A policyholder disagreed with our claim officer's assessment of liability in a claim from a third party. He felt that the claim officer had not made the correct assessement. This matter was reviewed by the claim manager. After several rounds, the policyholder was still not satisifed. He brought this matter to my attention. I gave this reply:
Dear
I have taken note of this case.
The assessment of liability has to be made by our claim officers using their expertise and judgement. They have to take the relevant facts into account. If you disagree, you can meet with the claims committee to present your facts for their review.
If you wish to refer the matter to FIDREC, we will let them handle the matter.
I believe that my colleagues have stated our position on this matter. I think that they have acted fairly. They will not be able to engage in a further debate with you on this matter. Please accept our position as final.
Monday, August 07, 2006
19 qualified agents want to migrate to NTUC Income
20 qualified agents from other insurance companies attended our recruitment briefing today. They responded to our advertisement, "Soar in your Insurance Sales".
After the briefing and question and answer session, 19 agents signed up to join us. The remaining agent is a Malaysian. He will join us, if we can help to get a work permit for him.
All of these agents are convinced that NTUC Income can offer them a better opportunity to succeed in their passion - to serve the needs of their customers.
We welcome them.
After the briefing and question and answer session, 19 agents signed up to join us. The remaining agent is a Malaysian. He will join us, if we can help to get a work permit for him.
All of these agents are convinced that NTUC Income can offer them a better opportunity to succeed in their passion - to serve the needs of their customers.
We welcome them.
Flexi Cash earned 3.5%
Flexi Cash is invested in our money market fund. It should earn a return based on the average return of the fund, less a small charge of 0.25% per annum.
During the past month, from 1 to 31 July, the unit price of the money market fund increased from $1.032 to $1.035. This works out to an annualised return of 3.5%. It is higher than the 3% that was initially projected. (Please note that the higher return could be due to the rounding effect of computing the unit price).
The return on our money market fund will grow with the return on the money market fund.
During the past month, from 1 to 31 July, the unit price of the money market fund increased from $1.032 to $1.035. This works out to an annualised return of 3.5%. It is higher than the 3% that was initially projected. (Please note that the higher return could be due to the rounding effect of computing the unit price).
The return on our money market fund will grow with the return on the money market fund.
Advice for a retiree on investing the savings
FROM A RETIRED PERSON
Hi Mr Tan,
About 1 1/2 years ago, I mentioned in passing to one of your staff that I am impressed by your personality. I told her that though I do not know you personally, the write-ups about what you do tell a lot about your person. My husband had spoken to you in person at one of your seminars and was pleasantly surprised that you were sincere and approachable.
Shortly after I received an email from your staff conveying your appreciation for the compliments, and it was followed by a simple 2-word yet personal "thank you" email from you. Each time when I clear my mail, I am reluctant to delete your thank you note as it represents a comforting affirmation that we do the right thing to buy from NTUC Income.
I wish you well and hope you have many more years of good health and is able to steer NTUC Income for a long time
Currently I am still unsure whether I should buy a growth or annuity policy or split the $90,000 (CPF ordinary account on attaining 55) and buy both policies. I have been in contact with your insurance personnel but would much appreciate your personal take as to what the best option is. Thank you.
MY REPLY
Dear
Thank you for much for your kind words.
For most retired people, my advice is to buy a life annuity, as it provides an attractive return and provides an income for a lifetime.
However, the actual right answer has to take into account, the other factors. For example, do you have other sources of savings and income? I will ask my adviser, XYZ, to contact and advice you. He has advised some other retired people who have invested large sums of money with us, partly in a life annuity and partly in our investment fund.
I believe that he can give good advice to help you to make the right decision.
Hi Mr Tan,
About 1 1/2 years ago, I mentioned in passing to one of your staff that I am impressed by your personality. I told her that though I do not know you personally, the write-ups about what you do tell a lot about your person. My husband had spoken to you in person at one of your seminars and was pleasantly surprised that you were sincere and approachable.
Shortly after I received an email from your staff conveying your appreciation for the compliments, and it was followed by a simple 2-word yet personal "thank you" email from you. Each time when I clear my mail, I am reluctant to delete your thank you note as it represents a comforting affirmation that we do the right thing to buy from NTUC Income.
