A) ACCIDENTAL DEATH OF PET DOG WITHIN INSURED DWELLING
The Company will indemnify the Insured for the cost of replacing the pet dog(s) with another of the same breed and sex in respect of
accidental death caused by violent external and visible means, occurring whilst the pet dog(s) is/are confined within the Insured Dwelling
up to S$500.00 in the aggregate for any period of insurance in respect of all insured pet dogs.
(B) ENHANCED PET DOG EXTENSION
VETERINARY FEES
The Company will indemnify the Insured for payment of veterinary fees including necessary hospital expenses of up to S$750.00 in the
aggregate for any period of insurance.
ACCIDENTAL DEATH OF PET DOG

Sub-Section 6(A) is hereby extended to cover “Anywhere in Singapore” subject to the policy terms conditions and exceptions.
RECOVERY COSTS
The Policy will indemnify the Insured in respect of costs approved by the Company in advertising and/or reward for the recovery of the
lost strayed or stolen pet dog subject to a maximum of S$250.00 in the aggregate for any period of insurance.
CREMATION/BURIAL EXPENSES
The Company will indemnify the Insured in respect of payment of cremation and burial costs upon the death of the pet dog subj ect to a
maximum of S$100.00 in the aggregate for any period of insurance.

The Company shall not be liable:
(a) where the pet dog(s) is/are having any physical defects, illness or disease known to the Insured when the Policy was taken up or at
renewal and not accepted in writing by the Company
(b) where the pet dog(s) is/are aged under three (3) months or over five (5) years old.
(c) where the pet dog(s) is/are undergoing or has undergone surgery not necessitated by accidental bodily injury nor necessary to save
the pet dog(s) life, which results in its death
(d) where the pet dog(s) is/are not registered with the Agri-food & Veterinary Authority of Singapore
(e) for the first S$50.00 of each and every claim incurred for Veterinary Fees
(f) Veterinary Fees incurred in connection with:
(i) preventive vaccinations or preventive treatment congenital or hereditary treatment
(ii) spraying or castration
(iii) whelping or kittening or conditions arising directly or indirectly therefrom
(iv) any illness arising within ten (10) days of the commencement of the insurance under Section 6 Sub-Section (B).
SECTION 7 - WORLDWIDE PERSONAL EFFECTS COVER

The Company will pay to the Insured any Accidental loss of or damage to the Insured's Personal Effects during the Period of Insurance
within the territorial limits specified in this Section. Provided that the liability under this Section shall not exceed 50% of the Sum Insured
for Section 2 during any one period of insurance unless otherwise agreed and specified in the SCHEDULE.
(A) UNSPECIFIED ARTICLES

In the event of any loss or damage to articles of Personal Effects not specifically and individually itemized in the SCHEDULE, the Company
will pay, up to the replacement cost or maximum S$1,000.00 any one article, and in aggregate not exceeding the total sum insured as
specified on the SCHEDULE.
(B) SPECIFIED ARTICLES

In the event of any loss or damage to articles of Personal Effects that are specifically and individually itemized and declared with a
corresponding sum insured for each article listed in the SCHEDULE, the Company will pay up to the replacement cost of each article or
the sum insured specified in the SCHEDULE, whichever is the lower.
It is a condition that sums insured for Section 7 Sub-Section (B) will at all times be maintained by the Insured at not less than the full cost
of replacement without deduction for wear and tear or depreciation except in respect of wearing apparel.
TERRITORIAL LIMITS
Anywhere in Singapore and Worldwide in respect of travel overseas provided that such travel shall not exceed ninety (90) consecutive
days in any one period of insurance.

EXCESS
Subject to an excess of S$100.00 on each and every claim except if due to an Insured Peril at the Insured Dwelling.
The Company will not cover loss or damage resulting from:
(a) any loss by theft
(j) by deception unless deception is used to enter the Insured Dwelling
(ii) of property in any part of the building to which any other tenant has right of access not involving entry to or exit by forcible and
violent means
(iii) if the Insured Dwelling is lent, let or sublet unless force is used to enter the Insured Dwelling
(b) scratching or denting of property
(c) delay, confiscation or detention by Customs Official or Authorities
(d) any loss, destruction or damage due to wear, tear, depreciation, mechanical or electrical defect, the process of washing, cleaning,
dyeing, alteration, repair or restoration of any article, the action of light or atmospheric conditions, moth, insects, vermin or any other
gradually operating cause.
(e) business or professional use in respect of photographic and sporting equipment and accessories and musical instruments.
(f) breakage of strings in respect of any musical instrument.
(g) damage to films when in use in a camera or projector.
(h) breakage of tubes and or bulbs unless the apparatus is damaged at the same time.
(i) theft of property in:
(i) unoccupied touring or convertible vehicles or
(ii) other unoccupied vehicles unless all windows, doors, luggage compartment, boot, roof and windscreen are completely closed
and securely locked.
(j) cost of reproducing data whether recorded on tapes, cards, discs or otherwise.
(k) property whilst in transit unless hand-carried.
(l) any loss or damage from the Insured Dwelling arising from Bursting or overflowing of a domestic water tank, apparatus or pipe, Theft
(m) mysterious disappearance or unexplained loss.
(n) damage to sports equipment whilst in play.
SECTION 8 - BUILDING
The Company will indemnify the Insured to the extent of the Insured’s insurable interest, against loss of or damage to the Building caused
by an Insured Peril. Where this Section is arranged as a Standalone cover, the expression “Building” shall be deemed to include
Renovations, Fixtures and Fittings.
It is a condition that the sum insured for this Section will at all times be maintained by the Insured at not less than the full reinstatement
value of the Building. The full reinstatement value shall include that for Renovations, Fixtures and Fittings where Section 1 is effected
simultaneously.
LIMIT OF INDEMNITY FOR SECTION 8

The Company’s maximum liability in the aggregate for all claims in respect of this Section shall not exceed the sum Insured specified in
the SCHEDULE.

(i) any loss or damage from the Insured Dwelling arising from Bursting or overflowing of a domestic water tank, apparatus or pipe, Theft
EXTENSIONS TO SECTION 8
(A) Capital Additions Clause
This insurance extends to cover alterations, additions and improvements to the Insured Dwelling but excluding any appreciation in
value in excess of the Sum Insured subject to an amount not exceeding 10% of the Sum Insured for Section 8.
(B) Loss of Rent and Additional Expense of Alternative Accommodation

In the event the Insured Dwelling is rendered uninhabitable by an Insured Peril, the Company will indemnify the Insured up to S$10,000
per month or in any one Period of Insurance, an aggregate limit of 10% of the Total Sum Insured for Section 8 or S$50,000 whichever
is the lower, for:
(a) reasonable additional expense for alternative accommodation; and/or
(b) loss of rent payable to the Insured
actually incurred by the Insured during the period necessary for the reinstatement of the Insured Dwelling.
Where a claim is made under this extension under Sections 1, 2 or 8, the Company’s maximum liability is limited to S$50,000.
(C) Public Authorities Clause

This insurance extends to include such additional cost of reinstatement of the destroyed property herein insured as may be incurred solely
by reason of the necessity to comply with Building or other Regulations under or framed in pursuance of any Act of Parliament or with
By-Laws of any Municipal or Local Authority up to 10% of the Sum Insured for Section 8 provided that :-
The amount recoverable under this Extension shall not include:

(a) the cost incurred in complying with any of the aforesaid Regulations or By-Laws:
(i) in respect of destruction or damage occurring prior to the granting of this Extension;
(ii) in respect of destruction or damage not insured by the Policy;
(iii) in respect of which notice has been served upon the Insured prior to the happening of the destruction or damage;
(iv) in respect of undamaged property or undamaged portions of the property;
(b) the additional cost that would have been required to make good the property damaged or destroyed to a condition equal to its
condition when new had the necessity to comply with any of the aforesaid Regulations or By-Laws not risen;

(c) the amount of any rate, tax, duty, development or other charge or assessment arising out of capital appreciation which may be payable
in respect of the property or by the owner thereof by reason of compliance with any of the aforesaid Regulations or By-Laws.
(D) Professional Fees Clause

This insurance extends to cover Architects’ Surveyors’ Consultants’ and Legal Fees as prescribed by the respective professional institutes
but excluding any fees incurred in preparing a claim up to 10% of the Sum Insured for Section 8.
(E) Removal of Debris Clause

This insurance extends to cover costs of Removal of Debris, dismantling or demolishing, shoring or propping-up of the damaged part of
the Insured Dwelling up to 10% of the Total Sum Insured for Section 8.
GENERAL EXCEPTIONS

1. any loss or damage or liability directly caused by or contributed to by or arising from ionizing radiations or contamination by
radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.
2. any loss (whether temporary or permanent) of the Insured Dwelling or any part thereof by reason of confiscation requisition detention
or legal or illegal occupation of such property or any premises vehicle or thing containing the same by any government authorities.
3. any accident loss damage expense liability or bodily injury occasioned by or through or in consequence directly or indirectly of
(a) war invasion act of foreign enemy hostilities or warlike operations (whether war be declared or not) civil war
(b) mutiny military or popular uprising insurrection rebellion revolution military or usurped power martial law or state of siege or
any of the events or causes which determine the proclamation or maintenance of martial law or state of siege
In any action suit or other proceeding where the Company alleges that by reason of the provisions of this General Exception any
accident loss damage expense liability or bodily injury is not covered by this insurance the burden of proving that such accident loss
damage expense liability or bodily injury is covered shall be upon the Insured.
4. any loss damage or liability which is insured by or would but for the existence of this Policy be insured by other policy or policies
except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this
insurance not been effected. This exclusion does not apply to Section 4.
5. any consequential loss or damage of any kind whatsoever unless otherwise stated.
6. any loss or damage occasioned through the wilful act of or with the connivance of the Insured and/or any member of his family and/or
domestic servant normally residing with him.
7. pressure waves caused by aircraft and other aerial devices travelling at sonic or supersonic speeds.
8. any loss or damage arising from illegal acts.
9. any loss or damage arising whilst the Insured Dwelling is undergoing renovation or construction.
GENERAL CONDITIONS
1. INTERPRETATION
This Policy and the SCHEDULE shall be read together and any word or expression to which a specific meaning has been attached in
any part of the Policy or of the SCHEDULE shall bear such meaning wherever it appears.
2. JURISDICTION CLAUSE
The indemnity under this Policy shall not apply in respect of judgments, which are not in the first instance delivered by or obtained
from a Court or tribunal of competent jurisdiction within the Republic of Singapore.
3. BASIS OF SETTLEMENT
Sections 1 & 8
The basis of settlement of any claim shall be the cost of reinstatement of the property destroyed or damaged to a condition
substantially the same as, but not better or more extensive than the condition when new. If repair or restoring is not carried out and
completed within twelve (12) months, or if there is other insurance in force which does not provide for replacement or reinstatement
on a similar basis, the Company will settle claims on an indemnity basis i.e. the cost of replacement or repair of lost or damaged
property less an amount for wear and tear or depreciation.
Sections 2 & 7
The basis of settlement in the event of theft or total destruction will be replacement in the same form without deduction for wear and
tear or depreciation except in respect of wearing apparel, curtains, bed sheets or bed linens. In the event of loss or damage to any
insured item forming part of a pair or set, our liability shall not exceed a proportionate part of the value on the pair or set.
4. DUTY OF CARE
The Insured shall:
(a) use all reasonable diligence and care to keep the Insured Dwelling in proper state of repair and if any defect therein be discovered
shall cause such defect to be made good as soon as possible and shall in the meantime cause such additional precautions to be
taken for the prevention of injury, loss or damage as the circumstances may require and the Company shall not be liable for any
injury, loss or damage caused by defect which the Insured has failed to remedy after having received notice of such defect either
from the Company or any person or public
(b) exercise all reasonable precautions for the maintenance and safety of the property insured body and to prevent accident, loss or
damage and
(c) provide for the Insured dog(s) under Section 6 at all times with proper care.
(d) the Insured must take all reasonable precautions to prevent becoming a victim of the unlawful act as stipulated in Extension (J) –
Identity Fraud Expenses.
5. OTHER INSURANCE
(a) The Insured shall give notice to the Company of any insurance or insurances already effected, covering anything hereby insured
with the exception of Personal Accident and unless such notice be given and the particulars of such insurance or insurances be

stated in or endorsed on this Policy by or on behalf of the Company before the occurrence of any loss or damage, all benefits
under this Policy in respect of the Property so insured shall be forfeited.
(b) If at any time of any happening giving rise to any loss, damage, expense or liability for which indemnity is provided under this
Policy there shall be any other insurance against such loss, damage, expense or liability or any part thereof the Company shall
not be liable for more than its ratable proportion thereof.
6. AVERAGE CLAUSE
If at the time of any loss or damage for which indemnity is provided under
(a) Section 1 – Renovation Fixtures & Fittings, where this section is arranged as a Standalone cover or where cover under Section 8
is simultaneously effected under this Policy
(b) Section 2 – Contents, where this section is arranged as a Standalone cover
(c) Section 7(B) – Worldwide Personal Effects Cover for Specified Articles or
(d) Section 8 - Building
be of greater value than the Sum Insured specified for the sections, then the Insured shall be considered as being his own insurer for
the difference and shall bear a ratable proportion of the amount of such loss or damage accordingly and every item of the respective
Sections shall be separately subject to this Condition.
7. NOTICE OF MATERIAL CHANGES
(a) The Insured shall give reasonable notice to the Company of any change in the nature of the occupation of or other circumstances
affecting the building insured or containing the insured property be changed in such a way as to increase the risk of loss or
damage.
(b) If the Insured fails to give notice of the changes to the Company, the Company may reject any claim that may arise.
(c) The Insured must inform us in writing as soon as possible about any change which may affect Extension (J) – Identity Fraud
Expenses. If the Insured fails to inform the Company, the Company may declare the extension invalid or reduce the cover
provided. The facts the Company need are those which the Company consider important in assessing or accepting the insurance.
If the Insured is in any doubt as to whether to inform the Company about any change, the Insured should inform the Company
anyway.
8. CLAIM NOTIFICATION
In the event of any happening which may give rise to a claim under this Policy, the Insured (or in the case of a claim under Section 4,
the Insured's personal representatives):
(a) shall give immediate notice in writing to the Company or in any event not exceeding fourteen (14) days
(b) shall make a police report within twenty-four (24) hours of the occurrence if there has been theft malicious damage or vandalism
or any loss of money or any attempt thereat
(c) notify the issuing company immediately of the loss of any insured credit card or ATM card
(d) shall at his (or their) own expense supply the Company with full particulars in writing as soon as possible and in the case of a
claim under Sections 1, 2, 7 and 8 not later than thirty (30) days after the occurrence of the loss or damage
(e) if a claim may arise under Section 3, shall immediately send to the Company any writ, summons or other legal process issued or
commenced against the Insured and shall give all necessary information and assistance to enable the Company to settle or resist
any claim or to institute proceedings
(f) in the event of accidental bodily injury of the Insured dog(s) under Section 6 to arrange for a veterinary surgeon to attend and
where necessary, to certify at the Insured's own expense the cause of death
(g) shall not incur any expense in making good any loss or damage without the written consent of the Company and shall not
negotiate, pay, settle, admit or repudiate any claim without the like consent
(h) shall give the Company all such information as the Company may reasonably require.
(i) shall file a report with the police and/or relevant financial institution within 24 hours and must report and submit a claim to the
Company within 30 days of discovery of the unlawful act by the third party as stipulated within Extension (J) - Identity Fraud
Expenses
9. RIGHTS AND RESPONSIBILITIES
The Company shall be entitled:
(a) on the happening of any loss or damage for which indemnity is provided under Sections 1, 2, 7 and 8 to enter any building where
the loss or damage has happened and to take and keep possession of the property insured and to deal with the salvage in a
reasonable manner and this Policy, or any copy thereof certified by the Company, shall be proof of leave and licence for such
purpose but no property may be abandoned to the Company
(b) to undertake in the name and on behalf of the Insured the absolute conduct, control and settlement of any proceedings and to
take proceedings at its own expense and for its own benefit, but in the name of the Insured, to recover compensation or secure
indemnity from any third party in respect of anything covered by this Policy
(c) to pay at any time to the Insured the Limit of Indemnity under Section 3 or any lesser amount for which any claims can be settled
and upon such payment the Company shall relinquish conduct and control of and be under no further liability under that Section
in connection with such claim or claims except for costs or expenses recoverable from the Insured or incurred with the written
consent of the Company in respect of the conduct of such claim or claims before the date of such payment
10. FORFEITURE
If any claim under this Policy is fraudulent or if any fraudulent means or devices are used by the Insured or anyone acting on his
behalf to obtain any benefit under this Policy, all benefit hereunder shall be forfeited.
11. TRANSFER OF INTEREST
Unless otherwise expressly stated nothing contained herein shall give any rights against the Company to any person other than the
Insured. Further the Company shall not be bound by any passing of the interest of the Insured otherwise than by death or operation
of law unless and until the Company shall by endorsement declare the insurance to be continued. The extension of the Company's
liability in respect of the property of any person other than the Insured shall give no right of claim hereunder to such person, the
intention being that the Insured shall in all cases claim for and on behalf of such person and receipt by the Insured shall in any case
absolutely discharge the Company's liability hereunder.
12. CANCELLATION
This Policy may be cancelled at any time at the request of the Insured in writing to the Company and the Premium shall be adjusted
on the basis of the Company receiving or retaining the customary short-term premium or minimum premium of $65.00 provided no
claims has been made under the policy. No refund shall be given where a claim has been lodged under the policy. The Policy may
also be cancelled by the Company by seven (7) days' notice given in writing to the Insured at his last known address and the Premium
shall be adjusted on the basis of the Company receiving or retaining pro rata premium, subject to minimum premium of $65.00.

13. ARBITRATION
If any difference shall arise as to the amount to be paid under this Policy (liability being otherwise admitted) such difference shall be
referred to an arbitrator to be appointed in accordance with the statutory provisions in that behalf for the time being in force. Where
any difference is by this condition to be referred to arbitration the making of an award shall be a condition precedent to any right of
action against the Company.
Unless any such action or suit be commenced within six (6) months of the making of an award the Company shall not be liable to
make any payment in excess of the amount of the award.
14. SUBROGATION OF RIGHTS
The Insured shall at the expense of the Company do and concur in doing and permit to be done all such acts and things as may be
necessary or reasonably required by the Company for the purpose of enforcing any rights and remedies or of obtaining relief or
indemnity from other parties to which the Company shall be or would become entitled or become necessary or required before or
after his indemnification by the Company.
ADDITIONAL ENDORSEMENTS
The following endorsements shall apply to this Policy unless otherwise stated and/or deleted in the Policy Schedule.
CONDITION PRECEDENT IN THE POLICY

The validity of this Policy is subject to the condition precedent that:
(a) for the risk insured, the named insured has never had any insurance terminated in the last twelve (12) months due solely or in part
to a breach of any premium payment condition; or
(b) if the named insured has declared that it has breached any premium payment condition in respect of a previous policy taken up with
another insurer in the last twelve (12) months:
(i) the named insured has fully paid all outstanding premium for time on risk calculated by the previous insurer based on the
customary short period rate in respect of the previous policy; and
(ii) a copy of the written confirmation from the previous insurer to this effect is first provided by the named insured to the Company
before cover incepts.
TERRORISM EXCLUSION ENDORSEMENT

Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this insurance excludes
loss, damage cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of
terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss.
For the purpose of this endorsement an act of terrorism means an act, including but not limited to the use of force or violence and/or the
threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organization(s) or
government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government
and/or to put the public, or any section of the public, in fear.
This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in
connection with any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism.
If the Underwriters allege that by reason of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden
of proving the contrary shall be upon the Assured.
In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect.
CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 2001

A person who is not a party to this Policy contract shall have no right under the Contracts (Rights of Third Parties) Act 2001 to enforce any
of its terms.
CLARIFICATION CLAUSE
Property damage covered under this Policy shall mean physical damage to the substance of property.
Physical damage to the substance of property shall not include damage to data or software, in particular any detrimental change in data,
software or computer programs that is caused by a deletion, a corruption or a deformation of the original structure.
Consequently the following are excluded from this Policy:

A. Loss or damage to data or software, in particular any detrimental change in data, software or computer programs that is caused by a
deletion, a corruption or a deformation of the original structure, and any business interruption losses resulting from such loss or
damage. Notwithstanding this exclusion, loss of or damage to data or software which is the direct consequence of insured physical
damage to the substance of property shall be covered.
B. Loss or damage resulting from an impairment in the function, availability, range of use or accessibility of data, software or computer
programs, and any business interruption losses resulting from such loss or damage.
PREMIUM PAYMENT WARRANTY CLAUSES

This Policy is subject to a Premium Payment Warranty Clause in the following. The application of the clause is determined from its
relevance to the context specified within each clause.
• PAYMENT BEFORE COVER WARRANTY
This clause applies where the Policy is issued to an Individual.
1. The premium due must be paid to the insurer (or the intermediary through whom this Policy was effected) on or before the inception
date (“the inception date”) or the renewal date of the coverage. Payment shall deemed to have been effected to the Insurer or the
intermediary when one of the following acts takes place:

2. In the event that that the total premium due is not paid and actually received in full by the Insurer (or the intermediary through whom
this Policy was effected) on or before the inception date or renewal date, then the insurance shall not attach and no benefits
attached.
3. In respect of coverage with “Free Look” provision, the Insured may return the original policy document to the Company or
intermediary within the “Free Look” period if the Insured decides to cancel the cover during the “Free Look” period. In such an event,
the Insured will receive a full refund of the premium paid to the Company provided that no claim has been made under the insurance.
• PREMIUM PAYMENT WARRANTY (1 May 2005)

This clause shall apply where the Policy is issued to a corporate entity, Period of Insurance is more than sixty (60)
days and premium is below $100,000 in any single Policy, Renewal Certificate or Cover Note.
1. Notwithstanding anything herein contained but subject to clause 2 hereof, it is hereby agreed and declared that if the period of
insurance is sixty (60) days or more, any premium due must be paid and actually received in full by the Company (or the intermediary
through whom this Policy was effected) within sixty (60) days of the:-
(a) inception date of the coverage under the Policy, Renewal Certificate or Cover Note; or
(b) effective date of each Endorsement, if any, issued under the Policy, Renewal Certificate or Cover Note.
2. In the event that any premium due is not paid and actually received in full by the Company (or the intermediary through whom this
Policy was effected) within the sixty (60) day period referred to above, then:-
(a) the cover under the Policy, Renewal Certificate, Cover Note or Endorsement is automatically terminated immediately after the
expiry of the said sixty (60) day period;
(b) the automatic termination of the cover shall be without prejudice to any liability incurred within the said sixty (60) day period; and
(c) the Company shall be entitled to a pro-rata time on risk premium subject to a minimum of S$25.00 or the minimum premium
applicable for the policy.
3. If the period of insurance is less than sixty (60) days, any premium due must be paid and actually received in full by the Company (or
the intermediary through whom this Policy was effected) within the period of insurance.

Appendix 2B
PACKAGED HOUSEHOLD INSURANCE
- SAMPLE OF ALTERNATIVE PLANS AND PREMIUMS APPLICABLE
Sum Insured (up to)
Household Insurance Benefits
Plan A Plan B Plan C
1. Home Contents & Renovations
Home Contents - household contents and personal
(i) S$60,000 S$90,000 S$130,000
belongings
(ii) Renovations - improvements and additions to your S$85,000 S$125,000 S$160,000

Home not forming part of the Building
Physical loss or damage to your Home Contents and

Renovations caused by fire, lightning, domestic
explosion, windstorm, flood, bursting or overflowing of
water tanks, pipes, earthquake, volcanic eruption,
aircraft, impact by land vehicles, riot, civil commotion,
malicious acts, theft or burglary in your home
Total S$145,000 S$215,000 S$290,000
2. Worldwide Personal Liability
Personal legal liability for you and your family including
liability as a tenant for up to S$500,000 S$1,000,000
Property Owner's Liability in the aggregate
Legal liability arising from your ownership of the
Building provided cover for the Building is taken up
3. Worldwide Accident Protection
Covers you, your spouse or your child(ren) in the event S$30,000 S$40,000 S$40,000
of death by accident per adult per adult per adult
S$20,000 S$25,000 S$25,000
per child per child per child
S$85,000
S$60,000 S$85,000
in the
in the aggregate in the aggregate
aggregate
Hospital Cash Benefit
Daily cash benefit due to hospitalisation as a result of an S$60 per day per S$85 per day S$85 per day
Injury to you, your spouse or your child(ren) - up to 90 person per person per person
days
4. Emergency Home Assist
Access to 24-hour Helpline for assistance in Singapore:
•Telephone medical advice
•Plumber referral
Included
•Locksmith assistance
•Private medical transportation
•Electrician referral
Additional Benefits
1. Alternative Accommodation or Loss of Rent
Cost of reasonable alternative accommodation, or
rent which continues to be payable by you or rent Up to 5% of the Sum Insured under Home
payable to you while your home remains Contents and Renovations
uninhabitable
2. Removal of Debris
Cost incurred for removal of debris following damage
Up to 5% Sum Insured under Home Contents and
to items covered under Home Contents and
Renovations
Renovations
3 Fire Extinguishment Expenses
Cost of replenishment of fire fighting appliances in
S$2,500 S$3,500 S$3,500
your home
4. Replacement of Locks/Keys
Cost of replacing locks and keys to external doors S$1,000 S$1,250 S$1,250
5. Cost of Temporary Protection
Cost of temporary boarding up or protection pending
repairs or replacement following damage to items S$2,000 S$2,500 S$2,500
covered under Home Contents and Renovations
6. Contents Temporarily Removed

Contents temporarily removed from your home for up
to 14 days to any residential building or hotel in
S$8,000 S$12,500 S$15,500
Singapore after a loss or damage subject to $500 any
one item
7. Conservancy Charges
Pays your monthly service and conservancy charges
in the event your home is uninhabitable following loss S$1,000 S$1,250 S$1,250
or damage
8. Accidental Death of Domestic Pet
Death by accident of your domestic dog or cat in your
S$1,000 S$1,250 S$1,250
home
9. Loss of Money
Loss of personal money due to burglary in your home S$1,000 S$1,250 S$1,250
10. Emergency Cash Allowance
Pays for the purchase of essential clothing or personal
effects in the event your home is uninhabitable due to S$1,000 S$1,250 S$1,250
a loss or damage for 5 days or more
11. Fraudulent Use of Credit/ATM cards
Monetary loss due to unauthorised use of credit cards
S$1,000 S$1,250 S$1,250
or ATM cards taken from your home by third parties
12. Accidental Breakage of Fixed Mirror & Glass S$1,500 S$2,000 S$2,000
13. Deterioration of Frozen Food
Cost to replace deteriorated frozen food in the deep
freezer of your refrigerator of less than 5 years old S$1,000 S$1,250 S$1,250
due to failure of the freezer
14. Damage to Security Systems
Damage as a result of theft or any attempt threat S$1,000 S$1,250 S$1,250
15. Fraud or Dishonesty of Domestic Servants
Monetary loss suffered due to fraud or dishonesty of
Not Covered S$1,000 S$1,000
your domestic servants living in your home
Optional Cover
1. Building
Physical loss or damage to your residential
Sum Insured shall reflect the cost of reinstatement
Building caused by fire, lightning, domestic
of the house, apartment or flat, including walls,
explosion, windstorm, flood, bursting or
gates, fences, footpath, swimming pool, patios,
overflowing of water tanks, pipes, earthquake,
terraces, driveways, permanent fixtures and
volcanic eruption, aircraft, impact by land vehicles,
fittings at the insured address, but excludes
riot, strike, civil commotion, malicious acts, theft or
foundations and drains.
burglary into your home
Additional Benefits
1. Building Fees and Cost
Professional fees of Architects, Surveyors and
Covered under Building Sum Insured
Engineers, clearing and shoring up
2. Property Owner's Liability
Your legal liability to third parties by reason of your S$2,000,000
ownership of the Building In the aggregate with Worldwide Personal Liability
Annual Premium (inclusive of GST) Plan A Plan B Plan C

Premium S$128.70 S$187.20 S$245.70
Optional Cover
S$4.68 per S$10,000 Sum Insured
1. Building
Minimum S$50,000
Additional Cover - Applicable to Plan C only
2. Contents
Minimum S$10,000
3. Renovations
Minimum S$10,000
Appendix 2C
Tel: (65) 6789 8181 Fax: (65) 6789 8282
PROPOSAL FORM FOR PACKAGED HOUSEHOLD INSURANCE

IMPORTANT NOTES
1. Under Section 23(5) of the Insurance Act 1966 or any subsequent amendment thereof, you are to disclose in this Application form,
fully and faithfully, all the facts which you know or ought to know, otherwise the policy issued may be void.
2. Please complete all sections on this form (IN BLOCK LETTERS), in order to avoid unnecessary delay in the processing of this
application.
PARTICULARS OF APPLICANT
Name (in Full) Mr Ms Mrs Mdm Dr Joint Names (where applicable)
NRIC/Passport No. Nationality
Gender Male Female Date of Birth Age Marital Status
Address Contact Numbers

Singapore_____________________________ Mobile Home Office
E-mail address Occupation/Profession
DETAILS OF PROPERTY
Address of property to be insured (if different from Address above) Name of Mortgagee (if any)
Singapore_____________________________
Type of Property Flat Terrace Condominium Bungalow Semi-detached
Is the building/house occupied by Owner Tenant As Tenant Others (Please Specify:

______________________
SUMMARY OF INSURANCE COVERAGE

Insurance to commence Coverage Required and Annual Premium Payable (Please tick):
From (DD/MM/YYYY) Plan A S$ 53.50 Plan B S$ 82.93
Plan C S$ 120.38 Plan D S$ 163.18
To (DD/MM/YYYY)
Flexible (please complete below)
Cover Sum Insured (S$) Rate Premium (S$)

1(a) Building S$2.50 per S$10,000 Sum insured
1(b) Fixtures, Fittings & Renovation S$2.50 per S$10,000 Sum insured
2 Contents S$15 per S$10,000 Sum insured
3 Personal Liability S$15 per S$250,000 Sum insured
Premium – 1 to 3 (please add prevailing GST)
Total Premium (1 to 3 + package)
QUESTIONNAIRE
1. During the last 3 years, have you ever suffered or incurred any loss under a similar insurance? Yes No
2. Have you been declined or accepted on special terms under a similar insurance within the last 2 years? Yes No
If the answer to any of the above questions is YES, please provide on separate sheet of paper and attach.
DECLARATION
1. I/We declare that the above answers are full, complete, and true and agree that they shall form part of my/our application which shall be the basis of
the contract of insurance.
2. I/We declare that no such insurance has been terminated in the last 12 months due to breach of any premium payment condition.
3. I/We understand that this Policy shall only be effective following premium payment and subject to the acceptance and approval of this application by
ABC Insurance Company (Singapore) Ltd.
Signature of Applicant Date
Appendix 2D
ABC INSURANCE COMPANY (SINGAPORE)
LIMITED
Tel: (65) 6789 8181 Fax: (65) 6789 8282
PACKAGED HOUSEHOLD INSURANCE CLAIM FORM

Important Notice
1. The acceptance of this form is not an admission of liability on the part of the Company.
2. All documents provided to substantiate your claim must be original documents.
3. All medical reports must be submitted at the claimant expense.
Agency: _____________________________________________ Claim No.: ______________________

.PARTICULARS OF POLICY & POLICYHOLDER
Name (in Full) NRIC/Passport No
Home Address Home Tel. No.
Singapore Handphone No.

_________________________
Business / Occupation Office Tel. No.
Policy / Certificate No. Date of Expiry
CIRCUMSTANCES OF CLAIM
Date of Accident / Illness Time of Accident / Illness
State clearly how the loss or damage occurred. Please provide copy of police report if applicable.
Is there any other insurance in force covering this loss?

Yes Which Insurance Company? ___________________________________________________Policy No.___________________________________
No
Have you or any Insured person ever previously sustained a loss of this nature or made any previous claim of a similar nature before?
If so, please state details.
DETAILS OF THE CLAIM
Give a description of the property insured and state clearly Nature and Extent of Loss or Damage. If insufficient space, use space at the back of the form
Approximate
Value:________________________________________________________________________________________________________________________________
Description (Make & Date of Purchase Name & Address from whom goods were purchased Cost Price Amount
Model) Claimed
Are there any steps taken to prevent a recurrence? Please give details.
Are you the sole owner of the property damaged or lost?

Yes No
If ‘NO’, please state particulars of any other parties’ interest.
Is the property subject to a hire purchase or loan agreement?

Yes No
If “YES’, please give details.
Please state whether there has been any alteration in the occupation or use of the property since the Policy was taken up?
Yes No
If ‘YES’, please give details.
DECLARATION
I/We Declare that the particulars stated above are true and correct and understand that if I/We have in this or in any further declaration in respect of this
claim, made any false or fraudulent statement or suppress conceal or falsely state any material fact whatsoever, my/our claim may be refused. I/We
further authorize the Company to treat the submission of this form as my/our making a claim under my/our policy.
Signature of Policyholder Date
Name of Policyholder NRIC Number

Appendix 2E
LIMITED
Tel: (65) 6789 8181 Fax: (65) 6789 8282
VALUABLE ARTICLES INSURANCE
Whereas the insured has by a proposal which the Insured has agreed shall be the basis of this contract and be held as incorporated herein
applied to the Company for the Indemnity hereinafter contained.
In consideration of the Insured paying to the Company the Premium the Company hereby agrees to insure against loss or damage to the
extent and in the manner hereinafter provided.
This Policy and Schedule attached shall be read together as one contract and words and expressions to which specific meanings have
been given in any part of this Policy or of the Schedule shall bear such specific meanings wherever they appear.
For the Company
THE SCHEDULE Policy No.
Insured:…………………………………………………………………………
…
……………………………………………………….…………………………….
Address:….…………………………………………….………………………
Written Proposal
……………………………………………………………………….……………
…. Form Dated:
Location(s) of Insured Property:
Territorial Limits:
* Including/Excluding Transits * (Delete as appropriate)
Property Insured: As per specification attached
Total Sum Insured:
Protections (delete sections not applicable):
1. As per written proposal form.

2. Alarm System: (i) Type: 999/Central Station/Bell
(ii) Installing Company ………………………………...………………………………………
3. Locks (a) Doors (i) Type ………………………………………………………………………….………………
(ii) Make …...……………….……………………………………………………………………
(b) Windows (i) Type ……………………………….…………………………………………………………
(ii) Make …...…………………………………….………………………………………………
4. Other Protections:
..………………………………………………………………………………………………………….………………………………...……………………..
…………………………………………………………………………………………………………………………………….……………………………....
Period of Insurance:
Commencing:
Both days inclusive
Ending:
Premium:
Signed at Singapore on
COVERAGE
This Policy insures against all risks of physical loss of or damage to the property as described in The Schedule while at the locations named in
The Schedule occurring during the Period of Insurance subject to the following terms, conditions, and exclusions.
EXCLUSIONS
This insurance does not cover:
(A) Any loss or damage caused by or resulting from:-

(i) wear, tear, gradual deterioration, inherent vice, rust or oxidisation;
(ii) moth or vermin;
(iii) work done in the course of any refinishing, renovating, repairing, restoring, reframing or similar process;
(iv) mechanical or electrical breakdown or derangement;
(v) breakage of articles of a brittle or fragile nature unless such breakage is caused by burglars, thieves or fire;
(vi) loss or damage caused by climatic or atmospheric conditions or extremes of temperatures, unless such loss or damage is
caused by storm, tempest, cyclone, hurricane, tornado, flood, earthquake or volcanic eruption;
(vii) breakage of picture glass, but includes damage done by broken glass to the property insured;
(viii) pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds.
(B) (a) Loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom
or any consequential loss;
(b) Any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from
(i) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the
combustion of nuclear fuel;
(ii) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component
thereof.
(c) Any loss or damage directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign
enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or
confiscation or nationalisation or requisition or destruction of or damage to property by or under the order of any government or
public or local authority.
CONDITIONS
(i) Pairs and Sets
In the event of loss or damage to any item or items having a special or increased value by virtue of forming part of a pair or set, this
insurance shall not take into account of any such special or increased value, but shall only pay a proportionate part of the insured
value of such pair or set.
(ii) Settlement of Loss

The company’s liability in respect of any item hereon shall not exceed either the market value of such item immediately prior to the
loss, or the sum insured relating to such item, whichever is the less.
(iii) Partial Loss

In the event of partial loss or damage to any item insured hereon, the Company’s liability shall be limited to that proportion of such
loss or damage which the sum insured bears to the market value of the item immediately prior to the loss.
(iv) Alarm and Protections

It is a condition precedent to the liability of the Company as regards burglary, housebreaking and theft that:
(a) the protections specified in The Schedule shall be put into full and effective operation at all times when the premises are left
unattended and shall at all other reasonable times;
(b) alarm systems (where fitted) shall be regularly maintained under contract with the installing alarm company;
(c) such protections shall not be withdrawn or altered to the detriment of the interests of the Company without its prior written
consent.
(v) Subrogation
If the Company becomes liable for any payment under this insurance in respect of a loss, the Company shall be subrogated, to the
extent of such payment, to all the rights and remedies of the Insured against any party in respect of such loss and shall be entitled at
its own expense to sue in the name of the Insured. The Insured shall give to the Company all such assistance in his power as the
Company may require to secure their rights and remedies and, at the Company’s request, shall execute all documents necessary to
enable the Company effectively to bring suit in the name of the Insured.
(vi) Fraud
If the insured shall make any claim knowing the same to be false or fraudulent as regards the amount or otherwise this Policy shall
become void and all claims hereunder shall be forfeited.
(vii) Transits
Where transits are included this insurance shall not pay:
(a) for loss or damage caused by or resulting from theft of or from any unattended vehicle;
(b) for loss or damage to any item not adequately packed and secured having regard to the nature of the item and the
circumstances of the transit.
(viii) Notice of Loss

It is a condition precedent to the Company’s liability that in event of loss or damage likely to involve a claim under this insurance
immediate notice is to be given to the Company, and the Police if appropriate.
(ix) PAYMENT BEFORE COVER WARRANTY

This clause applies where the Policy is issued to an Individual.
1. The premium due must be paid to the insurer (or the intermediary through whom this Policy was effected) on or before the inception
date (“the inception date”) or the renewal date of the coverage. Payment shall deemed to have been effected to the Insurer or the
intermediary when one of the following acts takes place:
a) Cash or honoured cheque for the premium is handed over to the Insurer or the intermediary;
b) A credit or debit card transaction for the premium is approved by the issuing bank.
c) A payment through an electronic medium including the internet is approved by the relevant party.
d) A credit in favour of the insurer or the intermediary is made through an electronic medium including the internet.
2. In the event that that the total premium due is not paid and actually received in full by the Insurer (or the intermediary through whom
this Policy was effected) on or before the inception date or renewal date, then the insurance shall not attach and no benefits
attached.
3. In respect of coverage with “Free Look” provision, the Insured may return the original policy document to the Company or
intermediary within the “Free Look” period if the Insured decides to cancel the cover during the “Free Look” period. In such an event,
the Insured will receive a full refund of the premium paid to the Company provided that no claim has been made under the insurance.
CHAPTER 3
PERSONAL ACCIDENT INSURANCE
CHAPTER OUTLINE
1. Introduction
2. Differences From Life Insurance
3. Definition Of Accident
4. Scope Of Cover
5. Geographical And Age Limits
6. Family Policies
7. Exclusions
8. Extensions
11. Termination
12. Claim Documents
Appendix 3A – Personal Accident Insurance Policy
Appendix 3B – Summary Of Benefits
Appendix 3C – Personal Accident Claim Form
Appendix 3D – Proposal For Personal Accident Insurance
LEARNING OUTCOMES

▪ understand the purpose of Personal Accident (PA) Insurance and why it is a benefit
policy
▪ identify the key differences between PA Insurance and Life Insurance
▪ understand the common definitions of “accident” under a PA Insurance policy and
their legal significance
▪ understand the scope of cover of PA Insurance.
▪ know the geographical and age limits pertaining to PA Insurance
▪ understand the need for family PA policies
▪ know the exclusions, extensions, policy conditions and underwriting considerations
applicable to PA Insurance
▪ know when PA Insurance terminates
▪ know the various claim documents to be submitted for PA Insurance
3. Personal Accident Insurance
Contents
PERSONAL ACCIDENT INSURANCE .............................................................................. 108
CHAPTER OUTLINE ......................................................................................................... 108
LEARNING OUTCOMES .................................................................................................. 108
1. INTRODUCTION ..................................................................................................... 110
2. DIFFERENCES FROM LIFE INSURANCE ............................................................... 111
3. DEFINITION OF ACCIDENT .................................................................................... 111
4. SCOPE OF COVER .................................................................................................. 113
A. Death ................................................................................................................ 113
B. Permanent Total Disablement (PTD) .............................................................. 113
C. Other Permanent Disablement ....................................................................... 114
D. Temporary Disablement (Total Or Partial) ..................................................... 116
E. Medical Expenses............................................................................................ 116
F. Double Indemnity ............................................................................................ 117
G. Hospital Cash/Income ..................................................................................... 117
H. Incremental Sum Insured ............................................................................... 118
I. No Claim Premium Refund ............................................................................. 118
5. GEOGRAPHICAL AND AGE LIMITS....................................................................... 118
6. FAMILY POLICIES................................................................................................... 118
7. EXCLUSIONS ......................................................................................................... 119
8. EXTENSIONS ......................................................................................................... 120
9. POLICY CONDITIONS............................................................................................. 120
A. Claim Procedures ............................................................................................ 121
B. Changes In Risk ............................................................................................... 121
C. Cancellation ..................................................................................................... 122
D. Observance Of Terms ..................................................................................... 122
10. UNDERWRITING CONSIDERATIONS.................................................................... 122
A. Occupation....................................................................................................... 122
B. Level Of Coverage ........................................................................................... 124
C. Health Impairments......................................................................................... 124
11. TERMINATION ....................................................................................................... 124
12. CLAIM DOCUMENTS ............................................................................................. 125
Appendix 3A .................................................................................................................... 126
Appendix 3B .................................................................................................................... 132
Appendix 3C .................................................................................................................... 133
Appendix 3D .................................................................................................................... 135
1. INTRODUCTION
1.1 The purpose of Personal Accident (PA) Insurance is to provide financial

protection and financial burden relief to the insured against the risk of
accidental death or bodily injury happening to him. In the event of the insured’s
accidental death, this policy will pay a monetary sum to his beneficiary. It also
serves to mitigate potential loss of income and to cover additional expenses
incurred if he is disabled and unable to attend to his usual occupation or work.
1.2 This type of insurance is of particular benefit to individuals who require

financial protection against accidental death, permanent total or partial
disability. In addition, it is of interest to those individuals who require funds to
meet with potentially medical bills for treatment in the event of serious or
protracted accidental bodily injuries, resulting in permanent total disablement.
This type of cover is of particular importance to the self-employed, as it may
provide a means to receive benefits while they are unable to work, on either a
temporary or a permanent basis.
1.3 A PA Insurance policy is not a contract of indemnity1. A contract of indemnity

measures the extent of the insured’s financial loss and the contract indemnifies
or reimburses the insured for the losses that he has incurred. The intention of
an indemnity contract is to place the insured in the same financial position after
the loss as they enjoyed immediately prior to the event that caused the loss.
1.4 On the other hand, a contract of PA Insurance is generally a benefit policy1 (i.e.
a contract to pay a sum of money in the event of a specified contingency),
irrespective of whether or not the insured sustains a financial loss. Hence, there
is no need to prove the quantum of loss, unlike a contract of indemnity. For
example, if an insured, whose occupation is that of a sales manager, loses his
small toe in an accident, the PA Insurance policy will pay the insured amount
as specified in the policy. It does not matter that the loss of his toe does not
cause any financial loss to the insured, as he can still carry on with his usual
work as a sales manager.
1.5 A PA Insurance can be issued as a stand-alone policy or bundled with other

types of insurance; e.g. under Motor Insurance, Packaged Household Insurance,
Foreign Domestic Worker Insurance, Golfer’s Insurance, and Travel Insurance.
Some banks offer, as part of a “privilege” or “benefit” scheme to their credit
card customers, “free” PA Insurance, when they sign up as credit card member,
or when they make charges, e.g. charging travel fares to their credit cards. PA
Insurance can also be included as a “rider” to a Life Insurance policy. As it is a
low-cost coverage, insurers commonly package PA Insurance into relevant
personal line products.
1
Discussions on the concepts of “contracts of indemnity” and “benefit policy” are in the “Basic Insurance Concepts &
Principles” Study Text published by the Singapore College of Insurance Limited.
2. DIFFERENCES FROM LIFE INSURANCE
2.1 Both life and PA Insurance policies provide death benefits; however, there are
differences between the two classes of insurance.
2.2 Firstly, PA Insurance covers death by accident, but does not cover death from
natural causes, for example, disease, illness, and sickness. Life insurance covers
both causes accidental and natural. Thus, PA Insurance does not constitute a
policy of life insurance in accordance with the Insurance Act 1966, and a general
insurance company does not need to hold a life insurance licence to transact
PA Insurance business. Therefore, numerous life and general insurance
companies offer PA Insurance policies.
2.3 Secondly, almost all life insurance policies (except Term Life policies) offer
savings or investment benefits on top of death benefits. In addition,
Endowment Insurance policies pay the sum assured (i.e. living proceeds) if the
insured survives to the maturity date of his insurance policy. The amount
payable at maturity frequently includes bonuses reflecting the investment
income. In contrast, when an insured purchases a PA Insurance policy, the
premiums paid reflect the cost of insurance (i.e. insurer’s liability for injuries or
deaths suffered by insureds). Hence, a PA Insurance policy does not carry any
saving or investment benefit or any bonus or dividend reflecting the investment
income.
3. DEFINITION OF ACCIDENT
3.1 All PA Insurance policies cover the consequences of accidental death or bodily
injury. Although definitions may vary, common examples of the wording of the
“accident” clause are as described below:
“… bodily injury which is caused solely, directly, and independently of
any other cause by external means and which results in ...”
“... bodily injury caused by violent accidental external and visible means
which is the sole cause of death or disablement …”
3.2 The words highlighted below bear legal significance:

