Tuesday, April 06, 2010

Unethical opt-out mailer on insurance



Vincent Teo said...

The writer is referring to Aviva's Group Term insurance with SAF. I have also received such a letter of offer from Aviva.

Basically for me who was enlisted during the early 90s, our SAF Group Term policy was only $20k and it cost me abt $2.50 per month. Under this new offer, Aviva will upgrade the coverage 10 times to $200k and the new premium will be abt $25 per month. If you calculate, the premium rate actually remains the same as around 20 yrs ago.

What more, the new offer does not require any medical undedrwriting so long as you do not have any pre-existing illness DURING the time you first bought the Group Term and never been declined by Aviva in you insurance application before.

I find it a good offer and will be taking up the offer. Some more, it is going to be fuss free as I do not have to do anything and the upgrade will auto kick in on July this year.

LetThereBeLight said...

Dear Mr Vincent Teo

U said that the policy is so-good so-good, and that u "will be taking up the offer" because it is some more so-good so-good.

However, you remained silent on the more important points brought up by the writer.

So we take it that because the Aviva policy is so-good so-good to u, so u DISagreed with Mr Justin Fong that:

"First, it is unethical to couch a de facto premium increase in the guise of an offer, and

second, it should be illegal to charge a customer more without his explicit consent."

Anonymous said...

I think you are trying to SELL Aviva's product. Good try. Nobody is interested in whether you are signing up or if you are dropping it or if you think it is a good offer. So what if you think it is a bad offer, it is not even the point of discussion.

The fact is: It is not whether the offer is good or bad. The usefulness of the product depends on the individual's need.

However it is the practice that is not unethical.

Vincent Teo said...

Ok I get to the point.

The letter from Aviva comes in an envelope address to the attention of the concerned SAF person. So before you chuck it into the rubbish bin, don't you think that you should at least read the content?

Okay, there will be a group of "out of the country, always not around, not aware, bochup" people in this world. They will cry foul that this auto opt-in is unfair, as insurance companies are always "unethical, out to cheat". Then again, you have from now until July 2010, a whopping 4 months to take action.

Suppose if Aviva turn around and say, okay now we will have auto opt out instead, i.e. you have to reply to opt in or else you are out. Maybe we will have another group of whiners out there who complain, why make it so troublesome? We are not aware, becos we are always out of country, busy, bochup etc, so unfair........So how you want it to be?

I think we have to moderate the "hate insurance company, hate insurance agent" culture here. Btw I am not an agent and I do not gain anything promoting any insurance product here.

Anonymous said...

Justin Fong made a valid and fair statement: "I have two issues with the way Aviva handled this. First, it is unethical to couch a de facto premium increase in the guise of an offer, and second, it should be illegal to charge a customer more without his explicit consent."

I hope MAS look into this illegal and unethical practice. This company, Aviva, is not being fair to its clients and it is despicable for it to resort to such dirty, underhand tricks to con consumers of their hard-earn cash.

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