Here are the survey results.
Monday, March 30, 2009
Restructuring of the bonus
Dear Mr. Tan
NTUC said that the restructuring of the bonus allowed them to maintain the bonus last year. What does this mean? How does the restructuring help the policyholders get a better return?
REPLY
I do not understand their statement. I suggest that you attend the annual general meeting of NTUC Income and ask the chairman to explain this statement.
Here is my guess. As Income has reduced the bonus sharply last year, perhaps there is no need for them to make a further reduction. But, I suspect that the special bonus will be cut this time, quite drastically.
But, for the older series which was not affected last year, I read that the bonus will be restructured this year, i.e. the bonus will be cut as well.
Generally, it is fair for bonus to be reduced in a bad year, provided that the reduction is done fairly. I did not like the approach taken in the bonus restructuring, as it is difficult to maintain transparency and fairness. Some policies were cut, and others were not. Some were cut more than others. I also do not like the high expenses that were incurred and paid out of the insurance fund.
This is why I decided to terminate two of my policies where the bonus were cut, even though I had to suffer a penalty. I am now considering to terminate my remaining life insurance policies.
NTUC said that the restructuring of the bonus allowed them to maintain the bonus last year. What does this mean? How does the restructuring help the policyholders get a better return?
REPLY
I do not understand their statement. I suggest that you attend the annual general meeting of NTUC Income and ask the chairman to explain this statement.
Here is my guess. As Income has reduced the bonus sharply last year, perhaps there is no need for them to make a further reduction. But, I suspect that the special bonus will be cut this time, quite drastically.
But, for the older series which was not affected last year, I read that the bonus will be restructured this year, i.e. the bonus will be cut as well.
Generally, it is fair for bonus to be reduced in a bad year, provided that the reduction is done fairly. I did not like the approach taken in the bonus restructuring, as it is difficult to maintain transparency and fairness. Some policies were cut, and others were not. Some were cut more than others. I also do not like the high expenses that were incurred and paid out of the insurance fund.
This is why I decided to terminate two of my policies where the bonus were cut, even though I had to suffer a penalty. I am now considering to terminate my remaining life insurance policies.
Bad working experience with a global bank
Hi Mr Tan
I joined an insurance company recently and left within a year. The way the head of the life division managed was totally unacceptable to me. Due to the financial crisis, they reduced the headcount by half. I took the retrenchment package and left.
It was a very bad experience to work with this global bank but realised that the dark side of the truth. I am not surprised why the world financial system came to a sudden breakdown. Many so-called highcaliber management were only keen to spend, take fat bonus and use creative was to present result and figures. They cover up the losses and shown the revenue figures. To me, the bubble should have been burst long ago.
I joined an insurance company recently and left within a year. The way the head of the life division managed was totally unacceptable to me. Due to the financial crisis, they reduced the headcount by half. I took the retrenchment package and left.
It was a very bad experience to work with this global bank but realised that the dark side of the truth. I am not surprised why the world financial system came to a sudden breakdown. Many so-called highcaliber management were only keen to spend, take fat bonus and use creative was to present result and figures. They cover up the losses and shown the revenue figures. To me, the bubble should have been burst long ago.
Sunday, March 29, 2009
Intelligence Quiz
Try this quiz. This is based on the quiz created by Albert Einstein. Sign up and account and login.
Saturday, March 28, 2009
Survey: Ministers in the Prime Minister's Office
Are we having too many ministers in the Prime Minister's Office, including senior ministers? Survey.
Here are the survey results.
Ministers in PM Office
Lee Hsien Loong
Goh Chok Tong
Lee Kuan Yew
S Jayakumar
Lim Boon Heng
Lim Swee Say
Lim Hwee Hua
Ministers in PM Office
Lee Hsien Loong
Goh Chok Tong
Lee Kuan Yew
S Jayakumar
Lim Boon Heng
Lim Swee Say
Lim Hwee Hua
Thought for the week - Anger
Contributed by Ho Cheow Seng
Thoughts for the Week
"He who is not angry when there is just cause for anger is immoral. Why? Because anger looks to the good of justice. And if you can live amid injustice without anger, you are immoral as well as unjust." Aquinas
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"I don't know a more irreligious attitude, one more utterly bankrupt of any human content, than one which permits children to be destroyed."-- Daniel Berrigan
"I don't know a more irreligious attitude, one more utterly bankrupt of any human content, than one which permits children to be destroyed."-- Daniel Berrigan
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"I have the audacity to believe that peoples everywhere can have: three meals a day for their bodies, - education and culture for their minds - and dignity, equality and freedom for their spirits" Dr. Martin Luther King, Jr.
"I have the audacity to believe that peoples everywhere can have: three meals a day for their bodies, - education and culture for their minds - and dignity, equality and freedom for their spirits" Dr. Martin Luther King, Jr.