(a) “Solely And Directly”
The effect of this phrase is to require that the bodily injury shall have been
caused solely and directly by the accident; i.e. be “proximately” caused
by the accident. This applies as long as there are no other causes that have
also contributed to the injury.
For example, a man has fallen from his bicycle, and – as he is so badly
injured – he is unable to get up. He lies on the wet ground until someone
picks him up. As a result, he catches a chill that develops into pneumonia,
and he dies. In this case, as the proximate cause of his death is the
accident (i.e. the fall from the bicycle), the death benefit will be payable
under a PA Insurance policy.
In another case, a man breaks a leg and taken to a hospital, where he

contracts an infectious disease from another patient with fatal results. His
death is not the sole and direct result of the accident, as the infectious
disease constitutes a break in the chain of causation. Hence, this claim will
not be admissible under the PA Insurance policy.
(b) “Accident/Accidental”
An accident is an event that is fortuitous, sudden, unexpected,
unintended, or unforeseen. It does not include the progressive cumulative
result of a series of small incidents. For example, an accident is not the
cause of damaged ligaments and tendons that are the result of the
frequent and long-term use of a pneumatic drill.
(c) “External”
This simply means the opposite of “internal”, i.e. if an accidental means
is not internal, it must then be external. This excludes accidents caused by
existing physical defects, for example, the bursting of a blood vessel
behind the eye, resulting in the loss of sight of that eye.
(d) “Violent And Visible Means”

The smallest violence suffices. The term “visible” excludes death caused
by inhalation of fume or gas.
(e) “Bodily Injury”

The use of this term excludes disease from natural causes, but disease
proximately caused by accidents constitutes bodily injury (unless
specifically excluded by the policy).
3.3 It is important to distinguish between cause and effect. The means or cause of
the accident must conform to the definition used, but the result or effect need
not be external or visible, so long as it is bodily injury.
3.4 The wording used will vary between insurers and the question of whether a
particular claim is payable will depend on the exact policy wording used (see
Appendix 3A for a sample PA Insurance policy). For example, some policies
simply specify accident or accidental as a sudden, unexpected event which
happens during the period of insurance and which must be the only cause of
bodily injury by an external force. This may mean a wider scope of coverage.
4. SCOPE OF COVER
4.1 A PA Insurance policy usually includes a scale of benefits to provide a lump

sum payment (or capital sum) or weekly benefit following an accident that
results in death or bodily injuries as specified. A sample of a “Summary of
Benefits” is in Appendix 3B. Let us now consider these policy benefits.
A. Death2
4.2 The death benefit often has a condition attached to it that stipulates that death
must occur within a certain period (e.g. 12 months) from the accident that gives
rise to the claim.
4.3 The compensation is in the form of a capital benefit payment made by the
insurer, which usually equals the full amount of the sum insured. Some insurers
offer insureds the option of selecting from a few levels of death benefits at the
time of application (e.g. amount of capital sum insured commonly between
S$50,000 to S$500,000).
4.4 In addition to the death benefit, some insurers also pay extra benefits, such as
a lifestyle maintenance benefit (e.g. S$1,000), compassionate cash relief benefit
(e.g. S$2,000), and/or funeral or bereavement grant (e.g. S$3,000).
B. Permanent Total Disablement (PTD)
4.5 This policy benefit is in respect of permanent total disablement resulting from
an accident. Compensation is usually in the form of a cash lump sum, which is
the same amount as the death benefit. As with death benefit, the PA Insurance
policy will only pay the insured capital benefits for disablements suffered within
a defined period, for example, 12 months after an accident.
4.6 The usual PTD definition employed by insurers is a permanent total

disablement that prevents a person from engaging in any business or gainful
occupation of any kind. For example, a surgeon may be unable to follow his
profession following an injury to his hands but may be quite capable of
pursuing work as a lecturer. Under this PTD definition, he will not be entitled to
benefit under permanent total disablement.
2
Note that insurers are generally reluctant to consider proposals for PA Insurance without death cover.
4.7 The following types of disablement usually qualify for the same (or higher)
benefit under permanent total disablement:
▪ loss of sight of both eyes;
▪ loss of both limbs;
▪ loss of one limb;
▪ loss of sight of one eye;
▪ loss of speech; or
▪ loss of hearing
4.8 The usual definition of a loss of a limb is the loss of a hand at or above the wrist
or elbow, or of a foot at or above the ankle or knee. Loss of limb usually means
total and permanent functional loss of use, not necessarily physical severance
or amputation. Loss of eyesight usually means total and irrecoverable loss of
sight.
4.9 Some policies also include total paralysis, incurable insanity, injuries resulting
in being permanently bedridden or being unable to perform three or more
Activities of Daily Living (ADLs), following an accident to constitute permanent
total disablement. ADLs are Washing, Dressing, Feeding, Toileting, Mobility,
and Transferring, as specifically defined in the policy.
4.10 In addition, some insurers will pay a monthly income benefit (e.g. S$3,000) for
six months in the event of permanent total disablement as specified, provided
the insured has been gainfully employed or engaged in any registered business
at the time of the accident. Therefore, insurers do not normally offer this benefit
to a homemaker or student.
C. Other Permanent Disablement
4.11 Some insurers are prepared to provide benefits for the loss of parts of limbs,
e.g. thumbs, fingers, and toes. The percentage of the capital sum paid for such
disabilities is usually a smaller percentage of the capital sum insured than that
paid for the loss of an entire limb or eyesight, and often varies according to the
actual loss of the limb: for example, 20% for a thumb, 10% for a finger, and 5%
for a big toe. This cover is of particular benefit to a person who relies on his
hands for a profession, such as a surgeon or professional musician.
4.12 Even if the insured is not engaged in one of these professions, a policy that
covers permanent disablement will be of immense benefit to the insured. The
possibility of a person losing part of a limb in an accident is more likely than
the loss of an entire limb or eyesight.
4.13 Some PA Insurance policies cover burns, with benefit limits usually depending
on the extent of damage to the total body surface area. When covered, Third
Degree Burns are customarily subject to varying percentages (commonly
ranging from 50% to 100% of the capital sum insured).
4.14 Usually, disablement benefits are reflected under a “Table of Compensation”,

especially so if the policy covers other permanent disablements. The table
combines all permanent disablement benefits in one scale, with the
compensation payable represented as a fixed percentage of the capital sum
insured.
4.15 The following Table 3.1 is an example of the disablement benefits offered under
the “Table of Compensation”:
Table 3.1: Table Of Compensation

Percentage Of
Description Of Permanent Disablement Capital
Sum Insured
(A) Permanent Total Disablement 100%
(B) Loss of sight of both eyes 100%
(C) Loss of two or more limbs, or all fingers and thumbs 100%
of both hands
(D) Loss of one limb and sight of one eye 100%
(E) Loss of sight of one eye 50%
(F) Loss of one limb 50%
(G) Loss of speech 50%
(H) Loss of hearing in both ears 50%
(I) Loss of all fingers and a thumb of one hand 50%
(J) Loss of all fingers of one hand 40%
(K) Loss of hearing in one ear 20%
(L) Loss of a thumb 20%
(M) Loss of any one finger 10%
(N) Loss of all toes of one foot 15%
(O) Loss of a big toe 5%
(P) Loss of any one other toe 2%
(Q) Third degree burns (damage as a percentage of total
body surface)
(1) Head:
(a) equal to or greater than 8% 100%
(b) equal to or greater than 5% but less than 8% 75%
(c) equal to or greater than 2% but less than 5% 50%
(2) Body:
(a) equal to or greater than 20% 100%
(b) equal to or greater than 15% but less than 20% 75%
(c) equal to or greater than 10% but less than 15% 50%
4.16 The aggregate of all percentage payable in respect of any one accident during
the period of insurance (usually 12 months) shall not exceed 100% of the capital
sum insured.
4.17 For any disability not listed, the insurer will often compare it with the scale to
find an appropriately equivalent disability and pay that benefit.
4.18 There are insurers whose PA Insurance policies pay 100% of the capital sum
insured for item (E) Loss of sight of one eye or (F) Loss of one limb. Some
insurers’ policies will also pay 150% of the capital sum insured for item (A)
Permanent Total Disablement.
D. Temporary Disablement (Total Or Partial)
4.19 If the accident causes temporary total disablement, the insurer will pay weekly
benefits to the insured, usually payable for up to 104 weeks. The amount
payable is lower than the capital sum benefits payable under permanent total
disablement, such as 1% of the capital sum insured.
4.20 The definition for temporary total disablement is usually less restrictive than
that of permanent disablement, in that the requirement for cover to operate is
that the insured is unable to perform every duty pertaining to the insured’s
profession or occupation. The surgeon – who is unable to follow his profession
following an injury to his hands but is capable of working as a lecturer – used
in the previous example, will be entitled to benefit under temporary
disablement according to the definition.
4.21 Temporary partial disability, when included, provides even lower levels of
benefit than temporary total disablement (about half of the benefits) where the
insured is incapable of attending to a definite part of his normal duties.
E. Medical Expenses
4.22 This covers reimbursement of medical expenses necessarily and reasonably

incurred within a period of time (e.g. 12 months) for the treatment of bodily
injuries following an accident. The cover provides a prescribed insured limit,
commonly ranging from S$1,000 to S$15,000 per accident.
4.23 Medical expenses usually refer to the costs of clinical, medical, surgical, or
other remedial attention, treatment or appliances (such as crutches,
wheelchairs, surgical implants, and prosthetic devices) supplied or prescribed
by a qualified member of the medical profession. In addition, it includes all
hospital, nursing home, and ambulance charges, including post hospitalisation
care and accidental miscarriage, as well as dental treatment following an
accident.
4.24 Some insurers separately cover up to S$2,000, following an accident, for

mobility aids (such as wheelchair, crutches, ramps or railings) and ambulance
services that are required following the insured’s discharge from hospital.
4.25 Others will also pay for expenses incurred for treatment by a Traditional
Chinese Medicine (TCM) physician, acupuncturist, bonesetter, chiropractor,
herbalist or physiotherapist. Cover is subject to a certain sub-limit, usually for
up to 10% of the limit for medical expenses as covered by the policy.
4.26 Some insurers extend the medical expenses benefit to provide for treatment of
infectious diseases, such as avian influenza, dengue fever, hand foot and mouth
disease, and/or certain other medical outbreaks as specified in the policy.
4.27 Medical expenses payable are subject to the insured amount on a strict
reimbursement basis. Therefore, they do form an indemnity payment, and
contribution will apply if there is more than one policy covering such indemnity
payment in the event of a claim for medical expenses following an accident.
F. Double Indemnity
4.28 As the name implies, some insurers will pay double the amount of the death or
permanent total disablement benefit sum insured, if the accident occurs while
the insured is travelling as a fare-paying passenger on public transport.
4.29 Some insurers also extend the double indemnity benefit to include any accident
resulting from fire, explosion, earthquake, landslide, flood, cyclone, hurricane,
typhoon, or windstorm.
G. Hospital Cash/Income
4.30 This benefit, when offered, provides a fixed daily benefit (e.g. S$100 per day)
based on the period of hospital confinement, irrespective of the actual hospital
charges, up to a certain period (e.g. 90 days). To be payable, the hospitalisation
must have been a result of accidental injury as defined under the main benefit,
and the commencement date of the hospital confinement must be within the
policy period. Hospitalisation resulting from sickness is therefore not covered.
4.31 Some insurers will pay double the daily benefit if the hospital confinement is in
an intensive care unit for treatment of accidental injury.
4.32 There are also insurers that extend this daily benefit to cover confinement in a
hospital for treatment of one of the infectious diseases as specified in the policy.
4.33 In addition, some insurers will pay a recuperation benefit in one lump sum (e.g.
S$500) if the confinement in a hospital, as a result of injury, exceeds a defined
period, for example, 14 consecutive days.
4.34 It is common for insurers to offer the Hospital Cash/Income benefit as a stand-
alone insurance product.
H. Incremental Sum Insured
4.35 Many insurers now reward insureds, who do not make any claims during the
policy period, with additional sums insured at each renewal (without them
having to pay additional premiums). Additional sums insured are in the form of
percentages (e.g. 10%) of the original sums insured, but usually the insurer will
restrict the additions to a maximum number of years (e.g. five years) or a
maximum percentage (e.g. 50%).
I. No Claim Premium Refund
4.36 In place of an increase in sum insured, some insurers may offer a premium
refund, usually subject to the policy having been in force with the insurer for a
minimum of three consecutive years and without any claim during the policy
period under review, with the “no claim premium refund” offset against the
renewal premium. The refund will usually range from 5% to 25% of the
premium, depending on the number of years that the policy has been in force.
5. GEOGRAPHICAL AND AGE LIMITS
5.1 PA Insurance cover is normally worldwide. The normal age limits range from
children from 15 days old, up to adults aged 85. This is especially so if such a
person is insured under an individual policy. Insurers will normally offer lower
benefit limits for elderly persons (e.g. capital sum insured of S$50,000 after the
age of 75 years).
6. FAMILY POLICIES
6.1 Many insurers now offer policies that provide PA Insurance cover for the
insureds and their immediate family members, such as spouses and children.
6.2 It makes sense to insure children. There are substantial costs involved in
employing a nursing attendant to look after an injured child. The usual
requirement for insuring a child is that he must be below the age of 21 years
(sometimes higher, up to 25 years, if the child is still in full-time study), is
unemployed, and unmarried. The minimum age varies with insurer, which can
be as low as 14 days from birth.
6.3 The policy coverage for the family members, if included, will closely follow that
of the main insured; however, the spouse and each child may receive lower
benefits, for example, 25% of the insured’s capital sum insured. There is
generally no limit imposed on the number of children insured under a family
PA Insurance policy.
6.4 A family PA Insurance policy may also provide other cash benefits not found in
a single PA Insurance policy, such as family income and child education funds
in the event of accidental death of the insured, to take care of the children’s
education and tuition fees. For example, some insurers will pay S$10,000 per
child (with a limit of three children) in addition to the death benefit, provided
that the deceased insured was gainfully employed or engaged in any registered
business at the time of the accident.
7. EXCLUSIONS
7.1 Not all risks of accidents are insurable. Generally, a PA Insurance policy
excludes risks relating to those occurrences, which are not strictly accidental
and are within the insured’s control, such as hazardous activities, or those that
arise from fundamental risks, such as war and nuclear risks.
7.2 The common exclusions are:

▪ the insured being under the influence of, or being affected by alcohol or
intoxicating drugs (the exclusion of drugs may state that these are drugs
other than those taken in accordance with treatment prescribed and
directed by a qualified registered practitioner, but not for the treatment of
drug addiction);
▪ self-inflicted injury, suicide, disease or insanity by natural causes;
▪ physical defects which existed prior to an accident;
▪ pregnancy, childbirth, including caesarean operation, abortion,
miscarriage, venereal disease, AIDS (Acquired Immune Deficiency
Syndrome) or AIDS related complex;
▪ the insured’s wilful exposure to needless danger (except in an attempt to
save human life);
▪ any sport which is life-threatening or considered dangerous, thus
increasing the risk of injury or death;
▪ engaging in any armed forces service and operation, except for peacetime
reservist training for national servicemen, military personnel and NSmen
in accordance with the Enlistment Act 1970.
▪ taking part in flying or other aerial activities, except as a fare-paying
passenger in a licensed passenger carrying aircraft; and
▪ war, warlike operations, and nuclear risks.
8. EXTENSIONS
8.1 Subject to negotiation and consideration, the major extended coverage

benefits, as briefly mentioned below, are available:
▪ food and drink poisoning;
▪ bite from an insect or animal;
▪ drowning or suffocation by smoke, poisoning fumes or gas;
▪ disappearance;
▪ exposure to natural elements;
▪ amateur activity or sport participation;
▪ motorcycling or pillion riding;
▪ travelling as a passenger on an unscheduled flight;
▪ hijack, kidnap, murder or assault;
▪ strike, riot and civil commotion;
▪ act of terrorism involving the use of nuclear, chemical or biological weapon;
▪ emergency medical evacuation and repatriation (including repatriation of
mortal remains) back to Singapore, provided this is undertaken by a
specialist company appointed by the insurer;
▪ ambulance fee;
▪ physiotherapy fee;
▪ mobility aids;
▪ home modifications; and
▪ certain infectious diseases treatment.
8.2 As these extensions are only briefly mentioned here, the policy wording should
be carefully checked for details of these extensions which could be subject to
additional premium payments, limitations, or restrictions imposed by the
insurers.
9. POLICY CONDITIONS
9.1 Some of the conditions usually contained in a PA Insurance policy are:

▪ Claim Procedures;
▪ Changes In Risk;
▪ Cancellation; and
▪ Observance Of Terms.
A. Claim Procedures
9.2 The insured must provide the insurer with a claim notification within a certain
period, usually 30 days, although market practice may vary.
9.3 The insured (or the legal personal representative), at his own expense, is
required to furnish certificates, information, and evidence in the form as
required by the insurer. In practice, the insurer issues a printed claim form
(which may be downloaded from the insurer’s website), so drafted as to elicit
the information that is normally required. This must be completed by the
insured himself (or the claimant in the event of accidental death of the insured)
and his medical attendant and returned to the insurer. Appendix 3C contains a
specimen Personal Accident Claim Form.
9.4 If the insurer decides to arrange a medical examination (at its own expense), it
enables the insurer to be satisfied that:
▪ the alleged accident has caused the injuries; and
▪ such injuries are preventing the insured person from working; or
▪ the injury is as described and is causing the disability sustained.
9.5 Sometimes, the insurer has the option of requesting a post-mortem, which is
useful when the insurer suspects that death has resulted from natural causes.
9.6 The various requirements of this condition are conditions precedent to liability,
meaning compliance with them is required, if there is to be a valid claim.
B. Changes In Risk
9.7 Any change in the occupation of the insured has a bearing on the risk,
particularly as the premium is determined mainly according to his occupation.
Hence, there will usually be a condition stating that the insured will give the
insurer written notice of any change of occupation. This enables the insurer to
re-underwrite, if appropriate, to consider continuation of the insurance, the rate
of premium, and any conditions that may be applied.
9.8 Also, it may be common for insurers to further specify that any changes in
“habits, pursuits or of any disease, injury or physical defect or infirmity” be
reported to the insurer, as such factors may influence the risk insured, thus
requiring a review of the premium payable by the insured.
C. Cancellation
9.9 This is similar to the cancellation condition common under almost all insurance
contracts. The cancellation condition enables the insurer to avoid protracted
negotiation in event that the insurer seeks to terminate a risk that becomes
abnormal during the currency of the policy. This may be advisable for example,
because of an unfavourable moral hazard uncovered at the time of settlement
of a claim, such as an insured who suffers what insurers believe is a staged
“accidental injury”, as the insured was heavily in debt and required cash.
D. Observance Of Terms
9.10 This condition protects the insurer’s interest and makes the position clear to the
insured. The insured must dutifully fulfil the conditions before the insurer can
be liable for any claim under the policy.
10.1 Proposal forms are often used in the application process for PA Insurance (see
Appendix 3D for a sample proposal form for PA Insurance).
10.2 Premium rates are the same for men and women, with age being an important
consideration. However, the primary underwriting factor for this class of
business is the profession or occupation of the insured. Another important
factor that affects rating is the level of cover or benefits chosen by the insured,
since a PA Insurance policy offers a wide range of benefits that the insured may
select. Finally, health and physical impairments may also influence the pricing,
since such factors also relate, to a certain extent, to the insured’s susceptibility
to accidents.
A. Occupation
10.3 Individuals who purchase PA Insurance represent many types of occupations.

The pricing of each risk reflects the varying degrees of hazards in the
occupations. White-collar workers such as professionals and office
administrators represent lower and better risks, from the perspective of
frequency and severity of work accidents, when compared to blue-collar
workers (e.g. assembly-line workers, construction workers). Therefore, the
premium for PA Insurance reflects the occupation of the insured at the time of
policy purchase or renewal.
10.4 Occupation provides a fair basis for premium rating, but it is not necessary to
fix a rate for every single occupation. It is sufficient to group similar occupations
into broad classes for rating purposes. Although some insurers may have more
classes of classification, many insurers commonly use three classes for
grouping occupations, such as the examples as described below:
▪ Class I: Persons engaged in professional, managerial, administrative, clerical

and non-manual work solely in the office or similar non-hazardous places,
such as accountants, administrators, dentists, doctors, lawyers, etc.
▪ Class II: Persons engaged in work of a supervisory nature not involved in the
use of machinery or tools, and not exposed to any special hazards, such as
chauffeurs, salesmen (outdoor), surveyors, waiters, tour guides, etc.
▪ Class III: Persons engaged in manual work not of particular hazardous nature,
but involved in the use of machinery or tools, such as contractors,
electricians, hawkers, plumbers, mechanics, etc.
10.5 For each classification, the insurer uses a basic (manual) rate for a stated unit
of coverage, and the premium calculated according to the number of units
required to provide an appropriate coverage. The following Table 3.2 provides
an example of this:
Table 3.2: Example Of Premiums
For Each Annual Premium (S$)

Benefits Amount Of Class Of Occupation
S$ I II III
Death & Permanent
10,000 6.00 7.00 9.00
Disablement
Temporary
100/50
Total/Partial 23.00 29.00 38.00
Per Week
Disablement
Medical Expenses 1,000 15.00 18.00 25.00

3,000 29.00 35.00 47.00
5,000 40.00 48.00 62.00
10.6 The above classification of occupations excludes occupations of a generally

highly hazardous nature, as well as pricing for supplementary benefits. In rating
insureds engaged in hazardous occupations, insurers will usually impose extra
loadings to the standard premium rates. Insurers will usually charge additional
premiums for the additional benefits selected by the insured.
10.7 Insurers will often avoid coverage for specifically hazardous professions, such
as oil riggers; timber loggers; air or sea crew, military, naval or police force
members; horse jockeys; and professional sport personnel. Some insurers will
exclude them entirely, while others will consider additional premiums or special
loadings to cover some of them, depending on the business considerations.
B. Level Of Coverage
10.8 A key point in pricing PA Insurance is to ascertain the level of benefits that the
insured selects to buy. An insured may have a policy for accidental death
protection, as well as permanent total disablement of major limbs and loss of
sight. He may also carry a policy with coverage for other Permanent
Disablement, Temporary Disablement, Medical Expenses, and Hospital Cash
benefits. Hence, the insurer will commonly examine the types of benefits that
an insured wants, before charging the premiums for them.
10.9 However, as insurers normally offer PA Insurance as a “package” plan, the

intending insured can choose the type of plan with the appropriate levels of
benefits and limits to suit his needs.
C. Health Impairments
10.10 PA underwriters should pay special attention to those accidents or illnesses that
appear to be repetitive, as these previous events and impairments are potential
causes of subsequent recurring claims.
10.11 Current health conditions may also require careful examination. Although the
presence of impairment may not necessarily mean an increased risk, instead of
declining cover, it may necessitate other underwriting actions by varying the
policy conditions. For example, if the proposer has lost the sight of one eye, the
underwriter may adjust the benefits payable for total loss of sight and issue an
endorsement accordingly. The underwriter may also exclude coverage for all
claims arising from certain medical conditions that are continuous, and that can
be repetitive in the future.
11. TERMINATION
11.1 Usually, the policy will specify that its coverage terminates, upon the
occurrence of:
▪ death of the insured; or
▪ an injury which causes permanent total disability, such that the
compensation under the policy equals to 100% of the capital sum insured
(or, for some insurers, 150% of the capital sum insured).
11.2 Payment by the insurer in full settlement of the insured’s death or injury claim
as described above shall represent a final and complete discharge of the
insurer’s liability under the policy, and the policy shall thereafter cease to
provide insurance for the insured.
12. CLAIM DOCUMENTS
12.1 Claim documents include the claim form (see sample in Appendix 3C) and other
supporting documents, depending on the types of benefits claimed.
12.2 These supporting documents include:

▪ police report of the accident (if involving malicious intent);
▪ death certificate (for death benefit claim);
▪ medical report (to certify disablement); and
▪ medical certificates, hospital inpatient discharge summary, and original
medical bills, invoices, and receipts (for claiming reimbursement of medical
expenses and/or daily hospital cash or income benefits).
12.3 It is usually a policy condition that all supporting documents for claims are at
the insured’s expense. If an insurer wishes to clarify or confirm a medical
condition, the insurer may require the insured to undergo a medical
examination, usually with one of its appointed panel of doctors and at the
insurer’s expense.
Appendix 3A
LIMITED
Tel: (65) 6789 8181 Fax: (65) 6789 8282
PERSONAL ACCIDENT INSURANCE POLICY
DEFINITION OF WORDS
Certain words have been defined below. These have the same meaning wherever they are used in the Policy or the Schedule. They appear in bold
print (e.g. Insured Person, Injury) or begin with a capital letter (e.g. You, We).
We, Us, Our, the Company

ABC Insurance Company (Singapore) Limited
You, Your, the Insured

The policy owner named as Insured in the Schedule.
Insured Person
Each of the persons named as such in the Schedule who meets the eligibility criteria set out in General Condition 3 of the Policy.
Schedule
The Schedule containing details of the Insured Person(s), type of cover selected and Period of Insurance. The Schedule forms part of the Policy.
Period of Insurance
The period shown in the Schedule, and any further period for which You agree to pay and We agree to accept premium.
Commencement Date
Original inception date of cover under this Policy as shown in the Schedule.
Child
A person named as the Insured Person in the Schedule who is the Insured's biological or legally adopted and unmarried Child aged between one year
to 18 years or 23 years if pursuing full-time education in a recognised tertiary institution within his/her Usual Country of Residence as Singapore.
Accident
An event which happens suddenly and gives rise to a result which the Insured Person did not intend or anticipate.
Injury
Bodily injury suffered anywhere in the world caused solely by Accident and not by sickness, disease or gradual physical or mental wear and tear.
Physician
A qualified medical practitioner other than You, Your relative, the Insured Person or the Insured Person's relative who is licensed by the Medical
Authorities of the country in which treatment is provided to practise Western medicine and surgery, and who in rendering such treatment is practicing
within the scope of his or her licensing and training in his/her geographical area of practice.
Hospital
A lawfully operating institution for the care and treatment of sick and injured persons, which has 24 hours nursing services by registered graduate
nurses, one or more Physicians available at all times and organised facilities for diagnosis and major surgery, which shall not primarily be a clinic, a
place for alcoholics or drug addicts, a nursing, rest or convalescent home, home for the aged or similar establishment.
Chinese Physician
A person other than You, Your relative, the Insured Person or the Insured Person's relative engaging in the practice of traditional Chinese medicine
and/or acupuncture (including a herbalist, bonesetter or chiropractor), who is duly licensed or registered to practise according to the laws and
regulations applicable in the geographical area of his/her practice.
Daily Hospitalisation Cash Benefit

Cash benefit payable at an agreed sum per day in the event of an Insured Person's confinement in a Hospital for a continuous uninterrupted period of
at least 24 hours upon the advice of a Physician for which the Hospital makes a charge for room and board.
Usual Country of Residence

The country in which the Insured Person is usually living at the inception of this insurance. As a condition precedent to liability, the Company must
be informed in writing of any change in the Usual Country of Residence. A permanent change in the Usual Country of Residence is deemed to occur
when the Insured Person lives or intends to live in another country for more than 6 consecutive months during any Period of Insurance. The Company
reserves the right to continue cover on the terms and conditions it considers appropriate to the new country of residence or to decline to continue
cover under the Policy.
Burns
3rd degree burns.
Weekly Benefit
Compensation payable at a rate per week.
THE BENEFITS
We will pay You:
1. The Compensation for death or disablement (the Results) as described below if the Insured Person suffers Injury which within 104 weeks of its
happening is the sale cause of the death or such disablement.
2. Weekly Benefit shall not be payable for:

(a) any period of time subsequent to the death of the Insured Person or subsequent to Compensation becoming payable under any part of Result
B or C.
(b) both Results 01 and 02 for the same period of disablement.
3. Weekly Benefit for either Results D1 or 02 shall be payable when the total amount has been agreed, or at Your request at intervals of not less
than four weeks (but not in advance) commencing four weeks after receipt by Us of written notice of the Injury.
4. The maximum period the Company will pay under Result F for anyone Injury is up to 50 consecutive days subject to the Overall Limit indicated
in the Schedule for anyone Period of Insurance.
5. Nothing will be payable in respect of Result E if there is any other insurance in force covering the loss or if You or the Insured Person are entitled
to indemnity from any other source, provided that We shall not be relieved of liability under this Result so far as concerns any excess beyond the
amount payable under such other insurance or indemnity.
6. The limits of compensation specified above will apply regardless of the number of times the Policy is renewed.
OVERALL COMPENSATION LIMIT

Our maximum aggregate liability in respect of all Insured Persons travelling in one aircraft or surface transport vehicle or vessel shall not exceed the
Conveyance Limit of SGD5,000,000 or the aggregate of the amount of Compensation payable in respect of such Insured Persons, whichever is the
lesser.
If the aggregate amount of all claims under this Policy in respect of all Insured Persons travelling in one conveyance exceeds the Conveyance Limit,
the Company's liability in respect of each of such Insured Persons will be a rateable proportion of the benefits due in respect of that person.
EXTRA BENEFITS
1. INSURANCE FOR CHILD
(a) Where an Insured and his/her legal spouse are insured at the same time under this Policy, up to 3 of the Insured's biological or legally
adopted, unmarried Children (aged between one year to 18 years or 23 years if pursuing full-time education in a recognised tertiary institution
within their Usual Country of Residence as Singapore) shall be covered at 10% of the Sum Insured of the Insured or his/her insured spouse
(whichever is the higher Sum Insured) for the following Results for each Child named in the Schedule:
Result A. Death
Result B. Permanent and Total Disablement
Result E. Medical Expenses
(b) Where the Insured is insured on his/her own under this Policy and subject to the payment of the additional required premium, up to 3 of the
Insured's biological or legally adopted, unmarried Children (aged between one year to 18 years or 23 years if pursuing full time education in
a recognised tertiary institution within their Usual Country of Residence as Singapore) shall be covered at 10% of the Sum Insured of the
Insured for the following Results for each Child named in the Schedule:
Result A. Death
Result B. Permanent and Total Disablement
Result E. Medical Expenses
2. LOSS AND DAMAGE TO CLOTHING AND PERSONAL BELONGINGS

The Company undertakes to pay to the Insured Person who sustains Injury and damage to clothing and personal belongings worn or carried by
such Insured Person in the same Accident (but only to the extent that they are not recoverable from any other source), an amount not exceeding
SGD500 for such loss or damage arising out of anyone Injury provided that the Medical Expense benefit under Result F is also payable under this
Policy.
3. RENEWAL BONUS
3.1 Upon each renewal of this Policy, the original Sum Insured in respect of each Insured Person for Result A (Death) and Result B (Permanent and
Total Disablement) at the Commencement Date will be increased by 10% as Renewal Bonus for the renewed Period of Insurance provided that:
(i) no claim has arisen in respect of the Insured Person during the preceding Period of Insurance in respect of:
a) Result A (Death);
b) Result B (Permanent and Total Disablement);
c) Result C (Permanent Partial Disablement)
d) Result D1 (Temporary Total Disablement)
e) Result D2 (Temporary Partial Disablement);
f) Result F (Hospitalisation Cash Benefits)
g) Result G (Recuperation Benefit)
h) Result H (Bereavement Grant);
(ii) the increase in the original Sum Insured as Renewal Bonus shall be for the first three consecutive 12- month renewals of the Policy only;
(iii) the Renewal Bonus does not apply to any Child Insured Person; and
(iv) the Renewal Bonus does not apply to the Terrorism extension under Extra Benefit 4 below.
3.2 Where the Insured requests for an increase or reduction to the Sum Insured for an Insured Person in respect of Result A (Death) and Result B
(Permanent and Total Disablement) during any Period of Insurance and agreed to by Us, We will increase the revised Sum Insured for that Insured
Person by 10% as Renewal Bonus upon the renewal of the Policy for the renewed Period of Insurance provided that
(i) the request to revise the Sum Insured is made by the Insured within the first six months of the relevant Period of Insurance;
(ii) any accumulated Renewal Bonus for the Period(s) of Insurance prior to the Period of Insurance in which the Sum Insured was revised, will
lapse and not be added on;
(iii) no claim has arisen in respect of the Insured Person during the preceding Period of Insurance in respect of any or all of the Results listed in
3.1.(i) above;
(iv) the increase in the revised Sum Insured as Renewal Bonus shall only be for the first three consecutive 12- month renewals of the Policy
following the Period of Insurance in which the Sum Insured was revised;
(v) the Renewal Bonus does not apply to any Child Insured Person; and
(vi) the Renewal Bonus does not apply to the Terrorism extension under Extra Benefit 4 below.
3.3 No additional premium is required for the Renewal Bonus.
4. TERRORISM
This Policy is extended to cover the Insured Person against death or disablement (the following Results) as described below if the Insured Person
suffers an Injury which within 104 weeks of its happening is the sole cause of the death or such disablement and the Injury is sustained through
acts of terrorism provided that there is no liability when such acts of terrorism involve the use of biological, chemical agents or nuclear devices:
Result A Death
Result B Permanent and Total Disablement
Result C Permanent Partial Disablement
Result D1 Temporary Total Disablement
Result D2 Temporary Partial Disablement
Result E Medical Expenses
Result F Daily Hospitalisation Cash Benefits
Result G Recuperation Benefit
Result H Bereavement Grant
The limit for each of the Result above is per the specified Sum Insured applicable to the Result. The aggregate limit for all the above Results is up
to the Sum Insured for Result A (Death benefit) at the Commencement Date of this Policy or in the event of an increase or reduction to the Sum
Insured for Result A (Death benefit) and Result B (permanent and Total Disablement) as requested by the Insured and agreed to by Us during any
Period of Insurance, up to the applicable increased or decreased Sum Insured for Result A (Death benefit) or SGD250,000 for each Insured Person,
whichever is lesser.
Cover under this extension for each Child Insured Person is in respect of Result A, Result B and Result E only. The limit of this cover is at 10% of
the Sum Insured under Result A, Result B and Result E of the Insured. Where the Insured and his/her legal spouse are insured at the same time
under this Policy, the limit shall be that of the Sum Insured of the Insured or his/her insured spouse, whichever is the higher Sum Insured for
Result A, Result B and Result E.
5. RESERVIST TRAINING
This Policy is extended to cover Injury sustained by the Insured Person while on part-time National Service as a Reservist in the Navy, Army, Air
Force, Police, Fire Brigade or Vigilante Corps, provided that We will not be liable to Pay any compensation if the Insured Person was taking part
in or was present at any military, navy or air force Operation during actual warfare or any insurrection or any expedition or operation of a war-
like character either as a Combatant or non-combatant when the Injury was sustained.
6. RIOT & STRIKE

This Policy is extended to cover the Insured Person against death caused by Injury or Injury as a result of Riot & Strike. The Company shall not
be liable for any claim arising out or in connection with the Insured Person's own participation or provocation of any such act or if such act could
reasonably have been avoided by the Insured Person.
7. MOTORCYCLING
This Policy is extended to cover motor-cycling (whether as a rider or pillion-rider) provided that at the time of Accident, the Insured Person is
wearing a safety helmet, and not engaging in or practising for racing and hill climbing contests, reliability trials, speed or duration testing.
8. BURNS
This Policy is extended to cover the Insured Person against death caused by Injury or Injury as a result of Burns subject to the limit as set out
under item 18 of Result C. The company shall not be liable for any claim for such death or Injury arising out of or in connection with the Insured
Person's own wilful or intentional act.
9. SUFFOCATION BY SMOKE, POISONOUS FUMES, GAS AND DROWNING

Any Result sustained by an Insured Person due to suffocation by smoke, poisonous fumes, gas and drowning shall be deemed to be Injury
sustained by an Insured Person provided that such Injury does not arise out of an Insured Person's wilful and intentional act.
10. DISAPPEARANCE
We shall presume death to have been suffered by the Insured Person if he or she is missing for twelve consecutive months, and sufficient evidence
is provided that leads Us to the conclusion that death was caused by an Injury. However, if at any time after payment of Compensation under this
Policy for such death the Insured Person is found to be living, such Compensation shall be refunded to Us.
11. EXPOSURE
If an Insured Person suffers an Injury and then, in consequence of that Injury suffers death or disablement as a result of exposure to the elements,
We will consider such death or disablement as having been caused by an Injury.
12. AMATEUR SPORTS

This Policy is extended to cover any Injury happening to the Insured Person while engaged in sports as a form of recreation and not on a
professional basis except for:
(a) parachuting
(b) hang gliding
(c) any kind of race (other than on foot or swimming) or trial of speed or reliability
(d) potholing, mountaineering or rock climbing necessitating the use of guides or ropes
(e) underwater activities necessitating the use of compressed air or gas
All Extra Benefits are subject to the Terms, Conditions, and Exceptions of this Policy.
GENERAL CONDITIONS
The conditions which appear in the Policy or in any Endorsement are part of the contract and must be complied with. They are where their nature
permit conditions precedent to the right to recover from Us.
1. Co-operation
As a condition precedent to the Company's liability, the Insured Person or his/her representatives shall co-operate fully with the Company and its
medical advisers and will fully and faithfully disclose all material facts and matters which the Insured Person knows or ought to know and will
upon request as the Company may reasonably make execute any document to empower the Company to obtain relevant information, at the
Insured or the Insured Person's expense, from any Physician, Hospital or other source.
2. Reasonable Precautions and Material Changes
The Insured Person shall take all reasonable precautions to prevent and minimise any Injury. The Company must be informed immediatelyi n writing as soon as You are
aware of any change in the employment, occupation, duties or pursuits of any Insured Person, or any other change which may increase the possibility of a claim
under this Policy. The Company reserves the right to continue cover on terms and conditions it considers appropriate to such changes in material
information or circumstances or to decline to continue cover under the Policy.
3. Eligibility
Unless We agree in writing otherwise, any person You wish to insure under this Policy must be named as an Insured Person in the Schedule
and must at the Commencement Date of the Policy be the following:
(a) Yourself aged between 18 years and 65 years old, or
(b) Your legal spouse aged between 18 years and 65 years old, or
(c) Your biological or legally adopted, unmarried Child aged between 1 year to 18 years or 23 years if pursuing full-time education in a
recognised tertiary institution within his/her Usual Country of Residence as Singapore.
4. Alterations
(a) We have the right to vary the premium payable and all other terms, conditions and exceptions of the Policy by giving the Insured 30
days' notice of such variation(s).
(b) If the date of birth of the Insured Person has been incorrectly stated, the benefits will be amended by Us having regard to the true date
of birth. If the true date of birth is such that, had it been known to Us at the time of the Policy was proposed for, We would not have
issued the Policy, then We may cancel the Policy and no benefits will be payable.
(c) Any other misrepresentation of or failure to disclose material facts by the Insured or Insured Person, will entitle the Company to alter,
amend or cancel the Policy having regard to the true facts. A material fact is any information that could influence the Company in its
assessment of the proposal.
5. Cancellation
Either the Insured or the Company may cancel this Policy by giving the other party 14 days notice in writing sent to the last known address.
Refunds of premium in respect of a Period of Insurance will be made as follows:
(a) If the Insured cancels the Policy, the Company will refund the Insured the premium paid less the premium calculated at Our Short Period
rates from the date of cancellation provided no claim has arisen in relation to that Period of Insurance and the amount refundable is
more than SGD10.00.
(b) If the Company cancels the Policy, the Company will make a pro-rata refund of the premium paid.
6. Termination
(a) The entire Policy will terminate and all Insured Persons' cover under it will cease immediately upon:
i) non-payment of premium by the due date as described in the Payment Before Cover Warranty of this Policy; or
ii) the cancellation of this Policy as described in General Condition 5.
(b) Unless We have agreed otherwise in writing, the cover of an Insured Person under this Policy will terminate immediately in any of the
following circumstances, whichever first occurs:
i) when the Insured Person's Usual Country of Residence ceases to be Singapore
ii) where an Insured Person on the expiry of the Period of Insurance during which he or she attains the age of 76 years
iii) where the Insured Person is a Child of the Insured, on the expiry of the Period of Insurance during which he/she attains the age of
19 years, or 24 years if studying full-time at a recognised tertiary institution within his/her Usual Country of Residence as Singapore.
7. In the Event of Fraud

If any claim shall in any respect be false or fraudulent or if fraudulent means or devices are used by the Insured Person(s) or anyone acting
on their behalf to obtain benefit under this Policy, then the Policy will be cancelled immediately and all benefit and premium forfeited.
8. No Trust
The Company will not recognise or be affected by any notice of trust, charge or assignment relating to this Policy and the Insured's receipt
or that of the Insured's legal personal representative shall in all cases effectively discharge Our liability.
9. Legal Personal Representatives

The terms, exceptions and conditions of this Policy, so far as applicable and with necessary modifications, shall apply to the legal personal
representatives of the Insured or the Insured Person.
10. Exclusion of Rights Under the Contracts (Rights of Third Parties) Act
A person who is not a party to this Policy shall have no right under the Contracts (Rights of Third Parties) Act to enforce any of its terms.
Insured Persons (other than the Insured) are not parties to this Policy contract.
CLAIMS CONDITIONS
The payment of claims under this Policy is dependent upon observance of its terms and conditions by You, and so far as they apply, by the
Insured Person or any other claimant.
1. You must report in writing to us as soon as reasonably possible, full details of any Injury which may result in a claim under this Policy.
2. You or the Insured Person shall employ the services of a registered medical practitioner and the Insured Person shall undergo any treatment
such practitioner shall deem necessary.
3. All certificates, information and evidence must be provided at your expense or at the expense of any claimant in the form and nature
required.
4. The Insured Person may have to undergo further medical examination required by Us at Our expense.
5. In the event of death of the Insured Person, We shall require sight of the death certificate and may require a post-mortem examination at
Our expense.
6. Where we have accepted a claim but the amount to be paid is in dispute, the matter shall be referred to an independent arbitrator acceptable
to the parties involved. Where any dispute is by this Condition to be referred to arbitration, the making of an award shall be a condition
precedent to any right of action against the Company.
7. If the Company offers an amount in settlement or disclaims liability altogether for a claim, and such a claim is not within twelve calendar
months from the date of such an offer or disclaimer referred to arbitration as required under Condition 6 or made the subject of a pending
court action, the claim shall be deemed to be abandoned and the Company shall have no liability in respect of it.
GENERAL EXCEPTIONS
We will not pay any sum under this Policy for:

