NTUC Income offers fair settlement of claims. Sometimes, the clainmant is badly advised and tried to ask for a higher compensation. Here is a recent case.
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Our insured, who was driving a motor cycle, had hit into the deceased, who was crossing a 4 lane road (not at a pedestrian crossing). Approximately 2 weeks after the accident, the deceased died.
The deceased's wife made a clim in excess of $250,000 for dependency and pain and suffering suffered by her late husband.
Our claims committee made an offer to settle the claim for $35,000. The claimant rejected our offer and insisted on $250,000.
This matter was heard in court. The final award was for $26,000. With interest, the total was $29,000.
Cost of $6000 was awarded against the claimant. We were also allowed to claim for our cost of $30,000 to defend the claim in the high court.
This has been very costly for the claimant. If she had been properly advised, she should have accepted our offer of $35,000 and save a lot of money on legal expenses.
Friday, December 23, 2005
Thursday, December 22, 2005
NTUC Income's contribution to NKF
In 1990, NTUC Income contributed $300,000 to set up the NKF dialysis center in Bukit Batok and $50,000 (raised from our staff and agents) for the running cost of the center. This was a special project under our 20th anniversary celebration.
In the subsequent years, we contributed a very modest sum (ie less than $5,000 a year) to the NKF. We felt that NKF was already raising more than needed from other sources.
During tihs period, we channelled our contribution to the Community Chest, which served 100 times the number of beneficiaries in Singapore. In 2005, we contribute nearly $250,000 to the Community Chest. This compriseof the contribution from the staff and matching contribution from NTUC Income.
We will find appropriate ways to support the NKF in future years, based on its future needs. We urge the public to continue its support of the NKF, who is charting its future directions.
In the subsequent years, we contributed a very modest sum (ie less than $5,000 a year) to the NKF. We felt that NKF was already raising more than needed from other sources.
During tihs period, we channelled our contribution to the Community Chest, which served 100 times the number of beneficiaries in Singapore. In 2005, we contribute nearly $250,000 to the Community Chest. This compriseof the contribution from the staff and matching contribution from NTUC Income.
We will find appropriate ways to support the NKF in future years, based on its future needs. We urge the public to continue its support of the NKF, who is charting its future directions.
600 people tried website within 1 week
NTUC Income's latest educational website has so far attracted more than 3,000 visitors. Last week alone, more than 600 people has registered and used this site.
We did a survey on this group of 600 users (of which 65 per cent are external users, i.e. non staff). A good 96 per cent responded that they are happy with the website and the quality of materials used.
The most popular topics are:
investment linked policies
medical insurance
i-Young (package for young people)
personal accident
motor insurance
We did a survey on this group of 600 users (of which 65 per cent are external users, i.e. non staff). A good 96 per cent responded that they are happy with the website and the quality of materials used.
The most popular topics are:
investment linked policies
medical insurance
i-Young (package for young people)
personal accident
motor insurance
New website to educate public on insurance
NTUC Income is pleased to announce the launch of an educational and interactive website on insurance at www.KnowYourInsurance.com.sg.
Many people may not think about insurance until they are approached by an insurance agent. Some people do not like to meet up with an insurance agent, as they fear that they may be pressured into buying insurance policies that they do not need or cannot afford. Many people also find insurance quite complicated.
However, it is important that everyone should have insurance to protect against the risk of premature death, accidents or major illnesses.
NTUC Income recently conducted a public survey to better understand the insurance needs of people between 30 to 40 years old. The results interestingly revealed that about 70 per cent of the respondents preferred learning the basic facts of insurance in their own time, if it can be made easily available to them.
KnowYourInsurance.com.sg is the new approach in educating the public on insurance.
Chief Executive Officer Tan Kin Lian said, "NTUC Income believes in educating our consumers on insurance products and helping them to make the right choices. By setting up this educational website, we provide an option to the consumer to learn about the basic facts of insurance on their own. It is an easy and fun way to learn."
The website covers the common insurance products, such as motor insurance, personal accident, financial planning, travel insurance, saving for education and medical insurance."
This website has an added, challenging feature for the visitors to test their knowledge at the end of each topic. A visitor who completes the test will also receive a discount when he or she purchases an insurance policy directly from NTUC Income.
Many people may not think about insurance until they are approached by an insurance agent. Some people do not like to meet up with an insurance agent, as they fear that they may be pressured into buying insurance policies that they do not need or cannot afford. Many people also find insurance quite complicated.
However, it is important that everyone should have insurance to protect against the risk of premature death, accidents or major illnesses.
NTUC Income recently conducted a public survey to better understand the insurance needs of people between 30 to 40 years old. The results interestingly revealed that about 70 per cent of the respondents preferred learning the basic facts of insurance in their own time, if it can be made easily available to them.
