Legal Tips

Agency

Document Date: 11-Jan-2007

Here are some Frequently Asked Questions on the topic "Agency":

1. What is an agent?
2. When is the insurance company bound by the acts of an agent?
3. When is the insurance company not bound by the acts of the agent?
4. What happens when the agent fills up the proposal form on behalf of a proposer or applicant who is illiterate in English?
5. What are some responsibilities of an agent of NTUC Income?
6. Can an agent of NTUC Income help me with my claim?
7. How can I make a complaint about an agent of NTUC Income?

1. What is an agent?

   The term "agent" includes insurance intermediaries, that is people who are directly employed by an insurer or those who receive a commission from the insurer for bringing business, e.g. insurance brokers.
   
   In NTUC Income, the term "agent" covers our Development Officers, Organisers or Corporate General Insurance Agents.

2. When is the insurance company bound by the acts of an agent?

   Whether or not the company is bound by a particular act of the agent depends on whether the agent had any real, implied or apparent authority to do that act.
   
   Where the agent acts within his scope of authority, the insurer will be bound by the acts of the agent and generally all the consequences that follow.

3. When is the insurance company not bound by the acts of the agent?

   The company will not be bound by the acts of an agent acting beyond his authority.
   
   For example, when an agent assists a proposer in filling up a proposal form, he is deemed to be acting as the agent for the proposer.
   
   Or when an agent who having no authority from the insurer to negotiate the terms of the contract of insurance, does so, he is to be treated as the insured's agent.
   
   Further examples include unlawful acts, such as defamation and most criminal acts as these would be beyond the scope of employment and authority.

4. What happens when the agent fills up the proposal form on behalf of a proposer or applicant who is illiterate in English?

   The agent acts as an agent of the applicant. The agent has a duty to the applicant to exercise care. The agent can be held liable if the agent has been negligent.

5. What are some responsibilities of an agent of NTUC Income?

   The agent should obey instructions; carry out duties in a reasonable manner with skill; be accountable and transparent; and act in good faith.

6. Can an agent of NTUC Income help me with my claim?

   Your agent can only help you complete and submit the relevant forms to make a claim. The agent will help you on a "without prejudice" basis.
   
   The agent cannot make an assessment of your claim in any way.

7. How can I make a complaint about an agent of NTUC Income?

   You can call our general hotline at 63INCOME or e-mail sq@income.com.sg.
   
   Please do provide us your name, NRIC number and some brief facts about your grievance, including information about your insurance policy.