Business insurance claim rejected in Singapore: next steps and FIDReC

By the TRS broking team24 Oct 20266 min read

The short answerAsk the insurer for the decline in writing with the policy wording it relies on. Check the wording, the facts and any condition said to be breached, then put a reasoned challenge to the insurer. FIDReC can adjudicate eligible disputes up to S$150,000 per claim; mediation has no claim limit.

Why are claims declined?

Common reasons are an exclusion, a breach of a condition such as late notification, non-disclosure at inception, or the loss falling below the deductible or outside the period of insurance.

How should a decline be challenged?

Set out the facts, the clause the insurer relies on, and why it does not apply. Provide documents the insurer may not have seen. A broker who placed the policy can argue it on the wording.

Want this checked against your own policies?Talk to a broker

When can FIDReC help?

FIDReC handles disputes between consumers and financial institutions, including insurers. For claims filed on or after 1 July 2024, the adjudication limit is S$150,000 per claim. Check eligibility for businesses with FIDReC.

Route	Limit
FIDReC mediation	No claim limit
FIDReC adjudication	S$150,000 per claim
Courts or arbitration	As the policy and law allow

Frequently asked questions

Is there a time limit to dispute a decision?

Policies and FIDReC rules set time limits. Act promptly and keep all correspondence.

Sources

FIDReC: Glossary and claim limits

General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.