KnowYourInsurance.com.sg is the new approach in educating the public on insurance.
Chief Executive Officer Tan Kin Lian said, "NTUC Income believes in educating our consumers on insurance products and helping them to make the right choices. By setting up this educational website, we provide an option to the consumer to learn about the basic facts of insurance on their own. It is an easy and fun way to learn."
The website covers the common insurance products, such as motor insurance, personal accident, financial planning, travel insurance, saving for education and medical insurance."
This website has an added, challenging feature for the visitors to test their knowledge at the end of each topic. A visitor who completes the test will also receive a discount when he or she purchases an insurance policy directly from NTUC Income.
Wednesday, December 21, 2005
Reply: accident with taxi leads to insurance woes
21 December 2005
The Editor
Online Forum Page
Straits Times
I refer to the letter entitled "Accident with taxi leads to insurance woes" by Jonathan Tan Meng Chye (ST Online Forum, 19 Dec 2005).
NTUC Income insures about 40 percent of all vehicles in Singapore. Our policyholders regularly encounter this type of situation. We wish to give the following advice, as a guide to motorists.
Motorists must always maintain a safe distance from the car in front. They should be able to stop in time without hitting it in the event the car in front has to stop suddenly. The recommended distance between cars is about 2 car lengths.
When a car collides squarely into the back of a car, the presumption is that the driver of the rear car was negligent in not keeping a safe distance. To overcome this presumption, the onus is on the driver to prove that the front car had cut so suddenly into his path that he was unable to avoid colliding into it.
The workshops that were approached by Mr Tan were not keen to assist him in pursuing a claim against the taxi driver, as it will be an uphill task to prove his case. He should have a witness to prove his assertion that the taxi driver had cut into his path to succeed fully or partially in his third party claim.
If Mr. Tan is able to prove his case, the law and our courts will protect him and enable him to recover his loss from the third party. Further, if Mr. Tan is able to prove that the taxi driver was negligent, he will be able to recover part of his legal costs from the taxi driver. Generally, the legal costs recoverable from the party at fault is about two-third of the costs that the successful party would have to pay his own lawyer.
In this case, we advise Mr. Tan to claim against his own insurance policy. If we are able to establish that the other driver was 80 per cent or more at fault, we will not penalise Mr. Tan's NCD.
Freddy Neo,
Claims Senior Manager
The Editor
Online Forum Page
Straits Times
I refer to the letter entitled "Accident with taxi leads to insurance woes" by Jonathan Tan Meng Chye (ST Online Forum, 19 Dec 2005).
NTUC Income insures about 40 percent of all vehicles in Singapore. Our policyholders regularly encounter this type of situation. We wish to give the following advice, as a guide to motorists.
Motorists must always maintain a safe distance from the car in front. They should be able to stop in time without hitting it in the event the car in front has to stop suddenly. The recommended distance between cars is about 2 car lengths.
When a car collides squarely into the back of a car, the presumption is that the driver of the rear car was negligent in not keeping a safe distance. To overcome this presumption, the onus is on the driver to prove that the front car had cut so suddenly into his path that he was unable to avoid colliding into it.
The workshops that were approached by Mr Tan were not keen to assist him in pursuing a claim against the taxi driver, as it will be an uphill task to prove his case. He should have a witness to prove his assertion that the taxi driver had cut into his path to succeed fully or partially in his third party claim.
If Mr. Tan is able to prove his case, the law and our courts will protect him and enable him to recover his loss from the third party. Further, if Mr. Tan is able to prove that the taxi driver was negligent, he will be able to recover part of his legal costs from the taxi driver. Generally, the legal costs recoverable from the party at fault is about two-third of the costs that the successful party would have to pay his own lawyer.
In this case, we advise Mr. Tan to claim against his own insurance policy. If we are able to establish that the other driver was 80 per cent or more at fault, we will not penalise Mr. Tan's NCD.
Freddy Neo,
Claims Senior Manager
Saturday, December 17, 2005
MMS initiative has got off to an encouraging start
Since the launch of this initiative one month ago , 40 policyholders had sent in their accident photos to NTUC Income.
This innovative approach helps the insurer to better handle iability dispute between the parties involved in the accident.
The policyholders are encouraged to use the mobilephone to take photographs of the damages to the vehicles immediately at the scene of the accident and to send them by MMS to NTUC Income. With the photographs as additional evidence, the assessment officers will be able to decide more accurately of the apportionment of liability between the parties.
This has proved to be effective. For 50% of these cases, the photographs showed that our policyhbolder was not at fault in the accident. For 40% of the cases, the photographs showed that our policyholder was less at fault compared to the other party.