1. Injury directly or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event
contributing concurrently or in any other sequence to the Injury:
(a) ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of
nuclear fuel
(b) the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear
assembly or nuclear components thereof
(c) any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter
(d) the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-
clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used
for commercial, agricultural, medical, scientific, or other similar peaceful purposes
(e) any chemical, biological, bio-chemical, or electromagnetic weapon.
2. death, disability, loss, damage, destruction, any legal liabilities, cost or expense including consequential loss of whatsoever nature, directly
or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event contributing
concurrently or in any other sequence to the loss:
(a) war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, rebellion, revolution,
insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power, or
(b) any act of terrorism including but not limited to
(i) the use or threat of force, violence and/or
(ii) harm or damage to life or to property (or the threat of such harm or damage) including, but not limited to, nuclear radiation and/or
contamination by chemical and/or biological agents, by any person(s) or group(s) of persons, committed for political, religious,
ideological or similar purposes, express or otherwise, and/or to put the public or any section of the public in fear, or
(c) any action taken in controlling, preventing, suppressing or in any way relating to (a) or (b) above.
3. Injury caused by the Insured Person engaging in:

(a) air travel except as a passenger in a fully licensed passenger carrying aircraft
(b) any trade, technical or sporting activity or as crew in connection with an aircraft
4. Injury caused by the Insured Person engaging in or practising for:

(a) parachuting
(b) hang gliding
(c) any kind of race (other than on foot or swimming) or trial of speed or reliability
(d) potholing, mountaineering or rock climbing necessitating the use of guides or ropes
(e) underwater activities necessitating the use of compressed air or gas.
5. Injury caused by:

(a) suicide, self-injury or wilful exposure to peril (other than in an attempt to save human life)
(b) pregnancy or childbirth
(c) insanity
(d) any pre-existing physical or mental defect or infirmity
(e) the Insured Person being under the influence of drugs (other than those prescribed by a registered Medical Practitioner but not when
prescribed for the treatment of drug addiction)
(f) the Insured Person being under the influence of alcohol, unless it can be established to our reasonable satisfaction by any claimant that
alcohol was not a factor contributing to the happening of the Injury
6. Injury to any Insured Person who is employed:

(a) as a full time military personnel, law enforcement officer, civil defence officer, security officer; navy, fire fighters or
(b) as professional sportspersons, entertainers, motor vehicle or motor bike racers or
(c) in any off-shore occupations such as diver, rig workers, fisherman; ship crew or
(d) as shipyard crew; work on board sea vessels or
(e) as air crew; work on board aircraft or
(f) as construction workers, work at heights above 30 feet or work underground, in tunnels, demolition and quarry workers or
(g) as workers engaged in maintenance, cleaning, roofing or repair activities involving scaffolding or gondolas; or
(h) in any occupation dealing with explosives, poisonous or hazardous gases or substances
If We say that by reason of any of these General Exceptions any claim is not covered by this insurance, then the burden of proving that the claim
is covered shall be upon You.
ABC Insurance Helpline (65) 6789 8181

A 24-hour emergency help line has been arranged for You with an authorised Help Centre should You need assistance in the event of an
emergency whilst overseas. When You are residing in Singapore, the following services are also available to You
- Arrangement of Home Visit by Physician
- Arrangement of Private Medical Transportation
- Arrangement of Appointment with the Medical Providers in Singapore
It is understood and agreed that the emergency helpline only provides referral information and arrangement assistance. The service provider(s)
is/are not Our agents and You shall pay the service provider directly for the costs of any service rendered by the service provider. It is further
understood and agreed that We do not warrant and are in no way responsible or liable for the action of or advice or information given or
statements made by any service provider or any person in the provision of service or assistance pursuant to the emergency helpline. We are
also in no way liable for any injury, damage or loss to persons, property or goods whatsoever caused arising from any act, omission, default or
neglect of the service provider or any person in the provision of service or assistance pursuant to the emergency helpline.
PAYMENT BEFORE COVER WARRANTY
1. Notwithstanding anything herein contained but subject to clauses 2 and 3 hereof, it is hereby agreed and declared that the total premium
due must be paid and actually received in full by the Company (or the intermediary through whom this Policy was effected) on or before the
inception date (“the inception date”) of the coverage under the Policy, Renewal Certificate or Cover Note.
2. In the event that the total premium due is not paid and actually received in full by the Company (or the intermediary through whom this
Policy was effected) on or before the inception date referred to above, then the Policy, Renewal Certificate, Cover Note and Endorsement
shall not attach and no benefits whatsoever shall be payable by the Company. Any payment received thereafter shall be of no effect
whatsoever as cover never attached on the Policy, Renewal Certificate, or Cover Note.
3. In respect of insurance coverage with "Free Look" provision, the Insured may return the original policy document to the Company or
intermediary within the "Free Look" period if the Insured decides to cancel the cover during the "Free Look" period. In such an event, the
Insured will receive a full refund of the premium paid to the Company provided that no claim has been made under the insurance.
Policy Owners' Protection Scheme

This policy is protected under the Policy Owners' Protection Scheme which is administered by the Singapore Deposit Insurance Corporation
(SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that
are covered under the scheme as well as the limits of coverage, where applicable, please contact your insurer or visit the GIA / LlA or SDIC
websites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).
IMPORTANT- You are requested to read this Policy. If any error or misdescription be found, the Policy should be returned to the issuing
office for correction.
Appendix 3B
Summary of Benefits
Summary of Benefits Sum Insured (S$)
BASIC BENEFITS Plan A Plan B Plan C Plan D
1. Accidental Death & Permanent Disablement
• Pay lump sum in event of accidental
death or permanent disability
• Pay double indemnity for accidental 100,000 200,000 300,000 500,000
death during public conveyance
2. Accident Medical Reimbursement

Reimburses for in-hospital and out-patient up to up to up to
treatment. up to 4,000
6,000 8,000 10,000
3. Weekly Benefit For Temporary Total

Disablement 100 per 100 per 200 per 500 per
Provide up to 104 weekly benefit for total week week week week
temporary disablement due to accident
4. Traditional Chinese Medicine up to 750

Reimburse for treatment by Traditional up to
Chinese Medicine or Complementary up to 750 up to 750
750
Medicine Practitioner due to accident
5. Mobility Aid and Ambulance Services

Reimbursement
Reimburse for cost of ambulance services & up to up to up to
up to 4,000
purchase of mobility aid equipment (e.g. 4,000 4,000 4,000
wheelchair, crutches, etc.)
Annual Premium - Class

135 230 303 588
Basic Coverage 1&2
(Benefits 1 to 5) Annual Premium - Class
270 460 606 N.A.
3
Appendix 3C
Tel: (65) 6789 8181 Fax: (65) 6789 8282
PERSONAL ACCIDENT CLAIM FORM
Policy No. Claim No. :
PARTICULARS OF POLICYHOLDER, INSURED AND INSURED PERSON/CLAIMANT

Name of Policy Holder (in Full) NRIC No.
Mailing Address Contact Numbers

Office Home
Singapore _________________________ Mobile
Name of Insured Person / Claimant NRIC No.
Home Address E-mail
Singapore _________________________
Relationship to Policy Holder Date of Birth Gender Male Female
DETAILS OF ACCIDENT
Date of Accident Time of Accident Place of Accident
How did the Accident happen? What were you doing at that time?
What injuries have you sustained?
Has the same part been injured previously?
Name and address of Doctor who is attending you. Is he your usual Doctor?
Name, address and contact details of any witness of the Accident.
Are you claiming under any other insurance? If yes, give particulars.
Were you hospitalised? If yes, please state the period of hospitalisation.
Were you under the influence of drugs or intoxicants at the time of accident?
MEDICAL INFORMTION AUTHORISATION (MUST BE COMPLETED BY INSURED PERSON/

CLAIMANT)
I, ________________________________________ NRIC No. _______________________ hereby authorise any hospital, surgeon, medical practitioner, clinic,
insurance office or other person or organisation who has attended to me for any reason, to disclose to the Company any and all information with respect
to any illness or injury and to provide copies of all hospital or medical records/certification, including earlier mentioned medical history. A photocopy of
this authorisation shall be considered as effective and valid as the original. The information given is true and correct to the best of my knowledge and
belief.
Signature of Policyholder / Insured / Date and Signature of Insured Person / Claimant / Date
Company’s stamp, if applicable (18 years old and above)
NOTE:
The issuance of this form is not an admission of liability by the Insurer.
The section overleaf must be completed by the Insured Person/Claimant’s Attending Physician/Surgeon.
The Policyholder/Insured must obtain at his/her own expense the Medical report from the Insured Person/Claimant’s Attending Physician/Surgeon and the
Company will reimburse the Policyholder/Insured up to the limit as stated in the Policy. Cheque will be made in favour of the Policyholder/Insured.
To submit your claim, please attach all original medical bills and receipts together with this form.
If Medisave/Medishield were used, the appropriate amount would be credited in to the respective Medisave/Medishield Account.
NOTE:
The fee for this report is to be paid by Insured Person/Claimant.
This Section is to be completed by the Insured Person/Claimant’s Attending Physician/Surgeon whose replies should be as full as possible.
MEDICAL REPORT
1. What injuries has the Patient sustained?
2. Whether the injuries sustained by the patient were consistent with the circumstances of the accident.
If no, please provide more detailed information in relating to the injuries sustained by the patient.
3. When were you first consulted? Was the patient referred to you by a general practitioner?
If yes, please indicate his/her name and address.
4. What was your diagnosis?
5. Did injury require: Please provide details

a) Hospitalisation?
b) X-rays?
c) Special diagnostic procedures?
d) Surgery?
6. Total and Partial Disablement
a) How long has the Patient been totally or partially disabled from engaging in or
Definition
attending to usual business as the result solely of the injuries?
TOTAL DISABLEMENT
Totally from to
If the injury shall independently of all other causes
Partially from to necessarily, continuously and totally disable the
Insured and render him completely unable to pursue
his ordinary occupation or to attend to any business
b) How much longer do you consider such disablement will continue?
affairs whatsoever.
Totally from to PARTIAL DISABLEMENT

Partially from to If the injury shall independently of all other cause
partially disable the Insured and prevent him from
attending to a material portion of the daily duties
c) Is patient fit for work? If yes, please state date. pertaining to his occupation.
Yes (Date: __________________) No
7. Give details of any circumstances, such as intoxications, physical defects or medical history which may have contributed to the accident.
8. Whether injuries sustained will result in any permanent disablement/incapacity. If yes, please specify.
9. Has the Patient any disease or any physical defect and if so of what nature? To what extent may recovery be affect thereby?
PARTICULARS OF ATTENDING PHYSICIAN / SURGEON

Name of Attending Physician / Surgeon Declaration
I hereby certify that I have personally examined and treated the patient for
the above injuries and that the facts given above present my opinion of
his/her condition.
Name of Hospital/Clinic
Address of Hospital/Clinic
Singapore
_________________________ Signature of Attending Physician / Surgeon
Contact Numbers
Office
Fax
Mobile
E-mail
Date
Appendix 3D
LIMITED
Tel: (65) 6789 8181 Fax: (65) 6789 8282
PROPOSAL FOR PERSONAL ACCIDENT INSURANCE
IMPORTANT NOTES
1) Statement pursuant to Section 23(5) of the Insurance Act 1966 (or any subsequent amendments thereof), you are to disclose in this proposal form, fully
and faithfully, all the facts which you know or ought to know, otherwise the policy issued hereunder may be void.
2) This insurance is subject to full payment of premium before commencement of cover.
3) This insurance will not be in force until the proposal has been accepted by the Company.
4) Age Limit: This policy is available for persons age between 7 and 70.
PARTICULARS OF APPLICANT (PERSON TO BE INSURED)

Name (in Full)Mr Ms Mrs Mdm Dr Date of Birth Age
NRIC/Birth Certificate/FIN No. Gender Male Female
Address Contact No.
Singapore_____________________________ E-mail
Name of Employer Occupation/Profession
OTHER INFORMATION
1. Do you engage in anything hazardous in your occupation or sports or any other pursuits? No Yes
2. Do you have any physical defects or infirmity or sickness or disease of any kind? No Yes
3. Have you been refused or declined by any insurance company for life or accident insurance? No Yes
4. Have you suffered a loss under any of the coverage listed here? No Yes
5. Is there any similar Insurance in force? No Yes
If the answer to any of the above questions is YES, please provide on separate sheet of paper and attach.

Insurance to commence Coverage Required
From (DD/MM/YYYY) Death / Permanent Disablement Amount to be insured
S$___________________________
To (DD/MM/YYYY) Medical Expenses Amount to be insured
S$___________________________
Temporary Total/ Partial Disablement Nil S$100 per week
S$200 per week S$300 per week
PAYMENT MODE
By Cheque, payable to ABC Insurance Company By Credit Card
(Singapore) Limited. a) I hereby confirm that I am the cardholder of the below credit card and I authorised the Company
to charge the premium for the above policy/policies to my card.
b) I fully understand and agree to the terms and conditions of the usage of my credit card. I also
understand and agree that the above policy/policies will only be effective subject to the receipt of
approval from the bank and receipt of approval from the bank and receipt of the premium by the
Bank ________________________________________
Company.
c) I understand and agree that in the event of refund from the Company, payment will be made to
the INSURED/POLICYHOLDER stated above.
Cheque No. __________________________________
VISA MasterCard Name of Cardholder
_____________________________
Amount _____________________________________
Expiry Date - CVV2 No.
Card No. Signature of Cardholder

DECLARATION
I/We declare that the particulars given above by me/us or on my/our behalf are true and complete and I/We agree that this proposal shall be the basis of
the contract between me/us and the Company. I/We declare that the person to be insured is in good health and has no physical or mental defect or
infirmity and that I/we will give notice to the Company of any material change in the health, occupation, or activities of such person.
CHAPTER 4
TRAVEL INSURANCE
CHAPTER OUTLINE
1. Introduction
2. Types Of Travel Insurance
3. Age Limits
4. Travel Insurance Providers
5. Scope Of Cover
6. Automatic Policy Period Extension
7. General Exclusions
10. Claim Documents
Appendix 4A – Summary Of Benefits And Premiums – Travel Insurance Policy
Appendix 4B – Application Form For Travel Insurance
Appendix 4C – Travel Insurance Claim Form
LEARNING OUTCOMES

▪ know the types of Travel Insurance covers available
▪ understand the age limits, insurance providers, scope of cover, extensions,
exclusions, automatic policy period extension, conditions, and underwriting
considerations of Travel Insurance
▪ know the basic sections of cover provided by most Travel Insurance policies
including:
- Personal Accident Benefits
- Medical and Associated Expenses
- Other Inconvenience Benefits
- Terrorism Cover
▪ know the types of claim documents required from the insured to substantiate a
claim under a Travel Insurance policy
4. Travel Insurance
Contents
TRAVEL INSURANCE ...................................................................................................... 136
CHAPTER OUTLINE ......................................................................................................... 136
1. INTRODUCTION ..................................................................................................... 139
2. TYPES OF TRAVEL INSURANCE ........................................................................... 139
A. Per Trip Basis................................................................................................... 139
B. Annual Basis .................................................................................................... 140
C. Family Basis..................................................................................................... 140
D. Premium Classification ................................................................................... 140
3. AGE LIMITS ............................................................................................................ 140
4. TRAVEL INSURANCE PROVIDERS ........................................................................ 141
5. SCOPE OF COVER .................................................................................................. 141
A. Personal Accident Benefits ............................................................................. 142
B. Medical & Other Expenses ............................................................................. 144
C. Additional Accommodation & Travel Expenses ............................................ 144
D. Hospital/Compassionate Visit ......................................................................... 144
E. Child Companion............................................................................................. 145
F. Hospital Confinement Benefit......................................................................... 145
G. Emergency Medical Evacuation ..................................................................... 145
H. Repatriation ..................................................................................................... 146
I. Kidnap And Hostage ....................................................................................... 146
J. Travel Curtailment Or Disruption ................................................................... 147
K. Travel Cancellation Or Postponement ........................................................... 147
L. Financial Collapse Of Travel Agency.............................................................. 148
M. Travel Delay/Flight Diversion.......................................................................... 149
N. Overbooked Flight ........................................................................................... 150
O. Travel Misconnection ...................................................................................... 150
P. Personal Property ............................................................................................ 150
Q. Personal Liability ............................................................................................ 152
R. Rental Vehicle Excess...................................................................................... 152
S. Loss Of Use Of Hotel Facilities ....................................................................... 152
T. Terrorism Cover .............................................................................................. 153
6. AUTOMATIC POLICY PERIOD EXTENSION .......................................................... 153
7. GENERAL EXCLUSIONS ........................................................................................ 153
A. Main Exclusions Found In Most Travel Insurance ......................................... 153

8. POLICY CONDITIONS............................................................................................. 154
9. UNDERWRITING CONSIDERATIONS.................................................................... 154
10. CLAIM DOCUMENTS ............................................................................................. 156
Appendix 4A .................................................................................................................... 158
Appendix 4B .................................................................................................................... 161
Appendix 4C .................................................................................................................... 163
4. Travel Insurance
1. INTRODUCTION
1.1 An individual travelling overseas, outside Singapore, whether for pleasure or

business purposes, faces a number of risks before and during the trip. These
risks include loss of deposit and/or the balance of the cost of travel owing to the
individual being unable to travel for some unavoidable reasons. He may fall sick
or suffer an injury during the travel period. He may also risk losing his personal
possessions; e.g. by accident or theft. For peace of mind, and to financially
protect against such risks and inconveniences, he can buy a Travel Insurance
policy. If an insured event occurs, the policy will provide compensation on a
lump sum or reimbursement basis.
2. TYPES OF TRAVEL INSURANCE
2.1 A Travel Insurance policy is issued for holiday or business travel. It is a

"packaged" insurance policy that covers the risks that an individual face when
he travels outside of Singapore. Travel Insurance is usually offered under a “per
trip” (single trip) or “annual” (multiple trips) basis.
2.2 Travel Insurance can also be issued as:

(a) Individual Plan
▪ a policy covering the policyholder or any other individual person.
or
(b) Family Plan
▪ a policy covering the policyholder and his immediate family i.e. his
legal spouse and their legitimate children. A cap may be imposed on
the number of insured persons under a Family Plan policy. Some
companies allow two adults, not necessarily husband and wife, and
their children to be treated as a family for a single trip policy.
A. Per Trip Basis
2.3 Under this plan, the policy covers the insured only for a single overseas trip.
The coverage for the trip or journey (land, sea, and air travel) commences from
the time when the insured leaves his residence or place of work in Singapore1
and ends when he arrives back at the original destination (his residence),
usually up to 3 hours after the return to Singapore2. Insurers usually provide a
minimum of three days cover, and the maximum length of the single trip
allowed ranges from 180 to 185 days, depending on the policy.
1
Some sections of the Travel Insurance cover commence before the insured leaves Singapore, e.g. travel
delay, cancellation, and curtailment (see later section of this chapter).
2
Travel Insurance is usually designed to start from and end at the same place. Single trip with insurance
cover beginning from the place of origin and ending with a place of destination is uncommon.
B. Annual Basis
2.4 Targeted at the frequent traveller, the cover is provided for one full year,
regardless of the number of trips that the insured makes during the annual
period of insurance. However, the cover for each insured trip is usually limited
to 90 or 92 days, depending on the policy.
C. Family Basis
2.5 Intended for family travel, such a plan may also be covered under a “per trip”
or “annual basis”. Usually, a single premium is charged, without any restriction
on the number of children. However, each insured person (i.e. the insured’s
spouse or child, or the insured who is the policyholder) is subject to a limit of
benefit coverage. In addition, where cover for children is required, there must
usually be at least one adult travelling with the child or children. Some insurers
allow children to travel alone, providing they are above 17 years of age.
2.6 In addition, most insurers offer the option to choose from various levels of
benefits, ranging from two to four benefit plans with names, such as “Classic
Plan” (for lower benefit limits), and “Deluxe Plan” (for higher benefit limits).
D. Premium Classification
2.7 For the purpose of premium classification, insurers usually divide the world
map into different geographical regions/zones. Three common classifications
are ASEAN, Asia, or Worldwide.
3. AGE LIMITS
3.1 Generally, there is no upper age limit imposed for the application of Travel
Insurance. However, for any insured person who has attained the age of 70
years, the insurer will typically restrict the coverage limits, offering lower
benefit amounts.
3.2 For a family policy that includes cover for spouse and children, the age limit of
each child is set at below 18 or 21 years. This may be higher, e.g. 25 years, if he
is still a dependant (unmarried and unemployed) and a full-time student of a
recognised institution of higher learning.
4. Travel Insurance
4. TRAVEL INSURANCE PROVIDERS
4.1 Travel Insurance is usually sold by general or composite insurers, or through

insurance brokers and agents, including Trade Specific Agents (travel agents
and tour operators registered with the Agents’ Registration Board of the
General Insurance Association of Singapore). Banks also offer Travel Insurance
to their clients. Many banks and credit card issuers offer “free” Travel Insurance
cover to their credit cardholders, usually when their clients charge the travel
fares to their credit cards. They also market Travel Insurance through their
banking portals.
4.2 Travel Insurance is also sold by tour operators, for the benefit of international
business travellers, with coverage usually limited to personal accident, loss of
or damage to baggage, and emergency assistance, and repatriation. Travel
agents have also tied up with insurers to sell Travel Insurance over service
counters to social travellers who purchase holiday tour packages or travel
tickets. Some insurers have also partnered with airlines and emergency
assistance companies, and online travel ticket booking sites, which market
travel insurance plans online through their websites.
4.3 Also, Travel Insurance can be purchased via the Internet, self-service terminals
(such as ATM, AXS Station and iNETS Kiosk), and over the phone, including
mobile applications (apps).
5. SCOPE OF COVER
5.1 Most Travel Insurance policies provide in the following Table 4.1 under basic
sections of cover:
Table 4.1: Basic Sections Of Cover
Personal Accident Medical & Associated Other Inconvenience Benefits

Benefits Expenses
▪ Death and ▪ Medical and Other ▪ Kidnap and Hostage

Permanent Expenses ▪ Travel Curtailment or
Disablement ▪ Additional Disruption
▪ Double Indemnity Accommodation and ▪ Travel Cancellation or
Travel Expenses Postponement
▪ Hospital/Compassionate ▪ Travel Delay/Flight Diversion
Visit
▪ Overbooked Flight
▪ Child Companion
▪ Travel Misconnection
▪ Hospital Confinement
▪ Personal Property
Benefit
▪ Emergency Mobile Phone
▪ Emergency Medical
Charges
Evacuation
▪ Rental Vehicle Excess
▪ Repatriation
Personal Accident Medical & Associated Other Inconvenience Benefits

Benefits Expenses
▪ Loss of Use of Hotel

Facilities
▪ Terrorism Cover
5.2 These are just some of the common sections that the majority of policies
provide. Competition among the providers in the insurance market has led to
insurers developing innovations in cover, so that most policies vary in terms of
packaging of their benefits, periods of cover, excess amounts, provisions,
exclusions, and limits of indemnity. You should be familiar with your insurer’s
policy terms and conditions. A sample of Summary of Benefits & Premiums is
in Appendix 4A.
A. Personal Accident Benefits
5.3 This section of the Travel Insurance policy provides a capital sum (i.e. lump
sum) benefit for accidental death or permanent total disablement, loss of
eyesight or limbs occurring within 12 months from the date of accident. The
amount payable is according to the Table of Compensation, as specified in the
policy. Children, when included, will usually be subject to lower benefit levels.
5.4 The capital sum insured and the Table of Compensation (see example below)
for disability benefits, following an accident, differ among insurers. For
example, some insurers’ policies specify 100% of capital sum insured for loss
of one limb (hand, arm, foot, or leg) or sight of one eye. Loss of limb usually
means total and permanent functional loss of use, not necessarily physical
severance, or amputation. Loss of eyesight usually means total and
irrecoverable loss of sight.
4. Travel Insurance
Table 4.2 : Table Of Compensation (Example)
Capital Sum Insured Per Insured Person

Category Of Insured Person
Deluxe Plan Classic Plan
Insured Person up to the age of
S$500,000 S$200,000
70 years
Insured Person above the age of
S$200,000 S$100,000
70 years
Insured Child S$100,000 S$50,000
Percentage Of Insured
Coverage For Person’s Capital Sum
Insured
(a) Death 100%
(b) Permanent Total Disablement from attending 100%
to any gainful occupation --
(c) Total paralysis of all limbs 100%
(d) Loss of two or more limbs 100%
(e) Loss of sight of both eyes 100%
(f) Loss of one limb and sight of one eye 100%
(g) Loss of hearing and speech -100%
(h) Loss of one limb or sight of one eye 50%
(i) Loss of hearing or speech 50%
5.5 A Double Indemnity benefit, which is also commonly included under the
standard cover, pays twice the benefit for death or permanent disablement if
the accident occurs while the insured person is riding as a fare-paying
passenger in a common carrier, public conveyance or public transport, such as
bus, ferry, hovercraft, hydrofoil, ship, train, tram, or underground train.
Depending on the definition of the term used, some policies may include or
specifically exclude travelling in a taxi for double benefit cover. For the sake of
clarification, some insurers go so far as to state that all modes of transportation,
whether chartered or arranged as part of a tour, even if the services are
regularly scheduled, are excluded from the definition of the term used in their
policies.
5.6 In addition, some insurers will provide benefits for the following:
▪ bereavement, cremation or funeral expenses incurred for overseas
accidental death, up to a limit (e.g. S$8,000); and
▪ education or tuition grant for each school-going child as a result of overseas
accidental death of the parent who is the insured, subject to a limit (e.g.
S$5,000) per child, usually up to four children.
B. Medical & Other Expenses
5.7 Overseas medical and treatment expenses are benefits commonly insured
under a Travel Insurance policy. The policy will reimburse such expenses
necessarily and reasonably incurred by the insured person for sustained injury
or sickness (as defined and arising of circumstances as stipulated in the policy).
The cover is commonly as follows:
▪ medical expenses, such as clinical, hospital, surgical, nursing, ambulance
and medical supply charges, and emergency accidental dental and
miscarriage expenses, including any follow-up medical expenses in
Singapore incurred within a certain specified period (usually 31 days) after
the insured person returns from his trip; and
▪ expenses incurred for treatment by a Traditional Chinese Medicine
physician, acupuncturist, bonesetter, chiropractor, herbalist, or
physiotherapist, up to a limit (e.g. S$750).
5.8 Cover is usually subject to an overall limit of indemnity (e.g. S$2,000,000).
C. Additional Accommodation & Travel Expenses
5.9 This section will reimburse towards the cost of reasonable additional
accommodation and travelling expenses necessarily incurred by the insured
person (and a travel companion, if required) to remain in the overseas country
of visit for medical treatment on the written advice of a medical practitioner, up
to a limit (e.g. S$25,000).
D. Hospital/Compassionate Visit
5.10 Coverage is for:

▪ hospital visit - reasonable travel and accommodation expenses necessarily
incurred by one relative or friend of the insured person who has been
hospitalised overseas for more than five days, for example, to visit and stay
with the insured person until he is medically fit to return home, up to a limit
(e.g. S$10,000); and
▪ compassionate visit - reasonable travel and accommodation expenses
necessarily incurred by one relative or friend of the insured person in the
event of his death while overseas, to assist in the final arrangements, up to
a limit (e.g. S$10,000).
5.11 The policy will pay only for a claim under either hospital visit or compassionate
visit, but not both.
4. Travel Insurance
E. Child Companion
5.12 This covers reasonable travel and accommodation expenses necessarily

incurred by one relative or friend of the insured person for accompanying an
insured’s unattended child or children home. This is in the event of the insured
person’s overseas hospitalisation, up to a limit (e.g. S$10,000).
F. Hospital Confinement Benefit
5.13 Hospital Confinement Benefit is also known as Hospital Cash Benefit or Hospital
Income Benefit. It is an additional benefit payable for each day that the insured
person is hospitalised, irrespective of the actual expenses incurred for
hospitalisation. The insured person is entitled to an amount of daily cash
payment (e.g. S$200 per day) for each day he is hospitalised abroad up to a
certain period (e.g. 250 days) or up to a certain amount (e.g. S$50,000). This
cover is in addition to any medical expenses which he has claimed under the
“Medical & Other Expenses” cover. The benefits are customarily payable upon
his return to Singapore, when he submits a claim with all relevant supporting
documents of evidence to the insurer.
5.14 Sometimes, the insured person may require follow-up hospitalisation or

hospitalisation upon return to Singapore. In this event, most policies will
provide cover if the hospitalisation is sought within a certain period (e.g. seven
days) immediately upon the insured person’s return to Singapore. The limits
for this cover are generally lower (e.g. S$100 per day) and usually payable for
up to certain period (e.g. 10 days).
5.15 Some insurers provide double benefit for overseas hospitalisation in an

intensive care unit. Customarily, this will apply only for hospitalisation resulting
from an accident and for up to a certain period (e.g. 10 days).
G. Emergency Medical Evacuation
5.16 This covers the cost of any emergency medical evacuation. Emergency medical
evacuation may arise when, for example, the insured person falls seriously ill
or sustains serious injury while abroad and is in a critical situation that requires
evacuation to another place to seek emergency medical treatment. This is often
because the local medical services are inadequate or unavailable.
5.17 The insurer normally contracts with a specialist company to provide emergency
medical evacuation. It is usually a requirement in the policy that the insured
person must contact this specialist company to request an evacuation. The
specialist company shall then decide whether the insured person will require
emergency medical evacuation. The policy specifies the helpline or hotline
phone number of the specialist company – on a handy card that the insured
should keep with them during the period of travel – who provide a multilingual
service and operate on a 24-hour basis.
5.18 There is usually a maximum benefit limit (e.g. S$500,000) payable for the lower
coverage plan. Generally, for the higher coverage plan, the coverage amount is
usually unlimited.
5.19 An important aspect of having emergency assistance cover is that it provides

peace of mind to the insured person, should he suffer a serious illness, or injury
in an unfamiliar environment, that a simple phone call will enable support to be
arranged.
H. Repatriation
5.20 Travel Insurance covers the expenses incurred in emergency medical

repatriation and repatriation of bodily remains.
5.21 Emergency medical repatriation occurs when, because of an accident or illness

abroad, the insured person requires repatriation to Singapore. The decision as
to whether or not the insured person should be repatriated would strictly rest
with the attending medical doctor or the insurer’s contracted specialist
company, as mentioned earlier.
5.22 Repatriation of remains means the transportation of and return of the deceased
insured’s mortal remains to Singapore.
5.23 There is a maximum benefit limit (e.g. S$30,000) payable for a lower coverage
plan. Generally, for a higher coverage plan, the coverage amount is usually
unlimited.
I. Kidnap And Hostage
5.24 This section of the policy will pay a daily benefit (e.g. S$250) for every 24-hour
period that the insured person is held hostage following kidnap, occurring
during his travel. The maximum amount payable is up to the limit as specified
in the policy (e.g. S$10,000).
5.25 This cover is usually subject to any of the following exclusions:

▪ the insured person’s fraudulent, dishonest, or criminal act;
▪ an event which takes place in the insured’s country of residence, any
country located in Central or Southern America, or Africa, or any country in
which the United Nations’ armed forces are present and active;
▪ the actual loss or damage to property of any description, including
intellectual property, as a result of the kidnap and hostage; or
▪ any loss or damage suffered not in accordance with the trip.
4. Travel Insurance
J. Travel Curtailment Or Disruption
5.26 Sometimes, the insured person may have to curtail his trip and return home
earlier than planned, such as owing to any of the following disrupting events:
▪ death, severe injury or serious illness suffered by him, his travel
companion, or an immediate family member in Singapore;
▪ compulsory quarantine by any government or local authority, owing to any
infectious disease suffered by him or his travel companion;
▪ hijacking of the aircraft in which he is a passenger on board; or
▪ natural disaster (such as earthquake, tsunami, typhoon and the like) or
sudden strike, riot or civil commotion outbreak at the planned destination.
5.27 When any of the above disrupting events occur, the insurer will refund the
insured person the irrecoverable travel and/or accommodation costs that he
had paid for before the departure of the trip, but did not use as a result of such
curtailment or disruption. The insurer will also pay for the additional travelling
expenses incurred by the insured person for returning home as a result of such
curtailment or disruption. Benefits are on a reimbursement basis up to a limit
(e.g. S$20,000).
K. Travel Cancellation Or Postponement
5.28 For the same reasons that the trip of the insured person may be curtailed or
disrupted, the trip may also have to be abandoned, cancelled, or postponed
even before the trip commences. This cover applies only in event of any one of
the following occurs within a specified period (e.g. 30 or 60 days) before the trip
departure from Singapore:
▪ death, bodily injury or illness suffered by him, his immediate relative or his
travel companion;
▪ compulsory quarantine by any government or local authority owing to any
infectious disease suffered by him or his travel companion;
▪ adverse weather condition, natural disaster (such as earthquake, tsunami,
typhoon and the like) or unexpected strike, riot or civil commotion outbreak
at the planned destination;
▪ serious damage to his residence in Singapore by burglary, fire, flood or
similar natural disaster occurring within seven days before the
commencement date of the trip, and where his presence is required at the
premises on the commencement date of the trip; or
▪ summons to appear in a court of law as a witness that was not made known
to him before effecting the insurance.
5.29 If any one of the above events happens, the insurer will refund the irrecoverable
travel and/or accommodation costs that may have been pre-paid, including the
travel agent’s cancellation fee. However, the insurer will not refund the deposit
owing to cancellation, just because the insured person has a change of mind
about undertaking the trip. A maximum limit applies (e.g. S$15,000).
5.30 Some policies exclude this coverage section on an insurance purchased less
than three or seven days before the commencement date of the trip.
L. Financial Collapse Of Travel Agency
5.31 The insurer will reimburse the insured up to a specified limit, depending on the
plan selected, for the loss of irrecoverable travel deposits or travel fares paid in
advance, due to a trip being cancelled because of the insolvency of a travel
agent to whom the insured made such payments.
5.32 The insurer will not pay for any loss;

(a) caused directly or indirectly by government regulations or control;
(b) caused by cancellation by the carrier or any other provider of the travel
and/or accommodation;
(c) that is covered by any other existing insurance scheme or government
program;
(d) which will be paid or refunded by a hotel, airline, travel agent or any other
provider of travel and/or accommodation;
(e) insolvency which occurred before the effective date of the policy;
(f) caused by a failure by any airline, cruise-line, tour operator or travel agent,
persons or agency to provide the travel arrangements for reasons other
than insolvency; or
(g) should the insurance be purchased less than 7 days before the date of
departure.
5.33 From 15 July 2015, the Singapore Tourism Board introduced a new licensing
condition that will require all licensed travel agents in Singapore to seek the
decision of their outbound leisure customers regarding the purchase of Travel
Insurance that covers travel agent insolvency.
5.34 This condition applies to cases, on a per-person basis, only when a customer
makes a deposit or payment of S$500 or more; or purchases a travel package
costing S$1,000 or more. Travel agents are required to record the decision of
their customers on whether or not they want to purchase Travel Insurance.
5.35 Travel agents who are Trade Specific Agents are encouraged to offer
consumers Travel Insurance covering travel agent insolvency.
4. Travel Insurance
M. Travel Delay/Flight Diversion
5.36 If the public transport to be taken by the insured person is delayed (usually for
at least six hours) beyond the intended departure time as specified in the
itinerary and as a result of:
▪ unexpected strike, riot, civil commotion or industrial action;
▪ adverse weather condition3; or
▪ mechanical breakdown, derangement or structural defect of the public
transport or common carrier, as defined in the policy.
5.37 The insurer will pay the cash benefit (e.g. S$200) for every consecutive full six
hours for such delay overseas or in Singapore, subject to a maximum amount
(e.g. S$2,000).
5.38 Alternatively, the insurer will pay up to such limits if the scheduled flight in
which the insured person is travelling is being diverted for medical treatment
of a fellow passenger, or because of adverse weather conditions if this prevents
the insured person from continuing his trip as scheduled, and the insured
person is thereby delayed from arriving at his planned destination, usually for
at least six consecutive hours.
5.39 However, there will be no cover if the delay is due to:

▪ the insured person’s failure to board the transport according to the time as
specified in the itinerary supplied;
▪ strike, riot, civil commotion or industrial action existing on the date that the
policy is purchased; or
▪ the insured person’s late arrival at the airport, port or station after check-in
or booking-in time.
5.40 The delay must be verified in writing by the transport operators of the
conveyance or their handling agents on the number of hours delayed and the
reason for such delay.
3
Most insurers will regard an adverse weather condition as not arising out of a man-made event. For
example, some insurers consider haze as a man-made event rather than adverse weather. Hence, they
will not pay for travel delay claims as a result of haze. However, there are certain insurers offering
coverage for travel delay claims resulting from haze. You are encouraged to study the policy wording
of different insurers, in view of the various market practices.
N. Overbooked Flight
5.41 The policy insures the insured person for his failure to board the aircraft arising
from the overbooking of the flight in which he has already received a confirmed
reservation from the travel agent or the airline company, usually for at least six
consecutive hours.
5.42 The failure to board the aircraft and the overbooking of the flight must be
verified in writing by the airline company or its handling agent.
5.43 The compensation is in the form of a cash benefit or reimbursement of

expenses incurred for accommodation, meals, and refreshments (e.g. S$200).
5.44 Some insurers have expanded this section to include coverage for overbooked
scheduled public conveyance, including cruise, besides the scheduled flight.
O. Travel Misconnection
5.45 If the insured person misses his connecting flight, arising from the delay of the
transportation in which he is travelling as a passenger to the place for his flight
connection, and no connecting flight is made available to him usually within six
hours, the insurer will pay him cash benefit or will reimburse him for any
expenses incurred for his accommodation, meals and refreshments up to a limit
(e.g. S$500).
5.46 The insured person must have received a confirmed reservation on the
connecting flight, and the missed flight connection must be verified in writing
by the airline company or its handling agent.
5.47 Note: The insurer will pay only one claim under either Overbooked Flight
Section or Travel Misconnection Section for the same event.
P. Personal Property
P1. Baggage Delay
5.48 Sometimes, the checked-in baggage of the insured person may be delayed,
misdirected or temporarily misplaced during the trip. Usually, for every six
consecutive hours that the baggage is delayed in reaching the insured person,
the insurer will pay him a cash benefit (e.g. S$200) towards the cost of buying
replacement necessities, such as clothing and toiletries. Payments are subject
to a maximum amount (e.g. S$1,000).
4. Travel Insurance
P2. Personal Baggage
5.49 This covers the value or repair of any of the insured person’s personal
accompanied baggage (including personal effects and valuables) that is lost,
stolen, damaged, or destroyed (after making reasonable allowance for wear and
tear). There is usually a limit on any one article, pair or set (e.g. S$500) and for
all valuables in total (e.g. S$5,000), and the limit for loss or damage to a laptop
computer or mobile phone is typically set at a limit (e.g. ranging from S$1,000
to S$1,500).
P3. Travel Documents
5.50 The insurer will reimburse up to a specified amount (e.g. S$5,000) for the cost
of obtaining replacement passports, travel tickets, and other relevant travel
documents lost, as well as additional travel and hotel accommodation expenses
incurred to replace lost travel documents, if such loss is due to robbery,
burglary, theft, or natural disaster, while overseas.
P4. Personal Money
5.51 The insurer will reimburse up to a specified amount (e.g. S$500) for the loss of
money (including cash, travellers’ cheques or banknotes) belonging to the
insured person and in his care during the trip. Such loss must be due to robbery,
burglary, theft, or natural disaster, while overseas.
P5. Credit Card Indemnity
5.52 The insurer will reimburse up to a specified amount (e.g. S$3,000) for financial
loss suffered relating to unauthorised transactions as a direct result of the
fraudulent use of the adult insured person’s credit card, following accidental
loss or theft while overseas. The loss must be reported to the card issuer,
usually within six hours of the incident. Any claim has to be accompanied by a
report issued by the card issuer evidencing the loss.
P6. Home Contents
5.53 If the insured suffers damage, caused by fire, to the Contents (as defined) of his
residence in Singapore, while his home has been left vacant during an insured
trip, the insurer will, up to a specified limit (e.g. S$5,000), provide
reimbursement, repair, reinstatement or replacement of the items. This cover
will only apply after the trip commences.
Q. Personal Liability
5.54 This covers the insured person’s legal liability for third-party bodily injuries or
accidental loss of or damage to third-party property, up to a specified limit (e.g.
S$2,000,000) for the legal expenses, legal liability for damages, and claimant’s
costs.
5.55 The usual exclusions include:

▪ liability resulting from the insured’s deliberate act or omission;
▪ liability relating to loss or damage to the insured’s own property;
▪ injury to the insured’s employee or any family member;
▪ liability arising out of the use of vehicle, aircraft or watercraft;
▪ legal costs resulting from any criminal proceedings; and
▪ judgements that are not delivered by or obtained from a Singapore Court
of Law.
R. Rental Vehicle Excess
5.56 The insurer will reimburse the amount of excess or deductible (e.g. S$2,000)
which the insured person becomes legally liable to pay in respect of loss or
damage to the rental vehicle (driven by the insured person) caused by an
accident or theft during the rental period, while overseas. The rental vehicle
must be rented from a licensed rental agency.
5.57 No payment will usually be made if there is any violation of the terms of the
rental vehicle agreement, or non-compliance of any driving rules or licensing
laws or regulations of the overseas country.
S. Loss Of Use Of Hotel Facilities
5.58 If the hotel, in which the insured person is staying while overseas, has
withdrawn its substantial services continuously for at least 24 hours, as a result
of an industrial action or unexpected strike, the insurer will pay a daily benefit
(e.g. S$100 per 24-hour period up to a limit of S$200).
5.59 Substantial services usually include all facilities relating to utilities, meals, and
services of waiters and hotel chambermaids.
4. Travel Insurance
T. Terrorism Cover
5.60 The policy will cover Act of Terrorism, subject to the respective limits of the
selected plan as specified by the insurer. “Act of Terrorism” is usually defined
as an act, including but not limited to the use of force or violence and/or threat
thereof, of any person or group, whether acting alone or on behalf of or in
connection with any organisation or government, committed for political,
religious, ideological or similar purposes or reasons, including the intention to
influence any government and/or to put the public or any section of the public
in fear.
5.61 However, some insurers may or may not cover nuclear, chemical, or biological
acts or events relating to terrorism.
6. AUTOMATIC POLICY PERIOD EXTENSION
6.1 Most insurers will automatically extend the period of insurance if the insured
person’s trip back to Singapore cannot be completed before the expiry date of
the policy. The policy will remain in force, without payment of any additional
premium, for a period usually up to:
(a) 14 days if the common carrier, public conveyance or public transport in
which the insured person is travelling as a fare-paying passenger is
delayed; or
(b) 30 days if the intended return trip is prevented owing to the insured
person’s injury or illness (including hospital confinement or quarantine,
while overseas, as advised by the attending medical doctor) arising from
a cause covered by the policy.
7. GENERAL EXCLUSIONS
A. Main Exclusions Found In Most Travel Insurance
7.1 Set out below is a non-exhaustive list of conditions or events that are commonly
excluded under Travel Insurance policies. This means that the insurer will not
cover travel claims for loss or liability directly or indirectly caused by or arising
from these events:
(a) Self-inflicted injuries;
(b) Pre-existing conditions;*
(c) Engaging in hazardous/military/sports activities;
(d) Mental or nervous disorders;
(e) Natural disasters that exist when the insured purchased the insurance;
(f) Radioactivity from nuclear materials;
(g) War and civil commotion; or

(h) Travel to specific countries e.g. Afghanistan.
* While most insurers do not cover pre-existing conditions, there are insurers
who offer such coverage on an optional add-on basis. There are also certain
insurers who offer travel insurance plans that specifically cover pre-existing
conditions albeit at a higher premium compared to their standard plans which
do not cover pre-existing conditions .
Note: Before buying Travel Insurance, one should always read the general
exclusions section in the policy wordings to understand the type of situations
that will not be covered.
8. POLICY CONDITIONS
8.1 The Travel Insurance policy contains conditions that are similar to those that
we have discussed so far, such as:
(a) compliance with policy provisions;
(b) taking reasonable steps to recover any lost or stolen article;
(c) exercising reasonable care or precaution to prevent injury, loss or
damage;
(d) contribution (not applicable to benefits such as capital sum insured of
Personal Accident Benefits); and
(e) subrogation, arbitration, fraud, governing law and jurisdiction, premium
before cover warranty, cancellation, and refund policy, etc.
8.2 There will also be a claim condition that states the claim procedures. This
usually requires that the insured must notify the insurer within a stipulated
period. The insured must complete a claim form and then submit it, with all the
necessary supporting documents, to the insurer.
9.1 As cover is frequently required at short notice, policies are often written with a
minimum amount of selection. Travel Insurance involves minimal underwriting
and is often issued based on the application form submitted.
9.2 There is also a trend by insurers to offer a convenient system whereby their
insureds’ details are “pre-registered”. The insurers will then activate the
insurance covers when the insureds inform the insurers of their trips through
the phone or the Internet.
4. Travel Insurance
9.3 Consequently, the questions asked in the application form (see sample
provided in Appendix 4B) are limited in the amount of information required.
Frequently, these are restricted to:
(a) details of the proposer (and spouse and/or children, if insuring), such as
name, address, identity card/passport, and contact numbers;
(b) length of the trip, including starting and ending dates;
(c) destination (if proposer is travelling to multiple locations - only the furthest
or highest rated destination needs to be stated) since the premium charged
is based on the relevant geographical countries (see descriptive examples
below) as specified in the application form or brochure; and
(d) type of plan needed, i.e. per trip (single trip) or annual (purpose is to make
unlimited number of trips during the period of insurance); and choice of
coverage plan needed, e.g. Classic Plan for lower benefit limits, or Deluxe
Plan for higher benefit limits.
9.4 As Travel Insurance covers both business and leisure travel, no question is
asked for the purpose of the trip in the application form.
9.5 The premium4 varies depending on the extent and type of coverage plan, the
destination and the duration of the trip. For instance, insurers normally tabulate
premiums according to the duration of travel and the types of plans (whether
individual or family) and apply a different table for each group of countries,
such as ASEAN, Asia or Worldwide (Global). For example:
Asia Worldwide
Period Of Premium Period Of Premium
Insurance Individual Family Insurance Individual Family
(Days) Plan Plan (Days) Plan Plan
1-3 S$33 S$72 1-3 S$51 S$101