I wish you well and hope you have many more years of good health and is able to steer NTUC Income for a long time
Currently I am still unsure whether I should buy a growth or annuity policy or split the $90,000 (CPF ordinary account on attaining 55) and buy both policies. I have been in contact with your insurance personnel but would much appreciate your personal take as to what the best option is. Thank you.
MY REPLY
Dear
Thank you for much for your kind words.
For most retired people, my advice is to buy a life annuity, as it provides an attractive return and provides an income for a lifetime.
However, the actual right answer has to take into account, the other factors. For example, do you have other sources of savings and income? I will ask my adviser, XYZ, to contact and advice you. He has advised some other retired people who have invested large sums of money with us, partly in a life annuity and partly in our investment fund.
I believe that he can give good advice to help you to make the right decision.
Our projection are conservative!
A contributor to another web forum made tihs report on our Flexi-Cash plan: "NTUC Income usually has high non-guaranteed rates giving a false sense of security to consumers
I sent the following reply to that forum:
Flexi-Cash is invested in our money market fund. Currently, the fund earns an average return of about 3%, after deducting the management fee of 0.25%. As the market interest rate is likely to increase, the return on the money market fund is also likely to be higher. This is not a projection. It is a description of the working of the money market fund.
For our other insurance products, NTUC Income adopts a conservative projection of our future bonus rates. They are based on an average yield of 5.25% on our life insurance funds over the long term. This is much lower than the projection used by some insurance companies.
I sent the following reply to that forum:
Flexi-Cash is invested in our money market fund. Currently, the fund earns an average return of about 3%, after deducting the management fee of 0.25%. As the market interest rate is likely to increase, the return on the money market fund is also likely to be higher. This is not a projection. It is a description of the working of the money market fund.
For our other insurance products, NTUC Income adopts a conservative projection of our future bonus rates. They are based on an average yield of 5.25% on our life insurance funds over the long term. This is much lower than the projection used by some insurance companies.
SMS to notify our policyholders about the repair to their cars
NTUC Income insures 200,000 vehicles. We received about 25 cases each day from our policyholder who is involved in an accident and make a claim under their motor policy.
Our policyholder is required to report the accident at an assessment center (Idac) and to leave their vehicle there. We arrange for a workshop to repair the vehicle. We carry out a post-repair inspection.
The whole process from reporting to completion of repair and collection of vehicle takes 5 to 7 days for most cases.
During this time, we notify our policyholder through SMS on the workshp that has been selected and the estimated completion date. We also notify them on progress of the repari.
Our policyholders welcome this initative. They are notifed about the status and are not interrupted by a telephone call.
In our weekly survey, our policyholders gave a high satisfaction rate of 98% to our handling of their repairs.
Our policyholder is required to report the accident at an assessment center (Idac) and to leave their vehicle there. We arrange for a workshop to repair the vehicle. We carry out a post-repair inspection.
The whole process from reporting to completion of repair and collection of vehicle takes 5 to 7 days for most cases.
During this time, we notify our policyholder through SMS on the workshp that has been selected and the estimated completion date. We also notify them on progress of the repari.
Our policyholders welcome this initative. They are notifed about the status and are not interrupted by a telephone call.
In our weekly survey, our policyholders gave a high satisfaction rate of 98% to our handling of their repairs.
Thursday, August 03, 2006
Incomeshield claims will be processed more quickly
NTUC Income has 800,000 people insured under Incomeshield.
We receive an average of 300 claims each day from the hospitals in respect of these insured persons.
We have to process the hospital bills to check on the items that are allowed to be claimed, and to apply the deductible and co-insurance. For example, for certain treatments, the insurance plan covers up to certain limits and the excess has to be paid by the insured person.
In the past, the processing of each bill takes an average of 10 minutes. But the large volume requires 8 officers to process the claim. On average, it takes 14 days to approve the claim.
We have recently introduced an automated processing of the bills. Phase 1 of the automation process will be implemented by mid Aug 06. We expect that 40% of the bills can be approved within 2 days of receipt.