The photographs help to strengthen the report of our policyholders, in the situation where both parties give different versions of the accidents and damages.
NTUC Income has to deal with about 200 cases of accidents each month, where both parties dispute the facts of the accident. Based on our experience, the use of the "on-the-spot" photographs will help to solve about 50% of the these disputes. This is based on the well known experience, "a picture tells a thousand words".
With the increased popularity of mobilephone cameras, we are confident that more of our policyholders will use this new service.
Policyholders can send their accident photos via MMS to 91INCOME or email us at photo@income.com.sg.
They can also call our motor hotline at 67886616 if they have any queries.
Freddy Neo
Senior Manage, Claims
NTUC Income
This innovative approach helps the insurer to better handle iability dispute between the parties involved in the accident.
The policyholders are encouraged to use the mobilephone to take photographs of the damages to the vehicles immediately at the scene of the accident and to send them by MMS to NTUC Income. With the photographs as additional evidence, the assessment officers will be able to decide more accurately of the apportionment of liability between the parties.
This has proved to be effective. For 50% of these cases, the photographs showed that our policyhbolder was not at fault in the accident. For 40% of the cases, the photographs showed that our policyholder was less at fault compared to the other party.
The photographs help to strengthen the report of our policyholders, in the situation where both parties give different versions of the accidents and damages.
NTUC Income has to deal with about 200 cases of accidents each month, where both parties dispute the facts of the accident. Based on our experience, the use of the "on-the-spot" photographs will help to solve about 50% of the these disputes. This is based on the well known experience, "a picture tells a thousand words".
With the increased popularity of mobilephone cameras, we are confident that more of our policyholders will use this new service.
Policyholders can send their accident photos via MMS to 91INCOME or email us at photo@income.com.sg.
They can also call our motor hotline at 67886616 if they have any queries.
Freddy Neo
Senior Manage, Claims
NTUC Income
Friday, December 16, 2005
Policyholder is happy with our review
Dear Mr Tan,
I would like to thank you for reviewing my wife's case. I am pleased to know that you have a team and procedures in place to handle such genuine appeals.
I understand that being the largest insurer in Singapore, sometimes you do face contraints of all sorts. But this review process is necessary as it provides a very positive image as being the largest insurer in Singapore that DOES LISTEN even to small clients like us, regardless of outcome.
Thank you all and once again.
I would like to thank you for reviewing my wife's case. I am pleased to know that you have a team and procedures in place to handle such genuine appeals.
I understand that being the largest insurer in Singapore, sometimes you do face contraints of all sorts. But this review process is necessary as it provides a very positive image as being the largest insurer in Singapore that DOES LISTEN even to small clients like us, regardless of outcome.
Thank you all and once again.
Thursday, December 15, 2005
How can we serve our policyholders better in 2006?
How can we serve We asked our policyholhoders better in 2006? We asked them. Here is the reply from 174 policyholders:
1. What is your top priority for the next 12 months?
* Get a better return on your savings [ including CPF ] 61%
* Increase regular savings 39%
* Re-schedule loan to reduce interest or monthly repayment 12%
2. How do you like to achieve your goal?
* Learn financial planning from an educational website 42%
* Attend an educational seminar 27%
* See a financial adviser 20%
* See an insurance adviser 12%
3. What is your top wish from NTUC Income?
* Offer new products at a discount for existing policyholders 67%
* Organise educational seminars 27%
* Provide free financial planning advice 26%
* Improve customer service 21%
1. What is your top priority for the next 12 months?
* Get a better return on your savings [ including CPF ] 61%
* Increase regular savings 39%
* Re-schedule loan to reduce interest or monthly repayment 12%
2. How do you like to achieve your goal?
* Learn financial planning from an educational website 42%
* Attend an educational seminar 27%
* See a financial adviser 20%
* See an insurance adviser 12%
3. What is your top wish from NTUC Income?
* Offer new products at a discount for existing policyholders 67%
* Organise educational seminars 27%
* Provide free financial planning advice 26%
* Improve customer service 21%
Wednesday, December 14, 2005
Know Your Insurance
We invite you to visit this website and try one or more of the topics. You will be asked to give your feedback at the end of the topic. We hope that you find it to be interesting.
www.KnowYourInsurance.com.sg
www.KnowYourInsurance.com.sg
Saving for your child
Do you know the answes to these questions?
Visit www.KnowYourInsurance.com.sg
1. How much should a parent save for a child's education?
2. What happens if the saving is insufficient to fund the tertiary education?
3. Which type of investment is likely to give the best return on the savings?
4. Over a 15 year period, what is the difference between a low return (2% p.a.) and a high return (6% p.a.)?
5. What are the advantage of a flexible saving plan?
6. How can you reduce the risk of investment?
7. What type of rider provides adequate coverage at a low premium?
... and many more.