Cheating and the rule of law
Here is the definition of cheating in the criminal code of Singapore.
Cheating – Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he or she would not do or omit if he or she were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat". For example, A cheats if he intentionally deceives Z into a belief that A means to repay any money that Z may lend to him when A does not intend to repay it, and thereby dishonestly induces Z to lend him money. Cheating is punished with imprisonment of up to one year, or a fine, or both.
A Singapore lawyer told me that the attorney general will only prosecute cheating when it is in the public interest. So, if a citizen is cheated and lodge a complaint, the attorney general may not take up the case.
My friend told me that in America, the attorney general will look out for cheating cases and prosecute the culprits. They do not wait for a complaint to be lodged.
It seems that the system is different between Singapore and America. I am not sure what is meant by "the rule of law", when the law is only enforced at the discretion of the authority.
Cheating – Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he or she would not do or omit if he or she were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat". For example, A cheats if he intentionally deceives Z into a belief that A means to repay any money that Z may lend to him when A does not intend to repay it, and thereby dishonestly induces Z to lend him money. Cheating is punished with imprisonment of up to one year, or a fine, or both.
A Singapore lawyer told me that the attorney general will only prosecute cheating when it is in the public interest. So, if a citizen is cheated and lodge a complaint, the attorney general may not take up the case.
My friend told me that in America, the attorney general will look out for cheating cases and prosecute the culprits. They do not wait for a complaint to be lodged.
It seems that the system is different between Singapore and America. I am not sure what is meant by "the rule of law", when the law is only enforced at the discretion of the authority.
MAS consultation paper: Unlisted investment products
Read the proposals contained in this consultation paper.
Here is an explanation by a law firm.
I conveyed the views contained in this paper to the CASE forum on 28 March 2009.Publish Post
Friday, March 27, 2009
Survey: motor insurance claims
Give your views on how to prevent sharp increase in motor insurance premiums. Survey.
Here are the survey results.
Sale of toxic products
A pharmaceutical company has discovered a new drug that is a seemed to be effective in curing certain types of cancer. According to an internal document, the drug used certain ingredients that may be harmful to people. Due to the rush to bring the new product to the market and to make big profits, the company was not able to complete the tests to identify and remove the harmful effects.
They were able to find two countries where the health regulators were willing to allow the drug to be sold to the public with a warning, "The new drug may, in some situation, be harmful for consumption".
The manufacturer advertised the positive aspects of the drug and many people bought it. Those who read the warning were told not to worry about it, as it was not likely to happen. After a few months, many people die from the drug, which turned out to be more toxic than expected.
The families were told that the patients should have paid attention to the warning. They had taken their own risk with their eyes open.
They were able to find two countries where the health regulators were willing to allow the drug to be sold to the public with a warning, "The new drug may, in some situation, be harmful for consumption".
The manufacturer advertised the positive aspects of the drug and many people bought it. Those who read the warning were told not to worry about it, as it was not likely to happen. After a few months, many people die from the drug, which turned out to be more toxic than expected.
The families were told that the patients should have paid attention to the warning. They had taken their own risk with their eyes open.
Language, literature and culture
In recent years, I have learned to realize about the special quality of language, literature and culture. The language of any people is developed through the collective efforts of the best people in that culture, namely the writers, poets, and philosophers. The values of a people is embedded in their language. They have to work together in harmony, so that their thoughts can be explained and understood in the language.
It is the talented people that are able to write the lyrics and musics to their popular songs. I learned some of these songs to appreciate the culture of the people in other nations.
Recently, I met a 80 year old professor who was able to recite the entire famous poem by William Wordsworth, "Daffodils". He learned it more than 60 years ago, in school and in remained with him throughout his life.
I believe that the learning of language, literature and culture will build a better people. I hope that our schools will re-look at the syllabus and build a more considerate and thinking people.
Tan Kin Lian
Thursday, March 26, 2009
Proposal - Financial services safety board
There is discussion in USA about passing legislation to create a financial services safety board. It is similar to my proposal for certain experts to certify financial products to be safe and fair to consumers.
http://www.newsday.com/business/ny-usfina056058126mar05,0,23991.story
http://finance.yahoo.com/print/expert/article/moneyhappy/121849
http://www.newsday.com/business/ny-usfina056058126mar05,0,23991.story
http://finance.yahoo.com/print/expert/article/moneyhappy/121849
A sense of fairness
Americans are outraged at the bonuses being paid to the top executives of AIG's financial products. Here are people who took big bets, lost and felt that they should be retained with fat bonuses to clean up the mess. The public felt that this is so unfair.