4-9 S$43 S$92 4-9 S$64 S$126
10 - 14 S$57 S$120 10 - 14 S$87 S$178
9.6 ASEAN Area: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Thailand, and Vietnam.
9.7 Asia Area: Australia, China (including Mongolia and Tibet), Hong Kong, India,
Japan, Korea, Macau, New Zealand, Sri Lanka, Taiwan, Timor-Leste, and
countries under the ASEAN Area.
4
Under Section 21(3)(c) of the Goods and Services Tax Act 1993, Travel Insurance covering a trip from
and to Singapore will be zero-rated, i.e. no GST is charged on the premium payable.
9.8 Worldwide Area: Rest of the world, including Nepal and countries under the
ASEAN Area and Asia Area.
9.9 However, note that some insurers do not classify Mongolia and Tibet, or Japan
and Korea in the Asia Area. This means paying higher premiums for such trips.
9.10 Countries usually excluded are Afghanistan, Cuba, Democratic Republic of

Congo, Iran, Iraq, Liberia, Somalia, Sudan, and Syria.
10. CLAIM DOCUMENTS
10.1 The insurance company will specify the instructions on how to submit a claim
under the Travel Insurance policy.
10.2 As with other insurance, the basic claims document in Travel Insurance is the
claim form (sample in Appendix 4C), which is issued by the insurer without
admission of liability. This is available from the insurance company or
downloaded from its website, if available. The policy states a reasonable time
limit for submitting a claim, usually within 21 or 30 days (notification period)
from the date of return to Singapore.
10.3 Related documents of evidence to support the claim (submitted at the expense
of the insured or claimant) include:
▪ itinerary, air tickets, and boarding passes;
▪ original itemised bills, invoices, expense receipts, and hospital inpatient
discharge summary (when claiming reimbursements for medical and other
claimable expenses);
▪ written proof of delay;
▪ police reports (if applicable);
▪ death certificate, attending doctor’s statement, and medical report (for
claiming Personal Accident benefits);
▪ any other relevant supporting documents of evidence, including those from
the appropriate reporting authorities (such as the Property Irregularity
Report/Property Damage Report from the airline/carrier for baggage claim).
10.4 The insured should forward to the insurer any correspondence and documents
received from any third party. For Personal Liability claims, the insured should
not admit liability or make any offer, promise, or payment without the prior
written consent of the insurer.
4. Travel Insurance
10.5 The insured will usually have to make all the necessary payments first, and then
seek reimbursements from the insurer later. Hence, the insured must always
remember to retain all original itemised bills, invoices and payment receipts,
and obtain the necessary reports and other relevant supporting documents of
evidence.
Appendix 4A
SUMMARY OF BENEFITS & PREMIUMS – TRAVEL INSURANCE POLICY
Summary Of Coverage Maximum Benefits (S$)

MEDICAL AND TRAVEL BENEFITS Plan A Plan B Plan C
Medical Expenses Incurred Overseas
for Sickness or Injury
Section 1 Insured Person (under age 70 years) $2,000,000 $500,000 $200,000
Insured Person (age 70 years or older) $200,000 $75,000 $50,000
Insured Child in a Family Plan $300,000 $200,000 $200,000
Post Trip Medical Expenses Incurred

Section 2
in Singapore
For Sickness sustained while
Overseas and medical treatment or
follow-up medical treatment upon
2A return to Singapore
Insured Person (under age 70 years) $10,000 $5,000 $2,000
Insured Person (age 70 years or older) $5,000 $2,500 $1,000
Insured Child in a Family Plan $5,000 $2,500 $1,000
(1) For Injury sustained while

Overseas
(2) For Sickness sustained while
Overseas and where emergency
2B
medical evacuation has been
arranged by the Insurer to return
$50,000 $25,000 $10,000
You to Singapore
$5,000
Insured Person (under age 70 years)
$10,000 $2,500 $1,000
Insured Person (age 70 years or older)
Insured Child in a Family Plan
$10,000 $10,000
Medical Expenses – Women’s
Section 3 $8,000 $5,000 $2,000
Benefit
Section 4 Child Protector $10,000 $5,000 $3,000
Section 5 Hospital Income in Singapore $1,000 $1,000 $500
Section 6 Repatriation Unlimited Unlimited Unlimited
Section 7 Emergency Medical Evacuation Unlimited Unlimited $500,000
Section 8 Direct Repatriation Unlimited Unlimited Unlimited
Section 9 Emergency Telephone Charges $300 $250 $100
Section 10 Hospital Visitation $15,000 $10,000 $5,000
Section 11 Treatment by Physician $500 $300 $100
Section 12 Compassionate Visit $10,000 $5,000 $3,000
Section 13 Overseas Hospital Income $50,000 $30,000 $10,000
Automatic Extension of Policy Yes Yes Yes
Section 14
Period
4. Travel Insurance
PERSONAL ACCIDENT BENEFITS Plan A Plan B Plan C

Children Education Grant
Section 15 S$5,000 per child, maximum 4 $20,000 $20,000 NA
children
Common Carrier Double Cover
Insured Person (under age 70 $1,000,000 $400,000 NA
years) $400,000 $200,000 NA
Section 16
Insured Person (age 70 years or
older) $200,000 $200,000 NA
Accidental Death & Permanent
Disablement
Insured Person (under age 70 $500,000 $200,000 $150,000
Section 17 years) $200,000 $100,000 $50,000
Insured Person (age 70 years or
older) $100,000 $100,000 $50,000
TRAVEL INCONVENIENCE BENEFITS Plan A Plan B Plan C
Section 18 Travel Cancellation $15,000 $10,000 $5,000
Section 19 Travel Curtailment $15,000 $10,000 $5,000
Section 20 Travel Postponement $2,000 $1,000 $500
Section 21 Travel Documents $5,000 $5,000 $3,000
Travel Cancellation due to
Section 22 $5,000 $3,000 $1,000
Insolvency
Section 23 Flight Diversion $1,000 $1,000 $1,000
Section 24 Baggage Delay $1,000 $1,000 $1,000
Section 25 Fraudulent Credit Card Usage $3,000 $3,000 $3,000
Section 26 Travel Misconnection $500 $200 $200
Personal Baggage including
Section 27 $8,000 $5,000 $3,000
Laptop Computer
Section 28 Flight Overbooking $100 $100 NA
Section 29 Jewellery Coverage $1,000 $500 $100
Section 30 Personal Liability Abroad $2,000,000 $2,000,000 $2,000,000
Section 31 Travel Delay $1,000 $1,000 $1,000
Section 32 Kidnap & Hostage $10,000 $5,000 $3,000
SUPPLEMENTARY BENEFITS Plan A Plan B Plan C
Section 33 Pet Care $500 $250 NA
Golf Advantage
a) Damage or Loss of Golfing $750 $500 $500
Section 34 Equipment
b) Hole-in-One $250 $250 NA
c) Loss of use of Green Fees $250 $250 NA
Section 35 Disruption Benefits $300 $200 $100
Section 36 Home Guard $5,000 $5,000 NA
Section 37 Cover in the event of Terrorism Yes Yes Yes
Car Rental Excess Charges and
Section 38 $2,000 $1,000 $500
Return
Premiums (S$)
ASEAN Worldwide Asia
Length
Plan type Plan A Plan B Plan C Plan A Plan B Plan C Plan A Plan B Plan C
of trip
Individual 47 34 26 89 64 43 64 45 33
1–3
days
Family 118 85 65 223 160 108 160 112 82
Individual 60 42 31 110 80 61 78 55 40
4–6
days
Family 150 105 78 275 198 153 195 138 100
Individual 80 56 38 128 93 75 106 75 51

7 – 10
days
Family 200 140 95 320 232 188 265 188 128
Individual 107 73 51 165 120 100 130 91 64

11 – 14
days
Family 268 182 128 412 298 250 325 228 160
Individual 138 93 69 218 148 123 162 110 82

15 – 22
days
Family 345 232 172 545 370 308 405 275 205
Individual 168 113 92 250 180 156 202 138 100

23 – 31
days
Family 420 282 230 625 450 390 505 345 250
Each
Individual 35 24 19 48 38 27 45 32 26
additio
nal
Family 88 60 48 120 95 68 113 80 65
week
Annual
Individual 630 420 NA 450 320 NA
Multi-
NA NA NA
Trip
Family 999 NA NA 839 NA NA
Plan
4. Travel Insurance
Appendix 4B

Tel: (65) 6789 8181 Fax: (65) 6789 8282
APPLICATION FORM FOR TRAVEL INSURANCE
Important Notice:
1. Statement pursuant to Section 23(5) of the Insurance Act 1966 (or any subsequent amendments thereof): You are to
disclose in this application, fully and faithfully, all the facts which you know or ought to know in respect of the risk that is
being proposed. Otherwise, the Policy issued hereunder may be void and you may receive nothing from the Policy.
2. Neither the brochure nor the Enrolment Form is a contract of insurance. However, your warranties, declarations and
disclosures therein and herein shall form the basis of the Policy. The specific terms, conditions and exclusions applicable
to the insurance are set out in the Policy, a copy of which is available upon request.
3. Pre-existing medical conditions are not covered by the Policy.
PARTICULARS OF APPLICANT (PERSONS TO BE INSURED)
Name of Insured Adult 1 (in Full) Name of Insured Adult 2 (in Full)
NRIC No. Date of Birth NRIC No. Date of Birth
Address Address
Singapore_________________________ Singapore__________________________
Contact Numbers Contact Numbers
Mobile Residential Mobile Residential
Office E-mail Office E-mail
Number of Accompanying Children: For Family Plan, children must be unmarried and unemployed and must be no older
than 18 years of age or up to 23 years if studying full-time in a recognised institution
of higher learning. Each child must be related to at least one insured adult. For Annual
Plan, each child must be the legal child of the insured adult(s). There is no limit to the
number of accompanying children.
Choice of Plan Choice of Benefit Area
Individual Plan Family Plan Per Trip Superior Classic ASEAN Asia Worldwide
Date of Departure Furthest Destination from Length of Trip (departure and return
Singapore day inclusive)
Date of Return
Annual Effective Date Expire Date
PAYMENT MODE
By Cash By Credit Card
a) I hereby confirm that I am the cardholder of the below credit card and
I authorised the Company to charge the premium for the above
policy/policies to my card.
By Cheque, payable to ABC b) I fully understand and agree to the terms and conditions of the usage
Insurance Company (Singapore) of my credit card. I also understand and agree that the above
Limited. policy/policies will only be effective subject to the receipt of approval
from the bank and receipt of approval from the bank and receipt of the
premium by the Company.
Bank __________________________________
c) I understand and agree that in the event of refund from the Company,
payment will be made to the INSURED/POLICYHOLDER stated above.
Cheque No. ___________________________ VISA MasterCard
Name of Cardholder _____________________________
Amount ______________________________
Card No . ________________________________
Signature of Cardholder ____________________________
DECLARATION
Warranty and Declaration: The Insured Person(s) hereby warrant and declare for themselves and on behalf of all members of
the travelling party as follows:
(i) I/We are not travelling contrary to the advice of a Medical Practitioner or for the purpose of obtaining medical treatment.
(ii) I/We are currently in good health, free from all physical impairment and deformity.
(iii) I/We understand and agree that no insurance is in force until an Application is accepted by the Company and a Policy is
issued pursuant thereon.
(iv) I/We are aware of and agree to abide by the Policy’s terms, conditions and exclusions.
(v) I/We agree and authorise any medical source (including hospitals and clinics), insurance officer or any other organisation
to release to the Company at any time any information concerning the Insured Person(s) if required.
Signature of Insured Person or his/her Date

Authorised Representative
4. Travel Insurance
Appendix 4C
LIMITED
Tel: (65) 6789 8181 Fax: (65) 6789 8282
TRAVEL INSURANCE CLAIM FORM
Important Notice
1. The acceptance of this form is not an admission of liability on the part of the Company.
2. All claims must be submitted within 30 days from occurrence date and any documentary proof or report required by the
Company shall be furnished at the expense of the Policyholder or Claimant.
Policy No. Claim No.:
PARTICULARS OF POLICYHOLDER AND INSURED PERSON/CLAIMANT

Name of Insured Person (in Full) NRIC No.

Office Home
Date of Birth Gender Male Female Occupation
TRAVEL DETAILS
Which country/city did the loss/accident/incident occur? Date of Time
Occurrence
Description of the Incident, Loss or Illness.
Are there any other insurance policies covering you for this incident? Yes No
If Yes, please declare details below.
Name of Insurer Policy No. Amount Recoverable
TYPE OF CLAIM (Please tick ONLY those applicable to you)

A Did these injuries result in permanent disability? Yes No
Personal Accident Benefit What injuries have been sustained?
B Have you suffered this illness or injury or Name and address of your usual
Medical Expenses similar condition or a recurrence of a previous attending doctor
Please attach original medical illness or injury?
receipts and copy of discharge Yes ; Please specify Nature of illness/injury
summary or available medical No
report. Amount claimed
C What caused the cancellation/curtailment? Intended Departure Date
Cancellation/Curtailment Cover
Date of Cancellation
Please attach documents from
carrier/travel agent and any State the amount of pre-paid
relevant documents to support expenses that could not be utilised
your claim.
D Original Flight No. Delay Duration of Original Flight

Overbooked Flight/Missed (hours/days)
Connection Connecting Flight No.
E Cause of Delay Flight No.

Travel Delay
Please attached letter from
airline/carrier stating the cause Scheduled Departure Date Final Departure Date
and duration of delay.
Time am/pm Time am/pm
F Has this loss/damage been reported to the Description of Item
authorities?
Personal Baggage
Please furnish police report and Yes Original Purchase Price
original purchase receipts and or State the amount of compensation received
warranty cards. from the authority (e.g. Airlines) Date of Purchase
No
Receipts Yes No
Amount Claim (S$)
G Flight Details Collection of Delay Baggage

Baggage Delay Flight No. Place
Please attach boarding pass,
baggage irregularity report, Place of Departure
baggage acknowledgement slip Arrival Date Date
and other correspondences from
the airlines. Arrival Time am/pm Time am/pm
H In respect of any other claim which does not fall within the sections stated above,
Others please provide details of the claim you are submitting. If the space below is
insufficient for such details, please attach another page.
CLAIM PAYMENT MODE
Cheque Account Holder’s Name(s)
Deposit into NRIC No.
bank account
Personal Account No. Bank Name Branch
Account
Joint Account
For claimant below 16 years old, please provide payee’s details as follows:
Full Name NRIC No Relationship to Claimant
DECLARATION
I the undersigned hereby declare that all the foregoing particulars given by me are true and correct.
I agree that the Policy shall be void and I shall forfeit all rights to recover if I made or shall make any false or fraudulent
statements, or withhold material facts whatsoever in respect of this claim.
I hereby consent to ABC Insurance Company (Singapore) Limited obtaining medical information from hospitals,
physicians and any other person I have consulted and I authorise the giving of such information. I authorise ABC
Insurance Company (Singapore) Limited to obtain travel information from airlines/travel agents. I also agree the
photocopy of this form shall be valid as the original.
Signature Date
Signature and Name of Witness Address of Witness

CHAPTER 5
PERSONAL LIABILITY INSURANCE
CHAPTER OUTLINE
1. Introduction
2. How Liability Arises At Law
3. Types Of Liability Insurance
Appendix 5A – Personal Liability Insurance Policy
Appendix 5B – Application Form For Personal Liability Insurance
LEARNING OUTCOMES

▪ understand how liability arises at law
▪ understand the definition of negligence and how it can be established
▪ understand the meaning of absolute liability and vicarious liability
▪ understand the scope of cover, exclusions, extensions, policy conditions and
underwriting considerations of Personal Liability Insurance
▪ understand the need for Personal Mobility Insurance
▪ know the claim documents that are required from the insured to substantiate a claim
under Personal Liability Insurance
Contents
PERSONAL LIABILITY INSURANCE ............................................................................... 165
CHAPTER OUTLINE ......................................................................................................... 165
1. INTRODUCTION ..................................................................................................... 167
2. HOW LIABILITY ARISES AT LAW .......................................................................... 168
A. Negligence ....................................................................................................... 169
B. Absolute Liability............................................................................................. 171
C. Vicarious Liability ............................................................................................ 171
3. TYPES OF LIABILITY INSURANCE ........................................................................ 172
4. PERSONAL LIABILITY INSURANCE ...................................................................... 173
A. Introduction ..................................................................................................... 173
B. Scope Of Cover ............................................................................................... 173
C. Exclusions ........................................................................................................ 174
D. Extensions ....................................................................................................... 175
E. Policy Conditions............................................................................................. 175
F. Underwriting Considerations ......................................................................... 176
G. Personal Mobility Insurance ........................................................................... 176
H. Claim Documents ............................................................................................ 177
Appendix 5A .................................................................................................................... 178
Appendix 5B .................................................................................................................... 182
1. INTRODUCTION
1.1 There are many instances when an individual may incur losses as a result of his
actions towards other people or their property. Such losses are called liability
losses. A liability loss occurs when a person is deemed to have been
responsible, or liable, for loss to another person or another person’s property
and is required to make financial restitution to that person who has suffered
damage or loss, or wrongdoing caused to him. Examples include:
▪ the individual’s dog bites and injures a postman;
▪ the sliding windows or potted plants fall from an individual’s apartment/flat
and injure a passer-by;
▪ the individual’s child, while playing soccer, breaks a neighbour’s window;
▪ a fire starts in an individual’s home and spreads to the neighbour’s
property; and
▪ a guest, at his friend’s home, slips on a waxed floor and falls, injuring
himself.
1.2 The financial consequences of a liability loss can be devastating. In civil actions,
a party called the plaintiff (or claimant) initiates legal proceedings against a
defendant, in order to pursue a claim. If an individual is liable for the loss of
another, a court of law may require the individual (defendant) to pay damages
(monetary compensation in civil proceedings) to the injured party (plaintiff or
claimant) and his own legal expenses, in addition to claimant’s costs.
1.3 The question then is “How can an individual protect himself against financial
losses owing to liability claims?” Insurance companies provide Personal
Liability Insurance, which is designed to protect the individual from financial
losses arising out of liability claims, by transferring the burden of financial loss
from the insured to the insurer.
1.4 Liability losses are known in the insurance business as third-party losses. The
insured is the first party. The insurance company legally representing or
defending the insured is the second party. The third party is the person who has
suffered the injury or damage and is not a named party to the insurance
contract.
1.5 Before we look into the details of the insurance cover, we will examine how
liability arises at law, and examine some concepts and principles relating to
liability.
2. HOW LIABILITY ARISES AT LAW
T
2.1 Liability can arise at law as follows: AC
(a) Under Statute

A statute is a specific law passed by parliament and is mandatory to all.
Such liability may be without any fault on the part of the person made liable
by the statute (e.g. in accordance with the Work Injury Compensation Act
2019, whereby an employer is liable to pay compensation for death or injury
to any employee at work, regardless of who is at fault.
(b) At Common Law

Common Law is unwritten law, but which applies to all of us. Liability at
Common Law usually involves some element of fault, perhaps the most
obvious example being the “tort” (or “civil wrong”) of negligence. For
example, a man will be liable if, out of carelessness, he has caused injury
to a passer-by. We shall discuss negligence in detail in a later section of this
chapter.
(c) Under Contract

Liability under contract refers to what is known as “liability assumed under
contract”, whereby one party agrees to assume another’s liability for
negligence and to hold such other person harmless for liability to third
parties. This practice can make a contractor legally obligated for the
negligent acts of another, i.e. of the principal or subcontractor. Such “hold
harmless” agreements are common in the construction industry. Insurance
coverage for liability assumed under contract can be purchased on a
specified contract basis or blanket basis, at an additional premium.
In addition, liability can also arise from breach of contract. Contractual

duties are formed and governed by agreement (the contract) between
parties. Parties to the contract owe each other duties in the form of
promises. Contract law thus revolves around the enforcement of those
promises made between the parties. Where there is a breach of contract, a
party to the contract may sue for relief, if that breach has caused them a
loss.
A. Negligence
A1. Definition
2.2 A liability loss occurs when a person is deemed to have been responsible or
liable for loss to another person or property and is required to make financial
restitution.
2.3 One of the ways in which a person becomes liable to another is by committing a
tort. A tort is a civil wrong that violates the rights of another. Unlike the
commission of a crime, in which the government prosecutes the wrongdoer, torts
are a part of civil law and are concerned with the private relationships between
people.
2.4 A tort can be intentional or unintentional. Liability Insurance provides no

protection for the insured against liability arising out of intentional or wilful acts.
However, it does provide cover for unintentional torts.
2.5 Another term for an unintentional tort is negligence. If a person is to be held liable
for a certain event or action, it must be shown they have been negligent.
Negligence is the failure to use the proper care that is required to protect others
from an unreasonable chance of harm.
A2. Establishing Negligence
2.6 Generally, a court of law must determine negligence. In order to establish

negligence, the four factors that must be proved are that:
▪ the defendant owed a legal duty of care;
▪ there was a breach of that duty;
▪ there was damage or loss; and
▪ the damage or loss was caused by that breach.
(a) Duty Of Care & Breach Of That Duty

Whether a duty of care exists in a particular case depends on “the
neighbour test”. A man must take reasonable care to avoid any act or
omission, which he can reasonably foresee will injure his neighbour. His
neighbour is one who is closely and directly affected by his act or omission
that he reasonably ought to have in his contemplation, when he is directing
his mind to any such act or omission. Therefore, whether a duty of care
does or does not arise will depend upon reasonable foreseeability. This test
involves a consideration of whether a reasonable man, in the defendant’s
position, will have foreseen that his actions or inactions can adversely affect
persons proximate to those actions or inactions. Any action or inaction that
adversely affects the neighbour amounts to a breach of the defendant’s
duty of care.
The duty owed by one person to another is sometimes expressed as a

degree of care. For instance, a property owner owes the greatest degree of
care to an invitee, a person invited onto the premises, which involves a
potential benefit to the property owner (e.g. a person who enters a shop
with a view to doing business with the owner). Less responsibility is owed
to a licensee, a person on the premises with the owner’s consent, but for
the sole benefit of the visitor (e.g. a guest who is invited to a meal by the
owner). The least degree of care is owed to a trespasser, one who is on the
premises without permission, either expressed or implied.
(b) Proximate Cause

In order to establish that one person’s actions towards another person are
negligent, and that this negligence causes damage to another person or
that person’s property, the negligent act and the damage must be tied
together. The negligent act is then called the proximate cause of loss.
The proximate cause of a loss is an action that, in a natural and continuous

sequence, produces the loss. This sequence is unbroken by any other
factors or events, and the loss would not have occurred without the
proximate cause.
When an independent action breaks the chain of causation and sets in

motion a new chain of events, this intervening cause becomes the
proximate cause.
Here is an example. A fire destroyed a house and weakened a surrounding

wall. While clearing the debris on the following day, the driver of the
bulldozer accidentally knocked down parts of the weakened wall.
In this instance, the fire was the proximate cause of the loss of the house,
but not to the wall. The intervening negligent act by the driver of the
bulldozer was the proximate cause of the damage to the wall.
A loss that occurs directly after an action does not automatically make that
action the proximate cause of the loss. The action must be directly
responsible for the loss.
At times, additional events may occur between the proximate cause of the
loss and the loss itself, but these events occur in a type of “chain reaction”,
with no other causal elements interrupting the sequence.
Consider this example. Lucky Frozen Foods Company had a small fire in a
control unit that caused a short circuit in the electrical wiring. This caused
the freezers to stop working and the stored food became spoilt. In this
example, the fire was the proximate cause of the damage to the frozen food
because it started the chain reaction, and there were no intervening causes.
(c) Damage Or Loss

In addition to the breach of duty and proximate cause, a determination of
negligence requires damage or loss. If no one has been adversely affected
by an individual’s actions, then there is no need to determine if there has
been any negligent act.
B. Absolute Liability
2.7 We have earlier mentioned that, in order to hold someone legally liable for an
action, negligence must be present. However, there are some exceptions.
Absolute liability is imposed by law on those participating in certain activities that
are judged to be especially hazardous. Individuals involved in such operations
may be held liable for the damages of another, even though they are not
negligent. Such liability, fixed by law, is most frequently applied to activities
involving:
▪ dangerous materials;
▪ hazardous operations; or
▪ dangerous animals.
2.8 Assuming that the local zoo, despite taking precautions, has let one of its lions
escape and it seriously injures a child. The zoo may not have been negligent, but
it can still be held responsible by virtue of absolute liability.
2.9 Another term that is sometimes used for absolute liability is strict liability. Strict
liability is usually used in reference to products liability.
Tiger
C. Vicarious Liability
2.10 Sometimes a person may be held responsible for the actions of others. This is
called vicarious liability, or imputed liability. You may also see the term vicarious
or imputed negligence. Vicarious liability occurs when an individual who is liable
for some occurrence is under the control of some other person or organisation,
and who, therefore, transfers liability to the party in control. For instance, the
liability of an employee may be transferred or imputed to his employer.
2.11 Alex was employed by Great Way Company to transport a load of chemicals to
a chemical distributor in Kuala Lumpur. While driving the truck in the evening,
he fell asleep. The truck overturned, and the escaping chemical damaged some
private property. Great Way Company, the employer, could be held vicariously
liable for the damages caused by Alex, the employee.
3. TYPES OF LIABILITY INSURANCE
3.1 There are a number of different Liability Insurances, but most of them share the
common feature of covering the insured’s legal responsibility (sometimes
expressed as “liability at law”) for death, injury, disease, disability, or property
damage to other people. The insurance does not cover a third party’s liability
towards others. It covers only the insured’s legal responsibility towards the
third party.
3.2 The major types of Liability Insurance are:

(a) Work Injury Compensation Insurance – This is liability under statute and
is a form of compulsory insurance in Singapore as required under Section
24(1) of the Work Injury Compensation Act 2019.
(b) Common Law Liability of Employers – This may be included in the Work
Injury Compensation Insurance policies by means of an additional benefit
extension albeit there is no such cover in the Ministry of Manpower’s
approved policy wording;
(c) Public Liability Insurance – This relates mostly to Common Law liability
for death, injury, disease, or property damage to any third party (non-
employee);
(d) Products Liability Insurance – This is another form of third-party (non-
employee) liability, but arising from any defective product;
(e) Professional Liability Insurance – This is also a third-party liability, but
concerns mistakes or negligence of “professional” people, such as
accountants, architects, doctors, engineers, financial adviser
representatives, insurance brokers, lawyers, solicitors, etc., acting in their
professional capacity. It is also known as “professional indemnity” (one
example for doctors is called “medical malpractice”). Section 77(1)(c) of
the Insurance Act 1966 requires an insurance broking company to have in
force a Professional Indemnity Insurance policy.
(f) Personal Liability – We will discuss this in detail in a later section of this
chapter.
3.3 Discussions on the other types of Liability Insurance are found in the
“Commercial General Insurance” Study Guide, published by the Singapore
College of Insurance Limited.
4. PERSONAL LIABILITY INSURANCE
A. Introduction
4.1 Personal Liability Insurance is a liability insurance offered under the personal
lines of general insurance, in that it insures only the insured and his family
members. In contrast, the other types of liability insurance, i.e. Work Injury
Compensation, Public Liability, Products Liability, and Professional Liability, are
commercial lines, as they involve the insured’s business and/or employees. In
addition, commercial lines liability insurance provides coverage for legal
liability assumed under Statute, Common Law, and/or Contract. On the other
hand, Personal Liability Insurance provides coverage for legal liability at
Common Law only.
4.2 You may take a look at the sample Personal Liability Insurance policy in
Appendix 5A at the end of this chapter.
B. Scope Of Cover
4.3 Most Liability Insurance contracts agree to pay, on behalf of the insured, all
sums for which the insured becomes legally liable to pay for damages arising
from bodily injury or property damage.
4.4 Note that the insured must be directly liable for the loss or damage, before the
insurer will pay damages on the insured’s behalf.
4.5 The insurer will indemnify the insured for any claim for which the insured is
held legally liable to pay as compensation for:
▪ accidental death, bodily injury or illness to any person; and
▪ accidental loss of or damage to property.
4.6 The above-mentioned indemnity will be for any occurrence during the period
of insurance and within the stated geographical limits, which is usually
“anywhere within the Republic of Singapore”.
4.7 The insurer will also pay the legal costs and expenses:
▪ recoverable from the insured by any claimant; and/or
▪ incurred by the insured, with the written consent of the insurer, in defence of
a claim for compensation made against the insured.
4.8 The insurer may also defend any suit against the insured and will make the
settlement of the claim only with the insured’s consent. If the insured disagrees
with the settlement, or insists on defending the claim, the insurer will pay only
up to the amount for which the claim can be settled and only up to the time that
the insurer agrees to pay the claim. Any legal costs and expenses that the
insured incurs after such time will be borne solely by the insured.
4.9 Even though the purpose of Liability Insurance is to protect the insured from
financial loss by shifting the burden of payment from the insured to the insurer,
there is a limit beyond which the insurer will not pay. The maximum amount
that the insurer will pay for compensation, legal costs, and expenses arising out
of any accident or occurrence and for any one period of insurance shall not
collectively exceed the limits of liability/sum insured under the policy.
4.10 Some insurers define “insured” to include the insured’s spouse and children
living in the same household, while others include family members under a
“Family Liability Insurance” plan.
C. Exclusions
4.11 All Liability Insurance policies contain certain exclusions. In general, there is no
coverage for liability arising out of any of the following:
(a) Direct damage sustained by the insured such as:
▪ damage to property owned by the insured or under the insured’s care,
custody, or control; or
▪ bodily injury to the insured or any member of the insured’s family.
These are not deemed to be third party losses and so are excluded.
(b) Liability more appropriately covered under other insurances, including the
following:
▪ employees’ injuries arising out of and in the course of employment or
service with the insured - this will be excluded as it is usually covered
by a Work Injury Compensation Insurance policy;
▪ injury or damage relating to the ownership or custody of any motor
vehicle by the insured - this is rightfully covered by a Motor Insurance
policy;
▪ wrongful advice or professional negligence – this is more
appropriately covered by a Professional Indemnity Insurance policy;
and
▪ injury or damage relating to the ownership or use of any land or
building not solely used as a private residence – this does not relate
to “personal” risks and, therefore, this should be covered by a Public
Liability Insurance policy for business enterprises;
(c) Risks requiring special underwriting considerations, such as liability

assumed by the insured under a contractual agreement, unless such
liabilities exist, if the insured does not assume them under a contract;
(d) Exemplary damages awarded against the insured – exemplary or punitive

damages are awarded to punish the wrongdoer, and do not represent
compensation to the injured party for losses that are actually sustained
(relating to this aspect, fines are also excluded);
(e) Compensation for damages awarded by courts in countries other than

Singapore – this is found under the policy’s Jurisdiction Clause; or
(f) Catastrophe risks such as war, strike, riot, civil commotion, nuclear,
ionising, radiation, radioactivity, pollution and contamination – these are
standard exclusions for most insurance policies.
D. Extensions
4.12 Insurers may offer, as a form of extension, the option of a higher limit of
liability/sum insured. As mentioned earlier, some insurers will extend the policy
to the insured’s spouse and unmarried children, living with the insured in the
same household, under an extended “Family Liability Insurance” plan.
E. Policy Conditions
4.13 Many of the policy conditions usually applicable to Personal Liability Insurance
policies are similar to many that we have seen so far, such as duty of care,
exercising reasonable precautions, contribution, subrogation, fraud,
cancellation, arbitration, etc.
4.14 The claims conditions are of particular importance, as they specify the insured’s
obligations and the insurer’s rights in the event of a claim.
E1. Obligations of the Insured
4.15 As soon as the insured is aware that any event has happened, which may give
rise to a claim (e.g. insured accidentally injures someone), the insured must:
▪ immediately inform the insurer in writing;
▪ give all necessary information and assistance that the insurer may require,
and provide all the details and evidence in connection with the claim;
▪ not admit liability or make an offer or promise of payment, without the
insurer’s written consent; and
▪ immediately forward to the insurer all correspondence, writs, summons, or
other legal documents received by or served on the insured.
E2. Insurer’s Rights
4.16 In the case of any claim made under the policy, the insurer has the right to:
▪ take over and conduct, in the name of the insured, the defence or settlement
of any claim on the insured’s behalf, and shall have full discretion in the
conduct of any proceedings and in the settlement of any claim; and
▪ pay the insured up to the amount as stated in the schedule of the policy
(less any sum already paid as compensation), or any lesser sum for which
the claim arising from the accident can be settled. After such payment, the
insurer will have no further liability under the policy in respect of the same
accident.
F. Underwriting Considerations
4.17 The information required by insurers for Personal Liability Insurance is usually
minimal, namely:
▪ the name of the proposer;
▪ address of the proposer and other personal details, such as date of birth,
occupation, and nature of business (although business activities
will not be covered, as discussed previously);
▪ number of children, dogs/other pets of the proposer; and
▪ the previous claims experience of the proposer.
4.18 Premiums are mostly standard and will vary only with the level of sum
insured/level of liability chosen (see Appendix 5B for a sample of the proposal
form).
G. Personal Mobility Insurance
4.19 An example of Personal Liability Insurance would be Personal Mobility

Insurance that was first launched in 2016, targeting users of active mobility
devices that include personal mobility devices (PMDs), e-scooters, power-
assisted bicycles (PABs), motorised wheelchairs and mobility scooters.
4.20 This Personal Mobility Insurance yearly premiums range from S$65 to $95 to
cover against injuries, permanent disabilities or accidental death arising from
the use of a personal mobility device in Singapore.
4.21 The government has adopted the “zero-tolerance” approach due to the rise in
errant riders which has led to a surge in accidents in 2019. With the introduction
of footpath ban which came into effect on November 5, 2019 and other
regulatory measures, there has been a drastic fall in the number of PMD users.
4.22 With heavy regulations in place, people have turned their attention to PMD
insurance, requesting the government to mandate users to get compulsory
insurance. However, there has not been any mandatory requirement for
individual active mobility riders to purchase Personal Mobility Insurance yet.
4.23 On the other hand, it is mandatory for businesses to ensure that their
employees who use active mobility devices on public paths are covered. Under
the Active Mobility Act 2017, businesses who employ riders using active
mobility devices on public paths must take all reasonable and practicable
measures to ensure that the individual is insured and maintain insurance for a
prescribed minimum amount under one or more approved policies with an
insurer within the meaning of the Insurance Act 1966 against third-party
liabilities for injury and death during the course of their work. Please refer to
the SCI Commercial General Insurance Study Text for more information on the
commercial cover.
H. Claim Documents
4.24 To assist the insured in providing sufficient information on claims, the insurer
may issue a claim form, which may also be downloaded from the insurer’s
website, for the insured to complete. As already mentioned, it is usually stated
in the policy conditions that the insured must, immediately upon receipt,
forward to the insurer every letter, writ, summons, and other legal documents.
The insurer’s claims handler will then make a decision on whether any legal
liability attaches to the insured, and whether the claim is covered by the policy.
Appendix 5A

LIMITED
Tel: (65) 6789 8181 Fax: (65) 6789 8282
PERSONAL LIABILITY INSURANCE POLICY
WHEREAS the Insured by a proposal which shall be the basis of this contract and be held as incorporated herein has
applied to the Company for the Indemnity hereinafter expressed.
In consideration of the payment of the First Premium or any Renewal Premium which the Company may accept for or
on account of such Indemnity the Company agrees subject to the terms exclusions and conditions contained herein or
endorsed hereon to indemnify the Insured against
(A) All sums which the Insured shall become legally liable to pay for compensation in respect of
(i) accidental death of or bodily injury (including illness) to any person
(ii) accidental loss of or damage to property
occurring during the Period of Insurance and within the Territorial Limits as specified in the Schedule.
(B) All costs and expenses of litigation

(i) recovered by any claimant against the Insured
(ii) incurred with the written consent of the Company
in respect of a claim against the Insured for compensation to which the Indemnity expressed in this Policy applies
but shall not operate to increase the Company’s liability as set forth in the Schedule under the heading of Limit of
Indemnity.
In terms of and subject to the limitations of and for the purposes of this Policy, the expression “the Insured” shall be
deemed to include the Insured, lnsured’s spouse and children residing with the Insured provided that such person shall
as though he were the Insured observe fulfil and be subject to the terms exclusions and conditions of this Policy in so
far as they apply.
LIMIT OF INDEMNITY
The liability of the Company under this Policy for all compensation payable:-
(a) to any claimant or any number of claimants in respect of or arising out of any one occurrence or in respect of or arising
out of all occurrences of a series consequent on or attributable to one source or original cause shall not exceed the Limit
of Indemnity specified in the Schedule for Any One Accident
(b) in respect of all injury, illness, loss and damage sustained during any one Period of Insurance shall not exceed the
Limit of Indemnity specified in the Schedule for Any One Period of Insurance
JURISDICTION CLAUSE
The Indemnity provided by this Policy shall not apply to:-
(1) Compensation for damages in respect of Judgements not in the first instance delivered by or obtained from a court
of competent jurisdiction within the Republic of Singapore.
(2) Costs and expenses of litigation recovered by any claimant from the Insured which are not incurred in and
recoverable in the Republic of Singapore.
USA/CANADA EXCLUSION CLAUSE

No coverage is provided hereunder for any occurrence, claims made, suits filed or judgements rendered in the United
States of America, its territories or possessions and Canada.
DEFENCE SETTLEMENT CLAIMS EXPENSES

The Company shall defend any suit against the Insured seeking damages to which this Policy applies, even if any of the
allegations of the suit are groundless, false or fraudulent and it is agreed that the Company may make such investigation
and settlement of any claim or suit as they deem expedient, but the Company shall not be obligated to pay any claim or
judgement or to defend any suit after the Limit of Indemnity specified in the Schedule has been exhausted by payment
of judgements or settlements.
The Company shall not settle any claim without the consent of the Insured. If, however, the Insured shall refuse to agree
to any settlement recommended by the Company and shall elect to contest the claim or continue any legal proceedings
in connection with such claim, then the Company’s liability for the claim shall not exceed the amount for which the claim
could have been so settled including claims expenses incurred up to the date of such refusal. Such amount are subject
to the Limits of Indemnity specified in the Schedule.
Subject to the Limit of Indemnity, which include loss payments and claims expenses, the Company shall pay all claims
expenses and fees and expenses of independent adjusters incurred with the consent of the Company.
“Claims expenses” means

(a) fees charged by any lawyer designated by the Company
(b) all other fees, costs and expenses resulting from the investigation, adjustment, defence and appeal of a claim, if
incurred by the Company
(c) fees charged by any lawyer designated by the Insured with the written consent of the Company
However, “claims expenses” does not include salary charges of regular employees or officials of the Company.
CLAIMS SERIES CLAUSE

All losses covered by this Policy and subsequent renewals thereof and arising from the same cause shall be deemed as
one occurrence having occurred during that policy year in which the first loss occurred.
EXCLUSIONS
The Company shall not be liable for:-
(1) Liability assumed by the Insured by agreement unless such liability would have attached to the Insured
notwithstanding such agreement.
(2) Liability in respect of injury to any person who is a member of the lnsured’s household.
(3) Liability in respect of injury to any person under a contract of service or apprenticeship with the Insured if such
liability is in respect of injury arising out of and in the course of employment of such person by the Insured.
(4) Liability in respect of damage to property belonging to or in the charge or under the control of the Insured or of a
member of the Insured’s family or household or of any servant or agent of the Insured.
(5) Liability in respect of injury or damage caused by or in connection with or arising from
(a) the ownership or tenure or possession of any land or building or the use thereof by or on behalf of Insured (other
than a dwelling (including outhouses) occupied by the Insured solely as a private residence)
(b) the ownership or possession or custody by or on behalf of the Insured of any motor cycle motor vehicle horse-
drawn vehicle animal (other than a horse or dog or cat) vessel or craft (other than a row boat). Solely for the
purpose of this exclusion, “vessel or craft” shall include any vessel craft or thing made or intended to float on or
in travel on or through water or air
(c) the use of any horse for the purpose of racing or polo
(d) any profession or business of the Insured or anything done in connection therewith or for the purpose thereof
(e) the carrying out of any alterations additions repairs or decorations
(6) Punitive damages howsoever arising and awarded against the Insured.
(7) Injury loss or damage caused by or through or in connection with remedial or professional or other advice or
treatment given or administered or omitted by the Insured.
(8) Injury loss or damage caused by or through or in connection with funiculars of any kind.
(9) Injury loss or damage caused by or through or in connection with the organisation of races involving the use of motor
propelled vehicles.
(10) Liability directly or indirectly occasioned by or through or in consequence of

(a) war invasion act of foreign enemy hostilities or warlike operations (whether war be declared or not) civil war
(b) mutiny riot strike civil commotion military or popular rising insurrection rebellion revolution military or usurped
power martial law or state of siege or any of the events or causes which determine the proclamation or
maintenance of martial law or state of siege or acts of terrorism committed by a person or persons acting on
behalf of or in connection with any organisation. For the purpose of this Exclusion “terrorism” means the use of
violence for political ends and includes any use of violence for the purpose of putting the public or any section
of the public in fear
(11) Liability directly or indirectly caused by or contributed to by or arising from:-
(a) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the
combustion of nuclear fuel. Solely for the purpose of this exclusion “combustion” shall include any self-
sustaining process of nuclear fission
(b) nuclear weapons material
CONDITIONS
This Policy and the Schedule shall be read together as one contract and any word or expression to which a specific
meaning has been attached in any part of this Policy or of the Schedule shall bear such specific meaning wherever it
may appear.
(1) The Insured shall give immediate notice to the Company of any accident or notification of claim and shall within
seven days or such further time as the Company may allow furnish to the Company such other particulars and
information as the Company may require and shall notify or forward to the Company immediately on receipt every
letter writ summons and process and shall immediately notify the Company in writing of any impending prosecution
inquest or fatal inquiry in connection with any accident for which there may be liability under this Policy.
(2) No admission offer promise payment or indemnity shall be made or given by or an behalf of the Insured without the
written consent of the Company which shall be entitled if it so desires to take over and conduct in the name of the Insured
the defence or settlement of any claim or to prosecute in the name of the Insured at its own expense and for its own
benefit any claim for indemnity or damages or otherwise and any compensation so recovered shall belong to the
Company and any indemnity so secured shall inure for the benefit of the Company and the Company shall have full
discretion in the conduct of any proceedings or in the settlement of any claim and the Insured shall give all such
information and assistance as the Company may require.
The Company may prior to or in the course of such proceedings or settlement in connection with any claim or series
of claims pay to the Insured the appropriate Limit of Indemnity (after deducting therefrom any sum or sums already
paid as compensation) or any less amount for which such claim or claims may be settled and thereupon the Company
shall relinquish the conduct and control of and shall be under no further liability in connection with such claim or
claims except for costs and expenses of litigation incurred prior to the date of such payment.
(3) If at the time of any claim arising under this Indemnity there shall be any other insurance covering the same liability
or any part thereof the Company shall not be liable for more than its rateable proportion thereof.
(4) The Insured shall within seven days give notice in writing to the Company and shall pay such additional premium as
the Company may require of any change materially affecting the risk insured herein.
(5) The Company shall not be bound to accept any renewal of the Policy nor to give notice that such is due. The Company
may cancel this Policy by sending seven days notice by registered letter to the Insured at his last known address and
in such event the Insured shall become entitled to the return of a proportionate part of the premium corresponding
to the unexpired Period of Insurance.
(6) All differences arising out of this Policy shall be referred to the decision of an Arbitrator to be appointed in writing
by the parties in difference or if they cannot agree upon a single Arbitrator to the decision of two Arbitrators one to
be appointed in writing by each of the parties within one calendar month after having been required in writing so to
do by either of the parties or in case the Arbitrators do not agree of an Umpire appointed in writing by the Arbitrators
before entering upon the reference. The Umpire shall sit with the Arbitrators and preside at their meetings and the
making of an award shall be a condition precedent to any right of action against the Company if the Company shall
disclaim liability to the Insured for any claim hereunder and such claim shall not within twelve calendar months from
the date of such disclaimer have been referred to arbitration under the provisions herein contained then the claim
shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.
(7) The due observance and fulfilment of the terms provisions conditions and endorsements of this Policy by the Insured
in so far as they relate to anything to be done or complied with by him and the truth of the statements and answers
in the said proposal shall be conditions precedent to any liability of the Company to make any payment under this
Policy.
PAYMENT BEFORE COVER WARRANTY