Visit www.KnowYourInsurance.com.sg
1. How much should a parent save for a child's education?
2. What happens if the saving is insufficient to fund the tertiary education?
3. Which type of investment is likely to give the best return on the savings?
4. Over a 15 year period, what is the difference between a low return (2% p.a.) and a high return (6% p.a.)?
5. What are the advantage of a flexible saving plan?
6. How can you reduce the risk of investment?
7. What type of rider provides adequate coverage at a low premium?
... and many more.
Tuesday, December 13, 2005
Is Incomeshield adequate?
You are the most open, frank and trusted CEO I hv known so far. Thank you in advance for allowing me to write directly to you.
Incomeshield advertised "Why buy expensive Shield plans when Incomeshield provides SUFFICIENT cover for B2,B1 and A class wards ?"
Q1. Does this means ALL inpatient sub-limits in Incomeshield plans A,B and C are sufficient to cover all types of operation bills in their respective wards ?
Reply: The sub-limits are sufficient for most types of hospital treatment. It may be insufficient for some major illness. But, I understand that most people are insured under a dread disease policy (life insurance policy), which will pay for these major illness.
Q2. If not, pls advise probability of one exceeding each sub-limits based on Incomeshield past claim records.
Reply: If you select the right ward in restructured hospital, the sub-limits should be sufficient for more than 90% of the cases.
Q3. When will Income offers a rider for "as charged basis, ie. without inpatient sub-limits" per Straits Times report dated 6 Jul 2005, page H21.
Reply: We have introduced a Plan P that offers higher coverage than plan A, and is suitable for private hospital. We are still working on the "as charged" rider, and have not decided on how to implement it.
Strongly believe Income will woo many undecided Shield holders to Incomeshield plans if answers to above questions are publish nationwide.
Incomeshield advertised "Why buy expensive Shield plans when Incomeshield provides SUFFICIENT cover for B2,B1 and A class wards ?"
Q1. Does this means ALL inpatient sub-limits in Incomeshield plans A,B and C are sufficient to cover all types of operation bills in their respective wards ?
Reply: The sub-limits are sufficient for most types of hospital treatment. It may be insufficient for some major illness. But, I understand that most people are insured under a dread disease policy (life insurance policy), which will pay for these major illness.
Q2. If not, pls advise probability of one exceeding each sub-limits based on Incomeshield past claim records.
Reply: If you select the right ward in restructured hospital, the sub-limits should be sufficient for more than 90% of the cases.
Q3. When will Income offers a rider for "as charged basis, ie. without inpatient sub-limits" per Straits Times report dated 6 Jul 2005, page H21.
Reply: We have introduced a Plan P that offers higher coverage than plan A, and is suitable for private hospital. We are still working on the "as charged" rider, and have not decided on how to implement it.
Strongly believe Income will woo many undecided Shield holders to Incomeshield plans if answers to above questions are publish nationwide.
More educational talks
FROM THE PUBLIC:
It is heartening to know that you always have the interests of policy holders at heart - hence the dialogue sessions on Annuity Plans. Can I know whether you are making any more presentations for those who cannot be accommodated in the two sessions organised?
MY REPLY:
We will be holding more dialogues sessions and educational talks on annuities and other insurance products. You can get a schedule of the talks at our website: www.income.coop
http://www.income.coop/seminar/
It is heartening to know that you always have the interests of policy holders at heart - hence the dialogue sessions on Annuity Plans. Can I know whether you are making any more presentations for those who cannot be accommodated in the two sessions organised?
MY REPLY:
We will be holding more dialogues sessions and educational talks on annuities and other insurance products. You can get a schedule of the talks at our website: www.income.coop
http://www.income.coop/seminar/
Ideal Plan is better than Unit Trusts
Two visitors posted in my blog - that is is better to invest in a unit trust with a term rider, instead of investing in a investment linked plan. They asked for my views.
Generally, they are correct. Many ILPs have high charges and take away 1 or 2 years of savings. They also have the front end and annual spread.
The Ideal plan from NTUC Income is different. It invest 100% of the regular savings from the first month (like a unit trust). The front end spread is 3.5% and the annual charge is less than 1%. A unit trust usually has a front end spread of 5% and an annual charge of up to 2%.
By investing in our Ideal plan, the investor may be able to get 5% to 10% more over a period of 10 years - from our lower charges. It is better than invest in our Ideal plan (and select our Combined Fund) that a unit trust.
Do attend our educational talk on the combined fund. The schedule of the talk is found at: www.income.coop/seminar/
Generally, they are correct. Many ILPs have high charges and take away 1 or 2 years of savings. They also have the front end and annual spread.
