Singapore Insurance Information

CIA link to demographic/economic data on Singapore

General Singapore Insurance Information

• Compulsory Insurance:
  
  1. Workers’ Compensation;
  2. Third Party Automobile Liability;
  3. Professional Liability / Indemnity for Insurance Brokers.
• Non-Admitted Insurance:
  Permitted except for compulsory coverages which must be placed locally. Local Insured’s can negotiate / place business directly with non-admitted Insurers but Brokers may not without prior approval of the Insurance Commissioner.
• Policy Wordings & Rates / Tariffs Controlled:
  Wordings are freely negotiated. No tariff rates are binding but guidelines exist.
• Policy Language:
  English.
• Types of Insurance Restricted to Government Institutions:
  None known.
• Policy Currency:
  Singapore dollar (SGD). U.S. $ insurance is available.
• Currency Restrictions / Exchange Controls:
  None.
• Policy Period:
  Annual. Long Term Agreements (LTAs) are commonly used for Property Damage / Business Interruption policies.
• Cancellation Provisions:
  90 day written notice usual for commercial business. 7 day written notice for private coverages (e.g., homeowners, personal accident, etc.).
• Premium Tax, etc. paid by Insured:
  Stamp Duty - S$1 per policy. Goods and Services Tax - 3% on all policies except Marine.
• Insurance Companies:
  Foreign companies are permitted to own up to 20% of local insurers. Approval for more must be obtained from the Monetary Authority of Singapore (MAS).
• Brokers:
  All Brokers must be licensed, registered and maintain Professional Liability / Indemnity insurance.
• Brokerage Commissions:
  15% for all lines. Commissions are negotiable for larger risks.
• Broker of Record Letters:
  Not required but a good business practice.
• Reinsurance:
  Compulsory cessions of 5% (Property / Business Interruption) are made to the Singapore Reinsurance Corporation and 2.5% for all other lines.
• Local Natural Hazards:
  None known.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion, earthquake, flood, storm / tempest, burst water pipe, riot / civil commotion, malicious damage, windstorm / hurricane, vehicle impact.
• All Risk:
  Available.
• Coinsurance:
  100%.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits and U.S. Gross Earnings.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Available to a maximum of 50%.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  UK and U.S. Boiler explosion covered. Periodic inspections are compulsory.

General / Public Liability

• Available Wordings:
  Comprehensive forms are available including Product Liability.
• Comments:
  Policies can be written on an occurrence basis. Product Recall coverage is not locally available.

Automobile / Motor

• Compulsory Limits:
  Bodily Injury: Unlimited. Property Damage: Not compulsory.
• Comments:
  Insured and any licensed individual driving with Insured’s permission are covered under the policy. Passengers are considered Third Parties. Fleet ratings are available.

Workers’ Compensation

• Comments:
  Subject to Workmen’s Compensation Act. Compulsory employer and employee contributions to the Central Provident Fund (Pension) and Medisave (Medical).All, except white collar earning more than S$1,600 / month. Extra-Territorial, Medical Expenses and Occupational disease benefits are covered as more fully described by the Act.

Marine

• Available Wordings:
  Follow the Institute of London Underwriters. War Risks rates follow London scale.

Crime

• Available Coverages:
  Most UK and U.S. forms available.