(1) The premium due must be paid to the insurer (or the intermediary through whom this Policy was effected) on or
before the inception date (“the inception date”) or the renewal date of the coverage. Payment shall deemed to have
been effected to the Insurer or the intermediary when one of the following acts takes place:
a) Cash or honoured cheque for the premium is handed over to the Insurer or the intermediary;
b) A credit or debit card transaction for the premium is approved by the issuing bank.
c) A payment through an electronic medium including the internet is approved by the relevant party.
d) A credit in favour of the insurer or the intermediary is made through an electronic medium including the internet.
(2) In the event that that the total premium due is not paid and actually received in full by the Insurer (or the intermediary
through whom this Policy was effected) on or before the inception date or renewal date, then the insurance shall not
attach and no benefits whatsoever shall be payable by the insurer. Any payment received thereafter shall be of no
effect whatsoever as cover has not attached.
***********
Appendix 5B

Tel: (65) 6789 8181 Fax: (65) 6789 8282
APPLICATION FORM FOR PERSONAL LIABILITY INSURANCE
Important Notice
1. Statement pursuant to Section 23(5) of the Insurance Act 1966 (or any subsequent amendments thereof): You are to disclose in this
application, fully and faithfully, all the facts which you know or ought to know in respect of the risk that is being proposed.
Otherwise, the Policy issued hereunder may be void and you may receive nothing from the Policy.
2. The insurance will not be in force until the application has been accepted by ABC Insurance.
3. This scheme is for Singapore Residents only.
PARTICULARS OF POLICYHOLDER
Name of Applicant (in Full) NRIC No.
Office Home

Date of Birth Gender Occupation
Male Female
Marital Status If Married, state number of children
CHOICE OF PLAN AND ANNUAL PREMIUM

Plan A Limit of Liability: S$1,000,000 Annual Premium S$121.00
Plan B Limit of Liability: S$500,000 Annual Premium S$85.00
PAYMENT MODE
a) I hereby confirm that I am the cardholder of the below credit card and I authorised the Company
By Cheque, payable to ABC to charge the premium for the above policy/policies to my card.
Insurance Company (Singapore) b) I fully understand and agree to the terms and conditions of the usage of my credit card. I also
Limited. understand and agree that the above policy/policies will only be effective subject to the receipt of
Company.
c) I understand and agree that in the event of refund from the Company, payment will be made to
Bank _________________________________
the INSURED/POLICYHOLDER stated above.
VISA MasterCard
Cheque No. ___________________________
Name of Cardholder _____________________________

Amount ______________________________
Card No: _______________________________Signature of Cardholder _________________
DECLARATION
I the undersigned hereby declare that all the foregoing particulars given by me are true and correct.
Signature Date
6. Health Insurance: Critical Illness and Hospital Cash (Income)
CHAPTER 6
HEALTH INSURANCE: CRITICAL ILLNESS AND
HOSPITAL CASH (INCOME)
CHAPTER OUTLINE
1. Introduction
2. The Critical Illness Framework 2019 (“The CI Framework”)
3. What is Critical Illness Insurance?
4. Benefits Offered Under Critical Illness Insurance
5. Features Of CI Insurance
6. Types Of CI Insurance Covers
7. Variations of Critical Illness Insurance
8. Underwriting
9. Factors To Consider In Determining Adequacy Of Critical Illness Coverage
10. Exclusions
11. Termination Of Cover
12. Claims
13. Hospital Cash (Income) Insurance
Appendix 6A – Application Form for Hospital Cash Insurance
Appendix 6B – Hospital Income Insurance Claim Form
LEARNING OUTCOMES
▪ know the purpose of Critical Illness Insurance
▪ understand the Critical Illness Framework 2019 and the benefits to policyholders arising
from the new definitions under this framework
▪ understand the benefits offered under Critical Illness Insurance and the eligibility criteria
for payment of such benefits
▪ describe the features of Critical Illness Insurance
▪ describe the various types of Critical Illness covers and their workings
▪ understand the differences between Acceleration and Additional Benefit types of Critical
Illness covers
▪ describe the other variations of Critical Illness Insurance and their respective advantages
▪ understand the underwriting considerations applicable to Critical Illness Insurance
▪ know the factors to consider in determining the adequacy of Critical Illness coverage
▪ understand the common exclusions in a Critical Illness insurance policy
▪ know when the Critical Illness Insurance cover terminates
▪ describe the documents to be submitted for Critical Illness claims

▪ know the purpose of Hospital Cash (Income) Insurance
▪ understand the working of a Hospital Cash (Income) Insurance policy including the
computation of the payment of benefits
▪ know the conditions to be met before a claim can be admitted under a Hospital Cash
(Income) Insurance policy
▪ understand the features and types of Hospital Cash Insurance
▪ understand the underwriting considerations and exclusions of Hospital Cash Insurance
▪ know when a Hospital Cash Insurance cover terminates
▪ know the various claim documents of Hospital Cash (Income) Insurance
Contents
HEALTH INSURANCE: CRITICAL ILLNESS AND HOSPITAL CASH (INCOME) ............. 183
CHAPTER OUTLINE ......................................................................................................... 183
1. INTRODUCTION ..................................................................................................... 187
2. THE CRITICAL ILLNESS FRAMEWORK 2019 (“THE CI FRAMEWORK”).............. 188
A. The Benefits To Policyholders Arising From The New Definitions Under
The CI Framework 2019 .................................................................................. 191
B. Coverage For COVID-19 .................................................................................. 191
3. WHAT IS CRITICAL ILLNESS INSURANCE? ......................................................... 191
4. BENEFITS OFFERED UNDER CRITICAL ILLNESS INSURANCE ........................... 192
A. Eligibility Criteria For Payment Of Critical Illness Benefit ............................. 192
5. FEATURES OF CI INSURANCE .............................................................................. 196
6. TYPES OF CI INSURANCE COVERS ...................................................................... 197
A. Acceleration Benefit Critical Illness (CI) Insurance Cover ............................. 197
B. Additional Benefit Critical Illness (CI) Insurance Cover ................................. 199
7. VARIATIONS OF CRITICAL ILLNESS INSURANCE ............................................... 201
A. Severity-Based Critical Illness (CI) Insurance Plan (Early Pay CI) ................. 202
B. Multiple Pay Critical Illness (CI) Insurance Plan............................................. 204
C. Combination of CI Cover................................................................................. 205
8. UNDERWRITING .................................................................................................... 205
A. Underwriting Requirements ........................................................................... 205
B. Underwriting Considerations ......................................................................... 205
9. FACTORS TO CONSIDER IN DETERMINING ADEQUACY OF CRITICAL ILLNESS
COVERAGE ............................................................................................................ 205
A. Life Insurance Association’s (LIA) Recommended Amount .......................... 206
B. Minimum Five Years Of Income, After Taking Into Account Debt ................ 206
C. Recovery Expenses ......................................................................................... 207
D. Providing For Dependents .............................................................................. 207
10. EXCLUSIONS ......................................................................................................... 208
11. TERMINATION OF COVER ..................................................................................... 208
12. CLAIMS ................................................................................................................... 209
13. HOSPITAL CASH (INCOME) INSURANCE............................................................. 209
A. Introduction ..................................................................................................... 209
B. Conditions To Be Met Before A Claim Can Be Admitted .............................. 211
C. Features Of Hospital Cash Insurance ............................................................. 212

D. Types Of Hospital Cash Insurance.................................................................. 212
E. Underwriting ................................................................................................... 213
F. Exclusions ........................................................................................................ 213
G. Termination Of Cover...................................................................................... 214
H. Claims .............................................................................................................. 214
Appendix 6A .................................................................................................................... 215
Appendix 6B .................................................................................................................... 216
1. INTRODUCTION
1.1 Under MAS Notice 117 Training and Competency Requirement: Health Insurance,
Para 4 states:
“Subject to paragraphs 6, 7 and 7A, any individual
(a) who
(i) is employed by or acts as an insurance agent for a direct insurer, other
than a Trade Specific Agent;
(ii) is employed by or acts for a direct insurance broker or an exempt direct
insurance broker; or
(iii) is employed by or acts as an appointed representative for a licensed
financial adviser or an exempt financial adviser
and
(b) who wishes to provide advice on or arrange contracts of insurance or both,

in respect of health insurance products, is required to pass the health insurance
module conducted by the Singapore College of Insurance (SCI)”
1.2 However, Para 7 of the above-mentioned notice states that:
“any individual
(a) who,
(i) is employed by or acts as an insurance agent for a direct insurer;
(ii) is employed by or acts for a direct insurance broker or an exempt
direct insurance brokers;
(iii) is employed by or acts as an appointed representative for a licensed
financial adviser or an exempt financial adviser;
and
(b) who provides advice on or arranges contracts of insurance or both, in

respect of health insurance products that contain what are commonly
known as critical illness benefit or hospital income benefit or both, as the
only accident and health benefits in the product, is not required to comply with
the requirement in paragraph 4 if he has obtained passes in any of the following
modules:
(i) Certificate in General Insurance - Basic Insurance Concepts & Principles and
Personal General Insurance;
(ii) Capital Markets & Financial Advisory Services Module 9: Life Insurance and
Investment-Linked Policies”
1.3 As such, this chapter covers both critical illness benefits and hospital income
benefits to enable general insurance agents and brokers to sell these benefits as
part of a health insurance product. General insurance agents and brokers are not
allowed to sell stand-alone Critical Illness insurance products unless they have
passed the health insurance module conducted by SCI.
1.4 Nevertheless, it is still imperative that general insurance agents and brokers know
about CI insurance policy as a stand-alone in view of the core benefits of critical
illness coverage contained therein.
2. THE CRITICAL ILLNESS FRAMEWORK 2019 (“THE CI FRAMEWORK”)
2.1 The CI Framework set up by LIA in conjunction with MAS:

(i) seeks to balance the interests of both the consumers and the insurance
companies i.e. offering clear and consistent coverage on the core critical illness
benefits
(ii) allows for easier product comparison by consumers as well as consistent
outcomes in CI claims.
(iii) seeks to reduce ambiguity of the same CI claim being paid by one insurer but
rejected by another.
2.2 Under the CI framework, definitions are standardised for 37 critical illnesses by
way of common definitions. Circulars and advisories on the CI Framework are
primarily issued by LIA. In Sept 2019, GIA issued a circular to its members advising
them to take note note of the LIA Critical Illness Framework 2019, and direct any
questions to LIA.
2.3 The CI Framework underwent a number of reviews. In the latest review of 2019,
the standardised definitions were updated to enhance clarity. Critical Illness
insurance products could incorporate either Version 2014 or Version 2019
definitions. On and after 26 August 2020, CI products using Version 2014
definitions were no longer sold in Singapore. For Individual Policies, the
application of Version 2019 definitions was to be based on the Proposal Signed
Date. For proposals that were signed by 25 August 2020, insurers were to ensure
that the policies were issued by 25 November 2020. This gave insurers a grace
period of three months to issue all such policies under Version 2014 definitions.
Policyholders with existing Critical Illness policies were not impacted by the new
definitions.
2.4 However, the above-mentioned timelines have been affected by the COVID-19
pandemic. On 29 June 2020, LIA issued a circular to members advising them of an
extension of Grace Period. In view that COVID-19 has presented a practical
difficulty for applications requiring medical examinations, LIA members were
advised that the grace period for transition to Version 2019 Definitions would be
extended from the original three months to six months, i.e. by 25 February 2021.
2.5 Insurers that were implementing Version 2019 Definitions before 26 August 2020
could, if they wish, align to the same cut-off date of 25 February 2021. For
proposals that had been signed by 25 August 2020, insurers had to ensure that the
policies were issued no later than 25 February 2021. This gave insurers a grace
period of six months to issue all such policies under Version 2014 definitions.
2.6 In short, if the insured is purchasing critical illness insurance from 26 August 2020
onwards, the updated set of definitions for the standard list of 37 critical illnesses
would apply as per the Life Insurance Association (LIA) Critical Illness Framework
2019 outlined above.
2.7 In order for intermediaries to better advise their clients, they need to know the CI
definitions well as well as be able to highlight to their clients regarding the
definitions. Conditions are covered under the policy only if they meet the
definitions.
2.8 The Standard Definitions for Severe Stage of 37 Critical Illnesses: Version 2019 can
be found at the LIA Website at: www.lia.org.sg
2.9 In addition, insurers must adopt a 90-day waiting period for the severe stage of
five CIs to minimise anti-selection risk. Waiting period refers to the period of time
stated in the policy which must pass, before some or all of the insured’s Health
Insurance coverage can begin.
2.10 These five CIs are:

(a) Major Cancer
(b) Coronary Artery By-Pass Surgery
(c) Heart Attack of Specified Severity
(d) Angioplasty and Other Invasive Treatments for Coronary Artery
(e) Other Serious Coronary Artery Disease
2.11 Although each insurer is free to adopt its own wordings on the waiting period
clause, the waiting period is to begin from the date that cover commences, or date
of reinstatement and the “date of diagnosis” shall be used to apply to the waiting
period. For conditions that pay a benefit on surgical procedure, this “date of
diagnosis” is the date of diagnosis of the medical condition that leads to the
surgical procedure but not to the date of surgical procedure itself.
2.12 The following are within the scope of the CI Framework:

(a) New individual policies or benefits
(b) New group policies or renewals, including any new CI cover during the policy
year
(c) CI benefits issued as a standalone policy or a rider
(d) CI benefits issued on an individual basis or a group basis
(e) CI benefits issued as a rider to an H&S policy or a PA policy
(f) For cases of top-up to existing CI policies, insurers are given the discretion to
decide to either apply the existing definitions to the top-up amount or apply
the prevailing current definitions to the top-up amount. Where it is the latter,
it is for the insurer to decide on the date of implementation of such a practice.
Further, the insurer should disclose this practice to the policyholder in order
to avoid any misunderstanding or difficulties in the future.
(g) Where an existing individual CI term policy (yearly renewable type) is auto-
renewed or has to be cancelled and re-issued due to administrative reasons,
for example: change of payment mode or credit cards, the same approach
applies as under (f) above.
(h) Where an existing CI benefit attached to a health policy (including Integrated
Shield Plan) is auto-renewed, the same approach applies as under (f) above.
2.13 The following are out of scope of the CI Framework:

(a) CI products for Male or Female or Children which do not cover any of the CI
conditions in its entire scope. Example, a Female CI product which covers only
Female Organs Cancer does not need to apply the Major Cancer definition.
(b) Terminal Illness issued under the general benefits of a basic plan.
2.14 However, the above does not preclude insurers from customising their products
by extending coverage for more medical conditions and stages of illness
progression, beyond the standard list of 37 critical illnesses. Therefore,
policyholders need to fully understand the benefits of any critical illness insurance
they are purchasing.
2.15 For example, some plans offer coverage for 187 conditions that go beyond critical
illnesses, including 150 multi-stage critical illnesses.
A. The Benefits To Policyholders Arising From The New Definitions Under The CI
Framework 2019
2.16 While the main objective of the changes made was to enhance the clarity of the
definitions of coverage in respect of severe stages of CI, there are additional
benefits for policyholders as detailed below.
2.17 Previously, those who suffer from Thalassaemia or Haemophillia could not claim
under “HIV Due to Blood Transfusion and Occupationally Acquired HIV”. This
group can claim under this category now.
2.18 The legal definition of blindness of 6/60 has been adopted for “Blindness
(Irreversible Lost of Sight)” condition as compared to the previous definition of
3/60. The latest critical illness definitions offer both pros and cons for
policyholders. Policyholders and consumers should be advised to check with their
insurer on coverage options available to them.
2.19 Intermediaries should advise their clients on how much coverage they need before
purchasing critical illness insurance. The policyholders can look to LIA’s 2017
Protection Gap Study – Singapore1 as a guide, which recommends having enough
coverage to last for an assumed critical illness recovery period of five years.
Certain insurers also avail to their policyholders critical illness calculators so that
they can work out how much critical illness coverage they need today.
B. Coverage For COVID-19
2.20 In Singapore, COVID-19 is not one of the critical illnesses under the insurers’ list of
critical illness conditions.
2.21 However, for any consequential complication arising after the diagnosis of COVID-
19 leading to a critical illness, such as End Stage Lung Disease, the critical illness
benefit covered under these plans will apply.
3. WHAT IS CRITICAL ILLNESS INSURANCE?
3.1 A Critical Illness (also known as Dread Disease) insurance policy is an insurance
product designed to provide a lump sum benefit to a policyholder in the event that
the insured is diagnosed to be suffering from one of the critical illnesses or has
undergone a surgical procedure covered under the policy. Each critical illness or
surgery covered by the policy is precisely defined in the policy, and the benefits
will be paid only if he suffers a condition that meets the standard definition as
specified in the policy.
1
https://www.lia.org.sg/media/1332/protection-gap-study-report-2017.pdf
3.2 Critical-illness coverage is a hyper-specific benefit, meaning that a condition must

be specified within the policy to be covered
3.3 Benefits received from a Critical Illness policy can be used to finance the cost of
care and treatment, recuperation, medical aids, replacing any income loss or even
funding a change in lifestyle.
3.4 In Life Insurance, Critical Illness (CI) Insurance policy can be sold as a stand-alone
policy (individual or group basis), or as an optional rider to a Whole Life,
Endowment, Term Insurance or Investment-Linked Policy (ILP), to provide either
an additional sum assured or the advanced payment of a portion, or the entire sum
assured payable on death.
4. BENEFITS OFFERED UNDER CRITICAL ILLNESS INSURANCE
A. Eligibility Criteria For Payment Of Critical Illness Benefit
4.1 The common eligibility criteria are highlighted below:

(a) The policy must be in force.
(b) The insured has not reached the expiry age of the CI Insurance cover (if
applicable).
(c) Critical Illness Must Be One That Is Covered.

The critical illness suffered must be one of the diseases as specified in the
policy contract, and it must be the first incidence of it for the insured. This
means that if the critical illness is a pre-existing illness or is excluded from the
policy, it will not be covered.
(d) Meets The Definition Of Critical Illness.

(i) The definitions of the various critical illnesses as specified in the policy
forms an extremely important part of the policy, as they will determine
whether a claim is payable. For a severe Critical illness that is under the
list of 37 conditions in the LIA CI framework, the definition shall follow the
industry standard. For any illness not found in the list, it shall follow the
respective definition which the insurer has adopted. It is important that
you take some time to explain to your prospective client, and ensure that
your prospective client understands that the benefits will be paid only if
the illness qualifies and meets the definition as specified in the policy.
(ii) Let us look at one of the severe CI definitions (based on LIA CI Framework
2019), to illustrate how you should explain the “meeting the definition”
criteria to your prospective clients.
“Major Cancer”
A malignant tumour positively diagnosed with histological confirmation
and characterised by the uncontrolled growth of malignant cells with
invasion and destruction of normal tissue.
The term Major Cancer includes, but is not limited to, leukemia, lymphoma
and sarcoma.
Major Cancer diagnosed on the basis of finding tumour cells and/or

tumour-associated molecules in blood, saliva, faeces, urine or any other
bodily fluid in the absence of further definitive and clinically verifiable
evidence does not meet the above definition.
For the above definition, the following are excluded:

▪ All tumours which are histologically classified as any of the following:
- Pre-malignant;
- Non-invasive;
- Carcinoma-in-situ (Tis) or Ta;
- Having borderline malignancy;
- Having any degree of malignant potential;
- Having suspicious malignancy;
- Neoplasm of uncertain or unknown behaviour; or
- All grades of dysplasia, squamous intraepithelial lesions (HSIL and
LSIL) and intra epithelial neoplasia;
▪ Any non-melanoma skin carcinoma, skin confined primary cutaneous
lymphoma and dermatofibrosarcoma protuberans unless there is
evidence of metastases to lymph nodes or beyond;
▪ Malignant melanoma that has not caused invasion beyond the
epidermis;
▪ All Prostate cancers histologically described as T1N0M0 (TNM
Classification) or below; or Prostate cancers of another equivalent or
lesser classification;
▪ All Thyroid cancers histologically classified as T1N0M0 (TNM
Classification) or below;
▪ All Neuroendocrine tumours histologically classified as T1N0M0
(TNM Classification) or below;
▪ All tumours of the Urinary Bladder histologically classified as T1N0M0
(TNM Classification) or below;
▪ All Gastro-Intestinal Stromal tumours histologically classified as

Stage I or IA according to the latest edition of the AJCC Cancer Staging
Manual, or below;
▪ Chronic Lymphocytic Leukaemia less than RAI Stage 3;
▪ All bone marrow malignancies which do not require recurrent blood
transfusions, chemotherapy, targeted cancer therapies, bone marrow
transplant, haematopoietic stem cell transplant or other major
interventionist treatment; and
▪ All tumours in the presence of HIV infection.”
(iii) As can be seen from the above specification, it does not mean that, so long
as the insured is diagnosed to be suffering from cancer, he can make a
critical illness claim under his policy. Standard definitions allow
consumers to compare the CI plans covering the severe stage of medical
conditions of different insurers. The scope of coverage is clear and
consistent across the industry, giving consumers assurance and
confidence. These standard definitions have been refined to clearly reflect
the intent of coverage.
(iv) As the definitions can be very technical, you may have difficulties
explaining them to your prospective clients. In such a case, it is advisable
that you approach your underwriter or claims manager, with the request
for your company to provide you with adequate training in this technical
area.
(e) Diagnosis Meets The Conditions Set Down By The Insurer.

(i) The diagnosis of the critical illness must be made by registered
medical practitioners. It excludes physicians who are themselves the
insureds, their spouses and other lineal relatives2 of theirs.
(ii) The diagnosis must be supported by medical evidence, such as
radiological, clinical, histological or laboratory evidence acceptable to
the insurer. In addition, some insurers require that the diagnosis must
be supported by their own medical director who may base his opinion
on the medical evidence submitted by the claimant and/or any
additional evidence requested by him.
(iii) If there is any dispute on the appropriateness or correctness of the
diagnosis, the insurer has the right to call for a medical examination
of the insured, or the evidence used in arriving at such a diagnosis by
an acknowledged independent expert in the field of medicine
concerned, as selected by the insurer. The expert’s opinion will be
binding on both the insurer and the insured.
2
Lineal relatives refer to people who are descendants from the same ancestor.
(f) Meets The Waiting Period Requirement.

(i) The critical illness must be diagnosed after the waiting period. Waiting
period for CI plans can be up to 90 days starting from the date of issue,
or the date of any reinstatement of the policy. For example, a CI
Insurance policy was issued on 1 January 2020. The insured could
make a claim under his policy, if he was diagnosed to be suffering
from one of the critical illnesses only on or after 1 April 2020.
(ii) The waiting period is imposed to prevent consumers from buying the
policy only when they suspect that there is something wrong with
their health; a practice known as anti-selection. If a person is found to
be suffering from any of the critical illnesses before or during the
waiting period, the insurer will void the policy and refund the
premiums paid.
(g) Meets The Survival Period Requirement.

(i) The insured must survive a period before the critical illness benefit
becomes payable. This survival period is the period of time (which
typically range from 7 to 30 days) starting from the date of occurrence
of a critical illness. Note that this survival period is applicable only to
the Additional Benefit type of Critical Illness cover.
(ii) In a nutshell,
The benefits under a CI Insurance policy are payable ONLY if the:

▪ policy is in force;
▪ insured has not reached the expiry age of the CI Insurance cover;
▪ critical illness which the insured is suffering from is one that is
covered under the policy and meets the conditions as specified in
the policy;
▪ critical illness is not a pre-existing illness;
▪ critical illness contracted meets the definition of the particular
critical illness as specified in the policy;
▪ critical illness is diagnosed to have commenced after the waiting
period; and
▪ insured survives the survival period if there is one imposed on the
policy.
5. FEATURES OF CI INSURANCE
5.1 Although there are two types of CI Insurance covers, each of them shares common
features as described below:
(a) It pays a lump sum amount upon diagnosis of an insured critical illness.
(b) Generally, one critical illness claim is allowed unless it is a Multiple Pay CI
Insurance plan.
(c) It has a specific waiting period (usually ranging from 30 to 90 days).
(d) Some insurers may impose a limit on the total amount of sum assured (e.g.
S$2,000,000) that a policy owner can buy. This is to minimise the risk of moral
hazard.
(e) The premium is usually level and non-guaranteed.
(f) The premium is usually not fixed and is based on the age band basis (e.g. age
of 35 to 39 years is one rate, age of 40 to 44 years is another rate) for policies
that are renewable on a yearly basis.
(g) There is no restriction on how the CI Insurance benefit payable is to be used.
(h) It can be packaged or attached to an ILP, Term, Endowment or Whole Life

Insurance policy.
(i) It can be issued on a stand-alone basis (such a policy pays the benefit only
upon diagnosis of one of the covered critical illnesses. It does not pay upon
the insured’s death or total and permanent disability).
(j) It can be attached as a supplementary benefit to a basic policy.
(k) The CI Insurance rider does not acquire any cash value.
(l) The CI Insurance rider is automatically terminated once the basic policy is
surrendered or converted into an Extended Term Insurance policy.
(m) The packaged CI Insurance policy which accumulates cash value (e.g. Whole
Life type of CI Insurance policy) also provides non-forfeiture options. However,
the CI Insurance cover may be terminated once the policy owner exercises any
of the non-forfeiture options (excluding the paid-up option).
(n) A stand-alone Term CI Insurance policy does not acquire cash value. Hence, it
does not have any non-forfeiture option.
(o) It provides 24 hours a day, worldwide coverage, unless otherwise endorsed or

amended in the policy.
(p) Assignment of the policy may or may not be allowed.
(q) There is a maximum (e.g. age of 60 years) and minimum (e.g. age of one year)
entry age restriction. For young lives, it may be subject to lien3.
(r) There is a minimum (e.g. S$10,000) and maximum (e.g. S$2,000,000) sum
assured restriction.
(s) The cover may expire at a maximum age (e.g. 75 years) or a whole life cover
may be provided.
6. TYPES OF CI INSURANCE COVERS
6.1 There are two main types of CI Insurance covers offered in the insurance market.
They either provide an:
▪ Acceleration Benefit; or
▪ Additional Benefit.
6.2 Some insurers have also introduced Severity-Based and Multiple Pay CI Insurance
plans. Let us look at how each of them works.
A. Acceleration Benefit Critical Illness (CI) Insurance Cover
6.3 This type of CI Insurance cover can be issued as a packaged policy or rider. As the
name implies, this type of cover provides for the pre-payment of a portion (e.g.
50%) or the full sum assured (i.e. 100%) of the basic policy to which it is packaged
or attached.
6.4 For example, if an individual buys a S$200,000 Whole Life type of CI Insurance
policy with 50% acceleration, in the event that he is diagnosed to be suffering from
one of the critical illnesses covered under his policy, the insurer will pay him
S$100,000 (i.e. 50% x S$200,000) plus bonuses (if any).
6.5 The balance of the sum assured plus bonuses (if any) will be paid, when he dies
or suffers a Total and Permanent Disability (TPD). In the latter case, the payment
may be paid in yearly instalments or in one lump sum. On the other hand, if he
dies or suffers a TPD without contracting any critical illness, the full S$200,000 plus
bonuses (if any) will be paid to him. Figure 6.1 illustrates how this policy works.
3
A lien is a feature which restricts the sum assured payable on the happening of the insured event. Most
insurers impose the lien on policies taken on children’s lives for a specified number of years, e.g. three
years. In such a case, if the insured child dies within the 1st year after the inception of the policy, the insurer
will pay only 25% of the sum assured. This percentage increases on the 2nd and 3rd year to 50% and 75%,
respectively. From the 4th year onwards, the full sum assured will be paid, whenever the insured event
happens.
Figure 6.1:
Illustration Of The Working Of A S$200,000 Whole Life Type Of Critical Illness (CI)
Insurance Policy With 50% Acceleration
S$200,000 Whole
Life type of
Critical Illness
Insurance policy
with 50%
Acceleration Critical Illness
benefit
Death/TPD*
Payment of
S$100,000
Death/TPD*
Payment of
*Note: TPD is payable in instalments or a Payment of
S$200,000 lump sum. S$100,000
6.6 As you can see from Figure 6.1, the insured can make a critical illness claim only
once4. If he contracts another critical illness, the policy will not pay him the
remaining sum assured. The amount of benefit that he will get from this policy is
always equal to the sum assured plus bonuses (if any). As the sum assured
reduces, the future premiums may be reduced in the same proportion.
6.7 If the person has chosen a 100% (instead of 50%) Acceleration Benefit in the above
example, the full basic sum assured plus bonuses (if any) will be paid, regardless
of whether he contracts a critical illness, dies or suffers a TPD.
6.8 Some insurers allow the policy owner the flexibility of specifying the percentage
of acceleration that he wants. Others give a number of options for the policy owner
to choose from, e.g. 50%, 75% or 100%. For policy owners who opt for less than
100% acceleration, you should advise them to attach a CI Waiver of Premium rider
to it, so that the future premiums on the balance sum assured will be waived. This
is to ensure that the policy owner need not worry about not being able to service
the premium for the remaining sum assured during the policy term.
4 Although rare, there are now certain CI Insurance policies in the insurance market allowing for more than
one critical illness claim.
6.9 The cover for this type of CI Insurance policy may be up to the age of 100 years, or
for life, depending on the type of Life Insurance policy to which it is attached or
packaged. This means to say that, if it is packaged or attached to an ILP or
Endowment Insurance policy, then it will follow the same terms of these basic
policies. On the other hand, if it is a Whole Life Insurance policy to which it is
attached or packaged, then the cover is usually up to the age of 100 years, so long
as the policy owner keeps the policy in force.
6.10 Another factor that affects the tenor of the CI Insurance cover is whether the
attached policy will acquire a cash value. When attached to a Term Insurance
policy which does not acquire a cash value, the cover will terminate if the Term
Insurance ends. On the other hand, if the CI Insurance cover is attached to an
Endowment Insurance or a Whole Life Insurance policy, it will acquire a cash value.
Once such a policy has acquired a cash value, the insurer can make use of the
automatic premium loan feature to keep the policy in force should the policy owner
default in his premium payment after the grace period is over. Alternatively, the
policy owner can exercise the paid-up option, in which case, the insured will still
enjoy the CI Insurance cover, but only for a reduced amount.
6.11 In a nutshell, an Acceleration Benefit CI Insurance policy or rider provides a insured

with the following coverage, depending on whichever event happens first:
Acceleration Benefit Critical Illness

(CI) Coverage
Lump sum payment of Lump sum

basic sum assured plus payment of Payment of the basic
bonuses (if any) upon basic sum sum assured plus
diagnosis of any assured plus bonuses (if any) in
OR OR
insured illnesses &/or bonuses (if any) instalments upon TPD
waiver of future upon death
premium
B. Additional Benefit Critical Illness (CI) Insurance Cover
6.12 This type of cover is available on a stand-alone basis or as a rider.

▪ On a stand-alone basis, the sum assured will be paid upon the diagnosis of a
covered critical illness, and the policy will be terminated.
▪ As a rider, it pays an amount in addition to the sum assured of the basic policy
to which it is attached. For example, if a person purchases a S$100,000 Whole
Life Insurance policy with a S$200,000 Additional Benefit CI Insurance rider, the
insurer will pay him S$200,000 if he contracts one of the critical illnesses
covered by his policy. The Whole Life Insurance sum assured of S$100,000 will
be paid only upon his death or TPD. Figure 6.2 illustrates the working of this
type of CI Insurance rider.
Figure 6.2:
Illustration Of The Working Of A S$100,000 Whole Life Policy With A S$200,000
Additional Benefit Critical Illness (CI) Insurance Rider
Whole Life
Insurance
policy =
S$100,000
CI Insurance
rider =
S$200,000
Critical Illness
Death/TPD*
Payment of
S$200,000
Death/TPD*
Payment
of
S$100,000
*Note: TPD is payable in instalments or a lump Payment of
sum. S$100,000
6.13 Note from Figure 6.2, the payment of the CI Insurance benefit does not affect that
of the basic sum assured. This means that, if he contracts a critical illness followed
by death, the total amount that the insurer will pay under this policy will be
S$300,000. However, if he does not contract any critical illness, then the amount
that the insurer needs to pay is only S$100,000 upon death or TPD.
6.14 Note that the term of this type of CI Insurance rider can be shorter, but not longer
than that of the basic policy. Usually, this rider expires when the insured reaches
a specified age (usually the age of 65 years). The sum assured, on the other hand,
can be higher than the sum assured of the basic policy, e.g. up to five times that
of the basic sum assured.
6.15 Another point that you need to take note of is that, whenever you are proposing
this type of CI Insurance cover to your client, you should also advise him to attach
a CI Waiver of Premium rider, so that he need not worry about the premium
payment for the basic policy to which the CI Insurance rider is attached.
6.16 Table 6.1 gives a summary of the differences between the Acceleration and
Additional Benefit types of CI Insurance covers.
Table 6.1: Comparison Of Acceleration & Additional Benefit Types Of Critical Illness (CI)
Insurance Covers
Acceleration Benefit Additional Benefit

(Packaged Policy Or Rider) Stand-alone Policy Rider
It must be packaged or attached It need not be attached to any It must be attached to a
to a basic policy, i.e. ILP, Term, basic policy. basic policy.
Endowment or Whole Life
Insurance policy.
On diagnosis of a critical illness, On diagnosis of a critical On diagnosis of a critical
a percentage of the basic sum illness, the full sum assured of illness, the full sum
assured as specified in the the policy will be paid. assured of the rider will be
policy will be paid. paid.
Payment of a CI Insurance claim Payment of a CI Insurance Payment of a CI Insurance
will cause the policy to be claim will cause the policy to claim will not affect the
terminated if it is a 100% be terminated. basic policy which will
Acceleration type of policy or continue to be in force.
rider.
Total amount paid under the Total amount paid under the Total amount paid under
policy is equal to the basic sum policy is equal to the basic the policy is equal to the
assured plus bonuses (if any). sum assured. sum assured of the CI
Insurance rider, plus the
sum assured of the basic
policy, plus any bonuses
payable under the basic
policy, in the event of a
person who contracts a
critical illness dies, or
becomes totally disabled
subsequently.
CI Insurance rider sum assured Not applicable. Sum assured can be up to
must not exceed that of the a certain number of times
basic policy. of the basic sum assured,
subject to the insurer’s
specified guidelines.
CI Insurance rider term usually Not applicable. The term must not exceed
follows that of the basic policy. that of the basic policy and
usually expires, when the
insured reaches a specified
age.
7. VARIATIONS OF CRITICAL ILLNESS INSURANCE
7.1 It is important to note that under a regular Critical Illness plan, even if one is
diagnosed with an illness covered by the policy, it does not mean that the policy
automatically pays the claim. An insured would have to diagnosed with an illness
that has reached a certain stage before the policy pays the claim.
7.2 For critical illness coverage, there are different products offered in the market. The
coverage offered by such critical illness insurance products vary with the coverage,
number of critical illnesses, types of critical illnesses and/or stages of critical
illnesses covered. The stages can be classified as early, intermediate or severe.
7.3 Traditional CI policies would cover only severe (end) stage critical illnesses. In
other words, the insured had to wait until the condition was severe enough to
claim for pay-outs. For instance, the insured would receive the pay-out if he got
diagnosed for stage 4 colon cancer, but not for stage 0 or 1.
7.4 Newer types of CI covers such as Severity-Based Critical Illness plans, offer a pay-
out when the insured gets diagnosed during the early or intermediate stages of a
critical illness. Medical and technological advancements have now made it
possible to detect critical illnesses during the early stages.
7.5 Receiving the pay-out in the early stage of a CI is advantageous to the insured as
the monies received can be used towards earlier medical intervention and better
treatment outcomes. The insured also stands to have a financial peace of mind
while undergoing treatments.5
7.6 Financial advisers advising on Critical Illness (CI) coverage should highlight /bring
to attention of their clients the following:
▪ Type of Plan Purchased
▪ Scope of Cover and Exclusions
▪ Coverage of the CI -whether early, intermediate, end stage
▪ Claim conditions, including if the client is holding on to several CI policies
covering the same CI condition and whether all the policies pay out if the
claims conditions are met.
▪ Premium payments of the plan if it is a standalone or attached as a rider
▪ Waiver of Premium Rider
A. Severity-Based Critical Illness (CI) Insurance Plan (Early Pay CI)
7.7 Insurers have introduced CI Insurance that pays in an earlier stage of the illness.
Commonly known as Early Pay CI, this type of severity-based CI Insurance plan
pays claims during early stages and less severe critical illnesses. Benefits are
claimable at various stages of the illness, from early to intermediate to severe.
7.8 Depending on the stages and severity of the critical illness, the plan gives a
percentage of the sum assured as a lump sum payment to the policy owner. The
progressive lump sum payments, subject to a monetary cap of each severity level,
amounts to the total sum assured which can be multiples of the original coverage.
7.9 Waiting Period and Survival Period are both applicable to Severity-based CI plans.
5
https://www.axa.com.sg/blog/insurance-guide/ultimate-guide-to-critical-illness-insurance-in-singapore
7.10 Severity-based CI plans may appeal to those who are concerned about financial
support for early treatment of the critical illness. It can be purchased as a term plan
or attached as a rider to an existing Life Insurance policy, to enhance and
complement the insured’s CI Insurance coverage. The plan covers any individual
person from the age of one up to 75 years. The premium is higher than that of the
normal CI Insurance plan.
A1. The Advantages of Severity-Based Cover6
7.11 We can regard severity-based covers as a hybrid of the traditional critical illness
cover.
7.12 Unlike the traditional covers where the insured gets all or nothing (when insured
is diagnosed with the covered CI, he gets 100% of the sum assured), severity-based
critical illness insurance will pay a certain percentage based on how severe the
illness is. The insured receives lower pay-outs when he is diagnosed with a less
severe CI.
7.13 The advantages of severity based critical illness insurance are:
(a) Greater number of illnesses covered

The insured is covered for a greater number of covered illnesses. Less severe
forms of cancer are covered. This would not be possible in a standard critical
illness policy. For example, partial blindness can be claimed under a severity-
based cover. However, for traditional critical illness covers, only totally
blindness can be claimed. It addresses the pitfall of a traditional CI policy i.e.
the insured may be severely ill but he cannot get the pay-out as the illness is
not a covered illness.
(b) Pay-outs received at an early stage of the illness

This enables the insured to have the funds to prevent the illness from
deteriorating. The insured stands to receive a sum earlier that can be used for
treatment. For example, if a polyp is detected in one’s colon and is identified
as an early-stage cancer, one can claim and have his colon operated on.
(c) The ability to claim more than once

The insured can only claim once under a traditional CI policy. The cover
terminates once that claim is made. The severity-based policy allows the
insured to claim for more than one illness even for unrelated conditions.
(d) Continuity of coverage after a claim

The CI cover will still continue after the insured has claimed for a less severe
critical illness.
6
https://www.criticalillness.org.uk/critical-illness-vs-severity-based-cover.html
A2. Premium and Other Considerations
7.14 An early pay CI plan is not cheap. For example, a 30-year-old male who is a non-
smoker and who wants to be insured for $100,000 till the age of 65 can expect to
pay about $100 per month. Do note that premiums charged vary with each insurer.
7.15 Also, it is important to note while the severity-based policy allows the insured to
claim for more than one illness, any claims made will be deducted against the sum
assured. Therefore, the insured cannot claim an infinite amount of times against
his policy. This is especially so if the insured is unfortunate enough to be
diagnosed with multiple illnesses.
B. Multiple Pay Critical Illness (CI) Insurance Plan
7.16 A multi-pay critical illness plan pays the insured multiple times over each
diagnosis of critical illness and recurrent or reoccurring critical illnesses. An
insured may get a critical illness once. Some insureds may get critical illness again,
and again. A normal critical illness plan would most likely terminate after paying
the insured. It may not be viable for the insured to buy another critical plan as the
costs would be very high. It would be also challenging as the insurer may be
reluctant to offer cover as it considers the probability of a recurrence of the illness.
7.17 This type of CI Insurance plan allows for more than one critical illness claim on the
policy. A second claim and subsequent ones are allowed if the medical condition
deteriorates or if a different medical condition occurs.
7.18 Such multiple claims are not restricted to only severe stage CI. When such CI plan
includes benefits for severity-based CI, insurers may allow for multi-claims on
early stages of the CI subject to benefit limits.
7.19 Waiting Period and Survival Period are applicable for such plans.
7.20 Some insurers offer another boost of the coverage for Relapse/ Recurring
condition of Major Cancer after a 2-year gap from the first Major Cancer claim.
7.21 Future premiums may be waived upon diagnosis of first claim on advanced stage
CI.
7.22 It is critical therefore for intermediaries selling CI cover to advise their clients not
only on the definitions of CI but also which stage of the CI is covered. Their clients
need to know what is payable and what is not.
C. Combination of CI Cover
7.23 It is now quite common to find insurers offering a combination of advance stage,
severity-stage, multi-pay CI covers with diabetes and mental illness covered in one
CI Plan. Note that there may be caps imposed on the coverage for each of the
respective categories.
8. UNDERWRITING
A. Underwriting Requirements
8.1 The underwriting requirements are basically the same as those for Life Insurance
policies, namely the completion of a proposal form (usually the same as that for
Life Insurance) and the insured undergoing various medical tests. The only
difference is that the non-medical limit for CI covers is lower. In other words, the
insured could be required to undergo medical tests for a sum assured whereas he
would not be required to do so if he were to apply for a Life Insurance policy with
the same sum assured.
B. Underwriting Considerations
8.2 Usually, only standard and sub-standard risks with up to a medium rating can be
considered for CI Insurance. Risks with high extra mortality and those to be
declined for Life Insurance are not regarded as acceptable for CI Insurance.
8.3 The insurer may specifically exclude the covered critical illnesses which the
insured is likely to contract in the future in view of his occupation, lifestyle, as well
as medical and family history.
9. FACTORS TO CONSIDER IN DETERMINING ADEQUACY OF CRITICAL ILLNESS