The Ideal plan from NTUC Income is different. It invest 100% of the regular savings from the first month (like a unit trust). The front end spread is 3.5% and the annual charge is less than 1%. A unit trust usually has a front end spread of 5% and an annual charge of up to 2%.
By investing in our Ideal plan, the investor may be able to get 5% to 10% more over a period of 10 years - from our lower charges. It is better than invest in our Ideal plan (and select our Combined Fund) that a unit trust.
Do attend our educational talk on the combined fund. The schedule of the talk is found at: www.income.coop/seminar/
Monday, December 12, 2005
Survey: Insurance needs of young parents
108 people aged 30-40 replied to our I-survey. 71% are married with children, and 29% are either married with no children or are singles. 90% are working, and 10% are either self-employed or are looking for a job.
84% said that a young parent set aside $100 to $200 a month as a separate saving for each child.
36% said that a yong parent should insure for 5 to 10 years of earnings; 36% choose 3 to 5 years; 28% choose 1 to 3 years. The average is 5 years.
50% prefer to pay an $1,000 yearly for a life insurance for $30,000 (with return on savings); 37% prefer to pay $150 yearly for term insurance (death and accident) for $100,000; 13% prefer to pay $100 for accident insurance of $200,000.
50% said that a young parent should save 5 to 10% of monthly income on insurance; 26%
will less than 5% and 23% will save 10 to 20%. The average is close to 10%.
78% will choose term assruance (to cover death from all cases) if the budget is limited; 24% will insure for hospital or accident only.
48% prefer to buy a simple, low cost insurance plan first, and do the financial plan later; 44% prefer to do the financial plan immediately.
68% prefer to learn about the basic facts of insurance on your own; 32% prefer to rely on the advice of an insurance agent.
63% prefer to invest in a flexible, long term saving plan that gives an attractive return; 28% prefer to save in a life insurance policy that has a fixed premium and benefit.
76% prefer to buy a separate contracts for protection and for savings; 24% prefer a bundled contract.
49% prefer to approach the insurer directly for a discount: 42% prefer to get a discount from the agent; 9% will buy without a discount (to help a friend to achieve the sales quota).
Period of Survey: 5 Dec - 12 Dec 2005
84% said that a young parent set aside $100 to $200 a month as a separate saving for each child.
36% said that a yong parent should insure for 5 to 10 years of earnings; 36% choose 3 to 5 years; 28% choose 1 to 3 years. The average is 5 years.
50% prefer to pay an $1,000 yearly for a life insurance for $30,000 (with return on savings); 37% prefer to pay $150 yearly for term insurance (death and accident) for $100,000; 13% prefer to pay $100 for accident insurance of $200,000.
50% said that a young parent should save 5 to 10% of monthly income on insurance; 26%
will less than 5% and 23% will save 10 to 20%. The average is close to 10%.
78% will choose term assruance (to cover death from all cases) if the budget is limited; 24% will insure for hospital or accident only.
48% prefer to buy a simple, low cost insurance plan first, and do the financial plan later; 44% prefer to do the financial plan immediately.
68% prefer to learn about the basic facts of insurance on your own; 32% prefer to rely on the advice of an insurance agent.
63% prefer to invest in a flexible, long term saving plan that gives an attractive return; 28% prefer to save in a life insurance policy that has a fixed premium and benefit.
76% prefer to buy a separate contracts for protection and for savings; 24% prefer a bundled contract.
49% prefer to approach the insurer directly for a discount: 42% prefer to get a discount from the agent; 9% will buy without a discount (to help a friend to achieve the sales quota).
Period of Survey: 5 Dec - 12 Dec 2005
Survey: Insurance needs of young people
146 young people aged 20-30 repled to our survey. 85% are employed. 15% are still studying or looking for a job.
85% said that young people need life or accident insurance, as accidents can happen.
97% said that young people should have insurance, even if they are not married, so that they can leave something for thier parents.
62% want to save $100 to $200 a month for insurance and savings, when they start work. 38% prefer to spend $10 to $20 a month for insurance protection (ie no saving).
85% said that a tertiary student should spend $10 to $20 a month to be insured, and leave something for the parents.
89% prefer a combination of hospital and accident coverage.
82% prefer to buy a simple, low cost insurance plan first, and make the financial plan later.
72% are willing to learn about the basic facts of insurance on your own at an educational website. 28% prefer to see an insurance adviser.
68% prefer to invest in a flexible, long term saving plan that gives an attractive return. 20% prefer to save in a life insurance policy with fixed premium and benefit. 12%
75% prefer an unbundled contract, with protection and saving purchased separately. 25% prefer a bundled contract.