Phase 2 of the automation process, which is expected to be ready by Oct 06, will allow an additional 40% of the claims to be approved by the system within 2 days.
The remaining claims are more complicated and will continue to take about 14 days to approve.
I wish to thank our policyholders for your patience during this initial period. I hope that the quality of service will improve significantly by the end of this year.
We receive an average of 300 claims each day from the hospitals in respect of these insured persons.
We have to process the hospital bills to check on the items that are allowed to be claimed, and to apply the deductible and co-insurance. For example, for certain treatments, the insurance plan covers up to certain limits and the excess has to be paid by the insured person.
In the past, the processing of each bill takes an average of 10 minutes. But the large volume requires 8 officers to process the claim. On average, it takes 14 days to approve the claim.
We have recently introduced an automated processing of the bills. Phase 1 of the automation process will be implemented by mid Aug 06. We expect that 40% of the bills can be approved within 2 days of receipt.
Phase 2 of the automation process, which is expected to be ready by Oct 06, will allow an additional 40% of the claims to be approved by the system within 2 days.
The remaining claims are more complicated and will continue to take about 14 days to approve.
I wish to thank our policyholders for your patience during this initial period. I hope that the quality of service will improve significantly by the end of this year.
Many Agents wish to migrate to NTUC Income
We have good response from our advertisement "Soar in your Insurance Sales". About 100 agents have called our hotline or registered at our website. They are interested to find out about migrating to NTUC Income.
Here is my message to agents who now work with other insurance companies. If you are doing well, you should stay with your current company. If you find it difficult to meet their sales target, it is largely due to a "poor fit". This is not any shortcoming on your part.
Some agents are not aggressive and feel bad about pusing products to a reluctant customer. They will fit well into NTUC Income. Our culture is to look after the best interest of the customer. We do not have to push any product to them. They buy from us willingly.
We pay a fair rate of comission to our agent. They can earn well.
If you are interested to find out more, you can at www.mailbox.coop/0001. We will contact you for a briefing.
Here is my message to agents who now work with other insurance companies. If you are doing well, you should stay with your current company. If you find it difficult to meet their sales target, it is largely due to a "poor fit". This is not any shortcoming on your part.
Some agents are not aggressive and feel bad about pusing products to a reluctant customer. They will fit well into NTUC Income. Our culture is to look after the best interest of the customer. We do not have to push any product to them. They buy from us willingly.
We pay a fair rate of comission to our agent. They can earn well.
If you are interested to find out more, you can at www.mailbox.coop/0001. We will contact you for a briefing.
A special needs child
FROM A MOTHER
Dear Mr Tan,
I enjoyed your blog very much, it still amazes me that you post messages in the wee hours! It says a lot about your dedication to Income and the policyholders. Personally, I benefited a lot from reading your articles on financial planning.
I have been an Income policy holder for about 15 years now. When my son was born in 2003, I bought him 2 policies; a living policy and an Incomeshield policy in the same year.
In December 2005, he was officially diagnosed with autism. Little do we know that such a 'label' is actually a frightening term for insurance companies.
We were approached by an agent from company P in May this year. We switched Incomeshield to their plan due to the higher coverage. We did not declare "Autism" due to genuine ignorance.
Two months later, we wanted to get another policy with company P for my son and declared "Autism". To my horror, not only did they reject this proposal, they even cancelled their shield plan. The agent came to collect the certificate back!
There was no official letter, no apology , no explanation. I am appalled by the way we were treated! They don't even want to look at his psychology report. My son does not have severe autism. He does not inflict injury to himself.
Mr Tan, I don't know if it's too much to ask you to help reinstate his Incomeshield policy but it means alot to my special needs kid.
MY REPLY
Dear
I will ask my manager to see what we can do. Maybe, we can resinstate the basic Incomeshield cover that you had previously with us. I am not sure if we are able to upgrade into the enhanced cover. I will let him decide what is best. Okay?
Dear Mr Tan,
I enjoyed your blog very much, it still amazes me that you post messages in the wee hours! It says a lot about your dedication to Income and the policyholders. Personally, I benefited a lot from reading your articles on financial planning.
I have been an Income policy holder for about 15 years now. When my son was born in 2003, I bought him 2 policies; a living policy and an Incomeshield policy in the same year.