COVERAGE 7
9.1 Critical Illness (CI) insurance provides a pay out when the insured is diagnosed
with a critical illness. Policyholders should check the policy documents to see the
exact list of illnesses covered. It is important to bear in mind that not all CI policies
cover the same range of illnesses.
9.2 There are different ways in which the CI insurance policy pays out and they are
largely based on the policy coverage.
7
https://www.axa.com.sg/blog/insurance-guide/critical-illness-coverage-for-singaporeans
9.3 Most CI policies provide a lump sum payment when the insured is diagnosed with
a critical illness. They usually pay only if the illness is at a severe stage (e.g. stage
IV cancer). However, other CI policies do pay out at earlier stages of the disease.
In addition, policies that provide multiple pay outs are more common nowadays.
These multiple pay out policies pay at different stages of the disease. It is important
that intermediaries selling such policies explain this distinction to their
policyholders. Otherwise, the policyholders may think that as long as they are
diagnosed with any of the CI, insurer will pay the benefits regardless of the stage
of the illness.
9.4 Therefore, having a CI policy should not be the main objective but selecting the
one that provides the right degree of financial support is the key. In determining
the adequacy of CI coverage, there are four factors to consider:
▪ Life Insurance Association’s (LIA) recommended amount
▪ Minimum five years of income, after taking into account debt
▪ Recovery expenses
▪ Providing for dependents
A. Life Insurance Association’s (LIA) Recommended Amount
9.5 Each CI plan should be customised to fit the insured’s specific financial situation.
It is best to avoid buying a generic plan that that does not fit one’s own unique
circumstances.
9.6 LIA recommends that the average Singaporean has CI coverage of around
$316,000.
9.7 However, LIA’s recommended sum should be viewed as a rough guideline rather
than a goal. Each of us face different circumstances. For example, if the insured
has dependents with special needs, or the insured has to provide for parents. In
such circumstances, the amount of CI coverage would be higher.
9.8 On the other hand, the insured’s children could be independent. In this case, the
CI coverage could be smaller as there is no need to provide for them.
9.9 The insured is advised to seek the help of a qualified Financial Consultant in
selecting a CI plan that best fits his financial situation.
B. Minimum Five Years Of Income, After Taking Into Account Debt
9.10 A rule of thumb is to have coverage of at least five years of the insured’s income.
However, the age of the insured’s dependents has to be considered. If the insured’s
children at a tender age, he would need more coverage.
9.11 The CI policy should provide enough funds equivalent to at least five years of the
insured’s income. This amount should be after considering all debts and other
liabilities. The nett amount should be sufficient to support the insured’s way of
living for five years. Other practitioners may even recommend a minimum of
seven years, depending on the insured’s circumstances.
9.12 One thing worth noting is that one cannot just rely on life insurance as it is a death
benefit cover. A living benefit cover as found in CI insurance is needed as the
insured is still around during the extent of the critical illness. Life insurance
(without any additional riders) would pay out upon the insured’s death. Another
challenge is that it is often difficult to achieve a very accurate estimation of
remaining lifespan. The insured could have months, or years, left.
9.13 It is important not to just stick to the LIA recommended sum of $316,000 as a
guideline. The minimum income approach serves to preserve the insured’s family
lifestyle. The LIA sum of $316,000, works out to be roughly $5,260 per month. This
may not be adequate for some families. It also does not consider that the insured
may want quality time with them.
C. Recovery Expenses
9.14 Following the contraction of a critical illness, the insured would need to incur costs
such as engaging a nurse, hiring domestic help etc. These added costs must be
taken into consideration.
9.15 Having a critical illness does not mean having no chances of recovery. With access
to the best medical care in such circumstances, the insured could recover in the
early stages. Having an early-stage CI plan would be most useful in this regard.
With certain early-stage CI plans, the insured can get pay outs for different stages
of critical illness. Moreover, obtaining coverage for recurring critical illness is also
possible. These types of plans can pay out up to 600 per cent of the Sum Assured.
9.16 CI insurance complements the insured’s existing hospital and surgical insurance
coverage. For example, the pay outs can be used to cover treatments that are
usually excluded under hospital and surgical insurance.
D. Providing For Dependents
9.17 As discussed, life insurance policies provide death benefits only. Living benefits
are equally vital. When the insured is critically ill, he cannot work. He still needs to
pay the bills. This is where CI insurance plays a vital role.
9.18 In view of the above, it is important to consider the needs of the insured’s
dependents. If his child is just 10 years old, for example, coverage should span
eight years instead of five (this will last till the child is 18 where he or she could be
expected to be more independent then).
9.19 On the other hand, the insured’s dependents could be already financially
independent. The insured may then be able to get by with less coverage. It is best
for the insured to seek the advice of his Financial Consultant on such matters.
9.20 CI insurance is not just about providing the funds and pay-outs. It is about the
insured being able to spend time with his loved ones, at a crucial – and perhaps
the final – stage in his life.
10. EXCLUSIONS
10.1 The common exclusions seen in a CI Insurance policy are:

(a) pre-existing illnesses;
(b) self-inflicted injury or illness, while sane or insane;
(c) wilful misuse of drugs and/or alcohol;
(d) congenital anomalies or inherited disorders;
(e) Acquired Immune Deficiency Syndrome (AIDS) or infection by any human
immunodeficiency virus (HIV);
(f) bodily injury sustained as a result of travel in or on any type of aircraft, except
as a fare-paying passenger or as a crew member of an international airline
operating on a regularly scheduled passenger flight of a licensed commercial
aircraft; and
(g) war or warlike operation, nuclear, strike, riot and civil commotion risks.
10.2 If the insured suffers from one of the critical illnesses covered under the CI
Insurance policy as a result of any of the above causes, the insurer is not required
to pay the claim. Note that the exclusions vary from insurer to insurer. Hence, you
should find out the precise exclusions imposed by your insurer and highlight them
to your clients accordingly.
11. TERMINATION OF COVER
11.1 The CI Insurance cover will terminate on the happening of any one of the following
events:
(a) a valid critical illness claim has been made (usually the case, unless the policy
contract states otherwise);
(b) the maximum coverage allowed under the policy is paid out;
(c) the basic Life Insurance policy to which it is attached or packaged matures or
expires;
(d) the policy lapses owing to non-payment of premiums after the grace period;
(e) the policy is surrendered for its cash value or converted into an Extended Term
Insurance policy;
(f) the insured dies; or

(g) the insured reaches the expiry age of the CI Insurance rider.
12. CLAIMS
12.1 In the event of a claim, the claimant must submit the following supporting
documents:
(a) claimant’s statement to be completed by the policy owner and the insured if
they are not the same person;
(b) Attending Physician’s Report; and
(c) proof of the critical illness, such as biopsy report, histology report,
imaging/scan report, laboratory report, and others as mentioned earlier, or as
requested by the insurer, furnished at the expense of the claimant.
12.2 These are the basic requirements. However, the insurer reserves the right to call
for any other relevant supporting information and documents as it deems fit.
12.3 Usually, the insurer will require:

(a) written notice of the claim to be submitted within a specified period (usually 60
days) of the diagnosis of the critical illness or the performance of a surgery as
covered under the policy;
(b) submission of the claim form within a specified period (e.g. 15 days) from the
date that the insurer sent it out; and
(c) all proofs of the critical illness must be submitted within a specified period
(usually 60 days) from the date of diagnosis of the critical illness or surgery.
12.4 As it can be seen, the sooner the policy owner or insured informs and submits all
proofs of evidence to the insurer, the better it is for him.
13. HOSPITAL CASH (INCOME) INSURANCE
A. Introduction
13.1 Hospital Cash (also known as Hospital Income) Insurance is designed to pay a daily
cash benefit directly to the insured if he is hospitalised as a result of an injury or
illness. The daily benefit is a fixed dollar amount (e.g. S$100) chosen by the insured
at the inception of the policy. The amount has no direct correlation to the actual
amount of medical expenses incurred. The total amount paid under this policy may
be more or less than the actual medical expenses incurred. The payment of the
benefit is usually limited to a specified number of days (e.g. 180 days) per
hospitalisation. Some insurers may impose a lifetime limit on the number of days
(e.g. 1,000 days) that a person may claim.
13.2 Let us look at Example 6.1 to illustrate the working of this benefit.
Example 6.1: Illustration Of The Working Of A Hospital Cash Insurance

Policy
Illustration of the claims history of Freddy who purchased a Hospital Cash

Insurance that paid a daily benefit of S$100 up to a period of 180 days per
hospitalisation and 1,000 days per lifetime:
2007 - hospitalised for 150 days for car accident injury
2010 - hospitalised for 210 days for complicated heart by-pass surgery
2012 - hospitalised for 170 days for severe osteoporosis
2015 - hospitalised for 190 days for hip replacement
2019 - hospitalised for 200 days for broken thigh bone treatment
2022 - hospitalised for 160 days for varicose vein treatment
The total amount that the insurer paid to him to date worked out to be as follows:
2007 - 150 days

2010 - 180 days
2012 - 170 days
2015 - 180 days
2019 - 180 days
2022 - 140 days (i.e. 1,000 – 860)
Total - 1,000 days X S$100 per day = S$100,000
13.3 Note that, although Freddy had stayed in the hospital for more than 180 days in
2010, 2015, and 2019, the insurer paid him only up to 180 days being the maximum
period per hospitalisation. In year 2022, though his stay was 160 days, because the
balance of his lifetime limit was 140 days, the insurer paid him for the hospital stay
of only 140 days.
13.4 Since he had claimed for the maximum number of hospitalisation days allowed
per lifetime, his policy was terminated after he had received the last payment from
the insurer.
13.5 Hospital Cash Insurance can be issued as a stand-alone policy or as a rider. Most
of the time, it is either sold as a rider or incorporated into other types of insurance,
such as Personal Accident Insurance, Travel Insurance, Critical Illness, or Medical
Expense Insurance policies to make the cover more attractive to the buyers. The
amount payable under Hospital Cash Insurance is usually in addition to all other
Health Insurance policies, plans, or schemes (including MediShield Life, Integrated
Shield Plan, and any Group Hospital & Surgical Insurance Scheme) for which the
individual is covered.
13.6 This benefit can be issued to cover hospitalisation resulting from:

▪ injury only; or
▪ both injury and illness.
B. Conditions To Be Met Before A Claim Can Be Admitted
13.7 Usually for a claim under a Hospital Cash Insurance policy to be considered valid,
it must meet the criteria as described below:
B1. Waiting Period
(a) For Injury

If the insured is hospitalised as a result of injury, the injury must be caused by
an accident8 directly and independently of any other cause. Usually, there is
no waiting period for such a case.
(b) For Illness

If the insured is hospitalised because of an illness or disease, it must be
contracted or commenced after the policy has taken effect, as well as after a
specified period of time (e.g. 30 days) has lapsed from the date of issue or
reinstatement of the policy. In addition, it must not be an illness that is
specifically excluded from the coverage of the policy.
B2. Hospital Confinement
13.8 The insured must be confined to a hospital for a specified minimum period of time.
Note that the minimum duration required for hospital confinement varies from
insurer to insurer, and that it ranges from 6 to 24 hours.
(a) Per Lifetime Limits
The insured’s total number of hospitalisation days claimed has not exceeded
the per lifetime limit (as illustrated in Example 6.1 of this chapter).
(b) Expiry Age
The insured has not reached the expiry age as stated in the policy.
(c) Cause
The cause of the injury or illness must not fall under one of the exclusions as
discussed in a later section of this chapter.
8
Accident normally means any event caused by violent, accidental, external, and visible means.
C. Features Of Hospital Cash Insurance
13.9 Although Hospital Cash Insurance can be issued as a stand-alone policy or as a

rider, it shares the common features as described below:
(a) There is a per day hospitalisation benefit.
(b) There is a cap to the maximum amount payable on a single life usually
expressed as a maximum number of days.
(c) The benefit is a fixed amount throughout the policy term as specified at the
inception of the policy.
(d) There is no waiting period if the cause of hospitalisation is due to an injury. A
waiting period is usually imposed from the date of issue or reinstatement of
the policy if the cause of hospitalisation is due to an illness.
(e) The benefit payment is not affected by the payments from other Health
Insurance policies, plans or schemes (including MediShield Life, Integrated
Shield Plan and any Group Hospital & Surgical Insurance Scheme), i.e. it is
paid on top of the benefits received from all other medical insurance covers.
(f) The cover expires at a specified age, (usually 65, 70, or 75 years).
(g) The premiums may be level or increased once the insured reaches a new age-
band.
(h) It is yearly renewable.
(i) It usually provides 24-hour, worldwide coverage, although some insurers limit
the cover to certain geographical areas.
(j) It usually has no cash value.
(k) No assignment of the policy is allowed.
(l) For a policy that is in force for a consecutive period of insurance and free of
any claim, a premium discount is usually given at renewal. This is usually
called a ”No Claim Discount”. A certain percentage (e.g. 25%) will be deducted
from the next renewal premium, subject to conditions as imposed by the
insurer.
D. Types Of Hospital Cash Insurance
13.10 As mentioned above, Hospital Cash Insurance can be issued as a stand-alone

policy or as a rider. Let us look at how each of the works.
D1. Stand-alone Hospital Cash Insurance
13.11 Usually, when a Hospital Cash Insurance policy is being issued as a stand-alone
policy, the daily benefits offered are more attractive. Besides the daily hospital
income, it may also include:
(a) Payment of 150% of the daily benefit if the insured stays in a High Dependency
Unit (HDU) or Coronary Care Unit (CCU) of a hospital;
(b) double or triple payment if the insured stays in the Intensive Care Unit (ICU)
of a hospital;
(c) triple benefit payment if hospitalisation is due to accident or if the insured is

hospitalised overseas;
(d) get-well benefit;
(e) rehabilitation income;
(f) free accidental death benefit; and
(g) involuntary loss of employment benefit (in excess of 30 days) – waiver of
premium (up to six months).
13.12 The premium for a stand-alone policy usually increases when the insured crosses
into the next age-band upon the renewal of the policy. For example, from the ages
of 21 to 40 years, the insured may need to pay S$21.50 per month for S$100 per
day benefit. From the ages of 41 to 50 years, the insured may need to pay S$33.50
per month, and so on. In other words, the premium increases with age.
13.13 The insured can have a choice of different plans providing varying amounts of
benefits and may include his spouse and children under the cover. The policy is
usually automatically renewable on an annual basis up to a specified age (e.g. 65,
70, or 75 years). Normally, the cover is 24-hour, worldwide basis.
D2. Hospital Cash Insurance Riders
13.14 Hospital Cash Insurance can also be issued as a rider attached to a basic policy,
such as a Life Insurance policy (e.g. Whole Life Insurance, Endowment Insurance,
or Critical Illness Insurance policy). The rider usually expires when the insured
reaches a specified age (e.g. 65, 70, or 75 years) or on the maturity of the policy,
whichever is the earlier. Thus, the term of this rider cannot be longer than that of
the basic policy, as the rider cannot stand on its own.
E. Underwriting
13.15 Owing to its small premiums, Hospital Cash Insurance Policy is usually not
underwritten. Pre-existing medical conditions are permanently excluded under the
policy. Refer to Appendix 6A for a sample Hospital Cash Insurance
application/proposal form for a stand-alone policy.
F. Exclusions
13.16 The common exclusions of a Hospital Cash Insurance policy include:

(a) pre-existing medical condition that the insured knew existed or has received
treatment and/or medical advice;
(b) pre-existing physical defect or infirmity, unless declared to and accepted by
the insurer;
(c) self-inflicted injuries or suicide, while sane or insane;
(d) Human Immunodeficiency Virus (HIV) or any HIV related illness, including
Acquired Immune Deficiency Syndrome (AIDS) or any illness arising from it;
(e) sexually transmitted disease;
(f) mental/nervous disorder, drug addiction, intoxication, alcoholism, obesity,

weight reduction/improvement, bulimia, anorexia nervosa, preventive
treatment, such as vaccination or acupuncture;
(g) illegal or unlawful act of the insured;
(h) pregnancy, miscarriage, childbirth, abortion, birth control, or infertility;
(i) routine physical or any other medical examination not relating to any health
impairment;
(j) cosmetic or plastic surgery, circumcision, congenital condition, dental work or
myopic treatment;
(k) war and related operations;
(l) nuclear weapons material, ionising or radiation;
(m) strike, riot and civil commotion; and
(n) participation in hazardous sports like skiing or sky-diving, aerial activities other
than air travel as a fare-paying passenger of a licensed aircraft, driving or
riding in any kind of race, motor-cycling, or pillion riding.
13.17 These are just some of the common exclusions, and they vary from insurer to
insurer.
G. Termination Of Cover
13.18 A Hospital Cash Insurance cover will terminate when one of the following events
occurs:
(a) the premium is not paid at the end of the grace period;
(b) the insured reaches the expiry age as stated in the policy;
(c) the per lifetime limit is reached;
(d) the basic policy lapses or matures; or
CLAIM
(e) the insured dies. FOR
H. Claims
13.19 In the event of a claim, the insurer will require submission of the following
supporting documents:
(a) claim form (see Appendix 6B for a sample); and
(b) hospital discharge summary and bills.
13.20 These are the usual documents that the insured is required to submit. Note that
the insurer reserves the right to call for additional documentary evidence, such as
the Attending Physician’s Report and any other relevant supporting documents.
Appendix 6A
Tel: (65) 6789 8181 Fax: (65) 6789 8282
APPLICATION FORM FOR HOSPITAL CASH INSURANCE
Important Notice
STATEMENT Pursuant to Section 23(5) of the Insurance Act 1966.
You are to disclose in this proposal form, fully and faithfully all the facts, which you know or ought to know; otherwise the policy issued
hereunder may be void.
For myself Basic Plan Enhanced Plan

CHOICE OF PLAN
For my spouse Basic Plan Enhanced Plan
Name of Applicant (in Full) NRIC / Passport No.
Mailing Address Contact No.

Office Home
Singapore _________________________ Mobile E-mail
Date of Birth Gender Marital Status
Male Female
Occupation Employer
PARTICULARS OF SPOUSE
Date of Birth Gender Occupation & Employer

Male Female
PAYMENT MODE
a) I hereby confirm that I am the cardholder of the below credit card and I authorised the Company to
By Cheque, payable to ABC charge the premium for the above policy/policies to my card.
Insurance Company (Singapore) b) I fully understand and agree to the terms and conditions of the usage of my credit card. I also
Limited.
Company.
c) I understand and agree that in the event of refund from the Company, payment will be made to the
INSURED/POLICYHOLDER stated above.
VISA MasterCard Name of Cardholder ____________________________

Bank __________________________________
Cheque No. ___________________________

Card No.
Signature of Cardholder
Amount ______________________________
DECLARATION
I declare to the best of my/our knowledge and belief that all persons proposed are in good health, free from any physical defect or infirmity, are not receiving
medical treatment of any kind and are not suffering nor have suffered from a pre-existing or recurring illness.
I agree that this Declaration shall be the basis of the contract between me/us and the Company and shall be deemed to be incorporated in such contract, subject
to the terms and conditions of the Policy. No insurance will be in force until this Enrolment Form has been accepted by the Company.
Appendix 6B
Tel: (65) 6789 8181 Fax: (65) 6789 8282
HOSPITAL INCOME INSURANCE CLAIM FORM
Important Notice
This Claim form is to facilitate your Claim in the event that you or a member of your family is confined in a hospital while being insured
under a hospital income policy.
Instructions:
1. Attending Physician’s Statement is to be completed by the Claimant’s Doctor or attending Physician. THE CLAIMANT IS RESPONSIBLE
FOR ANY EXPENSES INCURRED IN OBTAINING MEDICAL EVIDENCE IN SUPPORT OF A CLAIM.
2. Please submit, with this completed Claim Form, the Hospital bill (original or copy) as evidence of hospitalisation.
As you will appreciate we must be able to satisfy ourselves as to the validity of all claims under the hospital income plan and to establish the
exact period and reason for hospitalisation to ensure that the correct Benefit is paid.
Occupation / Industry Gender Male Female

Office Home
Mobile
Singapore E-mail
PARTICULARS OF CLAIMANT / INSURED
Name of Claimant (in Full) NRIC No.
Date of Birth Gender Male Female
Relationship to Policyholder Occupation / Industry
CLAIM INFORMATION
Name of Hospital Period of Hospitalisation
Admission Date_________________ Discharge Date _______________
Name of the Claimant’s usual Doctor(s) Name and Address of Claimant’s usual Clinic
Was claimant Purpose of Overseas Trip Address of Overseas Hospital

hospitalised outside
Singapore?
Intended itinerary of destination
Yes; Please specify
Intended duration of overseas trip

No
Hospitalisation is due to: Date & Time of Accident Nature of Accident (Describe in details, how & where it happened )
Accident
Describe in details the injuries sustained, indicating the part of the body injured and the type of injury ( e.g. fracture, cut, bruise,
etc.)
Hospitalisation is due to: Nature of Sickness (describe the symptoms suffered)

Sickness
Date of when symptoms were first Date of first consultation with a medical practitioner for this condition
noticed
Has the claimant ever seen a doctor for Name of Doctor

any similar condition in the past?
Name and Address of Clinic/Hospital
Yes; Please specify
No
DECLARATION AND AUTHORISATION

1. I declare that the above information is true and complete to the best of my knowledge and belief.
2. I hereby authorise any Doctor or any other person who has ever medically attended to the Claimant, or any Hospital in which he or she has been treated to
disclose any relevant knowledge or information which they acquired, to the Company or their Authorised Representative.
3. I hereby request and authorised the Company to pay benefit due in respect of this claim to: ___________________________________________.
(other than policyholder)
Claimant’s signature: ________________________________ Date: __________________
Policyholder’s signature: _____________________________ Date: __________________

Note: If (a) The Policyholder is claiming on his own behalf or (b) the Claimant concerned is a Child under 18 year of age – only the policyholder’s signature is required.

ATTENDING PHYSICIAN’S STATEMENT (To Be Completed By Attending Physician)
Name of Patient NRIC No. Date of Birth
When did symptoms of sickness first appear? Or in State the Nature of Injury or Sickness (Describe complications - if any)
the case of accident when did accident occur?
Final Diagnosis
- -
DD – MM – YYYY Nature of Surgery (if any)
When did the Patient first receive medical attention Name of Doctor
for this condition?
Name of Clinic
D D – M M – Y Y Y Y
Address
Has the Patient ever had this or any similar Details of similar condition previously
condition?
Yes;Please specify
No
Is the present condition of patient due any of the Details of present condition checked ‘Yes’ on the left column
following? Please specify if ‘Yes’.
Yes No
Congenital anomaly
Nervous or mental disorder
Pregnancy/childbirth/infertility
Alcohol influence
Period of Hospitalisation Name & Address of Hospital admitted
Date Admitted - -
Date Discharge - -
D D – M M – Y Y Y Y
Are you the Patient’s usual Doctor? Name & Address of usual doctor
Yes
No Please specify
PARTICULARS OF ATTENDING DOCTOR / SURGEON

Name of Attending Doctor / Surgeon Declaration
I hereby certify that I have personally examined and treated the patient for the
above *injury/sickness and that the facts as given above present my opinion of
Name of Hospital/Clinic his/her condition.
Contact Numbers & E-mail

Office
Fax
Mobile Signature of Attending Physician / Surgeon
E-mail
Date
* To delete as applicable
Singapore _________________________
CHAPTER 7
FOREIGN DOMESTIC WORKER INSURANCE
AND GOLFER’S INSURANCE
CHAPTER OUTLINE
1. Introduction
2. Foreign Domestic Worker Insurance (FDWI)
3. Golfer’s Insurance
Appendix 7A – Security Bond Form
Appendix 7B – Letter Of Guarantee
Appendix 7C – Letter Of Counter Indemnity By Employer
Appendix 7D – Foreign Domestic Worker Insurance Policy
Appendix 7E – Pre-Contract Disclosure For Foreign Domestic Worker Insurance
Plan
Appendix 7F – Foreign Domestic Worker Insurance Brochure
Appendix 7G – Application Form For Foreign Domestic Worker Insurance
Appendix 7H – Foreign Domestic Worker Insurance Claim Form
LEARNING OUTCOMES
▪ know the legal requirements pertaining to the employment of Foreign Domestic
Workers
▪ understand the insurance requirements for the employment of Foreign Domestic
Workers in relation to:
- Security Bond
- Personal Accident Insurance
- Medical Insurance
- Covid-19 Insurance
▪ know the scope of cover provided by the majority of Foreign Domestic Worker
Insurance policies
▪ understand the functions of the Insurance Guarantee for Security Bond
▪ identify the exclusions, extensions, policy conditions and underwriting considerations
applicable to Foreign Domestic Worker Insurance
▪ know the common claim documents that the insured will be required to submit under
a Foreign Domestic Worker Insurance policy
▪ understand the need for Golfer’s Insurance
▪ know the scope of cover provided by a Golfer’s Insurance policy
▪ identify the general exclusions, extensions and policy conditions that apply to most
Golfer’s Insurance policies
▪ understand the underwriting considerations of Golfer’s Insurance
7. Foreign Domestic Worker Insurance and Golfer’s Insurance
▪ know the types of claim documents that the insured will be required to submit under a
Golfer’s Insurance policy
Contents
FOREIGN DOMESTIC WORKER INSURANCE AND GOLFER’S INSURANCE ............... 218
CHAPTER OUTLINE ......................................................................................................... 218
1. INTRODUCTION ..................................................................................................... 221
2. FOREIGN DOMESTIC WORKER INSURANCE (FDWI) .......................................... 221
A. Introduction ..................................................................................................... 221
B. Insurance Requirements ................................................................................. 222
C. Scope Of Cover ............................................................................................... 228
D. General Exclusions.......................................................................................... 233
E. Extensions ....................................................................................................... 234
F. Policy Conditions............................................................................................. 236
G. Underwriting Considerations ......................................................................... 236
H. Claim Documents ............................................................................................ 237
3. GOLFER’S INSURANCE ......................................................................................... 237
A. Introduction ..................................................................................................... 237
B. Scope Of Cover ............................................................................................... 238
C. Exclusions ........................................................................................................ 240
D. Policy Conditions............................................................................................. 241
E. Underwriting Considerations ......................................................................... 241
F. Claim Documents ............................................................................................ 241
Appendix 7A .................................................................................................................... 242
Appendix 7B .................................................................................................................... 244
Appendix 7C .................................................................................................................... 245
Appendix 7D .................................................................................................................... 246
Appendix 7E .................................................................................................................... 260
Appendix 7F .................................................................................................................... 261
Appendix 7G .................................................................................................................... 265
Appendix 7H .................................................................................................................... 267
1. INTRODUCTION
1.1 In this chapter, other types of personal general insurance, namely Foreign
Domestic Worker Insurance (FDWI) and Golfer’s Insurance will be discussed.
2. FOREIGN DOMESTIC WORKER INSURANCE (FDWI)
A. Introduction
2.1 Thousands of Foreign Domestic Workers (FDWs) work in Singapore. By helping

with the household chores and bearing part of the responsibilities for the care of
the household children or elderly, these maids play an important supportive role,
where the master and/or mistress of the household unit are working.
2.2 According to the requirements of the Ministry of Manpower (MOM), Singapore, a

Work Permit (WP) for Migrant Domestic Worker (MDW) is required when
employing a Foreign Domestic Worker (FDW), who must be from an approved
source as specified by MOM. A FDW who has not worked in Singapore before
must be at least 23 but below 50 years of age at the time of the WP application.
Helpers aged 50 and above can only renew their WPs until they are 60 years old.
She must also have a minimum of eight years of formal education and must also
possess the necessary recognised educational certificates as supporting
documentary proof of her education. She must also attend the necessary training
courses and undergo the necessary medical examinations within the time limits
required by MOM.
2.3 A Work Permit holder must comply with the following:1

(a) Work only in the occupation and for the employer specified in their Work
Permit card.
(b) Not take part in any other business or start their own business.
(c) Reside only at the address set by the employer at the start of employment.
They must inform their employers if they plan to move to another place.
(d) Carry their Work Permit card at all times and produce it when requested by
any public officer.
(e) Not marry a Singapore citizen or permanent resident in or outside Singapore
without MOM's approval. This applies even after their Work Permits have
expired, been cancelled or revoked.
(f) Not get pregnant or deliver a child in Singapore during the validity of their
Work Permit unless they are already married to a Singapore citizen or
permanent resident with MOM's approval. This applies even after their Work
Permits have expired, been cancelled or revoked.
1
https://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/sector-specific-rules/work-
permit-conditions
2.4 A FDW can enter Singapore only after the following requirements are in place:
▪ In-Principle Approval Letter or “Letter of Notification” issued by the MOM’s
Work Pass Division upon successful application of the WP;
▪ Security Bond;
▪ Personal Accident Insurance; and
▪ Medical Insurance.
2.5 Central Provident Fund contributions are not required for any FDW.
2.6 Both the Work Injury Compensation Act 2019 and the Employment Act 1968 do
not cover any domestic worker, whether local or foreign.
2.7 The employer is responsible to the FDW (being a WP holder) for the prompt salary
payment, costs of upkeep, maintenance, medical treatment, repatriation
(including burial or cremation), and return of the FDW ashes or body to her
country of origin, upon his or her death during their employment in Singapore.
B. Insurance Requirements
B1. Security Bond
2.8 The employer must post a Security Bond of S$5,000 (required amount of cash
Security Deposit known as “the Obligation” in the Security Bond Form as issued
by MOM – see Appendix 7A) to the Controller of Work Passes, MOM (“the
Controller”), for the employment of a foreign worker who is a non-Malaysian WP
holder, including a FDW. This is to ensure compliance of the conditions as
specified in the Security Bond. Should there be a breach of any of the specified
Security Bond conditions, the amount would be forfeited partially or in whole,
depending on the situation as specified. Both the employer and the Government
of the Republic of Singapore sign the Security Bond. The FDW is not required to
pay the Security Deposit.
2.9 The Security Bond can be in the form of a Banker’s Guarantee or an Insurance
Guarantee (in the form of an insurer’s Letter of Guarantee – see Appendix 7B),
without the employer paying out S$5,000 cash upfront to MOM, as required under
Section 12 of Employment of Foreign Manpower (Work Passes) Regulations 2012
or Section 21 of the Immigration Regulations.
2.10 The security bond is a binding pledge to pay the government if either the
employer or his helper breaks the law or WP conditions. This “guarantee”
represents a “promise” by the bank or insurance company that it will pay for the
forfeiture of the Security Bond on behalf of the employer, if the need arises (i.e.
breach of any of the conditions as specified in the MOM Security Bond Form). In
return, it will charge the employer a small fee for issuing this guarantee.
2.11 The Security Bond will be discharged if the employer meets all of these
conditions:
▪ He has cancelled the Work Permit.
▪ The helper has returned home.
▪ The employer did not breach any of the security bond conditions.
2.12 The Security Bond may be forfeited if any of these happens:

▪ The employer or his helper violates any of the Work Permit or security bond
conditions.
▪ The employer does not pay his helper's salary on time.
▪ The employer fails to send his helper home when her Work Permit is expired,
revoked or cancelled.
▪ His helper goes missing.
2.13 The employer will not be liable for his helper’s violations (such as those relating
to pregnancy) if he can prove that he has:
▪ Informed her of the Work Permit conditions she must comply with.
▪ Reported a violation when he first become aware of it.
2.14 The insurer’s offer of the Letter of Guarantee to the Controller is not an insurance
benefit, since there is no real transfer of risk in this situation. The employer must
reimburse the amount that the insurer paid to MOM, except where the employer
has purchased the extension of “Waiver of Counter Indemnity” – see a later
section on this.
2.15 This guarantee by the insurer is often packaged under the FDWI policy (see
sample in Appendix 7B), and the employer benefits from the convenience of
issuing this, as he does not have to apply for the insurance and guarantee
separately. The premium for the insurance will then include the “fee” for the Letter
of Guarantee. Of course, if the employer chooses not to, he can purchase the
insurance without the guarantee.
2.16 However, the employer usually chooses for this to be included. As the employer
normally uses a maid employment agency [being a Trade Specific Agent (TSA)]
to arrange for the necessary employment of a FDW, the employer will buy it in
conjunction with the FDWI policy from the TSA, as a one-stop convenience.
2.17 The employer must sign a Letter of Counter Indemnity (see Appendix 7C), which
reiterates the employer’s duty at Common Law to indemnify the insurance
company for any amount paid under this Insurance Guarantee.
2.18 Insurance companies usually provide cover for 14 or 26 months, to allow cover in
the event the FDW overstays in Singapore after her work permit has expired.
2.19 The insurer must provide MOM with the guarantee details (including the Personal
Accident Cover as mentioned below) electronically. The Security Bond must be
successfully transmitted to the MOM’s Work Pass Division before the FDW arrives
in Singapore.
B2. Personal Accident Insurance
2.20 MOM has made it clear where an application for a FDW’s work permit is made,
the employer must -
(a) purchase and maintain Personal Accident Insurance -
(i) to cover sudden, unforeseen and unexpected incidents resulting in
permanent disability, or death to the FDW;
(ii) with coverage of at least S$60,000 per year; and
(iii) to cover the period of the insured FDW’s employment with the
employer, until the insured FDW is repatriated or is employed by
another employer;
(iv) not contain extra exclusion clauses that are not in the Employment of
Foreign Manpower (Work Passes) Regulations 2012 and
(b) make a claim on behalf of the insured FDW in the event of such an accident
within 30 days after the date of the accident.
2.21 The policy of insurance must allow the employer, the FDW, the FDW’s legal
representative or any other person appointed by the Controller of Work Passes,
to enforce the terms of the FDWI policy or act on behalf of the FDW or the FDW’s
legal representative.
2.22 The compensation must be made payable to the helper or her beneficiaries.
B3. Medical Insurance
2.23 The Ministry of Manpower (MOM) implemented enhancements to the mandatory

medical insurance (MI) for all new and existing Work Permit (including Migrant
Domestic Workers) and S Pass holders. The first stage of these enhancements
was implemented on 1 July 2023. The second stage of these enhancements will
be implemented for insurance policies, renewals or extensions that have a start
date effective on or after 1 July 2025.2 MOM had considered feedback from
employer groups, insurers and industry partners and had taken into consideration
the cost impact and the time necessary for both employers and insurers to adjust
to the changes through the phased implementation approach.
2
https://www.mom.gov.sg/newsroom/press-releases/2023/0331-implementation-of-enhanced-medical-
insurance-for-foreign-employees-to-better-support-employers
2.24 Employers of FDW need to provide them with medical insurance coverage with
an annual claim limit of at least $60,000. This implementation of the enhanced
requirements by the MOM took effect for policies with start date effective on or
after 1 July 2023 (i.e. stage one implementation). For policies with start date
before 1 July 2023, the minimum annual claim limit was S$15,000. Such
insurance should cover inpatient care and day surgery costs. This includes
hospital bills for conditions that may not be work-related.
2.25 Employers also have to co-pay 25 per cent of claim amounts that go above the
first $15,000, up to an annual claim limit of at least $60,000.
2.26 This means that if the FDW incurs a $60,000 bill for heart surgery, for instance,
the employer will have to pay $11,250, which is 25 per cent of $45,000. The
insurer will cover the other $48,750.3
2.27 What if a FDW incurs a higher hospitalisation bill? The apportionment of payout
between the insurer and the employer for several scenarios is illustrated in the
figure below (denoted as ANNEX A by MOM) extracted from the MOM website.4
3
Extracted from Straits Times article “Employers must provide medical insurance coverage of at least
$60,000 for maids, migrant workers from July” dated 31 March 2023.
4
https://www.mom.gov.sg/-/media/mom/documents/press-releases/2022/enhanced-medical-insurance-
coverage-for-work-permit-and-s-pass-holders---annex-a.pdf
2.28 Note that “Current MI” in the above figure refers to the medical insurance
requirements in effect for policies incepting before 1 July 2023 and “Enhanced
MI” refers to the requirements that take effect for policies incepting from 1 July
2023 onwards.
2.29 From 1 July 2025 (i.e. stage two implementation) , several other changes will
also be implemented.5
2.30 Employers will no longer need to pay for their FDW’s medical treatment upfront
and claim the amount from insurers later. Insurers will be required to reimburse
hospitals directly. 6
2.31 There will also be a standard list of allowable exclusions for insurers, such as
procedures that are not medically necessary, such as cosmetic surgery.
2.32 Insurers will not have to cover the treatments for pre-existing illnesses
occurring within the first 12 months of work under the same employer.
2.33 The standard list of allowable exclusions as mentioned above are detailed in
the table below as extracted from the MOM website, denoted as ANNEX B by
MOM.7
ANNEX B
List of allowable exclusions
Insurers are only allowed to exclude the following treatment items,

procedures, conditions and activities in their medical insurance product
for Work Permit and S pass holders:
Group A: Treatment that is elective and not medically necessary

▪ Ambulance fees
▪ Cosmetic surgery
▪ Dental work (except due to accidental injuries)
▪ Vaccination Infertility, sub-fertility, assisted conception or any
contraceptive operation, including their related complications
▪ Sex change operations, including their related complications.
▪ Expenses incurred after the 7th calendar day from being certified to
be medically fit for discharge from inpatient treatment and assessed
to have a feasible discharge option by a medical practitioner
▪ Optional items which are outside the scope of treatment
▪ Health screening examinations for the purpose of diagnosis and any
treatment of a preventive nature
5
Extracted from Straits Times article “Employers must provide medical insurance coverage of at least
$60,000 for maids, migrant workers from July” dated 31 March 2023.
6
ibid
7
https://www.mom.gov.sg/-/media/mom/documents/press-releases/2022/enhanced-medical-insurance-
coverage-for-work-permit-and-s-pass-holders---annex-b.pdf
Group B: Treatment resulting from employers’/workers’ acts

▪ Treatment of conditions or injuries arising from any malicious / willful
/ illegal acts by employer or employer’s family members
▪ Treatment for conditions or injuries arising from any criminal acts
committed by worker
▪ Maternity charges (including Caesarean operations or abortions, and
their related complications)
▪ Treatment for conditions or injuries arising from voluntary
participation in hazardous sports
▪ Treatment of conditions or injuries arising directly or indirectly from
nuclear fallout, war and related risk
▪ Repeat occurrence of:
(a) Treatment of conditions or injuries arising from drug addiction
(except that of illicit drugs) or alcoholism
(b) Treatment of conditions or injuries arising from participation in civil
commotion, riot, or strike
(c) Treatment of mental conditions and conditions or injuries arising
from self-inflicted injuries and attempted suicide
(d) Treatment of venereal diseases and/or sexually transmitted diseases
Group C: Others
▪ Treatment of conditions deemed as pre-existing illnesses within the
first 12 months of employment under the same employer
▪ Overseas medical treatment
▪ Private nursing charges
▪ Purchase of medical equipment
▪ Medical repatriation
▪ Outpatient rehabilitation such as physiotherapy, occupational therapy
and speech therapy, unless recommended by a medical practitioner
during hospitalization period
▪ Traditional Chinese medicine or any forms of alternative treatment
▪ Treatment which has received reimbursement from Work Injury
Compensation Insurance (WICI) and other forms of insurance
coverage
2.34 Insurers must also offer different premiums for FDWs aged 50 and below, and
those above the age of 50, from 1 July 2025.8
2.35 The employer cannot pass on the cost of purchasing the medical insurance to
FDWs.
2.36 In summary, the implementation of the enhanced requirements by the MOM is

detailed in the table below.9
8
ibid
9
https://www.mom.gov.sg/-/media/mom/documents/press-releases/2023/annex_implementation-of-
enhanced-medical-insurance-for-foreign-employees-to-better-support-employers.pdf
C. Scope Of Cover
2.37 Over the years, insurers have introduced many insurance packages cover that
extend beyond the basic statutory insurance requirements for FDWs. A typical
FDWI package is likely to include the following sections:
(a) Personal Accident Cover;
(b) Accidental Outpatient Medical Expenses;
(c) Hospital and Surgical Expenses;
(d) Repatriation Expenses; and
(e) Termination Expenses.
2.38 It is important to note that under a FDWI policy, the insured person is the FDW.
The employer is the insured, policyholder or policy owner.
2.39 Do refer to the sample policy given in Appendix 7D to see how an actual policy
is worded. However, do note that it may not be the same description for all
insurers in respect of the coverage terms, provisions, limitations, exclusions,
and conditions. As mentioned above, from 1 July 2025, there will also be a
standard list of allowable exclusions for insurers, such as procedures that are
not medically necessary, such as cosmetic surgery.
C1. Personal Accident Cover
2.40 Being one of the compulsory insurance covers that all employers must provide,
this section provides the insured person (the FDW or her beneficiaries) lump
sum benefits. Presently, the minimum benefit, as required by MOM effective 1
October 2017, is S$60,000. The MOM requires that the policy of insurance
covers any sudden, unforeseen and unexpected event, whether or not arising
out of or in the course of employment, and whether or not in Singapore.
2.41 The accidental death and permanent disablement benefits payable are usually
set out in following Table 7.1 Table of Compensation.
Table: 7.1: Table Of Compensation (Example)

Percentage Of
Description Of Benefit Capital Sum Insured
Of S$60,000
(a) Death 100%
(b) Permanent total disablement from engaging in 100%
gainful employment, total paralysis of all limbs,
or injuries resulting in being permanently
bedridden
(c) Loss of sight of both eyes 100%
(d) Loss of two or more limbs, or all fingers and 100%
thumbs of both hands
(e) Loss of one limb and sight of one eye 100%
(f) Loss of sight of one eye 50%
(g) Loss of one limb 50%
(h) Loss of speech 50%
(i) Loss of hearing in both ears 50%
(j) Loss of all fingers and a thumb of one hand 50%
(k) Loss of all fingers of one hand 40%
(l) Loss of hearing in one ear 20%
(m) Loss of a thumb 20%
(n) Loss of any one finger 10%
(o) Loss of all toes of one foot 15%
(p) Loss of a big toe 5%
(q) Loss of any one other toe 2%
2.42 Prior to 1 October 2017, MOM was concerned that Insurance policy wordings
varied between insurers, meaning that the insured events for which insurers
will pay compensation will vary. MOM had raised concerns that not all FDWs
suffering similar accidents may receive compensation. To overcome this
disparity, with effect from 1 October 201710, MOM required the Personal
Accident Insurance section to cover all sudden, unforeseen, and unexpected
incidents that result in the death or permanent disability of the FDW. Insurers
are not permitted to impose additional conditions, exceptions or exclusions,
except those specified by the Controller for Work Passes (MOM) in Part II of the
First Schedule of the Employment of Foreign Manpower (Work Passes)
Regulations 2012. The specified exclusions are detailed in the next paragraph.
2.43 MOM has stipulated that “accident” means a sudden, unforeseen and
unexpected event, whether or not arising out of or in the course of employment,
and whether or not in Singapore, but does not include-
(a) any pre-existing medical condition suffered by the insured FDW;
(b) any psychiatric or nervous or mental disorder suffered by the insured
FDW;
(c) any sexually transmitted disease, AIDS (Acquired Immune Deficiency
Syndrome) or ARC (AIDS Related Complex) or other communicable
disease, suffered by the insured FDW;
(d) any pregnancy, childbirth, miscarriage, abortion, sterilization,
menopause, or any complication arising from any of these conditions,
suffered by the insured FDW;
(e) the effect or influence of any alcohol or drug on the insured FDW (other
than when administered according to a prescription of a registered
medical practitioner);
(f) any ionising radiation or contamination by radioactivity from the
combustion of nuclear fuel or nuclear waste or similar activity, suffered
by the insured FDW;
(g) any hazardous sport engaged in by the insured FDW, including any winter
sport (such as skiing or snowboarding), underwater activity (such as
snorkelling or scuba diving), aerial activity (such as taking a helicopter tour
or para-gliding) or motor sport (such as motorcycle racing or motor car
racing);
(h) any unlawful act of, or wilful exposure to danger (other than in an attempt
to save human life) by, the insured FDW;
(i) any suicide, attempted suicide or any self-inflicted injury by the insured
FDW, or any attempt by the insured FDW to cause self-inflicted injury;
(j) any war, war-like situation, civil war, mutiny, rebellion, revolution or act
of terrorism; or
(k) any foreseeable strike, riot or civil commotion.
10
https://www.mom.gov.sg/newsroom/press-releases/2017/0507-changes-to-pai-for-fdws
C2. Accidental Outpatient Medical Expenses
2.44 This section provides for reimbursement of outpatient medical fees, charges
and expenses necessarily and reasonably incurred at a clinic or hospital for
medical treatment of bodily injury following an accident. Treatment must be by
a medical practitioner (as defined) and within 12 months of the accident, and
up to a limit (e.g. S$3,000 per accident).
2.45 Some policies may extend this section to include expenses necessarily and
reasonably incurred for treatment provided by a Traditional Chinese Medicine
physician, following accidental bodily injury. This includes treatments by an
acupuncturist, bonesetter, chiropractor, herbalist, or physiotherapist. Cover will
usually be subject to a sub-limit (e.g. S$500 per accident).
2.46 The exclusions are similar to those specified in the Personal Accident Cover
section.
C3. Hospital & Surgical Expenses
2.47 This section covers the FDW in event that she is hospitalised for treatment of
injury, illness, sickness, or disease. The policy covers such expenses incurred
only in Singapore.
2.48 Expenses covered include room and board charges, surgical operation fees, day
surgery, and miscellaneous hospital service charges, including all related fees
and expenses (such as for ambulance service, dressings by nurses, drugs, visits
by doctors, specialist consultation, diagnostic examinations, and laboratory
tests, etc.) necessarily and reasonably incurred within 90 days before or after
the hospital confinement.
2.49 This section is customarily subject to the following policy Provisions:

(a) covers expenses incurred under a standard Class “C” ward in a
Government/Restructured Hospital only, or under Class “B2” in the event
that Class “C” ward is unavailable; and
(b) injury, illness, sickness, or disease suffered or sustained by the FDW
during the period of insurance (usually 14 or 26 months).
2.50 There is an overall as charged limit of S$60,000 per policy year for treatment in
a Singapore Government/Restructured Hospital.
2.51 The usual Exclusions11 include:

