During the past two years, many insurance companies had cut their bonus due to the global financial crisis. Although the investment markets had largely recoverd, these companies had still not restored their bonus. This has badly affected the policyholders whose policies had matured recently. They received payouts that are far less than what was originally projected, and less than what had actually been earned on their premiums.
I hope that the regulator (MAS) will look into this matter and ensure that policyholders of matured policies receive a fair payout, that reflect the investment return that has been earned on their premiums over the past years. The payout should not be reduced by the surplus that is retained in the insurance fund to fund the marketing expenses of the insurance companies, made at the expense of the maturing policyholders.
Tan Kin Lian
Not even a single one?
ReplyDeleteLast time, I remember Mr Tan was fighting hard with NTUC Income on some issues with bonus.
ReplyDeleteLater, the Lehman Brother issue and financial crisis happened, and the NTUC Income was set aside.
Hope to continue the fight with Income again.
Vivolife gives bonus rate of 0.7% compounded at same 0.7%.
ReplyDeleteRevosave gives bonus rate of 1.3% compounded at 1.3%.
Do you think this so-called social enterprise is giving a good deal?
Yesterday in a foodcourt, I saw an insurance agent trying to smoke a couple. He was speaking quite loudly over the foodcourt noise and trying his best to keep talking and saying how good the returns are compared to bank FDs (probably selling endowments). Best is that this guy just had sales brochures, application forms and a calculator on the table. I dunno how he support his thesis of "higher returns" -- just pluck figures from the air and telling stories. The wife looked bored while the husband seemed more attentive (dunno if just out of politeness). Hopefully they didn't kenna conned.
'It is not the right time yet' they will tell you.
ReplyDeleteJust like the big gun telling workers who clamour for restoration of CPF cuts few years back. The eventual verdict from another big gun was, just forget the idea about retoration.
Meanwhile policyholders whose policies have matured have been had, while those holding policies nearing maturity are waiting for the 'right time' from the insurers to restore their bonuses, if ever.
My rule of thumb, never trust Union chiefs. And insurers as well!
I paid the final instalment on my insurance policy yesterday, March 1st 2010. Honestly, I have no choice but to pay, i.e. HONOUR MY CONTRACT. Do you know how severe my financial loss would have been if I didn't?
ReplyDeleteNext year, 2011, on maturity date, I shall see how THEY HONOUR THEIRS.
Nah... these companies will be slow to restore interest rates, if ever. Then they will use a s*** load of excuses like "challenging investment climate" to explain away their low interest rates. I simply don't trust them now.
ReplyDeleteWhat is MAS doing? Why they do not engaged Mr Tan as expert to help the financial industry?
ReplyDeleteVivolife gives bonus rate of 0.7% compounded at same 0.7%.
ReplyDeleteRevosave gives bonus rate of 1.3% compounded at 1.3%.
Do you think this so-called social enterprise is giving a good deal?
Yesterday in a foodcourt, I saw an insurance agent trying to smoke a couple. He was speaking quite loudly over the foodcourt noise and trying his best to keep talking and saying how good the returns are compared to bank FDs (probably selling endowments). Best is that this guy just had sales brochures, application forms and a calculator on the table. I dunno how he support his thesis of "higher returns" -- just pluck figures from the air and telling stories. The wife looked bored while the husband seemed more attentive (dunno if just out of politeness). Hopefully they didn't kenna conned.
Anon March 02, 2010 1:36 PM
Did you know that MAS issued a warning on 28th Jan 2010 that no insurance agent, no insurance company, NOBODY is to use the bank rate for comparison? It is misrepresentation because the product whether it is vivolife or revosave doesn't have the characteristics of banks FDs.It is misleading and the customer or a whistle blower can report to MAS invoking the misleading statement guideline issued by MAS.
I bet the agent from ntuc had no idea of the return and if he had he would be very shy to tell the customer that it is only 2% AFTER 25 years.The calculator was for show becuase I know ntuc agents know F about financial calculation.
If the customers had bought any of them they would made the biggest mistake they have made in their life and shackled for life. Good luck to them for being blind. They could be ntuc existing policyholders. Their trust was being exploited by the unscrupulous agent.
The ntuc vivolife or revosave return is so low that it can beat the bank rate only. The agents will never use inflation rate becuase it cannot beat inflation even after 30 years.
ReplyDeleteSo you can see this is the way insurance agents sell hoping to fool some idiots and ignorant customers out there.
MAS banned the use of this comparison becuase it misrepresents and deceptive but do ntuc agents care when they are out to push these products?
Hi Mr Tan where is the office you purchase located?
ReplyDeleteIt must be a good buy.
Care to share so that people like you who wish to buy an office can might buy at your same location.
So that it will be a good investment.