48% prefer to buy insurance directly, if they can get a discount. 37% prefer to approach an insurance agent for a discount. 15% will help their friend to meet hte sales quota (ie no discount).
85% said that young people need life or accident insurance, as accidents can happen.
97% said that young people should have insurance, even if they are not married, so that they can leave something for thier parents.
62% want to save $100 to $200 a month for insurance and savings, when they start work. 38% prefer to spend $10 to $20 a month for insurance protection (ie no saving).
85% said that a tertiary student should spend $10 to $20 a month to be insured, and leave something for the parents.
89% prefer a combination of hospital and accident coverage.
82% prefer to buy a simple, low cost insurance plan first, and make the financial plan later.
72% are willing to learn about the basic facts of insurance on your own at an educational website. 28% prefer to see an insurance adviser.
68% prefer to invest in a flexible, long term saving plan that gives an attractive return. 20% prefer to save in a life insurance policy with fixed premium and benefit. 12%
75% prefer an unbundled contract, with protection and saving purchased separately. 25% prefer a bundled contract.
48% prefer to buy insurance directly, if they can get a discount. 37% prefer to approach an insurance agent for a discount. 15% will help their friend to meet hte sales quota (ie no discount).
Buy term assurance to protect your family
There was a story in the newspaper about a widow with young children. Her husband passed away, and left her with financial liabilities to settle. Later, she became an insurance adviser, and used her example to advocate that all families should be adequately protected.
I agree.
Here are some options for a person age 30 to secure an life insurance protection of $200,000:
- whole life policy $3,000 - $6,000 a year
- term assurance policy $800 (male) $560 (female) a year
- decreasing term assurance $320 (male), $240 (female)a year
When you meet your insurance adviser, you should ask for the three options. You can find that life insurance cover (especially with a decreasing term assurance) can be quite affordable.
IF you can afford to save more, you can consider a whole life policy - which gives you a cash value.
More people now opt to buy a decreasing term assurance and invest the difference in an investment-linked fund.
Make the right choice. Learn about insurance through this educational website:
www.KnowYourInsurance.com.sg
I agree.
Here are some options for a person age 30 to secure an life insurance protection of $200,000:
- whole life policy $3,000 - $6,000 a year
- term assurance policy $800 (male) $560 (female) a year
- decreasing term assurance $320 (male), $240 (female)a year
When you meet your insurance adviser, you should ask for the three options. You can find that life insurance cover (especially with a decreasing term assurance) can be quite affordable.
IF you can afford to save more, you can consider a whole life policy - which gives you a cash value.
More people now opt to buy a decreasing term assurance and invest the difference in an investment-linked fund.
Make the right choice. Learn about insurance through this educational website:
www.KnowYourInsurance.com.sg
Sunday, December 11, 2005
Q&A on medical insurance
1. I am currently insured under MediShield and my company's medical insurance. Do I need to purchase additional insurance? If there is a claim, would I be able to claim under all three?
Reply: If you are covered under several medical insurance plans, you can decide on which plans to make your claim. However, the total amount that you can claim should not exceed the actual amount that you have paid. You are not allowed to make a profit by going to hospital.
Generally, if your company already cover you for medical benefits, you do not need to buy another other insurance plan.
However, many people still take Medishield (or Incomeshield) for the following reasons:
- to cover any excess payment that is not covered by the company's plan
- to have continuity of coverage if they leave their existing company.
As the premium for Medishield or Incomeshield is quite low, this approach is quite sensible.
2. Now that MediShield has been privatised, how will it affect my MediShield plan? Would I have to pay higher premiums?
Reply: The Basic Medishield plan remains with CPF board. Those who were covered for Medishield Plus have now been taken over by NTUC Income. We have renamed the scheme to Incomeshield M plans with benefits being enhanced and premiums lowered.
We will offer an option for these policyholders to move from the Incomeshield MA or MB plans to our more popular A or B plans. They will be contacted separately.
3. I went for a surgery recently and found out that my comprehensive medical insurance plan did not cover the X-rays. Why does it not cover the X-rays, which I would think as an essential part of the medical treatment?
Reply: Different insurers offer medical insurance plans with differing terms and conditions. Under Incomeshield plans, we cover x-ray expenses as part of the Room & Board charges.
4. I have elderly parents in their 70s who are in poor health. I am worried that my savings will be wiped out if both should fall in at the same time. What kind of medical insurance can I buy for them?
Reply: All medical insurance plans are underwritten based on latest health conditions. You can discuss with your insurance advisor before deciding on the best insurance plans for them.
If your parent are not insured, you can send them for treatment in Class C ward at government or restructured hospitals. There is a higher government subsidy for these wards. The cost is quite affordable, and the standard of care is quite good.
