Dear Mr. Tan,
If NTUC allows some policyholders to stay on the "old bonus structure", can NTUC punish these policyholders by giving a low rate of annual bonus in the future?
REPLY
The actuary and board of directors are required to act fairly in the distribution of the bonus among different groups of policyholders. If they act in a malicious manner, they can be subject to law suits and be personally liable.
but the directors could be covered under some kinds of "Director Insurance"... lawsuits will not harm them...
ReplyDeleteMr. Tan, do know if the NTUC Income directors are protected under such insurances??
http://en.wikipedia.org/wiki/Directors_and_officers_liability_insurance
The directors and officers insurance does not cover wrongful actions deliberately taken by the insured persons.
ReplyDeleteBut whose interest do you think the directors are going to protect and surely you have to prove that they are acting in a malicious manner.
ReplyDeleteyes, i think it is arduous to prove whether the directors are deliberate or not... it would probably take a long drawn court case to prove it...
ReplyDeleteHi Mr.Tan,
ReplyDeleteI remembered vividly that in 2003 and 2004,NTUC Insurance also cut our bonus....Why??