(a) pre-existing conditions for which the FDW has received medical treatment
or diagnosis, consultation, or prescribed drugs before the effective date of
insurance. The exception does not apply if the cover has been in force for
12 months;12
(b) non-medical cosmetic or plastic surgery;
(c) routine physical examination, health screening or medical check-up;
(d) dental treatment, unless necessitated by accidental injury;
(e) pregnancy, childbirth, miscarriage, abortion, infertility, or birth control;
(f) congenital defect, insanity, nervous disorder, alcoholism, or drug
addiction;
(g) sexually transmitted disease, HIV, AIDS, and any related illness;
(h) unlawful act, wilful exposure to needless perils (except in an attempt to
save human life), suicide or attempted suicide, or self-inflicted injury;
(i) hazardous sports, such as winter sports, rock climbing, mountaineering,
skin diving, bungee jumping, or driving or riding in any race; and
(j) flying or any aerial activity, except as a fare-paying passenger in a licensed
aircraft.
C3A. How can an employer guarantee that the medical insurance (MI) for FDW
meets MOM's requirements?13
2.52 MOM has worked with insurance associations for insurers to include pre-
contract disclosures for all MI policies. This is to be transparent for all
employers on the purchased MI’s coverage. The employer should request for
insurers to show whether the product offered complies with MOM’s minimum
requirements before buying the MI.
2.53 MOM would consider the MI to meet the requirement if there is disclosure by
insurers, or an insurance policy clause stating that the benefits of the coverage
are not worse than MOM’s enhanced MI requirement. See an example of such
disclosure in Pre-Contract Disclosure For Foreign Domestic Worker Insurance
Plan as detailed in Appendix 7E.
11
From 1 July 2025, there will also be a standard list of allowable exclusions for insurers, such as
procedures that are not medically necessary, such as cosmetic surgery.
12
From 1 July 2025, insurers will not have to cover the treatments for pre-existing illnesses occurring
within the first 12 months of work under the same employer.
13
https://www.mom.gov.sg/faq/work-permit-for-foreign-worker/how-can-i-guarantee-that-the-medical-
insurance-for-foreign-worker-or-fdw-meets-moms-requirements
C3B. Can employers buy riders or plans that offer 100% buyback of the 25% co-
payment component by employers?14
2.54 Yes. They can purchase riders or additional plans to reduce the 25% co-payment
component for employers for claims above $15,000. This includes riders or
plans that cover the entire co-payment component by employers, such that
employers do not need to co-pay anything above the first dollar coverage of
$15,000, up to the annual claim limit of $60,000.
C4. Repatriation Expenses
2.55 This section of the policy will reimburse for repatriation expenses incurred by
the employer for:
(a) transportation of the FDW to his or her home country in the event of
serious or terminal illness or permanent total disablement of the FDW
preventing her from continuing her employment in Singapore; or
(b) burial or cremation of the FDW, or transportation of the body or remains
to her home country, in the event of death.
2.56 This cover requires that:

(a) a detailed account of the claim is submitted to and approved by the
insurer; and
(b) the FDW’s death or disablement is not cause directly or indirectly by the
employer.
2.57 Cover is for up to a limit (e.g. S$10,000) whether arising from injury, illness,
sickness, disease, or suicide of the FDW.
C5. Termination Expenses
2.58 This section pays for the expenses incurred for terminating the services of the
FDW if she is unable to attend to her employment due to a prolonged terminal
or serious illness, up to a limit (e.g. S$300).
D. General Exclusions
2.59 In addition to the specific exclusions already mentioned under the various
sections, there are certain general exclusions that usually apply to the FDWI policy
as described below.
(a) The policy does not cover claims for loss or liability caused by intentional
self-injury, suicide (except under specific sections), or attempted suicide,
unless the insured person is trying to save a human life.
14
https://www.mom.gov.sg/faq/work-permit-for-foreign-worker/can-employers-buy-riders-or-plans-that-
offer-buyback-of-the-25p-copayment-component-by-ers
(b) Loss or liability arising from the influence of alcohol or drugs not prescribed
by a registered medical practitioner is not covered.
(c) Pregnancy, childbirth, abortion, miscarriage, sterilization, menopause, or
complications arising from these conditions are not covered.
(d) Mental problems, infirmity, or insanity are excluded from coverage.
(e) Sexually transmitted infections, HIV, or any HIV-related illness, including
AIDS, and other communicable diseases, are generally not covered, except
for COVID-19 coverage provided under a specific section.
(f) Pre-existing medical conditions or physical problems that existed before the
policy's start date are excluded, unless the insured person has been working
in Singapore as a foreign domestic helper for more than 12 consecutive
months or unless expressly provided under the section on hospital and
surgical expenses.
(g) Participation in hazardous activities or sports, such as winter sports,
underwater activities with breathing apparatus, aerial activities, and motor
sports, is not covered.
(h) Loss or liability resulting from war, acts of terrorism, civil war, rebellion, or
similar events is excluded.
(i) Radioactivity or damage caused by nuclear fuel, material, or waste is not
covered.
(j) Loss or liability resulting from strikes, riots, or civil commotion is generally
excluded, unless it is unforeseeable.
E. Extensions
2.60 Under a FDWI policy, the following extensions can be purchased for an additional
premium, or they can be obtained under a more extensive and comprehensive
package. However, not all insurers offer these extensions in their FDWI policy.
Purchasing additional cover is at the option of the employer who wants additional
or wider coverage than the basic FDWI policy. The additional premiums charged
for the individual extensions, and the various extensions provided differ from
insurer to insurer.
E1. Waiver Of Counter Indemnity
2.61 This extension is applicable if the employer has specifically requested the insurer
to provide a Letter of Guarantee to the Controller to satisfy the Security Bond for
the FDW. The Letter of Guarantee issued by the insurance company is merely a
guarantee to pay on behalf of the employer. As such, the insurer is entitled to a
reimbursement from the employer of any amounts paid to MOM. Hence, the
employer will have to indemnify the insurer (in accordance with the Counter
Indemnity) to the extent of the S$5,000 Security Bond being totally called by
MOM, in the case of a breach.
2.62 However, with this extension, the employer’s liability to the insurer is limited to a
much smaller sum (e.g. S$250 or S$500), provided that the breach of the Security
Bond is not caused by the deliberate act or omission of the employer.
E2. Wages & Levy Compensation
2.63 A Foreign Workers’ Levy is imposed on any FDW in Singapore (see the MOM
Website for details). This amount is payable on a monthly basis, even if the FDW
is hospitalised resulting from injury, illness, sickness, or disease, and cannot
work during that month. This extension compensates the employer for a
nominal sum (e.g. S$30 per day) for each day that the FDW is hospitalised, the
wages that the employer has to continue to pay to the FDW (besides the
required levy to MOM), subject to a maximum period (e.g. 60 days). Some
insurers provide this as part of their standard FDWI policy, while others offer it
as an extension.
E3. Foreign Domestic Worker’s Liability
2.64 This extension pays for the employer’s legal liability for third-party death, injury
and/or property damage as a result of the FDW’s negligence in the course of the
FDW’s employment in Singapore, up to a limit (e.g. S$25,000). Cover excludes
contractual liability; a common term found in Liability Insurance policies. This is
to limit the extension coverage strictly to those legal liabilities arising from the
FDW’s negligence.
2.65 For example, while hanging the washed clothes to dry, the FDW, out of
carelessness, drops the hanging pole of clothes and injures a passer-by. The
passer-by seeks reimbursement of incurred medical expenses for treatment of his
injury. By way of the FDW’s liability extension, the FDWI policy will pay for such
claim.
E4. Foreign Domestic Worker’s Belongings
2.66 This section of the FDWI policy covers the FDW’s personal effects while these
are contained in the employer’s home and in event of their loss or damage
caused by fire and related perils. Cover is usually subject to a limit (e.g. S$500).
E5. Other Extended Benefits
2.67 Insurers offer a variety of coverage extensions with enhanced benefits in their
FDWI policies. Some of the more common of these benefits cover:
(a) outpatient kidney dialysis;
(b) cancer treatment and specified critical illnesses or communicable
diseases on limited coverage basis;
(c) recuperation daily benefit during hospitalisation up to 60 days;
(d) special death benefit grant to defray incurred expenses during

bereavement; and
(e) re-hiring expenses for domestic maid replacement made within 90 days
following death or permanent disablement of the existing insured FDW.
2.68 An example of a FDW Insurance package containing some of the above-

mentioned coverage and benefits can be found in the Foreign Domestic Worker
Insurance Brochure as detailed in Appendix 7F.
F. Policy Conditions
2.69 It is important that the FDW is in the immediate employment of the employer
and holds a valid work permit.
2.70 The coverage ceases when the FDW returns to her home country, e.g. home
leave.
2.71 The other usual conditions also apply:

▪ taking reasonable precautions to safeguard against accidents and diseases;
▪ claim notification and conduct, including fraudulent claims; and
▪ other insurance, subrogation, arbitration, payment before cover warranty,
policy cancellation, and premium refund, etc.
2.72 The reader is advised to refer to Appendix 7D which contains a sample policy
wording for more details on policy conditions applicable to a FDW Insurance
policy.
G. Underwriting Considerations
2.73 Most FDWI proposals are accepted with minimal underwriting. Premiums are
offered at a standard rate, regardless of the age or nationality of the FDW. With
regards to age, insurers must also offer different premiums for FDWs aged 50 and
below, and those above the age of 50, from 1 July 2025.
2.74 The major determinant of premiums will be the level of coverage and benefits – a
more comprehensive package or the inclusion of more extensions would require
higher premiums (see Appendix 7G for a sample application/proposal form).
2.75 Note the following:

(a) Duration of Cover: This is usually for a period of 14 or 26 months,
depending upon the intended employment tenure and in compliance with
MOM’s requirement.
The duration of cover is essentially either one or two years plus two
months. The additional two months’ cover in connection with the
FDWI/Bond is MOM’s safeguard requirement. This is to ensure that the
insurance remains in place should the FDW/WP holder default and

overstay in Singapore, upon completion of her term of employment.
(b) Employer’s request for extension of Period of Insurance: Only some

insurers are prepared to consider such covers.
H. Claim Documents
2.76 Other than the FDWI claim form (see sample under Appendix 7H), the insurer will
require supporting documents of evidence from the insured (employer), such as
death certificate or medical report for Personal Accident benefits, and hospital
inpatient discharge summary, original bills, invoices, or receipts when claiming
Medical Expenses. For other claimable expenses, such as repatriation expenses,
the insured must submit proof of payment, such as original bills, invoices and
receipts.
2.77 Employers are responsible for the filing of claims with insurers for accidents
covered under Personal Accident Insurance within 30 days after the date of the
accident. MOM allows claims to be filed by FDWs or their legal representative
directly with insurers. In addition, if the FDW or next of kin are unable to file a
claim, a MOM-appointed representative may be directed to act on their behalf.
2.78 As mentioned earlier, from 1 July 2025, employers will no longer need to pay
for their FDW’s medical treatment upfront and claim the amount from insurers
later. Insurers will be required to reimburse hospitals directly.
3. GOLFER’S INSURANCE
A. Introduction
3.1 Golf is popular for many people as a means to take part in a sport, for relaxation,
health reasons, or social, business, and networking purposes. Like most games,
playing golf also carries risks. For example, a golfer may fail to keep an
adequate watch on the direction of his ball and not give a warning to other
golfers when the ball is heading in their direction, leading to the golfer facing
an allegation of negligence, if his ball hits and causes injury to another golfer.
The golfer, if deemed liable for negligence at Common Law, may have to pay a
substantial compensation to the injured golfer.
3.2 The golfer may also have invested in some very expensive golf clubs. If they
are lost or damaged e.g. while at play, can the golfer comfortably afford to
replace them; or what if the golfer achieves the golfer’s dream of a “hole-in-
one”? It is customary for a golfer hitting a “hole-in-one” to buy celebratory
drinks for all the members present in the golf-club bar on that day, which could
be an expensive undertaking.
3.3 Besides, the golfer may run the risks of lightning strikes and accidents, while
playing or practising on any golf course or driving range.
3.4 A golfer looking for comprehensive coverage can purchase a “packaged”

Golfer’s Insurance policy, which covers the risks mentioned above, in addition
to providing cover for personal accident and medical expenses.
B. Scope Of Cover
3.5 Golfer’s Insurance policies vary from insurer to insurer. Some insurance
companies do not offer them at all. Where provided, various sections of the
policy cover a particular aspect or risk relating to the game.
Golfer Insurance Coverage
3.6 Here, we discuss the more common sections of coverage: Personal Accident
▪ Personal Accident Cover; Personal Liability
Golfing Equipment
▪ Personal Liability; and Personal
Effects
▪ Golfing Equipment and Personal Effects; Hole-In-One
Medical
▪ Hole-In-One; and Expenses
▪ Medical Expenses.
3.7 The territorial limit is usually worldwide.
B1. Personal Accident Cover
3.8 The policy will pay accidental death or permanent disablement (limited to loss
of hand, foot, or sight of eye) benefits according to a “Table of Compensation”,
in the event of an accident occurring on any golf course or driving range where
the insured is playing or practising. The capital sum insured (e.g. S$100,000) is
the maximum limit payable for any one period of insurance under this section.
3.9 For temporary total disablement from engaging in or attending to usual

profession or occupation following an accident, the policy will pay a weekly
sum (e.g. S$250) up to 104 weeks.
3.10 The main exclusions are self-inflicted injury, suicide, insanity, intoxication,
pregnancy, and childbirth.
B2. Personal Liability
3.11 The insurer will indemnify the insured for any claim that the insured may be
legally liable to pay as damages resulting from:
▪ accidental death or bodily injury to any person; and/or
▪ accidental loss of or damage to property;
caused by the insured’s negligence while playing or practising golf on any golf
course or driving range.
3.12 All legal costs and expenses recovered by any claimant against the insured or
incurred by the insured with the written consent of the insurer are also payable.
3.13 The policy will state a maximum limit of liability (e.g. S$500,000) that the insurer
will pay for any one occurrence or a number of occurrences.
B3. Golfing Equipment & Personal Effects
3.14 This section covers the insured against accidental loss of or damage to golfing
equipment and/or personal effects while at or in transit to or from any golf
course or driving range, up to a limit (e.g. S$4,000) as specified.
3.15 Golfing equipment refers to golf clubs, golf balls, golf bags, caddie cars, and
umbrellas. These are subject to limits. Some insurers subject the individual
items to separate sub-limits (e.g. S$250 for golf bag; S$300 for an iron club;
S$400 for a driver, with these subject to an overall S$1,000 limit for golfing
equipment and accessories); others may cover personal effects under a
separate section up to a limit (e.g. S$1,500) as specified.
3.16 A deductible (e.g. S$100 to S$200) is usually applicable for each and every loss.
3.17 Coverage excludes the following:

(a) loss or damage caused by or resulting from wear and tear or depreciation;
(b) loss of or damage to golf balls unless contained in the bag at the time of
loss, meaning that the loss of golf balls during play is not covered; and
(c) loss of or damage to valuables, such as watches, jewellery, trinkets,
notebooks, mobile phones, cameras, audio-visual equipment, money,
securities, stamps, field, and other glasses.
B4. Hole-In-One
3.18 The only time that the insured is likely to enjoy making an insurance claim is
the hole-in-one event. Tradition requires the successful golfer to buy drinks all
round, being a potentially expensive undertaking.
3.19 With this cover, the insurer will pay for the cost of hospitality (food and
beverages) incurred by the insured, if the insured hits a hole-in-one while
playing on any golf course of a recognised golf club, but subject to any local
customs or rules of the club, and only up to a limit (e.g. S$500) as specified. The
cost can be incurred within the club, or anywhere within a certain period (e.g.
30 days) of the hole-in-one achievement, depending on the policy wording.
B5. Medical Expenses
3.20 This section pays for medical expenses incurred (usually within 12 months from
the date of the accident) by the insured as a result of bodily injury caused by
violent, accidental, external, and visible means, while at play on any golf course
or while practising at the driving range. Cover is subject to a specified limit (e.g.
S$1,000).
B6. Other Extensions
3.21 Some insurers include other coverage as follows:

(a) Breakage Of Clubs – covering up to a limit (e.g. S$500), for accidental
breakage of clubs during the course of actual play or practice on any golf
course or driving range;
(b) Golfing Equipment Hire – reimbursement up to a limit (e.g. S$100), for the
incurred cost of hiring replacement golfing equipment as a result of loss
of or damage to the golfing equipment as covered under the policy;
(c) Club Subscription Fees – reimbursement up to a limit (e.g. S$500), for club
subscription fees in the event that the insured sustains an injury or falls ill
and is unable to play golf. This cover is customarily subject to a time
excess; i.e. the policy will pay only if the injury or illness lasts for more
than a certain period; e.g. 14 days of injury or illness; and
(d) No Claim Discount – if no claim is made or arises during the period of
insurance immediately preceding the policy renewal, the renewal
premium will be reduced by certain percentage discount, e.g. 10% to 15%.
C. Exclusions
3.22 The following main risks are generally excluded:

▪ war, invasion, rebellion, revolution, strike, riot or civil commotion;
▪ consequential loss; and
▪ ionising, radiation, radioactivity, and nuclear weapons material.
3.23 Some insurers also specify the age limit of the insured (e.g. from 18 to 65 years
of age) for which this policy is applicable.
D. Policy Conditions
3.24 Again, the conditions are similar to the any other personal general insurance
and they include:
▪ taking reasonable precautions to reduce or remove the risk of loss or
damage, and to keep the interest insured in a good condition;
▪ claim procedure, notification period, fraudulent claims; and
▪ other insurance, subrogation, arbitration, payment before cover warranty,
policy cancellation, and premium refund, etc.
E. Underwriting Considerations
3.25 As with FDWI, insurers offer Golfer’s Insurance at standard premiums. The
applicant needs to provide only some personal details (e.g. name, address,
contact details, date of birth, and occupation) and the period of insurance
required, with a simple declaration on health, such as whether the applicant
suffers from any physical defect or infirmity or disease. Some insurers also
request information on the applicant’s claims experience including details of
previous losses of or damage to golfing equipment, or third-party claims.
F. Claim Documents
3.26 Apart from the claim form, the insured may need to submit relevant supporting
documents when claiming under the various benefits of personal accident,
personal liability, property loss or damage, and medical expenses. Such
documents are similar to the requirements under other insurance already
mentioned. To claim expenses under the “Hole-In-One” section, the insurer will
usually need verification from the golf club, such as a properly authenticated
certificate, as well as the bills or receipts for the food and beverages purchased.
Appendix 7A
SECURITY BOND FORM
Employment Of Foreign Manpower Act 1990

Employment Of Foreign Manpower (Work Passes) Regulations (Regulation 12)
Security Bond Form For FOREIGN WORKERS (Domestic And Non-Domestic)
BY THIS BOND received this _______ day of ____________________ 20_______
I/We ____________________________________________ acknowledge myself/ourselves bound to pay the Government of the

Republic of Singapore the sum of S$_________________ (‘the Obligation”).
PURPOSE
I/We wish to apply for the issue of Work Passes:
*a for the persons whose particulars appear in the Schedule to this Bond (the “Schedule”) (“the said persons”);
b for the number of persons indicated in the Schedule whose particulars shall be supplied from time to time on the
date of their arrival in Singapore and when so supplied shall form part of the Schedule (“the said persons”);
c for the persons whose particulars may from time to time be included in the Schedule with the consent of the
Controller of Work Passes prior to or on the date of their arrival in Singapore in substitution for those whose
particulars appear in the Schedule (“the said persons”).
*(Delete a, b or c as necessary)
STATUTORY AUTHORITY
The Controller of Work Passes is agreeable to the issuing of Work Passes to the said persons on the following conditions
to be observed by me/us in respect of the said persons, namely:-
i. That during their stay in Singapore, I/we shall be responsible for the prompt payment of salary, be responsible for
and bear the costs of their upkeep and maintenance, including medical treatment, and give them reasonable notice
of and bear the full cost of their repatriation, ensuring that all outstanding salaries or monies due to them have
been paid before their repatriation;
ii. That I/we shall provide acceptable accommodation for them;
iii. That, if any of them should die while in Singapore, I/we shall be responsible for the cost of burial or cremation or
the return of the body to the country of nationality;
iv. That I/we shall produce to the Controller of Work Passes any person whose Work Pass has been cancelled or whose
Visit Pass/Special Pass has expired or who is required to report to the Controller at such times as I/we may be
required to do so;
v. That I/we shall employ them in accordance with the Work Pass applicable to them;
vi. That I/we shall take reasonable steps to ensure that they comply with the Work Pass Conditions applicable to them,
and such steps shall include (a) reporting to the Controller of Work Passes if I/we know they are not complying and
(b) informing them of the Work Pass conditions applicable to them; and
vii. That upon completion or termination of employment or resignation from employment of any of them, or the
cancellation or revocation of their Work Passes, I/we shall inform the Controller of Work Passes in writing within
seven days of such completion or termination of employment or resignation from employment and, subject to
giving them reasonable notice, I/we shall immediately or within such period that may be specified by the Controller
of Work Passes repatriate them.
And regulation 12 of the Employment of Foreign Manpower (Work Passes) Regulations 2012 provides that the Controller
of Work Passes may require a bond to ensure compliance of the above conditions.
SECURITY DEPOSIT
I/We hereby deposit the sum of Singapore dollars ______________________________ (S$____________) as security in respect
of the performance of the above conditions.
NOW THE OBLIGATION shall be void and the cash deposit shall be returned to me/us if I/we at all times perform and
observe the above conditions.
But should I/we breach any of the above conditions in respect of any of the said persons, then the Obligation shall be in
full force and effect and the amount in respect of that person as indicated in the Schedule shall be forfeited partially or
in whole by the Government of the Republic of Singapore. A partial forfeiture shall not extinguish the Government of
the Republic of Singapore’s right to forfeit the remainder for the same breach or a different breach.
Signed, sealed and delivered by: In the presence of:
NRIC/Passport No., Name, Designation & Signature Name & Address of Witness Signature
for and on behalf of

Name of Company Seal
(to be filled up if non-domestic foreign workers are employed)
The Schedule**
S/N Name of Worker Work Permit No. Date of Application Amount
**For more workers, please use the above format for submission of the Schedule (on a separate A4 size paper) together
with the Security Bond Form.
Source: Ministry of Manpower, Singapore
Appendix 7B
LETTER OF GUARANTEE
The Controller of Immigration, Singapore Date: __________________________
Letter of Guarantee No: __________________________________________ for ____________________________________________
Whereas ________________________________________________________________________________________________________
of (or whose registered office is situated at) _______________________________________________________________________
(hereinafter called “the Employer”) by a Bond (hereinafter called “the Security Bond”) dated ____________________ made
under Regulation 21 of Immigration Regulations, undertake to ensure that the Visit Pass holder whose particulars appear
in the schedule to the Security Bond shall comply with all the conditions on which the Visit Pass was granted and which
are set forth in the Security Bond and to observe further conditions imposed on himself in the Security Bond.
And whereas, the Employer is required to deposit a sum of S$5,000 to you as security under the Security Bond.
And whereas, at our request, you have agreed to accept this guarantee in lieu of the said sum of S$5,000 in cash, upon
the terms and conditions hereinafter set forth.
1. Now we, ABC Insurance Company (Singapore) Limited having our registered office at 21 Any Street, ABC Centre,
Singapore 654321, in consideration of your having agreed, at our request, not to insist on cash deposit from the
Employer as security under the Security Bond, hereby guarantee and undertake as principal debtors to pay to
you at any time forthwith, or demand any sum or sums not exceeding in total the said sum of S$5,000.
2. On receiving from us any sums under Clause 1 above, you will be entitled to hold and use them as if they were
the security deposit paid to you under the Security Bond.
3. We shall not be discharged or released from this guarantee by an alteration in the Employer obligations and
liabilities under the Security Bond without our consent or by any forbearance shown towards him there under.
4. All requests for payment under Clause 1 above shall be in writing and shall be made to us on or before
_____________________________________________________.
Signed By: _________________________________ In the presence of: _________________________________
Name: ___________________________________ Name: _______________________________________________
Designation: ______________________________ Designation: ______________________________________
Appendix 7C
LETTER OF COUNTER INDEMNITY BY EMPLOYER
IMPORTANT NOTICE: The Proposer (Employer) is hereby notified that by virtue of signing this Letter of Indemnity, it is
hereby understood and agreed that a copy of it, either by way of fax or otherwise, shall be deemed binding and legally
enforceable in a court of law and shall have the same legal effects as that of the original.
To: ABC Insurance Company (Singapore) Limited

Dear Sirs
COUNTER INDEMNITY FOR LETTER OF GUARANTEE NO:_________________________________________________
In consideration of ABC Insurance Company (Singapore) Limited (“the Insurer”) agreeing at my/our request to issue a
Letter of Guarantee (“the Guarantee”) in favour of the Controller of Immigration of Singapore (“the Controller”)
guaranteeing the payment on demand of any sum or sums not exceeding in total Singapore Dollars Five Thousand
(S$5,000) in lieu of the cash deposit of Singapore Dollars Five Thousand (S$5,000) that the Employer would otherwise
have to provide as security under the Security Bond executed by the Employer in favour of the Controller, I/we hereby
jointly and severally irrevocably and unconditionally agree and undertake for myself/ourselves and my/our heirs
executors administrators assigns and successors that:-
1. As a continuing obligation I/we shall indemnify and keep indemnified the Insurer from and against all claims,
demands, payment, actions, suits, proceedings, losses, expenses including legal costs on an indemnity basis and
all other liabilities of whatsoever nature or description which may be made or taken against or incurred by the
Insurer in relation to or rising out of the Guarantee and/or this Counter-Indemnity.
2. Where any request is made upon the Insurer by the Controller for payment of any sum of money pursuant to the
Guarantee, (“such request”) the Insurer shall at its absolute discretion be at liberty to contest or compromise or
immediately pay upon such request and such request shall be sufficient authority to the Insurer for making any
payment thereon without requiring or obtaining any evidence or proof that the amount so claimed or requested is
due and payable to the Controller and without any notice or reference to or further authority from me/us
notwithstanding that I/we may dispute the validity of any such claim or request.
3. I/We shall not at any time question or challenge the validity legality or otherwise of any payment made by the Insurer
to the Controller pursuant to such request or deny any liability under this Counter-Indemnity on the ground that
such payment or any part thereof made by the Insurer was not due or payable under the Guarantee or on any other
ground whatsoever.
4. I/We shall not be discharged or released from this Indemnity by any compromise, variation or arrangement made
between the controller and the Insurer in relation to the obligations undertaken by the Insurer under the Guarantee
or by any forbearance whether as to payment, time, performance or otherwise given by the Controller to the Insurer.
5. My/Our liability hereunder is irrevocable and shall remain in full force and effect until the Insurer’s liability under
the Guarantee is fully discharged to the Insurer’s satisfaction.
6. This Indemnity shall be governed by and construed in accordance with the laws of Singapore.
IN WITNESS WHEREOF, I/We have hereto subscribed my/our name(s) this day of year 20_________.
______________________________ _____________________________
Signature of Witness Signature of Proposer
Full Name:
NRIC No:
Address:
Appendix 7D
Foreign Domestic Worker Insurance Policy
Your Policy
This is your domestic helper insurance policy and it contains details of benefits, conditions and exclusions relating to
you and the domestic helper you employ. The policy will form the basis on which all claims will be settled. It is only valid
if you have paid the appropriate premium in full and we have issued you with a schedule.
Any statement, information or declaration you have given on behalf of your domestic helper, including any declaration
made over the phone, by fax, email or the internet at the time of application, will form the basis of the contract.
The schedule and any further endorsements are all part of the policy.
Please keep this document in case you need to refer to it.
Who is eligible?
This policy is only available to you if you:

˗ are living in Singapore;
˗ employ a domestic helper and she will be holding a valid work permit issued by Singapore's Ministry of Manpower
(MOM); and
˗ have fully paid your premium.
Things to remember
˗ You must reveal all facts you know or ought to know which may affect the insurance cover being applied for.
Otherwise, your policy may not be valid.
˗ We do not pay claims arising from pre-existing medical conditions during your domestic helper's first year of stay in
Singapore.
Definitions
Accident or accidental means a sudden, unforeseen and unexpected event that result in death or permanent disability of
your domestic helper which happens during the period of insurance and which must be the only cause of injury.
Act of terrorism means any act or threat of force or violence or a combination of both by any person, groups or
organisation acting alone or in connection with any person, groups or organisation(s) or government committed for
political, religious, ideological or similar purposes with the intention to influence any government and/or to put the public
in fear. Robberies or other criminal acts mainly committed for personal gain and acts arising mainly as a result of personal
relationships will not be considered as an act of terrorism.
Act of terrorism also includes any act which is confirmed by the relevant government as an act of terrorism. Using nuclear,
chemical or biological substances or weapons as a means of force or violence will also be considered an act of terrorism.
Aggravated damages means extra damages which are awarded to compensate a person making a claim because they
have suffered hurt feelings or loss of dignity as the result of the way in which the person responsible for the claim
behaved.
Basic limit means the annual minimum coverage of $60,000 under section 7 - Hospital and surgical expenses that you as
an employer is required to buy and maintain for your domestic helper as prescribed by the Singapore Ministry of
Manpower at the start of your policy, where any claims amounts above the first $15,000 are subject to a co-payment
unless Section 11- Waiver of co-payment applies.
Change of hospital and surgical expenses benefit limit means the increase or decrease of the hospital and surgical benefit
limit under your policy. The increased or decreased hospital and surgical benefit limit shall not be lower than the basic
limit.
Chinese medicine practitioner means a legally licensed herbalist, acupuncturist or bone-setter who is registered and can
practise within the scope of their licence under the laws of the country. This cannot be you, your family member, partner,
business partner, employer, employee or agent.
Chiropractor means a legally licensed practitioner in chiropractic medicine who is registered and can practise within the
scope of their licence under the laws of the country. This cannot be you, your family member, partner, business partner,
employer, employee or agent.
Co-payment means the percentage of the claim amount that you will need to pay as shown in the schedule for a claim
under section 7 - Hospital and surgical expenses.
COVID-19 cover means the payment of inpatient medical expenses as provided under section 7(j) specifically for the
treatment of COVID-19 which your domestic helper is diagnosed with and hospitalised for.
Dental treatment means treatment needed to restore sound and natural teeth and which is necessary because of an
accident.
Domestic helper means the insured person named in the policy and who you employ as a foreign domestic worker and
who holds a valid work permit issued by Singapore’s Ministry of Manpower.
Emergency means an unexpected event which affects the domestic helper's health and she needs immediate medical
treatment to prevent death or serious immediate or long-term health problems. This must be confirmed by a medical
practitioner.
Exemplary damages means extra damages awarded to make an example of the person who was responsible for the claim
so that it will put off other people from doing the same.
Excess means the amount which you must pay when a claim is made.
Family member means your husband or wife, children, parents, brothers and sisters, parents-in-law, brothers-in-law,
sisters-in-law, grandparents, grandparents-in-law, daughters-in-law, sons-in-law or grandchildren.
General practitioner means any person registered and legally qualified by a medical degree in western medicine and
authorised by the medical licensing authority of that country to provide general medical care. This should cover a variety
of medical problems in patients of all ages. This often includes referring patients to an appropriate specialist. This person
should not be you, your family member, partner, business partner, employer, employee or agent.
Home country means any country of which your domestic helper is a citizen.
Hospital means an establishment which is registered under the national laws and regulations which apply to care for and
treat sick and injured people as bed-paying patients and which:
˗ has organised facilities for diagnosis, treatment and major surgery; - provides nursing services by registered nurses
24 hours a day;
˗ is under the supervision of one or more medical practitioners; and
˗ is not mainly a clinic, a secure place to care for alcoholics or drug addicts, a nursing or rest or convalescent home or
a home for the elderly or similar establishment.
Injury means damage or harm caused to the body during the period of insurance and which is caused only by an accident.
Losing means permanent and total loss of use or loss by having part of the body (as listed in the scale of compensation
table) cut or torn off, as certified by our medical practitioner.
Losing hearing means permanent and total loss of hearing, as confirmed by our medical practitioner.
Losing a limb means permanent and total loss of use or by having a hand cut or torn off at or above the wrist or a foot at
or above the ankle, as confirmed by our medical practitioner.
Losing sight means permanent and total loss of use of an eye which means your domestic helper is absolutely blind in
that eye and which is beyond cure either by surgical or other treatment. This must be confirmed by our medical
practitioner.
Losing speech means permanent and total loss of the ability to speak and which is beyond cure either by surgical or other
treatment, as confirmed by our medical practitioner.
Medical practitioner means any person registered and legally qualified as a doctor by a medical degree in western
medicine and authorised by the medical licensing authority of that country to provide medical or surgical services within
the scope of their licence and training. The medical practitioner cannot be you, your family member, partner, business
partner, employer, employee or agent.
Overseas means any country outside Singapore.
Period of insurance means the period of cover as shown in the schedule.
Permanent disability or permanently disabled means suffering from one of the items of disability listed in the scale of
compensation table in this policy, and which was caused only by an accident, as long as:
˗ the disability lasts for 12 months in a row from the date of the accident; and
˗ our medical practitioner confirms that it is not going to improve after 12 months.
Permanent total disability means disability caused only by an accident that:

˗ stops your domestic helper from working in any job for a salary or wage or stops her from carrying out any business
whatsoever;
˗ lasts for 12 months in a row from the date of the accident; and
˗ our medical practitioner confirms is not going to improve after 12 months.
Policy means this document, including any information provided or declaration made by you for and on behalf of your
domestic helper, the schedule and any endorsement we have issued under this policy.
Policyholder means the person named as the employer in the domestic helper’s work permit and as named in the
schedule.
Pre-existing medical condition means any injury or sickness, including any complications which may arise:
(a) which you or your domestic helper knew or should reasonably know about, including symptoms which existed,
before the start of the policy or before you purchased the top-up of the hospital and surgical expenses benefit limit,
whichever is applicable;
(b) which your domestic helper has received diagnosis, consultation, medical treatment or prescribed drugs for within
the 12 months, before the start of the policy or before you purchased the top-up of the hospital and surgical
expenses benefit limit, whichever is applicable; or
(c) for which your domestic helper has been asked to get medical treatment or medical advice by a medical practitioner
within 12 months, before the start of the policy or before you purchased the top-up of the hospital and surgical
expenses benefit limit, whichever is applicable.
Prohibited person means a person or entity who is, or who is related to a person or entity:
(a) subject to laws, regulations or sanctions administered by any inter-government, government, regulatory or law
enforcement authorities of any country, which will prohibit or restrict us from providing insurance or carrying out
any transaction under this policy, or
(b) who is involved in any terrorist or illegal activities or placed on sanctions listing or issued with freezing order.
Punitive damages means extra damages which are awarded to punish the person responsible for the claim because of
their behaviour.
Related includes relationships such as parent, stepparent, child, step-child, adopted child, spouse, sibling, step-sibling,
adopted sibling, parent-in-law, child-in-law, sibling-in-law, cousin, uncle, aunt, grandparents, niece, nephew, grandchild,
employee, employer, associate, parent company, subsidiary and shareholder.
Relevant person includes persons and entities such as the policyholder, insured person, trustee, settlor, beneficiary,
assignee, nominee, payee, mortgagee, financier of the application/policy, and in relation to an entity, its director, partner,
manager, person having executive authority, authorised signatory, shareholder or beneficial owner.
Schedule means the document which proves that you have the insurance cover. It will list, among other things, details of
you and your domestic helper, the benefits, the sum insured and the period of insurance covered under this policy.
Serious injury or serious sickness means long-term suffering of an injury or sickness which means your domestic helper
will be unable to carry out her work as a foreign domestic worker during the period of insurance.
Sickness means worsening physical health not caused by an accident, for which your domestic helper needs the care or
treatment of a medical practitioner during the period of insurance.
Specialist means a medical practitioner who has the necessary qualifications and expertise to practise as a recognised
specialist of diagnostic techniques, advise medicine like psychiatry, neurology, paediatrics, endocrinology, obstetrics,
gynaecology, orthopaedic, optometry and dermatology.
Restructured hospital means public, government hospitals in Singapore that are wholly owned by the government.
We, our, us, and ABC means ABC Insurance Limited.
You, your and yours means the policyholder named in the schedule.
What your policy covers
This policy will protect you or your domestic helper financially when a death, injury, sickness, legal liability or other
specified event happens during the period of insurance and while your domestic helper is performing the customary
duty of a domestic worker as per MOM’s work permit guidelines.
The amount we will pay depends on the conditions and maximum benefit limits and sub-limits as set out in the schedule.
Section 1 - Accidental death and permanent disability
(a) If your domestic helper is involved in an accident which causes her an injury and this alone leads to her death or
permanent disability within 12 months from the date of the accident, the accidental death and permanent disability
cover will apply.
(b) We will pay your domestic helper, her estate or her legal personal representative up to the maximum amount
shown in section 1 of the schedule using the scale of compensation table as shown below.
(c) We will reduce any compensation due for accidental death by any compensation which we have already paid your
domestic helper under the scale of compensation within the same policy period for any one accident.
(d) We will not pay your domestic helper extra compensation for any specific item which is part of a greater item due
under this policy. For example, we will pay your domestic helper for losing her upper limb but we will not also pay
her for losing her finger or thumb.
(e) We will cover your domestic helper; starting from the date your domestic helper arrives in Singapore directly for
your employment or from the date her new work permit is effective for the purpose of her employment with you
when your domestic helper is transferred to your employment, to the date she leaves Singapore upon completion
of her employment with you, or in the case where your domestic helper is changing to a new employer to the date
her new work permit is effective for purpose of her employment with her subsequent employer.
Scale of compensation
Item Description of disability Percentage of sum insured as shown under section 1
in the schedule
a Accidental death 100%
b Permanent total disability 100%
c Losing sight of both eyes 100%
d Losing two limbs 100%
e Losing sight of one eye, but still able to perceive 50%
light
f Losing one limb 50%
g Losing speech 50%
h Losing hearing in both ears 50%
i Losing four fingers and thumb of one hand 50%
j Losing four fingers of one hand 40%
k Losing hearing in one ear 20%
l Losing a thumb
- 2 phalanges 25%
- 1 phalanx 10%
m Losing one index finger
- 3 phalanges 15%
- 2 phalanges 10%
- 1 phalanx 5%
n Losing any one other finger
- 3 phalanges 10%
- 2 phalanges 7%
- 1 phalanx 3%
o Losing metacarpals
- first or second 3%
- third, fourth or fifth 2%
p Losing all toes of one foot 15%
q Losing a great toe
- 2 phalanges 5%
- 1 phalanx 3%
r Losing any one other toe 3%
If your domestic helper suffers a permanent disability which is not mentioned above, we will, after consulting our
medical practitioner, pay a percentage of the sum insured which is consistent with the scale mentioned above. We
will not pay any benefit for losing sense of taste or smell.
The total of all percentages of the sum insured due under this section will not be more than 100% during any one
policy period.
What we do not pay under section 1
Besides the general exclusions listed in part 3 of the general conditions, we will also not pay under Section 1 if:
(1) the permanent disability or death is caused directly or indirectly by sickness. For example, we will not pay a claim
if your domestic helper dies from a heart attack or a stroke.
(2) the permanent disability or death is caused directly or indirectly by any physical disability which existed before the
start of the policy.
Section 2 - Outpatient medical expenses due to injury
(a) If your domestic helper suffers an injury and needs outpatient medical treatment, we will pay for the necessary and
reasonable costs of outpatient medical expenses recommended or asked for by a medical practitioner for your
domestic helper to be treated. This applies up to 12 months from the date of the accident for each accident or up
to the limit shown in the schedule, whichever comes first.
(b) We will also pay for the reasonable and necessary expenses for treatment by a Chinese medicine practitioner or
chiropractor within 12 months from the date of the accident, up to $100 for each accident.
(c) The most we will pay is shown in the schedule.
(d) So that we can pay the claim, you must provide a written report of your domestic helper's medical condition from
the medical practitioner together with original medical bills and receipts. You will have to pay any costs involved in
providing this report.
(1) your domestic helper travels overseas for the purpose of getting medical treatment.
(2) the claim is made as a result of you or your family member’s wilful, criminal or negligent act.
Section 3 - Domestic helper’s personal liability
We will pay the benefits shown below if, during the period of insurance, your domestic helper is legally responsible for
accidentally:
(a) injuring someone; or
(b) damaging or causing loss to someone else's property while performing her duties as a foreign domestic helper in
Singapore.
We will pay:
(a) the legal costs and expenses for representing or defending your domestic helper; or
(b) the amount awarded against your domestic helper by the court in Singapore, up to the maximum amount as shown
in the relevant section of the schedule.
Besides the general exclusions listed in part 3 of the general conditions, we will also not pay under section 3 for the
following, or for loss or liability directly or indirectly caused by the following.
(1) Any claim due to you or your domestic helper's deliberate, malicious, unlawful or criminal act or failure to act.
(2) Any claim for loss of or damage to property which you or a family member own, are in charge of or under your or
their control.
(3) Expenses for legal services which we have not agreed to beforehand.
(4) Any legal responsibility that comes from an injury or loss or damage to property that you or your family member
owns, cares for or controls.
(5) Any legal responsibility, injury, loss or damage which applies to your family member or member of your household.
(6) Any legal responsibility that results from you owning or your domestic helper using weaponry, vehicles, aircraft or
watercraft.
(7) Any legal responsibility that results from the animals you own or which are under your care or custody.
(8) Any court judgment which is not in the first instance delivered by a court within Singapore.
(9) Any court judgment which your domestic helper is appealing or is being appealed on her behalf.
(10) Any legal responsibility that results from your domestic helper passing on disease to others.
(11) Any legal responsibility that results from your domestic helper's abuse of controlled drugs.
(12) Any legal responsibility that results when your domestic helper is under the influence of alcohol or drugs or
solvents.
(13) Any legal responsibility that is caused by your domestic helper's involvement with polluting or harming the
environment.
(14) Any claim for punitive, aggravated or exemplary damages.
(15) Your liability which applies under an agreement which would not apply if the agreement did not exist.
Section 4 - Special grant due to death
If your domestic helper dies (including committing suicide), we will pay a special grant to her estate or legal
representative, up to the limit shown in the relevant section of the schedule. So that we can pay the claim, you must
provide your domestic helper's death certificate. You will have to pay any costs for doing so.
Section 5 - Expenses if you have to stop employing your domestic helper
We will pay for the expenses charged by the employment agency for the termination of your domestic helper when you
stop employing your domestic helper because she is suffering from a serious sickness or serious injury. So that we can
pay the claim, you must provide proper confirmation from a medical practitioner. You will have to pay the costs involved
in doing this.
Section 6 - Wages compensation
(a) We will pay you your domestic helper's wages (including government levy on foreign domestic workers) for the
period when she is in hospital (including hospitalisation leave granted by a medical practitioner) if you have not
had domestic services carried out because your domestic helper is in hospital.
(b) So that we can pay this benefit, you must be eligible to claim under section 7 - Hospital and surgical expenses.
(c) We will pay up to the maximum amount as shown in the relevant section of the schedule, up to a period of 30 days
for each accident or sickness.
Section 7 - Hospital and surgical expenses
(a) If your domestic helper suffers an injury or sickness and needs to stay in hospital while in Singapore or needs to
go into hospital as an emergency while she is overseas, we will pay for the necessary and reasonable hospital and
surgical expenses (including day surgery) which she incurs during the period of insurance, recommended or asked
for by a medical practitioner for your domestic helper to be treated in a hospital up to the limit shown in the
schedule. We will deduct the applicable co-payment before a payment under this section is made by us.
(b) The hospital and surgical expenses will include the following.
(1) Room and board charges (including in an intensive care unit (ICU)).
(2) The necessary and reasonable costs of medical treatment by a specialist, only if specialist medical treatment
is considered necessary and has been referred by a general practitioner (apart from dental treatment).
(3) Other hospital services, which include:
˗ using an operating room;
˗ drugs and medicine prescribed by a medical practitioner while your domestic helper is in the hospital as
an inpatient;
˗ dressings, ordinary splints and plaster casts;
˗ laboratory examinations which are medically necessary;
˗ electrocardiograms:
˗ basal metabolism tests;
˗ physical therapy;
˗ anaesthesia and oxygen;
˗ X-ray examinations;
˗ intravenous drugs and liquids; and
˗ giving blood plasma, but not the cost of the blood plasma itself.
˗ any other costs certified as necessary by a registered medical practitioner.
(4) Fees for surgery or day surgery performed by a medical practitioner.
(5) Pre-hospitalisation treatment within 60 days before being admitted as an inpatient or day surgery which is
recommended by a medical practitioner to treat an injury or a sickness, only if we pay the hospitalisation
claim under the policy. We will only pay for pre-hospitalisation treatment occurring during the period of
insurance.
(6) Post-hospitalisation treatment within 60 days after your domestic helper leaves hospital for follow-ups as an
outpatient for the same injury or sickness which your domestic helper was in hospital for. We will only pay
for post-hospitalisation treatment occurring during the period of insurance.
(c) So that we can pay the claim, you must provide a written report of your domestic helper's medical condition from
(d) Your domestic helper may stay in a restructured hospital in a standard class-C ward, or class-B2 ward if the class-
C ward is not available. If your domestic helper is admitted to a ward better than class C or B2, we will apply the
relevant 'pro ration factor' table shown below in section 7(h) to the hospital and surgical expenses being claimed.
This means that we will reduce the benefits we will pay by multiplying the relevant ‘pro ration factor’ against the
expenses being claimed.
(e) We may provide a letter of guarantee if your domestic helper is hospitalised in a restructured hospital in Singapore.
If we provide a hospital guarantee to the restructured hospital, we will pay the hospital and surgical expenses
directly to the restructured hospital; up to the limit stated in the schedule and subject to the policy terms and
conditions. You will only be responsible for the amount that is not covered by the policy.
(f) For day surgery performed in a Singapore private hospital or in any hospital outside Singapore, we will also apply
the relevant 'pro ration factor' table shown below in section 7(h) to the day surgery fees being claimed. This means
that we will reduce the benefits we will pay by multiplying the relevant ‘pro ration factor’ against the expenses
being claimed.
(g) For emergency hospitalisation outside Singapore, we will apply the relevant ‘pro ration factor’ table shown below
in section 7(h) to the hospital and surgical expenses being claimed. This means we will reduce the benefits we will
pay by multiplying the relevant ‘pro ration factor’ against the expenses being claimed.
(h) ‘Pro ration factor’ table

Percentage (%)
Type of Type of
For day
hospital Ward For inpatient surgery
Singapore All 40% 40%

private
hospital
Any hospital All 50% 50%
outside
Singapore
Restructured A1 50% Not applicable
hospital in A2 60%
Singapore B1 70%
(i) If there is a change of hospital and surgical expenses benefit limit made by you and your domestic helper had been
working as a foreign domestic worker in Singapore for more than 12 months in a row:
(1) We will pay under this section 7 for hospital and surgical expenses which your domestic helper incurs during
the period of insurance up to the limit shown in the schedule; or
(2) If the hospital and surgical expenses which your domestic helper incurs during the period of insurance arises
from a pre-existing medical condition, the following applies:
i. For pre-existing medical condition that first occurred before the start of your domestic helper’s first
domestic helper insurance policy issued by us, we will pay under this section 7 for hospital and surgical
expenses; up to the basic limit.
Example 1:
1 May 2023 Diagnosed with asthma.
1 Jul 2023 First domestic helper insurance issued by us for your domestic helper.
Hospital and surgical expenses benefit: Basic limit.

