Hi Richard
I have a Daewoo 16 SX 1998 and it is fitted with a factory immobilizer, there is a chip in your ignition key which when inserted into the ignition switch and turned on talks to the ECU (engine computer unit) or management system. This chip in your key has a unique pin number only for your car.
I cant understand why your insurers are asking this question. They have all mods on cars in their data base.
Richard Startup
March 2008