In December 2005, he was officially diagnosed with autism. Little do we know that such a 'label' is actually a frightening term for insurance companies.
We were approached by an agent from company P in May this year. We switched Incomeshield to their plan due to the higher coverage. We did not declare "Autism" due to genuine ignorance.
Two months later, we wanted to get another policy with company P for my son and declared "Autism". To my horror, not only did they reject this proposal, they even cancelled their shield plan. The agent came to collect the certificate back!
There was no official letter, no apology , no explanation. I am appalled by the way we were treated! They don't even want to look at his psychology report. My son does not have severe autism. He does not inflict injury to himself.
Mr Tan, I don't know if it's too much to ask you to help reinstate his Incomeshield policy but it means alot to my special needs kid.
MY REPLY
Dear
I will ask my manager to see what we can do. Maybe, we can resinstate the basic Incomeshield cover that you had previously with us. I am not sure if we are able to upgrade into the enhanced cover. I will let him decide what is best. Okay?
Wednesday, August 02, 2006
Why I like working in NTUC Income
Dear Mr Tan,
I have been working in NTUC Income since 1st Aug 02. Today is exactly my 4th year in this wonderful organization.
I am one of the fortunate ones to have this chance of job rotation.
I have rooted and enjoyed myself in working in NTUC Income because I love the organisational culture, such as M-E-R-I-T principles
Meritocracy: I just got a salary review based on good work performance
Entrepreneurship: CEO keeps educating and encouraging us to adopt this approach
Respect: We respect each and everyone's ideas irrespective of their position
Integrity: Given authority to handle claims
Teamwork: We work as a team to be first in our project
On top of the above, I love the 1-4-14 rule. It is such a wonderful approach. We will acknowledge to one's email on the same day. If it requires a straight forward reply, we will do so on the same day, otherwise we shall reply in 4 days time. If it is a more complicated issue, we will let the customers know that we will get back to them in 14 days time.
Customers will appreciate this approach a lot as they know that their queries are being attended to.
I am proud to tell my customers, relatives and friends that NTUC Income won the Gold Award for Singapore Call Centre of the Year! Customer calls are answered immediately by a person.
Last but not least, I truly admire the leadership lead by the CEO of Income, Mr Tan. He is very open, actively involved in lecturing courses, such as effective writing, staff briefing!
I am proud to be part of this organisation !
I have been working in NTUC Income since 1st Aug 02. Today is exactly my 4th year in this wonderful organization.
I am one of the fortunate ones to have this chance of job rotation.
I have rooted and enjoyed myself in working in NTUC Income because I love the organisational culture, such as M-E-R-I-T principles
Meritocracy: I just got a salary review based on good work performance
Entrepreneurship: CEO keeps educating and encouraging us to adopt this approach
Respect: We respect each and everyone's ideas irrespective of their position
Integrity: Given authority to handle claims
Teamwork: We work as a team to be first in our project
On top of the above, I love the 1-4-14 rule. It is such a wonderful approach. We will acknowledge to one's email on the same day. If it requires a straight forward reply, we will do so on the same day, otherwise we shall reply in 4 days time. If it is a more complicated issue, we will let the customers know that we will get back to them in 14 days time.
Customers will appreciate this approach a lot as they know that their queries are being attended to.
I am proud to tell my customers, relatives and friends that NTUC Income won the Gold Award for Singapore Call Centre of the Year! Customer calls are answered immediately by a person.
Last but not least, I truly admire the leadership lead by the CEO of Income, Mr Tan. He is very open, actively involved in lecturing courses, such as effective writing, staff briefing!
I am proud to be part of this organisation !
Policyholder is happy about the increase in bonus
The policyholder was unhappy that the bonus under this growth policy was cut in 2003. It was susequently increased in 2003 and 2004, but he was not specifically told about it. He asked why?
MY REPLY
Dear
We increased our bonus rates for the growth policy during the past two years. We show the bonus in each year's policyholder statement.
We do not wish to show a revised projection each time that the bonus has been changed, as it will cost us $1 million to send this information. We wish to avoid incurring this additional cost. We wish to spend less, so that there is more bonus to be given to our policyholders.