Many elderly people do not mind being treated in Class C ward, as they do not wish to incur a heavy medical bill.
5. What is "as charged plan" as compared to Incomeshield plan? Does Income offer an alternative to "as charged plan"?
Reply: The "as charged plan" pays the entire bill, but is still subject to the deductible and co-insurance of 10%. The premium is much higher than a similar plan with sub-limits for certain items.
If you go to a re-structured hospital, the bill will be within the sub-limits. There is no need to pay more for a "as charged" plan.
Incomeshield P plan allows insured to go to a private hospital. The benefit limits are 50% to 100% higher than Incomeshield Plan A and would be adequate for majority of private hospital bills.
6. Why should I purchase medical insurance from a cooperative and not a private insurer?
Reply: As NTUC Income is a co-operative, we do not aim to increase profit for shareholders. We actively manage claims to avoid escalation of cost. This allows us to keep the premium rates as low as possible.
Most private insurers aim to make a profit on their medical insurance. They will increase their premium rates to maintain their margin and generate profit for their shareholders. It is better to insure with a cooperative that aims to take care of its policyholders.
Reply: If you are covered under several medical insurance plans, you can decide on which plans to make your claim. However, the total amount that you can claim should not exceed the actual amount that you have paid. You are not allowed to make a profit by going to hospital.
Generally, if your company already cover you for medical benefits, you do not need to buy another other insurance plan.
However, many people still take Medishield (or Incomeshield) for the following reasons:
- to cover any excess payment that is not covered by the company's plan
- to have continuity of coverage if they leave their existing company.
As the premium for Medishield or Incomeshield is quite low, this approach is quite sensible.
2. Now that MediShield has been privatised, how will it affect my MediShield plan? Would I have to pay higher premiums?
Reply: The Basic Medishield plan remains with CPF board. Those who were covered for Medishield Plus have now been taken over by NTUC Income. We have renamed the scheme to Incomeshield M plans with benefits being enhanced and premiums lowered.
We will offer an option for these policyholders to move from the Incomeshield MA or MB plans to our more popular A or B plans. They will be contacted separately.
3. I went for a surgery recently and found out that my comprehensive medical insurance plan did not cover the X-rays. Why does it not cover the X-rays, which I would think as an essential part of the medical treatment?
Reply: Different insurers offer medical insurance plans with differing terms and conditions. Under Incomeshield plans, we cover x-ray expenses as part of the Room & Board charges.
4. I have elderly parents in their 70s who are in poor health. I am worried that my savings will be wiped out if both should fall in at the same time. What kind of medical insurance can I buy for them?
Reply: All medical insurance plans are underwritten based on latest health conditions. You can discuss with your insurance advisor before deciding on the best insurance plans for them.
If your parent are not insured, you can send them for treatment in Class C ward at government or restructured hospitals. There is a higher government subsidy for these wards. The cost is quite affordable, and the standard of care is quite good.
Many elderly people do not mind being treated in Class C ward, as they do not wish to incur a heavy medical bill.
5. What is "as charged plan" as compared to Incomeshield plan? Does Income offer an alternative to "as charged plan"?
Reply: The "as charged plan" pays the entire bill, but is still subject to the deductible and co-insurance of 10%. The premium is much higher than a similar plan with sub-limits for certain items.
If you go to a re-structured hospital, the bill will be within the sub-limits. There is no need to pay more for a "as charged" plan.
Incomeshield P plan allows insured to go to a private hospital. The benefit limits are 50% to 100% higher than Incomeshield Plan A and would be adequate for majority of private hospital bills.
6. Why should I purchase medical insurance from a cooperative and not a private insurer?
Reply: As NTUC Income is a co-operative, we do not aim to increase profit for shareholders. We actively manage claims to avoid escalation of cost. This allows us to keep the premium rates as low as possible.
Most private insurers aim to make a profit on their medical insurance. They will increase their premium rates to maintain their margin and generate profit for their shareholders. It is better to insure with a cooperative that aims to take care of its policyholders.
Saturday, December 10, 2005
Buy Term Assurance
You can get a large life insurance cover, for a very low premium.
If you buy the term as part of an ILP, your policy will not lapse as the cash value from the ILP will pay the premium.
The premium for the term assurance can be kept level. For example, you can insure for $100,000 at age 30 for an annual premium of only $400 (male) or $280 (female). This is a level premium payable for 35 years. It does not increase with age.
You save 60% of the premium by selecting a decreasing term assurance (DTA), where the sum assured reduces gradually over the term. At age 30, the annual premium to cover a DTA of $100,000 for 35 years is only $157 (male) or $113 (female).
Many people need a larger amount of insurance when they are young. Their insurance need can reduce when they grow older, as they have accumulated savings.
