Friday, November 09, 2012

Transparency of insurance contracts

Do you want to know clearly what is covered or excluded under your insurance policy? It is not just a matter of the use of simple language in the policy contracts. The application of insurance principles and the interpretation of the claims officer play a bigger part.

1 comment:

zhummmeng said...

Can plain English make insurance contract more transparent? More importantly, can plain English eliminate miss-selling and prevent product pushing?
Is plain English the issue of the current under insurance?
The issues are
1.cost of insurance that consumers cannot afford enough of those wholelife products that the favourites of insurance agents and the companies. You know the reason, right? more lucrative to both the salesmen and the companies
and the consumers suckers pay for it at their own expense,ie. under insured.
2.The approach by insurance agents is peddling and pushing toxic products no different from drug trafficking.
3.The indsutry is fooling both MAS and the consumers that they are fact finding in the interest of the consumers. The truth is it is an exercise by LIA to pull the wool over our eyes and MAS to make us believe that our interest is put above theirs. Fact find is used as a wrapper to hide the motives and unsuitable products and product peddling to make the agents look professional.Any qualified financial planner or consultant can testify that this modus oprandi by the industry is to fool and convince MAS that they are doing something to address the cost and under insurance problems.To save their rice bowls the companies and the agents are resorting to falsehoods and illusions to tug the heart of heartless MAS.MAS must use rationality and not emotion to deal with these matters by banning commission.
Transparency is good just like honesty and competence. But unfortunately the indsutry is using it to substitute for honesty and competence which underpin the fit and proper requirement of all financial advisers.

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