Of course, for policyholder who wish to request for this information, we are happy to oblige.
I hope that you understand our intention.
THE POLICYHOLDER REPLIED THAT HE WAS HAPPY WITH THE EXPLANATION AND THE INCREASE IN BONUS RATES.
MY REPLY
Dear
We increased our bonus rates for the growth policy during the past two years. We show the bonus in each year's policyholder statement.
We do not wish to show a revised projection each time that the bonus has been changed, as it will cost us $1 million to send this information. We wish to avoid incurring this additional cost. We wish to spend less, so that there is more bonus to be given to our policyholders.
Of course, for policyholder who wish to request for this information, we are happy to oblige.
I hope that you understand our intention.
THE POLICYHOLDER REPLIED THAT HE WAS HAPPY WITH THE EXPLANATION AND THE INCREASE IN BONUS RATES.
Policyholder is unhappy with lower maturity value
REPLY FROM MY LIFE INSURANCE MANAGER
My colleague informed me that you are unhappy with the maturity benefits you will be receiving under your Growth policies. The amount fell short of the projected figure.
Your two policies were bought in Aug 2001. At the time we sold you these policies, we gave a projection based on our best estimates. It was not possible for us to foresee the unfortunate events that followed in that year.
The investment climate had been extremely difficult and we had to cut our bonuses. Subsequently, we did better and were able to restore the bonuses, but only partially.
You invested a total of $110,000. You will be receiving $127,600. This represents a return of 3.01%. I think that is fairly attractive. It is higher than what you would have received if you have kept your monies in your CPF Ordinary Account.
AS THE POLICYHOLDER DOES NOT ACCEPT THE REPLY, I GAVE THIS FURTHER REPLY
Dear
Thank you for your feedback. I will ask my head of Life insurance to check that your policy has been treated fairly, similar to other policies of the same group.
Under our participating contract, we share our financial results fairly with all policyholders. If we earn more, we increase our bonus. If the investment climate is poor, we have to reduce the bonus, but it has to be applied fairly to everyone in the same group.
My colleague informed me that you are unhappy with the maturity benefits you will be receiving under your Growth policies. The amount fell short of the projected figure.
Your two policies were bought in Aug 2001. At the time we sold you these policies, we gave a projection based on our best estimates. It was not possible for us to foresee the unfortunate events that followed in that year.
The investment climate had been extremely difficult and we had to cut our bonuses. Subsequently, we did better and were able to restore the bonuses, but only partially.
You invested a total of $110,000. You will be receiving $127,600. This represents a return of 3.01%. I think that is fairly attractive. It is higher than what you would have received if you have kept your monies in your CPF Ordinary Account.
AS THE POLICYHOLDER DOES NOT ACCEPT THE REPLY, I GAVE THIS FURTHER REPLY
Dear
Thank you for your feedback. I will ask my head of Life insurance to check that your policy has been treated fairly, similar to other policies of the same group.
Under our participating contract, we share our financial results fairly with all policyholders. If we earn more, we increase our bonus. If the investment climate is poor, we have to reduce the bonus, but it has to be applied fairly to everyone in the same group.
Be generous in settling this claim
A motor policyholder installed a car tracking device. His car was stolen in Johor. It was recovered due to the device.
He incurred a loss of M$1,000 in making various payments, and has to incur an Excess of $500. Despite this, he is very happy to get his car back. This is because his financial loss will be much greater if the car was not found back.
Some of the expenses are not covered under the insurance policy as there is no evidence of the payment. I requested my claim manager to be generous in settling this claim in full and to waive the Excess, if possible. Ny installing the tracking device, he has helped us to reduce the loss.
He incurred a loss of M$1,000 in making various payments, and has to incur an Excess of $500. Despite this, he is very happy to get his car back. This is because his financial loss will be much greater if the car was not found back.
Some of the expenses are not covered under the insurance policy as there is no evidence of the payment. I requested my claim manager to be generous in settling this claim in full and to waive the Excess, if possible. Ny installing the tracking device, he has helped us to reduce the loss.