Term assurance pays for death and permanent disability arising from all causes, i.e. accident, illness, etc. It provides wider coverage compared to accident insurance.
If you buy the term as part of an ILP, your policy will not lapse as the cash value from the ILP will pay the premium.
The premium for the term assurance can be kept level. For example, you can insure for $100,000 at age 30 for an annual premium of only $400 (male) or $280 (female). This is a level premium payable for 35 years. It does not increase with age.
You save 60% of the premium by selecting a decreasing term assurance (DTA), where the sum assured reduces gradually over the term. At age 30, the annual premium to cover a DTA of $100,000 for 35 years is only $157 (male) or $113 (female).
Many people need a larger amount of insurance when they are young. Their insurance need can reduce when they grow older, as they have accumulated savings.
Term assurance pays for death and permanent disability arising from all causes, i.e. accident, illness, etc. It provides wider coverage compared to accident insurance.
Crazy Horse Cabaret in Singapore
I POSTED THIS VIEW IN JUNE 2005. I THINK THAT MY POINT IS STILL RELEVANT.
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4 June 2005
So far, there is not much attention about the proposal to bring this cabaret to Singapore. But, I expect things to hot up later in the year. We can expect some Singaporeans to speak gainst this erotic show.
Some Singaporeans have a tendency to blow things out of proportion.
Look back 15 year. When the R(A) show was allowed in Singapore, there was a lot of discussion and hot air. Now, this matter is forgotten. It did not cause much harm anyway.
I think that history will repeat itself.
------------------------------------
4 June 2005
So far, there is not much attention about the proposal to bring this cabaret to Singapore. But, I expect things to hot up later in the year. We can expect some Singaporeans to speak gainst this erotic show.
Some Singaporeans have a tendency to blow things out of proportion.
Look back 15 year. When the R(A) show was allowed in Singapore, there was a lot of discussion and hot air. Now, this matter is forgotten. It did not cause much harm anyway.
I think that history will repeat itself.
Friday, December 09, 2005
Handphone of accident can help
8 December 2005
Editor
New Paper
I refer to the letter, "How do we deal with drivers who lie?" by Mr Goh Ann Long (The New Paper, 7 December).
Mr Goh wanted to know how insurers deal with drivers who lie in their accident reports.
As NTUC Income insures about 40 per cent of all motor vehicles in Singapore, I wish to share our experience in dealing with such cases.
Each month, we handle about 2 000 cases of motor accident claims. About 10 per cent of these accidents are disputed by the parties, who give conflicting versions of the accident.
Our liability assessment officer interviews the parties, conducts a site visit if neccessary, and examines the photographs of the
damaged of the vehicle.
The officer is usually able to come to a decision on the appropriate apportionment of the liability. We try to be fair in our assessment and do not wish to favour any side.
If any of the parties disagrees with our assessment, they can ask for an independent expert to review the case or take the case to court.
The disputes can be minimised if both parties to the accident agree to sign the Singapore Accident Statement (SAS) on the spot.
We have recently implemented the use of MMS technology. Motorists are encouraged to use their handphones to take photos of the damage and send them to us by MMS at 9696 3399 or to photo@income.com.sg by e-mail.
The MMS project started two weeks ago.
We hope to solve 50 per cent of the disputed cases using this new approach. Claimants can call our 24-hour hotline at 6788 6616.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
New Paper
I refer to the letter, "How do we deal with drivers who lie?" by Mr Goh Ann Long (The New Paper, 7 December).
Mr Goh wanted to know how insurers deal with drivers who lie in their accident reports.
As NTUC Income insures about 40 per cent of all motor vehicles in Singapore, I wish to share our experience in dealing with such cases.
Each month, we handle about 2 000 cases of motor accident claims. About 10 per cent of these accidents are disputed by the parties, who give conflicting versions of the accident.
Our liability assessment officer interviews the parties, conducts a site visit if neccessary, and examines the photographs of the
damaged of the vehicle.
The officer is usually able to come to a decision on the appropriate apportionment of the liability. We try to be fair in our assessment and do not wish to favour any side.
If any of the parties disagrees with our assessment, they can ask for an independent expert to review the case or take the case to court.
The disputes can be minimised if both parties to the accident agree to sign the Singapore Accident Statement (SAS) on the spot.
We have recently implemented the use of MMS technology. Motorists are encouraged to use their handphones to take photos of the damage and send them to us by MMS at 9696 3399 or to photo@income.com.sg by e-mail.
The MMS project started two weeks ago.
We hope to solve 50 per cent of the disputed cases using this new approach. Claimants can call our 24-hour hotline at 6788 6616.
Tan Kin Lian
Chief Executive Officer
NTUC Income
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