Hi Mr Tan,
I did not involve in any accident since 1997 but had one recently.
I was also surprised that the workshop involved a lawyer to help get payment from the insurance company. I believe that was not the case ten years ago.
I asked the workshop owner why there is a need for lawyer and he told me that the insurance company will act promptly if they are represnted by a lawyer. If this is true then the insurance companies are responsible for this practise.
REPLY:
Singapore is one of the few countries in the world where lawyers are engaged to make the third party claim. This is expensive and wasteful.
The fault lies mainly with the insurance companies and the regulator. The insurance companies allow the bad practice to continue, and do not take any action to combat it (except for NTUC Income during my tenure).
In many countries, the regulator (ie Government) takes the lead to combat bad practice, when the insurance companies are unable or unwilling to act. They act to protect the interest of the consumers.
It is indeed commendable and magnanimous of NTUC Income CEO to waive the $45K against a Mr. Lock. (I am confident that Mr. Tan Kin Lian would have done that too. He did it many times during his tenor)It is an act of compassion.It is far more power than all the marketing efforts and money spent in the recent months to repackage Income 's image.It has demonstrated that it cares for the people, the policyholders. Indeed it is well capitalised and kudos to the CEO. I am sure the consuming public will be touched by this. It will be deeply etched in the their mind. This is a new positioning and revolutionary.I am one who has been critical of Income is also touched.
ReplyDeleteHaving said that, it is just one facet of Income albeit very important.There is more to be done. There is need to revamp and to revolutionise the other equally important areas; the products and sellers of the product.
Compassion alone is not good enough just like sincerity. Competence of the insurance agents and quality of the products in term of costs and applications, they are crucial to meeting the needs of the buyers.
Right now,it is disappointing in these two areas.
The insurance agents really need to go back to classroom to learn about their real roles and to learn HOW to help the customers and to know that insurance is not for them to enrich themselves.They must move away from being a product seller to one that befits their tittle, consultant.
But alas , many of them see insurance as some get rich quick
scheme.They are not consulting.They are peddling. No interest to upgrade to serve the customers in the best possible way.Majority lack the knowhow.Many are old middle aged and never had insurance as career in the first place when retrenched as secretaries, engineers , clerks or some equipment salesmen or taxi drivers.
It is alright, their background does not matter , more importantly to understand why they came into the noble business in the first place.
For products, it is what Mr. Tan has outlined about what the products should have. They are to meet needs and not carrying high commission to enrich the salespeople at the EXPENSE of customers.Sad that many products are designed that way like revosave.This is despicable.
If all these are in place I am sure
Income's aspiration to become number one is not far-fetched.
The regulators must take the lead at times. If only 1 or 2 companies try to combat it alone, their effort might be futile and in the end get their own market share affected.
ReplyDeleteThe CEO of these comapanies cannot be hero all the time or else might be asked to leave.
In event of claim, it is best to leave liability fight to the insurer.
ReplyDeleteUse insurer's authorised workshop and let insurer use their legal avenues when needed.
Especially when a Writ of Summon is received from Third Party, hand over the Writ to the insurer within 7 days for the insurer to act legally.
Insurer will then engage their panel of lawyers to handle the legal claims.
Many are not sure of the Writ of Summons have to be handed over to insurer within 7 days.
A writ of Summon come from the other party does not mean, they will win the case, if you are not at fault, insurer will fight the case and legal cost is paid by insurer.
There is no need to headache of legal fight when writ of summon turns up at your door step, hand delivered to you.
- Thomas Phua