Frequently Asked Questions (FAQ)


This section highlights the frequently asked questions (FAQ) for our Singaporean operations.

General
1. What are the main principles of insurance?
The main principles of insurance are as follows:
  • Insurable interest. The person who purchases the insurance has an 'insurable interest' in the subject matter of the insurance if the loss or damage of it would result in a financial loss to the person.
     
  • Utmost good faith. The insured is to disclose to the insurer all material facts regarding the subject matter of the insurance and the circumstances pertaining to it which would influence the judgement of a prudent insurer.
     
  • Contract of indemnity. A contract to make good or restore, as best as possible, the insured to the same position immediately before the loss or damage by way of payment, repair or replacement.
     
  • Contribution. The insurer is liable only for the insurer's rateable proportion of the loss or damage in the event other insurers are also liable for the loss or damage.
     
  • Subrogation. The right of an insurer to be in the place of the insured having paid the loss to seek recovery of the loss from a third party.
     
  • Proximate Cause. The 'immediate or effective cause' that leads to an event.
2. What are the available payment methods?
  1. Lonpac Office Pay by cash/ cheque

     
  2. Mail-In Payment Pay by cheque
    Please ensure that you keep the proof of your premium payment.
3. When would I receive my policy?
In the event that you do not receive your policy within 30 days from the submission date of complete documents, please contact us.

 

Underwriting
1. How do I determine the value of my house/building for insurance purpose?
The basis of valuation for the determination of the sum to be insured (excluding land) is either on the market value or reinstatement basis (as new but not superior) irrespective of the outstanding loan amount if any. Property valuers are the appropriate parties to provide the correct valuation for buildings. For insurance purpose, the land value should be excluded.

 

2. How do I determine the value of my car for insurance purpose?
Since the basis of indemnity for motor insurance is on market value, the motor car franchise holders will be the appropriate parties to determine the value of the car.

 

3. How do I determine the value of properties for insurance purpose (eg. office equipment, machinery, household contents, personal effects, etc)?
The basis of valuation for the determination of the sum to be insured is either on market value (less depreciation) or replacement value (as new but not superior) of the same type, model, and year of manufacture or make.

 

4. Can I apply the same NCD earned to more than one vehicle under my name?
No. The NCD (No Claim Discount) is applicable to one vehicle at any one time but is transferable between same type of vehicle ie. private car to private car.

 

 

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