There was another past incidents were the Americans were outraged. President's Clinton's plane, Air Force One, was delayed in taking off, as the President was having his hair cut. The barber has to complete the job, get off the plane, before it could take off. This caused a delay in the departure of many flights. The public was outraged. They felt that it was inconsiderate of President Clinton to cause so much inconvenience to other people.
Our leaders in the corporate world and in government has to learn to respect the ordinary people, and be considerate to them. They should display a sense of humility and fairness. They cannot act arrogantly and regard the ordinary people as "lesser mortals".
There was another past incidents were the Americans were outraged. President's Clinton's plane, Air Force One, was delayed in taking off, as the President was having his hair cut. The barber has to complete the job, get off the plane, before it could take off. This caused a delay in the departure of many flights. The public was outraged. They felt that it was inconsiderate of President Clinton to cause so much inconvenience to other people.
Our leaders in the corporate world and in government has to learn to respect the ordinary people, and be considerate to them. They should display a sense of humility and fairness. They cannot act arrogantly and regard the ordinary people as "lesser mortals".
ST Online: Don't break CPF piggy bank, but...
Editor
Straits Times
I REFER to the Ministry of Manpower's response last Saturday to readers' calls for earlier Central Provident Fund (CPF) withdrawal.
The response that it is not a good idea as breaking the piggy bank would lead to temptation to draw more and more from the CPF does not address the main point raised by readers.
What they ask for is not to break the piggy bank. But for members who already have funds above the Minimum Sum, why can't the CPF Board release the excess funds to those who are now struggling to live?
Why hold on to excess funds and make them wait till they reach 55, when they and their families are struggling now?
With the pain and stress these individuals and their families are going through, will they even make it to 80?
Tun Ah Heng
Straits Times
I REFER to the Ministry of Manpower's response last Saturday to readers' calls for earlier Central Provident Fund (CPF) withdrawal.
The response that it is not a good idea as breaking the piggy bank would lead to temptation to draw more and more from the CPF does not address the main point raised by readers.
What they ask for is not to break the piggy bank. But for members who already have funds above the Minimum Sum, why can't the CPF Board release the excess funds to those who are now struggling to live?
Why hold on to excess funds and make them wait till they reach 55, when they and their families are struggling now?
With the pain and stress these individuals and their families are going through, will they even make it to 80?
Tun Ah Heng
MAS consultation paper - sale of unlisted investment products
I suggest that the product issuer should be required to disclose the charges that they are taking away from the investment product for their distribution cost, expenses and profit margin. Under the current regime, this informtion is not required to be disclosed.
The disclosure should be done at two levels:
a) the prospectus should specify the maximum charges that can be taken away from the investment for the various items of expenses.
b) an annual report should be presented to show the accounts of the fund.
Unit trusts have to disclose the charges and to render an annual statement of the fund. These requirements are more important in the case of the unlisted investment products.
I am not sure if this point has been adequately addressed in the new regulatory requirements that is being proposed in the consultation paper. I hope that someone can check this point and inform me.
CASE forum on MAS consultation paper
CASE will be organising a public forum to gather feedback in response to the latest guidelines put up by the Monetary Authority of Singapore (MAS).
The proposals were formulated based on MAS' review of the sale and marketing of unlisted investment products after the current global financial crisis led to the failure of several structured notes in Singapore. The public is invited to comment on the proposals to strengthen the regulation of the sale and marketing of unlisted financial investment products. CASE will then channel the responses to MAS.
Details for the forum are as follows:
Date: Saturday, 28 March 2009
Time: 10am - 12pm
Venue: NTUC Business Centre, Level 8, Theatre Room 801
1 Marina Boulevard, Singapore 018989
The forum will include a presentation on the paper and a Q & A discussion with a panel. Refreshments will also be provided.
For more information, please refer to the MAS website here and the consultation paper released here.
Interested parties are requested to RSVP to rsvp@case.org.sg or fax to 6467 9055 by 27 March 2009.
Lim Si Hui Jean (Ms.)
The proposals were formulated based on MAS' review of the sale and marketing of unlisted investment products after the current global financial crisis led to the failure of several structured notes in Singapore. The public is invited to comment on the proposals to strengthen the regulation of the sale and marketing of unlisted financial investment products. CASE will then channel the responses to MAS.
Details for the forum are as follows:
Date: Saturday, 28 March 2009
Time: 10am - 12pm
Venue: NTUC Business Centre, Level 8, Theatre Room 801
1 Marina Boulevard, Singapore 018989
The forum will include a presentation on the paper and a Q & A discussion with a panel. Refreshments will also be provided.
For more information, please refer to the MAS website here and the consultation paper released here.
Interested parties are requested to RSVP to rsvp@case.org.sg or fax to 6467 9055 by 27 March 2009.
Lim Si Hui Jean (Ms.)
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