Saturday, October 22, 2016

Deducting premium from wrong GIRO account

An insurance company had been deducting the premium from the GIRO account belonging to another policyholder. The company discovered the mistake after 8 years and informed the account owner.

The account owner asked for compensation for the wrongful deduction. After a delay, the insurance company calculated the interest based on the average fixed deposit rate of 1.2% p.a.

The account owner had been paying interest at 5.5% on a loan taken from his own policy. He asked for the interest to be computed at 5.5%.

My comments:

a) The request for the interest to be computed at 5.5% is fair.
b) It is important for the account holder to check the GIRO deduction regularly to spot this kind of mistake.

1 comment:

Yujuan said...

Only God knows mistake may be committed more than 8 years ago.
Giro payments means the account holder to check their monthly Bank Statements, with fear of cyber security in the balance, what with the Govt allowing Singapore Pools to join in the greed of Online gambling.
Gambling is against Islam and Christianity, first with land casinos, now online gambling.
Ask our Govt, what's next, online prostitution booking? Prostitution also another necessary human vice what. Also can go underground what.

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