Thursday, June 11, 2009

Cut in maturity benefit just before maturity

Mr Tan,

I have a policy with X where I paid premium for 12 years which will mature in July. On  31 March 2009, upon my request I was given at estimated maturity sum. On April 24, I received a letter stating a maturity sum which differed by almost 10% lower.

I have emailed and spoken to X but without making much headway. Can an insurance company provide you with an estimate barely 3 months before maturity and then slashed it down by such a large sum?

I have emailed MAS and am thinking of approaching FIDREC. I would appreciate advice from you.

REPLY
X owes you a satisfactory explanation for the lower maturity sum. Between 31 March and now, the investment market had improved considerably. If there is any change, the maturity value should have been higher.

You can lodge a complaint with FIDREC. It will cost you only $50. If you wish to strengthen your case, you can consider asking CASE for help as well.
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6 comments:

Anonymous said...

Can there be a case when the maturity sum received is lower than the projected amount on the BI?
I doubt because the BI stated clearly that the amounts shown are projected = estimated = forecast. It is never meant to be 100% confirmed.

starlight

June 11, 2009 6:48 AM
Anonymous said...

Dear Mr Tan

Is company X = NTUC Income??

June 11, 2009 9:26 AM
Anonymous said...

You have the right to sue the agent for not going through the illustration and benefits with you and explaining to you properly the upsides and the downsides. The agent breached the section 27 of the FAA for not conducting the need analysis resulting in an inappropriate product.
Lodge with MAS for misconduct and mis=selling

June 11, 2009 12:21 PM
Anonymous said...

Take your case to FIDREC, let the Government be aware of the issue and initiate investigation. Something is not right about the insurance companies.

June 11, 2009 12:46 PM
Anonymous said...

I would not think that NTUC income is the only culprit, because I bought many SPP from many insurance companies and I suffer the same fate from all of them

Behind closed doors they are just brothers, so who wants to fall out of line?

Lost Citizen

June 11, 2009 3:44 PM
Anonymous said...

Yes, NTUC is not the only one but don't talk cock about social enterprise and donation and helping the poor. With whose money? the ceo's?

June 12, 2009 7:26 PM

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