Tan Kin Lian's Blog: Reply: there is no catch in the top-up rider

Monday, February 20, 2006

Reply: there is no catch in the top-up rider

20 February 2006

Editor
Forum
The Straits Times

I refer to the article, "Incomeshield removes limits on amount of lifetime claims", by Lorna Tan (Straits Times, 15 February 2006).

In the article, Mr Patrick Lim of Promiseland Independent was quoted as saying "Incomeshield's new top-up rider came with a catch. Unless it is an emergency case, policyholders are required to seek Income's approval for the treatment, by giving the insurer four days' notice prior to incurring the expense."

I wish to give our perspective of this feature.

NTUC Income recognises the concerns of some policyholders that the current limits are inadequate for major illnesses. The top up rider will pay for the additional expenses. In most cases, the policyholder can claim under the basic plan for the ordinary expenses, before hitting the current limit. The need for top-up expenses applies only to a small percentage of cases.

Our approach is to ensure that the larger medical expenses are kept at a reasonable level. If necessary, we will ask our own doctor to give a second opinion on the proposed treatment. This will be beneficial to the policyholder as well.

We aim aim to avoid excessive billing under a blanket "as charged" plan. We will manage the claims effectively and keep the premium affordable for our policyholders. This is important, as premium rates are expected to increase significantly when the policyholder gets older.

We have 800,000 people insured under our Incomeshield plan. As a cooperative society, our aim is to look after their best interest. We believe that a top up rider will pre-approval condition will serve them best in the long run.

Tan Kin Lian
Chief Executive Officer
NTUC Income

3 comments:

Ronin said...: Dear Mr Tan,

I tend to agree with the criticism raised against the upcoming rider to lift benefits caps in Incomeshield.

While I can understand the need to manage medical claims, requiring minimum 4 days' notice will be tough for policy-holders. Does it mean policyholders have to wait in the hospital for 4 days for an approval from NTUC Income before getting the appropriate medical treatment? How will NTUC Income assess the merit of an application? Its own panel of doctors?

We all know that one doctor's opinion may differ from another. Does it mean that NTUC Income's doctors have ultimate true knowledge of appropriate medical treatments? With due respect, we are talking about a human being rather than a motor vehicle.

I am insured with Incomeshield and am looking forward to the new rider. But I hope this 4-day notice period will not be implemented.

Regards.; February 21, 2006 9:44 AM
Tan Kin Lian said...: Most hospitalisations fall within the standard limit. There is no need to get prior approval.

If you exceed the standard limit, and wish to apply for the top up limit, you have to ask for prior approval. As this happens for only the serious cases, it does not pose any difficulty.

Getting a second opinion is a good practice. If there are difference of opinion, it can be sorted out quite easily.

If you like our practice and the lower premium rate, you can insure with us. If not, you can move to a more expensive "as charged" plan.; February 24, 2006 6:04 AM
Ronin said...: As you said it, only serious cases will require prior approval. Do you think the insured or family members are in the right frame of mind to remember to seek such approval? Another issue is how the insured will know if the cost a medical procedure exceeds the cap?

We all know that details of the various caps are mind-boggling to the man in the street. To expect a very ill person to seek prior approval is ludriculous.

Can you please tell us how a difference in medical opinion (which is highly likely) will be "sorted out quite easily"?

I have resisted moving to another insurer and have been waiting for NTUC Income to come up with a better Incomeshield. I am disappointed with this catch in the new rider.

Unless I see a better Incomeshield product soon, I will take your suggestion and move to Aviva.; February 24, 2006 9:33 AM