1 Jul 2025 Second domestic helper insurance issued by us for your domestic
helper with top-up of $40,000 per year for Hospital and surgical
expenses benefit.
Hospital and surgical expenses benefit: Basic limit + Top-up hospital

and surgical expenses benefit by $40,000 = $100,000 per year.
1 Dec 2025 Incurred hospital and surgical expenses due to asthma.
Claim payout is up to Basic limit only.
ii. For pre-existing medical condition that first occurred after the start of your domestic helper’s first
domestic helper insurance policy issued by us, we will pay under this section 7 for hospital and surgical
expenses; up to the hospital and surgical benefit limit applicable, at the time the pre-existing medical
condition first occurred or at the time she incurs the hospital and surgical expenses; whichever is lower
but in no event below the basic limit.
Example 1:

1 Sep 2023 Diagnosed with asthma.
1 Jul 2025 Second domestic helper insurance issued by us for your domestic
expenses benefit.
Hospital and surgical expenses benefit: Basic limit + Top-up hospital

and surgical expenses benefit by $40,000 = $100,000 per year.
Claim payout is up to Basic limit only.
Example 2:

1 Sep 2023 Second domestic helper insurance issued by us for your domestic
expenses benefit.
Hospital and surgical expenses benefit: Basic limit + Top-up hospital and
surgical expenses benefit by $40,000 = $100,000 per year.
1 Jul 2025 Diagnosed with asthma.
Claim payout is up to $100,000/year.
(j) Coverage for COVID-19 at no additional premium while Singapore’s Disease Outbreak Response System Condition
(DORSCON) status is green or baseline state: If your domestic helper is diagnosed with COVID-19, and needs to
stay in hospital while in Singapore or needs to go into hospital as an emergency while she is overseas, we will pay
the hospital and surgical expenses listed in 7(b)1 to 7(b)4 incurred for the COVID-19 treatment, up to the per incident
limit shown in the schedule for COVID-19 cover after applying the relevant ‘pro ration factor’ table shown in section
7(h).
Besides the general exclusions listed in part 3 of the general conditions, we will also not pay under section 7 for the
following.
(1) Claims for nursing care that is not provided by the hospital or any nursing care that is provided outside Singapore.
(2) Claims for dental treatment as a result of tooth, gum or oral disease or from normal wearing of the teeth.
(3) Claims for routine physical examinations, health check-ups or tests which do not form part of the treatment or
diagnosis of the actual injury or sickness.
(4) Any treatment which is not considered medically necessary by the medical practitioner.
(5) Claims relating to a pre-existing medical condition unless, your domestic helper had been working as a foreign
domestic worker in Singapore for more than 12 months in a row or where it is expressly provided under section
7(i)(2) - Hospital and surgical expenses, that we will pay.
(6) Claims for non-emergency treatment or hospitalisation outside Singapore.
(7) Claims due to insanity or self-inflicted injuries or conditions related to functional disorders of the mind.
(8) Claims for rest care or care in a sanatorium, drug addiction or alcoholism, diseases which need isolation or
quarantine under current laws, including any infectious diseases declared by the health authorities of Singapore or
in the country that your domestic helper has caught the disease from or by the World Health Organisation (WHO)
unless it is a claim for COVID-19 cover expressly provided under Section 7(j), that we will pay. This does not apply
to influenza A flu virus (H1N1), hand, foot and mouth disease (HFMD) and severe acute respiratory syndrome
(SARS).
(9) Claims for congenital problems.
(10) Claims for treatment of an optional nature, for example, plastic surgery or cosmetic surgery which is not medically
necessary.
(11) Claims for non-medical personal services such as radio, telephone, television, newspapers and guests' meals and
any other items which are not medically necessary.
(12) Claims for special braces, appliances, equipment or other prosthetic devices including spectacles, walking or home
aids of any kind, dialysis machine, oxygen machine, hearing aids, wheelchairs, crutches, braces, splints and lenses
and any other medical-related equipment.
(13) Conditions arising from surgical, mechanical or chemical contraceptive methods of birth control or treatments
relating to infertility.
(14) your domestic helper travelling overseas for the purpose of getting medical treatment;
(15) Claims made as a result of you or your family member’s wilful, criminal or negligent act.
Section 8 - Sending your domestic helper home
(a) If your domestic helper suffers permanent disability, serious sickness or serious injury which prevents her from
carrying out her duties as a foreign domestic worker, we will pay for the transport expenses (air, sea or land travel)
needed to send your domestic helper back to her home country.
(b) If your domestic helper dies (including committing suicide), we will pay for the necessary expenses to bury or
cremate the body and return the body or ashes to the home country.
(c) You can only claim under either Section 8a or 8b for the same event but not both.
(d) So that we can pay the claim, you must provide a written report of your domestic helper's medical condition from
Additional Services
Section 9 - Security bond to Ministry of Manpower (if applicable)
We will provide a letter of guarantee on your behalf to replace the sum of five thousand Singapore dollars which you are
required to deposit with the Ministry of Manpower as a form of security for the due and satisfactory observance and
performance of all conditions under the security bond in connection with the employment of your domestic helper for
the period of insurance as stated in this policy. We will undertake to be the principal debtor to pay the Ministry of
Manpower on demand the sum of five thousand Singapore dollars.
Special Conditions for section 9
In consideration of us providing the services described in sections 9, you agree to abide by the following conditions.
(1) You agree to observe and comply with all the conditions under the Ministry of Manpower’s security bond in
connection with the employment of your domestic helper during the period of insurance as stated in this policy.
(2) You will, at all times, compensate us against all claims, payments, demands, action suits, proceedings, losses,
liabilities costs and expenses which may be taken or made against us or which we may suffer under the issuance
of the letter of guarantee.
(3) Within 14 days of any payment we have made under the letter of guarantee to MOM, you will repay us any payments
plus interests at a rate of 8% a year from the date we make the payment until the date we receive full payment from
you.
(4) You will pay us all costs, charges and expenses including legal costs we may suffer in enforcing or trying to get
payment of all or any part of the money agreed to be paid. This includes any legal proceedings we may begin against
you.
(5) We may settle out of court, all claims, payments, demands, action suits, proceedings, losses and liabilities which
may be taken or made against you under the letter of guarantee.
(6) All receipts, vouchers, statement of account or other evidence of payments we have made or of all liabilities or
obligations we have because of the letter of guarantee will be evidence against you and your estate of the amount
you owe us.
(7) This counter indemnity will continue indefinitely and we may decide to give you extra time to pay or accept other
offers from you or make other arrangements with you, or extend the validity of the letter of guarantee without it
affecting your legal responsibility under this counter indemnity.
(8) This counter indemnity will stay in force (even when the security bond ends) until we have no further liability under
the security bond.
(9) Any demand we make can be given in writing to you by our servant, agent or employee or by our solicitors either
serving it personally on you or sending it by post to you at your last known address.
Optional Benefits for Additional Services

Section 10 - MOM security bond protector (if applicable)
Under this waiver of counter indemnity benefit, we will waive your liability to MOM as described in section 9 in the event
the Ministry of Manpower calls on your security bond; provided the conditions of the security bond were not broken as
a result of your negligence, deliberate, wilful or criminal act. You will need to pay the first $250 excess.
We will not pay under section 10 for the following, or for loss or liability directly or indirectly caused by the following.
(1) Any breach by you of the conditions of the security bond imposed by the Ministry of Manpower.
(2) Any loss, claim or payment which you are aware of prior to effective cover under this policy.
(3) Any loss, claim or payment incurred by you after 7 days of the cancellation of the policy.
(4) The excess amount of $250.
(5) Any loss, claim or payment arising out of any circumstances caused directly or indirectly by you and/or your family
members’ wilful, criminal or negligent act.
Section 11 - Waiver of co-payment (if applicable)
Under this waiver of co-payment benefit, we will waive the applicable co-payment that you have to pay under section 7-
Hospital and surgical expenses. The amount that we will pay for this benefit will depend on the claim amount that we will
pay for such claim under section 7- Hospital and surgical expenses.
What you need to be aware of
1. Cover
The policy covers your domestic helper when she is living in Singapore or when she is travelling outside Singapore with
you or when she is on home leave during the period of insurance.
However, we shall not cover you or your domestic helper or pay any benefits to you, your domestic helper or her legal
representative under this policy if by doing so, we would be in violation of any written laws in Singapore or otherwise,
or would expose us to any economic sanction.
2. Changing your plan
You may choose to upgrade your plan at any time during your period of insurance. We will tell you what the additional
premium for the change in plan is. Your upgraded plan will not cover any situation that you were aware of (or could
reasonably be expected to know) before the upgrade, that would give rise to a claim.
3. General exclusions
This policy does not cover claims for loss or liability directly or indirectly caused by or arising from:
(a) your domestic helper deliberately injuring herself, committing suicide (except under sections 4 and 8) or attempting
suicide while sane or insane, her criminal act, provoked assault, deliberate acts or putting herself in danger (unless
she is trying to save human life);
(b) the effect or influence of alcohol or drugs not prescribed by a registered medical practitioner;
(c) pregnancy, childbirth, abortion, miscarriage, sterilization, menopause or all complications arising from these
conditions;
(d) mental problems, infirmity or insanity;
(e) sexually transmitted infections, human immunodeficiency virus (HIV) or any HIV-related illness including acquired
immunity deficiency syndrome (AIDS), AIDS Related Complex (ARC) or other communicable disease; however
caused (except if it is a claim for COVID-19 cover expressly provided under Section 7(j));
(f) pre-existing medical conditions or physical problems happening before the start of the policy unless, your domestic
helper had been working in Singapore as a foreign domestic helper for more than 12 months in a row or where it
is expressly provided under section 7(i)(2) - Hospital and surgical expenses, that we will pay;
(g) your domestic helper taking part in any hazardous activities or sports including, but not limited to, any winter sports
(such as skiing or snowboarding), any underwater activities involving underwater breathing apparatus, aerial
activities (such as taking a helicopter tour, paragliding), motor sports (such as motorcycle racing or motor car
racing);
(h) the consequences whether direct or indirect of war, warlike operations (whether war is declared or not), civil war,
mutiny, rebellion, acts of terrorism, revolution or any similar event;
(i) radioactivity or damage from any nuclear fuel, material or waste;
(j) strike, riot or civil commotion (unless unforeseeable);
If we say that, for any of the exclusions listed above, any loss, damage, cost or expense is not covered by this policy, you
will have to prove otherwise. If any part of any exclusion is not valid or cannot be enforced, the other exclusions will still
apply.
4. Payment before cover warranty
We (or our intermediary) must receive the full premium due on or before the start date of the insurance. If we or the
intermediary do not receive the premium in full on or before the start date of the insurance, the policy will not be valid
and we will not pay any benefits.
5. Paying benefits
We will pay the benefits listed in this policy only if you have:
(a) met general condition 4; and
(b) given us satisfactory proof of the claim
We will pay all benefits under this policy to you unless:
(a) your domestic helper dies or suffers permanent disability as described in section 1 or section 4 (if applicable), in
which case we will pay the benefits to her, her estate or her legal personal representative whichever is applicable;
or
(b) you or your domestic helper suffer a claim for personal liability as described in section 3, in which case we will pay
the person you or your domestic helper is legally responsible to.
When we pay the benefits as described above, we will have no further legal responsibility to you or your domestic helper
under this policy for the claim.
6. Misrepresentation
We will treat this policy as void if you or your domestic helper misrepresent any fact or circumstance which affects your
domestic helper’s health condition, country of residence or pursuits or any information which may affect our decision to
accept your application.
7. Fraud
You and your domestic helper must not act in a fraudulent way. We may take the action shown below if you or your
domestic helper, or anyone acting for you or your domestic helper:
(a) make a claim under the policy knowing the claim to be false or fraudulently exaggerated in any way;
(b) make a statement to support a claim knowing the statement to be false in any way;
(c) send us a document to support a claim knowing the document to be forged or false in any way; or
(d) make a claim for any loss or damage caused by your or your domestic helper's deliberate act or with your or your
domestic helper's knowledge.
We may do the following.

(a) We will not pay the claim.
(b) We will not pay any other claim which has been or will be made under the policy.
(c) We may declare the policy invalid.
(d) We can recover from you or your domestic helper the amount of any claim we have already paid under the policy.
(e) We will not refund your premium.
(f) We may not allow you to buy other policies from us.
(g) We may report you to the police.
8. Reasonable care
Your domestic helper and you must take all reasonable precautions to avoid injury, sickness, loss or damage and take all
practical steps to reduce, as far as possible, the chances of any claims.
9. Other insurance
If at the time of any incident which results in a claim under this policy you have other insurance covering the same loss,
damage, expense or liability, we will not pay more than our share. (This does not apply to section 1 – Accidental death
and permanent disability and section 4 – Special grant due to accidental death).
10. Taking over your rights
We can take over any rights to defend or settle any claim and to take proceedings in your domestic helper's or your name
to enforce your domestic helper's, your or our rights against any other person.
11. Claims conditions
(a) You, your domestic helper, her legal personal representatives or any person appointed by the Comptroller of Work
Passes of the Ministry of Manpower (if applicable) must tell us as soon as possible (and in any case within 30 days)
about any injury, sickness, incident, event, or discovery of any loss or damage which may give rise to a claim under
this policy.
(b) If you, your domestic helper, her legal personal representatives or any person appointed by the Comptroller of Work
Passes of the Ministry of Manpower (if applicable) can recover all or part of the medical expenses from other
sources, we will only pay you, your domestic helper, her legal personal representatives or any person appointed
by the Comptroller of Work Passes of the Ministry of Manpower (if applicable) the amount that cannot be recovered.
(c) We pay all claims in Singapore dollars. If you or your domestic helper suffer a loss which is in a foreign currency,
we will convert the amount into Singapore dollars at the exchange rate which we will decide on the date of the loss.
12. What you need to provide when you send us your claim
You, your domestic helper, her legal personal representatives or any person appointed by the Comptroller of Work Passes
of the Ministry of Manpower (if applicable) must supply all information, reports, original invoices and receipts, proof of
ownership, evidence, medical certificates, documents (such as a translation of a foreign-language document into
English), confirmed by oath if necessary, that we may need before we assess the claim. We may refuse to refund any
expense which you, your domestic helper, her legal personal representatives or any person appointed by the Comptroller
of Work Passes of the Ministry of Manpower (if applicable) cannot provide original receipts or invoices for.
13. Cancellation and refund
We can cancel the policy by giving you seven days' notice to your last known address. We will consider that you have
received this cancellation notice on the same day if we deliver the notice by hand, fax or email. You may cancel this policy
by telling us you want to do so.
We will cancel your policy from the date we receive the discharge letter from the Ministry of Manpower unless benefit 9
does not apply to your domestic helper in which case we will cancel the policy from the date we receive your notice of
cancellation.
We will not refund your premium if:

• the cancellation takes place more than 365 days after the start date of the period of insurance shown in the schedule
for policy with period of insurance of at least 26 months;
• the cancellation takes place more than 180 days after the start date of the period of insurance shown in the schedule
for policy with period of insurance of less than 26 months; or
• there has been a claim made under the policy
When we cancel your policy, we will refund the premium for Basic, Standard and Enhanced plans based on the following,
less an administrative charge of $54.00 (after 8% GST) for year 2023 and $54.50 (after 9% GST) from year 2024.
(a) If the period of insurance is at least 26 months
Cancellation Percentage of
Refund
Cancellation within 60 days 80% of the policy premium

Cancellation within 61 days to 90 days 60% of the policy premium
(b) If the period of insurance is less than 26 months
Cancellation Percentage of
Refund
Cancellation within 60 days 80% of the policy premium

We provide an additional 2-month cover under your policy; as required by the Ministry of Manpower; at no additional
premium. When your domestic helper’s work permit expires, there is no refund of any premium from us.
We will refund all premiums to the policyholder as shown in the schedule.
14. Ending the insurance
We will end your policy immediately when we have made the full payment for any loss under sections 1, 4, 5 or 8.
15. Excluding third-party rights
A person or company who is not covered by this policy (except any person appointed by the Comptroller of Work Passes
of the Ministry of Manpower) has no right under the Contracts (Rights of Third Parties) Act 2001 to enforce this policy.
16. Currency and interest
All dollar amounts shown in the policy and schedule are shown in Singapore dollars (S$). We will not pay interest under
this policy.
17. Prohibited persons
If you or any relevant person is found to be a prohibited person:

• we are entitled not to accept your application; and
• if any policy is issued, we are entitled to end the policy, not pay any benefit or not allow any transaction to be carried
out under the policy. We will not refund any unutilised premium when the policy is ended.
Our decision in every respect of the above will be final.
You will need to inform us immediately if there is any change in any relevant person’s identity, status or identity
documents.
18. Governing law
Singapore law will apply to this policy.
19. Dealing with disputes
If you are not satisfied with our final decision on your claim, you may refer the case to the Financial Industry Disputes
Resolution Centre Ltd (FIDREC), an independent and impartial institution specializing in solving disputes between
financial institutions and consumers. Their website address is: www.fidrec.com.sg
If the dispute cannot be referred to or dealt with by FIDREC, the dispute must be referred to and decided using arbitration
in Singapore in line with the Arbitration Rules of the Singapore International Arbitration Centre which apply at that point
of time.
We will not be legally responsible under your policy unless you have first received an award under arbitration.
20. Feedback procedure
Making yourself heard

We are committed to providing you with an exceptional level of service and customer care.
We realise that things can go wrong and there may be times when you feel that we have not provided the service you
expected. When this happens, we want to hear about it so that we can try to put things right.
Please send your feedback to: www.ABC.com.sg/enquiry
Our promise to you
We will:
• acknowledge your complaint promptly;
• investigate quickly and thoroughly;
• keep you informed of our progress; and
• do everything possible to deal with your complaint.
Policy Owners' Protection Scheme

This policy is protected under the Policy Owners' Protection Scheme which is administered by the Singapore Deposit
Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For
more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where
applicable, please contact ABC or visit the GIA/LIA or SDIC web-sites (www.gia.org.sg or www.lia.org.sg or
www.sdic.org.sg).
Appendix 7E
Pre-Contract Disclosure for Foreign Domestic Worker Insurance Plan
This Domestic Helper Insurance provides coverage that comply with the Ministry of Manpower’s (MOM) Enhanced
Medical Insurance requirements:
Yes/No
Annual claim limit of at least $60,000, inclusive of a first-dollar cover of $15,000 Yes
For portion of the bill above $15,000, the employer must co-pay up to 25% (to the hospital) Yes
Exclusions are in line with MOM’s list of allowable exclusions15 No
Age-differentiated premiums are in 2 age bands15: Yes
(1) ≤ 50 years old
(2) > 50 years old
ABC will reimburse its portion of the hospital bill to hospitals directly upon No
admissibility of the medical claim.15
15
The latest date to comply with this MOM requirement is by 1 July 2025.
Appendix 7F
Foreign Domestic Worker Insurance Brochure
Be it your maid or confinement nanny, you can now ensure that her wellbeing is also being taken care of without it
being a financial burden, even as she continues to look after you and your family. With our Domestic Helper Insurance,
you can protect your helper with high coverage and enjoy preferential rates for medical consultations as well as health
screenings.
Why is it good for me?
(1) Up to $80,000 personal accident coverage¹ for your helper

(2) Preferential rates for medical consultations and health screenings through MediPass app²
(3) Local and emergency overseas hospitalisation³ coverage for your helper (including COVID-19⁴)
(4) Letter of Guarantee⁵ with direct payment to the hospital for your helper’s hospitalisation expenses
(5) Coverage for hospitalisation for pre-existing medical conditions⁶ if your helper is employed for more than 12
months in Singapore
Domestic helper insurance will help you meet the Ministry of Manpower (MOM) requirements, and offers additional
protection for both you and your domestic helper from unforeseen expenses should your helper fall ill or get injured.
(1) Covers cost of hospital and surgical expenses⁷ if your helper falls ill or gets into an accident.
(2) Compensates your helper’s wages, up to 30 days if your helper is hospitalised or on hospitalisation leave and is
unable to carry out her duties.
(3) Protects your helper against personal liability when she accidentally injures someone or their property.
Which plan is suitable for me?
Basic Plan
For peace of mind
• Includes coverage for personal accident, hospitalisation, personal liability and outpatient medical expenses due to
injury for your helper
• Includes coverage for pre-existing medical conditions⁶ if your helper is employed for more than 12 months in
Singapore
Standard or Enhanced Plan

For adequate coverage, or if you are concerned about:
• Possibility of having to stop employing your helper if she suffers a serious injury or serious sickness as confirmed
by a medical practitioner
• Your helper being hospitalised and hence your domestic services are not carried out Our Standard or Enhanced
Plan can offer you:
• Coverage for expenses⁸ if you have to stop employing your domestic helper
• Wages compensation (up to 30 days)
What is the difference between Standard and Enhanced Plans?

The Standard and Enhanced plans offer additional benefits over the Basic plan, giving comprehensive protection to
both you and your helper, with the Enhanced plan featuring higher levels of coverage
Boost your protection
MOM security bond protector
If you have concerns that your security bond may be forfeited due to events beyond your control
Waiver of co-payment (available for policies with start date from 1 July 2023)
If you have concerns about out-of-pocket expenses due to co-payment of your helper’s hospitalisation costs
Additional hospital and surgical expenses
If you are concerned about or want higher protection in the event of hospitalisation
Comprehensive benefits
Our plans offer comprehensive coverage to ensure peace of mind for you and your helper.
Maximum benefits (S$)
Benefits
Basic Standard Enhanced
Outpatient medical expenses due to injury $60,000 $60,000 $80,000
(per policy)
Outpatient medical expenses due to injury $1,500 $2,000 $ 3,000
(per policy)
Domestic helper’s personal liability (per policy) $25,000 $25,000 $75,000
Special grant due to death - $2,000 $3,000
Expenses if you have to stop employing your domestic - $150 $500
helper
Wages compensation (up to 30 days) - $20 per day $35 per day
Hospital and surgical expenses (per year)
- Includes COVID-19 coverage
- Covers 60-day pre and post hospitalisation treatment
˗ Our maximum payout for policies with start dates $15,000
before 1 July 2023
˗ Our maximum payout for policies with start $60,000
dates from 1 July 2023 onwards
Co-payment³ for total claim amount

˗ First $15,000 0%
˗ Above $15,000 25%
Sending your domestic helper home $10,000
Security bond to Ministry of Manpower $5,000
(not applicable for Malaysian helpers
Enjoy preferential rates for medical consultations

Access MediPass app² to enjoy preferential rates for general practitioner and specialist consultations at any of the panel
clinics, exclusively for you, your family and domestic helper! You can also enjoy preferential rates for your domestic
helper’s mandatory half yearly health screenings.
Letter of Guarantee⁵ for your helper’s hospitalisation costs

All plans provides coverage for hospital and surgical expenses, and offer a Letter of Guarantee⁵
to help minimise out-of-pocket expenses. We provide convenience for you by paying directly to
the hospital for eligible expenses.
Add-ons to enhance coverage
Waiver of co-payment
Choose to add on a waiver of co-payment to reduce your out-of-pocket expenses. In the event
of an unexpected situation, we will pay for your domestic helper’s eligible hospital and surgical expenses so that you
remain financially stress-free.
How it works
Mrs Lee’s domestic helper is covered under Domestic Helper Standard Plan (with policy start date from 1 July 2023)
and was hospitalised for 5 days due to a cooking accident at home.
Without waiver of co-payment With waiver of co-payment

Scenario 1:
The total bill incurred was $60,000.
Mrs Lee pays $11,250

(25% of $45,000)
ABC ABC pays $60,000
pays first
$15,000 ABC pays $33,750
(lower of remaining sum
insured or 75% of $45,000)
Scenario 2:
The During the 2nd policy year, her helper was hospitalised due to another accident. The first bill incurred was
$15,000 and a $20,000 from an outpatient follow-up treatment.
1st bill:
ABC pays $15,000
2nd bill:
Mrs Lee co-pays 25% of the bill amount: ABC pays $35,000
$5,000
ABC pays 75% of the bill amount:
$15,000
The above examples are for illustrative purposes only and assumes that the claim is not limited or excluded by policy
terms and conditions.
Additional hospital and surgical expenses coverage

You can increase your helper’s coverage for hospital and surgical expenses by topping this up so
that you are even more prepared in times of mishap.
MOM security bond protector to limit your bond liability

You can add on the Ministry of Manpower (MOM) security bond protector to your main plan, which will limit your
liability of $5,000 under the security bond to MOM to only $250 if you did not cause the breach of the bond.
IMPORTANT NOTES
1 The accidental death or permanent disability suffered by your helper due to an injury must happen within 12 months
from the date of the accident. The amount of benefit payable is subject to the scale of compensation in the policy
contract.
2 The application (“App”) is owned, hosted and managed by MY-INSURER PTE LTD, a service provider of ABC
Insurance Limited (“ABC”). ABC may from time to time change the service provider or terminate this service without
prior notice. ABC is not responsible for the contents of the App, the consequences of accessing the App, any
transaction in the App and the services provided in the App. The App, the service and the benefits therein are not
part of any insurance policy.
3 The final claim amount you will receive depends on the relevant pro ration factor applicable to the eligible hospital
and surgical expenses being claimed. Please refer to the policy conditions for the pro ration factor table.
4 For cover on inpatient hospital and surgical expenses only. Please refer to the policy conditions for more details.
5 This Letter of Guarantee (LOG) service is only applicable if your domestic helper is hospitalised at a Singapore
government restructured hospital. For policies with start dates before 1 July 2023, the LOG limit will be $15,000 per
year. For policies with start dates from 1 July 2023, the LOG limit will be $60,000 per year. The LOG amount issued
will depend on the actual hospital bill and is subject to our policy terms and conditions and individual hospital
guidelines.
6 Covers pre-existing medical condition provided your domestic helper has been working in Singapore as a foreign
domestic helper for more than 12 months in a row.
7 Pro ration factor will apply if your domestic helper is admitted into a ward higher than B2 in a restructured hospital
or admitted in an overseas hospital due to an emergency. Please refer to the policy conditions for the pro ration
factor table. For policies with start date from 1 July 2023, co-payment will also apply to claims above $15,000 up to
the maximum benefit limit per year.
8 We will pay for the expenses charged by the employment agency for the termination of your domestic helper when
you stop employing your domestic helper because she is suffering from a serious sickness or serious injury.
This is for general information only. You can find the usual terms, conditions and exclusions of this plan at
www.ABC.com.sg/domestic-helper-policy-conditions.pdf.
Protected up to specified limits by SDIC.
Information is correct as at 16 June 2023
Appendix 7G
Tel: (65) 6789 8181 Fax: (65) 6789 8282
APPLICATION FORM FOR FOREIGN DOMESTIC WORKER INSURANCE
Important Notice
1. Statement Pursuant to Section 23(5) of the Insurance Act 1966. You are to disclose on this Proposal Form fully and faithfully all the facts which
you know or ought to know, otherwise the policy issued hereunder may be void.
2. Please note that this insurance is subject to the premium being paid and received in full by the Company
(a) before the inception date where the Policy is issued to an Individual; or
(b) within the period specified in the Premium Payment Warranty applied to the Policy in all other instances, failing which there will be
no liability under this cover.
3. The liability of the Company does not commence until this Application is accepted and the premium is paid in accordance with clause 2 above.
PARTICULARS OF POLICYHOLDER (EMPLOYER)


Office Home
CPF Account No. E-mail
Date of Birth Gender Nationality

Male Female
Employer Occupation
JOINT APPLICANT/LOCAL GUARANTOR

(where applicant is not in employment or where applicant is a foreigner)
Joint Applicant or Local Guarantor must either be a Singaporean or Singapore Permanent Resident with an annual income of not less than S$25,000.
Name (in Full) NRIC / Passport No.
Address Contact Numbers

Office Home
Date of Birth Gender Nationality
Male Female
Employer Occupation
DOMESTIC WORKER PARTICULARS

Name (in Full) Passport No.
Date of Birth Nationality Work Permit No.
COVERAGE REQUIRED
Coverage Selection (please tick) Deluxe Superior
Period of Insurance, starting from
(a) Insurance Benefits Only (Sections 1 to 8) $168 $228
- -
(DD – MM – YYYY) (b) Insurance + Guarantee to Immigration $268
$208
(Sections 1 to 9)
for a period 26 months
(c) Insurance + Guarantee to Immigration + Waiver of
$268 $318
Counter Indemnity (Sections 1 to 10)
Optional Cover (please add premium to the premium for above Coverage Selection)
a. $46 for $2,000 Guarantee; or

Letter of Guarantee to Philippines Overseas Labour Office
(Section 11) b. $ b. for $7,000 Guarantee
PREMIUM CALCULATION AND DOCUMENTS REQUIRED

Premium Calculation Documents Required
$ Please furnish the following if Guarantee to Immigration is required.
Premium for Coverage Selection
1. A copy of Applicant’s employment pass or work permit if he/she is a
$ foreigner.
Plus Premium for Optional Cover
$ 2. A copy of In-Principal Approval Letter or Renewal Notice from the

Plus GST Work Permit Department.
3. Photocopy of Maid’s Passport.
4. Duly signed Letter of Indemnity. Witness(es) must not be the spouse(s)
Total Premium Payable $
of the Indemnifier(s).
5. A copy of Witness’ NRIC.
PAYMENT MODE
a) I hereby confirm that I am the cardholder of the below credit card and I authorised the Company to
charge the premium for the above policy/policies to my card.
By Cheque, payable to ABC b) I fully understand and agree to the terms and conditions of the usage of my credit card. I also
Insurance Company (Singapore)
Limited. Company.
c) I understand and agree that in the event of refund from the Company, payment will be made to the
INSURED/POLICYHOLDER stated above.
VISA MasterCard Name of Cardholder ____________________________
Bank __________________________________ Expiry Date - CVV2 No.
Cheque No. ___________________________

Card No.
Amount ______________________________
Signature of Cardholder
DECLARATION
I/We submit herewith my/our application for the selected coverage to be issued in connection with my/our employment of a domestic maid and hereby
declare that all the above particulars are true and correct.
This Proposal shall be the basis of the contract between me/us and ABC Insurance Company (Singapore) Limited.
I/We declare that the maid is in good health and free from any physical impairment.
I/We understand that all Pre-existing Conditions before the effective date of this Policy are not covered.
Any Guarantee issued pursuant to this Proposal shall be subject to the Counter-Indemnity set forth in the attached to which terms and conditions I agree.
Signature of Applicant (on behalf of persons to be insured Date
Appendix 7H

LIMITED
Tel: (65) 6789 8181 Fax: (65) 6789 8282
FOREIGN DOMESTIC WORKER INSURANCE CLAIM FORM

Important Notice :
1 The acceptance of this form is NOT an admission of liability on the part of the Company.
2 All documents provided to substantiate your claim must be original documents.
3 Please submit a copy of your foreign domestic worker valid Work Permit and the Contract Agreement showing the salary.
4 All medical reports must be submitted at the claimant’ expense before a claim can be admitted.
Policy / Certificate No. Claim No. :
PARTICULARS OF POLICYHOLDER AND INSURED (Foreign Domestic Worker)

Name of Policy Holder (in Full) Contact Numbers
Mailing Address Office Home

Name of Insured Person (Foreign Domestic Worker) Passport No.
Agency’s Name Contact Numbers
Address
Singapore _________________________
CIRCUMSTANCES OF CLAIM
Date of Accident/Illness Time of Accident/Illness Place of Accident/Illness
Please state exactly what happened (if insufficient space, please attach statement)
Has the insured person sustained an accident/illness of this

nature or made any previous claim in respect of insurance
previously?
Yes Please give details on the right column.
No
Is there any other insurance in force covering this loss? Name of Insurance Company
No Policy number
DETAILS OF THE LOSS
State nature of injuries or illness
Was accident was caused by a third party.

No
Has the sickness been treated previously? Name of Physician
Clinic/Hospital
No
Contact No.
Address
If injury is due to an accident, are there any more bills to be submitted?

No
Note:
Documents to be provided as applicable:
Medical Report and / or In-patient Discharge Summary
Medical Certificate of Treatment Form for medical expenses claims
Original medical bills
Contract Agreement showing salary for wage compensation claims
Doctor’s Certification for repatriation or termination claims
Police report (if applicable)
PAYMENT DETAILS
Payee name (if claim is payable)
DECLARATION
I/We hereby declare that the above statements are true to the best of our/my knowledge and belief and I/we undertake to advise the Company promptly
of all developments in connection with the claim. I/We further authorise the Company to treat the submission of this form as my/our making a claim
under my/our policy.
I hereby authorize any hospital physician, other person who has attended or examined me, to furnish to the Company, or its authorized representative,
any and all information with respect to any illness or injury, medical history, consultation, prescriptions or treatment, and copies of all hospital or
medical records. A photocopy of this authorisation shall be considered as effective and valid as the original
Policyholder’s Signature / Company’s Stamp Domestic Worker’s Signature
Name Name
Date Date

Tel: (65) 6789 8181 Fax: (65) 6789 8282
MEDICAL CERTIFICATE OF TREATMENT

Important Notice :
This form is to be completed by the Claimant’s Medical Attendant whose replies should be as full as possible. No claim can be
admitted unless a medical certificate is furnished at the expense of the claimant.
AUTHORISATION POLICY NO
I hereby authorize any hospital surgeon, medical practitioner or clinic or other person who has attended to me or
examined me with respect to the below mentioned injury or sickness, to disclose to the Company any and all information
with respect to the injury or illness and, to provide to the Company copies of all hospital or medical records, including
prior medical history.
__________________________________________ __________________________________________
Employer’s Signature/Company’s Stamp & Date Claimant’s /Employee’s Signature & Date
__________________________________________ __________________________________________
Name Name
.PARTICULARS OF INSURED
Name of Patient / Employee Company Name
MEDICAL REPORT
1. Name of Medical Establishment
2. Nature of Admission Out-patient

In-patient Please specify: Admission date _________________ Discharge date ____________________
Day Surgery Please specify: Admission date _________________ Discharge date ____________________
3. Diagnosis of illness or extent of injury.
4. (a) Please specify the date of first diagnosis. (b) When did you inform the patient of your diagnosis?
5. (a) When did patient first consult you for the symptoms? (b) Is patient aware of having this condition prior to seeing you?
Yes No
6. (a) According to patient, when did he/she first notice (b) How long do you feel the symptoms/illness/injury have been existing prior to
symptoms of condition prior to seeing any doctor? consulting you?
7. Was patient referred by any doctor to see you? Name and address of referring doctor
Yes Please provide details on the right
No
8. What is the cause of illness or injury?
Yes No
9. Is the condition due to pregnancy, infertility, childbirth, abortion?
10. Is condition a congenital anomaly or a physical defect present at birth?
11. Is condition a nervous or mental disorder?
12. Is condition a result of self-destruction or intentional self-inflicted injury?
13. Has any permanent disability been suffered?
If any answers to the above question is ‘Yes’, please provide details in the space below
14. Any possibility of having a relapse? Yes No
15. Has patient previously seen any other doctor for symptoms or Name and Address of consulting doctor.
been treated for same or similar condition?
Yes Please provide details on the right
No Date of consultation
Not to my knowledge
16. Based on normal medically accepted pathological development of the condition, would there have existed symptoms or manifestations of the
condition prior to the insured’s first consultation with you?
Yes
No
17. Treatment rendered (include name and dosage if medication was given).
18. Did treatment need surgical procedures? Date _____________________ Name of surgeon ___________________
Yes Please provide details on the right Is surgery for cosmetic reason? Yes No
No Is surgery medically necessary? Yes No
19. Is patient still under your care for this condition? Date patient is discharged
Yes
No Please provide details on the right
PARTICULARS OF ATTENDING DOCTOR / SURGEON
Name of Attending Doctor / Surgeon Declaration
I hereby certify that I have personally examined and treated the patient for the
above injuries and that the facts given above present my opinion of his/her
Name of Hospital/Clinic condition.
Contact Numbers & E-mail

Office
Fax
Mobile
E-mail Signature of Attending Physician / Surgeon
Date
Singapore _________________________
ACCESS TO ONLINE LEARNING RESOURCES
(1) Login using your SCI profile credentials using this link:
https://www.scicollege.org.sg/Account/Login
(2) Click the “eBook/eMock Examination/Supplementary Notes” icon from the

Student dashboard.
(3) The examination module which you had registered for would be displayed on
your screen.
(4) Learning Resources include: eBOOK, eMOCK, and video tutorials.
PGI 7th Edition – List of Changes

Table of Content –
Section Paragraph Page Amendments
Chapter 7 N.A. iv Amended Appendices 7B to 7H.
Chapter 1 –
5A 5.6 (a)
2626
and (b) 16 Amended.
5C4 5.32 20 Amended.
5F3 5.60 26 Amended.
7A2 7.8 33 Amended.
Chapter 4 –
Learning N.A. 136 Removed learning outcomes “understand
Outcomes Covid-19 Travel Insurance for outbound
travellers”.
Contents N.A. 138 Removed sub-section A “Covid-19 Travel
(Section 9) Insurance For Outbound Travellers”.
9A, sub-sections 9.11 to 9.15 N.A. Paragraphs 9.11 to 9.15 had been removed
9A1 and 9A2 (in PGI 7th Ed, from PGI 7th Edition, Version 1.2 study text.
Ver 1.1 study
text)
Chapter 7 –
Chapter Outline N.A. 218 Amended Appendices 7C to 7G.
Contents N.A. 220 Amended Appendices 7C to 7G.
2A 2.3 221 New Paragraph added.
2A to 2H 2.4 to 2.78 222 to 237 Paragraph numbers have been re-numbered.
2B3 2.23 to 2.36 224 to 228 Amended.
2B4 2.23 to 2.24 N.A. Paragraphs 2.23 to 2.24 have been removed
(in PGI 7th Ed, from PGI 7th Edition Version 1.2 study text.
Ver 1.1 study
text)
2C3 2.40 N.A. Paragraph 2.40 has been removed from the
(in PGI 7th Ed, PGI 7th Edition Version 1.2 study text.
Ver 1.1 study
text)
2C 2.39 228 Amended.
2C3A to 2C3B 2.52 to 2.54 232 to 233 New paragraphs added.
2D 2.59 233 to 234 Amended.
2E5 2.68 236 New Paragraph added.
2F 2.72 236 New paragraph added.
2G 2.73 236 Amended.
Appendices 7C, N.A. 245, 265 Re-numbered appendices.
7G and 7H and 267
Appendix 7D N.A. 246 Appendix amended and re-numbered.
Appendices 7E N.A. 260 to 264 New appendices added.
and 7F
Singapore College of Insurance
9 Temasek Boulevard #14-01/02/03,
Suntec Tower Two, Singapore 038989
General Enquiry: (65) 6221 2336

Fax: (+65) 6220 6684
Email: [email protected]
Website: www.scicollege.org.sg
CPE Registration No.:199408491M

Period Of CPE Registration:
From 26 September 2019 to 25 September 2023
PGI.6.2020.0

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WARNING TO ALL EXAMINATION CANDIDATES

© 2023 by Singapore College of Insurance Limited. All rights reserved.

1st Edition published in 2002.

Chapter 1 Private Motor Car Insurance 1

Chapter 2 Personal Property Insurance 59

Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] i

Chapter 3 Personal Accident Insurance 108

Chapter 4 Travel Insurance 136

ii Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

Chapter 5 Personal Liability Insurance 165

Chapter 6 Health Insurance: Critical Illness And 183

Chapter 7 Foreign Domestic Worker Insurance And 218

ACCESS TO ONLINE LEARNING RESOURCES

iv Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

After studying this chapter, you should be able to:

Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] 1

2 Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] 3

A. Section I - Loss Of Or Damage To The Insured Vehicle ................ 40

4 Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] 5

Unlike an Act Liability Only policy, a Third-Party Only policy, in addition to

(b) Third-Party, Fire & Theft

Comprehensive cover is a requirement when the purchase of a car is

6 Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

There is also a personal accident benefits section, which provides benefits

Figure 1.1 - Summary Of Levels Of Cover

3. MOTOR INSURANCE DOCUMENTS

Proposal Certificate Cover

Policy Endorsements Renewal Claim

3.1 A completed proposal form is always required when an individual seeks to

Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] 7

Information Asked For

8 Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

3.11 In Private Motor Car Insurance, endorsements may be included as a standard

3.12 While there is no legal obligation on an insurer to issue a renewal notice, it is a

3.13 The renewal notice usually contains the following information:

3.16 The motor claim form essentially contains questions on the:

Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] 9

4.4 We will now look into each of these sections in detail.

A. Section I - Insurance On The Motor Car

10 Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

▪ flood, hurricane, typhoon, earthquake, volcanic eruption, or other

(b) Replacement Parts

(ii) the reasonable labour cost of fitting such parts.

(c) Cost Of Removal After Accident

(d) Authority To Repair

(e) Hire Purchase

4.6 Next, we shall consider the exclusions applicable to Section I. Exclusions or

Copyright reserved by the Singapore College of Insurance Limited [Version 1.2] 11

▪ mechanical or electrical breakdown, failure or breakage; and

B. Section II - Liability To Third Parties

Insurers usually impose an additional excess, Unnamed Driver Excess, for

12 Copyright reserved by the Singapore College of Insurance Limited [Version 1.2]

term “Elderly, Young And/Or Inexperienced Drivers” (as described in a

(b) Indemnity To The Insured While Driving Another Motor Car

(c) Expenses & Legal Costs For Defence

4.11 However, the insurer may, in lieu of such payments: