Here are some extracts from the Unfair Practices Act:
Meaning of unfair practice
4. It is an unfair practice for a supplier, in relation to a consumer transaction —
(a) to do or say anything, or omit to do or say anything, if as a result a consumer might reasonably be deceived or misled;
(b) to make a false claim;
(c) to take advantage of a consumer if the supplier knows or ought reasonably to know that the consumer —
(i) is not in a position to protect his own interests; or
(ii) is not reasonably able to understand the character, nature, language or effect of the transaction or any matter related to the transaction; or
(d) without limiting the generality of paragraphs (a) to (c), to do anything specified in the Second Schedule.
Circumstances surrounding unfair practice
5. —(1) An unfair practice may occur before, during or after a consumer transaction.
(2) An unfair practice may consist of a single act or omission.
(3) In determining whether or not a person has engaged in an unfair practice —
(a) the reasonableness of the actions of that person in those circumstances is to be considered; and
(b) an act or omission by an employee or agent of a person is deemed also to be an act or omission of the person if the act or omission occurred in the course of —
(i) the employee’s employment with the person; or
(ii) the agent exercising the powers or performing the duties on behalf of the person within the scope of the agent’s actual or apparent authority.
Consumer’s right to sue for unfair practice
If a consumer has been the subject of an unfair practice, the consumer can sue the supplier under this Act, but the amount of claim is subject to a limit of $20,000.
I took up a foreign domestic package with a maid agency last month to take care of my bedridden dad. They cannot find me a suitable trained maid to fulfill the job description. My dad passed away 2 weeks after I signed up the package. I requested a refund from the agency but was rejected. Currently, i am seeking redress from Small Claims Tribunal. Hope something good can come up from it.
ReplyDeleteSoon entrapment will be outlawed by the Law Society as a means of gathering evidence against fellow rogue lawyers. The life insurance industry or rather the MAS should pick it up for use to ensnare errant or law breaking rogue insurance agents.
ReplyDeleteAlthough whistle blowing is in place it is not effective as a tool to nap fellow agents who tarnish the profession.
Also is the mystery shopping means has not yielded any result as the 'shoppers' are untrained to trap the insurance agents.
MAS should use entrapment to ensnare these rogue and incompetent agents to send a strong message that MAS means business.
Can unfair practice be applicable to politics?
ReplyDeleteIf an insurance agent pitches a short term single premium endowment to a customer and tells the customer that it is good because it returns more than a FD. This is the only information and no fact find is conducted.
ReplyDeleteIs the agent guilty of non disclosure?
Is the agent misrepresenting the product?
Is the agent mis-selling the product?
Is the agent's recommendation inappropriate?
Is the agent misleading the customer? etc etc
Lately the so called big 4 insurers have been competing in this arena and I find they are exploiting the fear of customers.
Fast food chains and food courts are the worst offenders. Look at the pictures of dishes they display and compare them dishes actually served. Another offender is the beauty and slimming business. They hire models who're already beautiful and shapely without using their products and services for their adverts.
ReplyDeleteREX Comments,
ReplyDeleteThere is another fairly common but unehtical practice.
"Interest" payments, being a percentage figure, when used for comparisons should always be referenced against standard "per year". Some unethical finance institutions bundle up the interests over a number of years together and tell you in huge advertisements, earn 4.xx% interest!!! It is meaningless to add the p.a. interests of year 1, 2, 3, and 4 etc., together and say the interest is, 4.xx%. This is warped logic, because you could theoretcially end up with any high figure, and even more than 100% interest, by adding up sufficient number of individual % together in a series of payments.
Additionally, some institutions even have the boldness to use a non guarantee value to advertise a product.
The advertising standards authority and the government should step in and impose a heavy fine on any company engaged in these two examples of unfair advertising practices. I also wonder whether there is a Consumers Association in singapore to watch and escalate such matters; it looks like everybdoy having a long sleep, government and consumers association, everybody.
REX
In any case, my personal experience is, 40 to 60% FYC is fair renumeration for agents. If you don't believe me, try joining an insurance company and sell insurance. If you think selling insurance is not a real job, hope you got a real job or go find one.
ReplyDeleteIf 40 to 60% is only for first year , then it is fair. In fact this has been proposed to MAS that commission paid for one year only. On second thought , not fair because almost all insurance agents a do Fxxx form filling(I am borrowing from MAS) they are grossly over paid.
ReplyDeleteIf you think it is hard to do proper and right thing for your customers then you should leave. This is not a place where your activities are paid. You are paid for fixing the needs of your clients, ie, to find a solution to the financial needs of your clients and NOT sold a product so that you get a fat commission.
Currently selling insurance is a SELLING JOB , A PRODUCT PUSHING JOB .. In life insurance it is about meeting the needs of your client and not push a product to your clients.
Mr. Vincent, tell me HONESTLY .What is the percentage of agents submitting option 1 & 2 for their KYC? Tell me and let's see whether they deserve to be paid 200% for what they have been doing.
I agree with Vincent Sear. To those who think all insurance agents does is just form filling, try to be one and you will know.
ReplyDeleteAs for the "grossly paid" paid, there are many other jobs in Singapore that are really grossly paid.
Regards
An Insurance agent.
I can tell you honestly.
ReplyDeleteMost par policies pay 40-60% FYC. Then becomes 20-10% in subsequent years, seldom exceeding 4-6 years. Total commission paid to agent should be about 1-year premium.
Think that's expensive? A typical 30-year policy and 1-year commission is expensive? I think it's fair. If you think it's expensive, don't buy.
What's more expensive than whole life or endowment? Let me tell you. It's the staple products, health, motor, accident policies etc. They don't pay high upfront commission to agents. Usually only 10-15%. But they they pay every year. If you keep a health or motor insurance policy for 10 years, you'd have incurred more than 100% distribution cost.
An Insurance agent,
ReplyDeleteplease remember that your leg work, your prospecting, your phone calls, form filling, celebrate their birthday , fetch their children from school, buy breakfast for them , send them to hospital or clinic or whatever craps you do , carry their balls,extra service etc don't justify you to be paid the commission you earn. All these activities DON"T ADD VALUE to the clients' financial life.
It is in the financial advice, the work, the analysis etc that add values and you are paid for these serious works which require your knowledge, financial skills , competence and honesty.
You get it?
Anyway, let MAS deal with you salesmen and women.
Dear Insurance agent,
ReplyDeleteForm filling and commission are mentioned in one of MAS consultation papers.If it isn't true where did MAS pick the phrase?
Thank you, An Insurance Agent. I'm no longer an insurance agent or supervisor. I don't make anything speaking for insurance agents. I was one before, and I behaved honestly. If anybody says ALL insurance agents are crooks and I read it, surely I have to reply. I just voice out honestly.
ReplyDeleteTo: Anonymous 5:32PM
ReplyDeleteFrankly, as a agent at Prudential, I didn't know about other agents' KYC ratios. As a supervisor at NTUC Income, I can tell tell you it's been 90%+ options 1 and 2.
I apologise for the mistake. I mean options 3 or 4.
ReplyDeleteVincent, you are spot on!!! Option 3 or product advice is most popular with ntuc agents.Don't blame them . They are all pushing products. That is why their management dubbed them as Super Duper Sales Champions. Dupers are dupers duping people into buying products that the buyers are clueless about, ie just a product.
ReplyDeleteOption 4 is no advice. It is for savvy consumers who don't need advice.This group expects steep discount or zero load insurance products. Why should they pay commission? They know more than the agents, right?
Last year, ntuc had the lowest option 1 or 2 in the industry.Maybe about 10% as said by Vincent. The highest but bullshit one was the Manipulated Life.The problem is every insurance company reported 'fake account', self audited. The truth is the industry is still driven by 'product pushing', easy , fast and lucrative and best is push the blame to the consumers.
ReplyDelete"they want it , wah'. 'i propose term but they want wholelife one , wah". Caveat Emptor is as good as cheating which the agents can hide behind.
"What is the percentage of agents submitting option 1 & 2 for their KYC?"
ReplyDeleteOr should you ask what is the percentage of clients willing to sit down for 2-3hours to carry out option 1? That's before talking about the products.
Industry average is 40% of option 1 & 2 but discounted by 50%.
ReplyDeleteThis despite CEDLI was introduced in 2001. So that is the result of self regulation.
Hope MAS will start regulating and enforcing.
Client not willing? The right thing to deal them is to reject them.
Start with the Land Banking companies. They promote a long term investment with huge potential gains. None have been achieved and the industry has a a very high rate of company failure leaving investors with up to 100% loss.
ReplyDelete