More insurance advisers wish to migrate to NTUC Income
Last evening, 19 persons attended our recruitment talks. 14 expressed an interest to join us. 7 are agents who now work in other companies. They wish to migrate to NTUC Income.
We have received 40 applicants who are attending our next recruitment talk in 1 week's time.
Since our advertisement on "Soar in your Insurance Sales", we are getting strong response. Many people are convinced that they have a better chance to do well with NTUC Income.
If you are interested, you can register with www.mailbox.coop/0001.
We have received 40 applicants who are attending our next recruitment talk in 1 week's time.
Since our advertisement on "Soar in your Insurance Sales", we are getting strong response. Many people are convinced that they have a better chance to do well with NTUC Income.
If you are interested, you can register with www.mailbox.coop/0001.
Our growth policy still provide an attractive return
A customer invested her savings in two growth policies which offered a return of 3.55% over 6 years and 4% over 10 years. These rates were much higher than the prevailing interest rate from the bank at the time that the investments were made.
She saw that the short term interest rate has increased in recent months, and asked this question: currently, market interest rate is high, about 3.45%,are we adjusting
our returns to be comparable with the market?
Here is my explantion:
Dear
When a policyholder invest in the growth policy, we promise the guaratneed sum assured and a bonus that will vary accordign to the actual return from the investments in the fund.
We have to invest the money to achieve an attractive long term rate of return, but in safe investments. This is done in the interest of our policyholders.
Most of our investments are in bonds and a smaller proportion in shares. The actual return from our fund is quite different from the short term interest rate offered by the banks.
Generally, when the market interest rate has increased, we should see an increase in the return from our fund, but the increase will apply only to the portion of the fund that has not yet been invested. The impact will be smaller than the actual increase in the interest rate.
In recent years, we have increased our bonus rates on the growth policy to reflect the better return from our fund. Our growth policy still provide an attractive return, compared to other investments.
I hope that you understand and accept my explanation.
She saw that the short term interest rate has increased in recent months, and asked this question: currently, market interest rate is high, about 3.45%,are we adjusting
our returns to be comparable with the market?
Here is my explantion:
Dear
When a policyholder invest in the growth policy, we promise the guaratneed sum assured and a bonus that will vary accordign to the actual return from the investments in the fund.
We have to invest the money to achieve an attractive long term rate of return, but in safe investments. This is done in the interest of our policyholders.
Most of our investments are in bonds and a smaller proportion in shares. The actual return from our fund is quite different from the short term interest rate offered by the banks.
Generally, when the market interest rate has increased, we should see an increase in the return from our fund, but the increase will apply only to the portion of the fund that has not yet been invested. The impact will be smaller than the actual increase in the interest rate.
In recent years, we have increased our bonus rates on the growth policy to reflect the better return from our fund. Our growth policy still provide an attractive return, compared to other investments.
I hope that you understand and accept my explanation.
Tuesday, August 01, 2006
Culture of Openness and Transparency
FROM POLICYHOLDER TO MY MANAGER WHO ATTENDED TO HIS REQUEST
I am also taking this opportunity to thank Mr Tan KL for his immediate response.
I wish to let him know that his "tankinlian.blogspot.com" website provides useful information of general interest in allowing persons (not only policyholders) to air their views on Income's business practices, and also allowing for policyholders to air their grievances, if any.
This culture of openness and transparency is not usually found wanting in general when financial institutions market their insurance and investment products.
Income has been very successful in its short history (compared with other older insurers) and its business practices are very focused on consumer interests and protection. It has shown itself to be a good corporate citizen in its support of the arts and sports (especially the huge financial support for the sleague to ensure its success).
I am also taking this opportunity to thank Mr Tan KL for his immediate response.
I wish to let him know that his "tankinlian.blogspot.com" website provides useful information of general interest in allowing persons (not only policyholders) to air their views on Income's business practices, and also allowing for policyholders to air their grievances, if any.
This culture of openness and transparency is not usually found wanting in general when financial institutions market their insurance and investment products.
Income has been very successful in its short history (compared with other older insurers) and its business practices are very focused on consumer interests and protection. It has shown itself to be a good corporate citizen in its support of the arts and sports (especially the huge financial support for the sleague to ensure its success).
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