12 October 2005
Editor
Forum Page
Straits Times
I refer to the letter "Buying an annuity may not be the best option" by Dennis Ng Kah Wan (St Times, 7 Oct
2005).
Mr Ng said that if he keeps the minimum sum of $90,000 with the CPF Board, he will get a monthly payout of about $711 at the age of 62 for 20 years. He said that if this sum is invested in a life annuity, the payout will be between $398 and $483, depending on which annuity plan you choose and whether you are male or female.
Under the annuity plan now offered by NTUC Income, we pay a guaranteed monthly sum plus bonus. The bonus is determined yearly based on the average yield earned on the investments in recent years. Over the long term, we expect the bonus to vary from 1% to 3% per year, but this is not guaranteed.
If the $90,000 is used to buy a life annuity at age 55, we expect to pay a monthly sum of $543 from age 62, comprising of a guaranteed sum of $473 and an estimated bonus of $70. The monthly annuity will continue to increase each year based on the bonus declared for that year. Assuming an average bonus of 2% per year, the
monthly payment is expected to reach $662 at 72, $807 at age 82 and $984 at age 92.
The life annuity offers two attractions:
- it is payable for the lifetime of the annuitant
- the payment will increase with bonus in most years, providing a cushion against inflation.
From actuarial statistics, about 30% of male and 40% of female are expected to live beyond age 82. This proportion is expected to increase in the future, due to longer life expectancy.
Over 25,000 people have bought a life annuity from NTUC Income. A large proportion of them invested their CPF minimum sum with us. They do not wish to take the risk of living beyond age 82 and running out of money. We have a market share of 65% of all life annuities sold in Singapore. The remaining 35% are shared among 5 other
life insurers.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Thursday, October 13, 2005
Tuesday, October 11, 2005
Insurance Website of the Year
STATEMENT
www.income.coop
We are delighted to be awarded the Insurance Website of the Year in the 9th Asian Insurance Industry Award.
Our new website was designed by an internal project team comprising of our young officers. Our aim is to provide information that is easy to access and can provide useful information to the public. We adopt a practical approach in the design of our website, and avoid the excesive use of graphics, to reduce the downloading time.
We have a website in English, Chinese and Malay to cater to our customers who are familiar with the common languages in Singapore.
Our website now attract 10 million hits each month. It continues to grow rapidly each month.
The website will be the core of our business strategy for the future. It will be the central source of information for our customers, agents and employees. It will contain information about our products, practice notes, forms and other materials. All parties will refer to the same source of information. This will provide transparency and consistency of practice.
The website will be expanded to allow transactions to be submitted. We will actively advertise our website, and will attract more visitors.
Tan Kin Lian
Chief Executive Officer
NTUC Income
www.income.coop
We are delighted to be awarded the Insurance Website of the Year in the 9th Asian Insurance Industry Award.
Our new website was designed by an internal project team comprising of our young officers. Our aim is to provide information that is easy to access and can provide useful information to the public. We adopt a practical approach in the design of our website, and avoid the excesive use of graphics, to reduce the downloading time.
We have a website in English, Chinese and Malay to cater to our customers who are familiar with the common languages in Singapore.
Our website now attract 10 million hits each month. It continues to grow rapidly each month.
The website will be the core of our business strategy for the future. It will be the central source of information for our customers, agents and employees. It will contain information about our products, practice notes, forms and other materials. All parties will refer to the same source of information. This will provide transparency and consistency of practice.
The website will be expanded to allow transactions to be submitted. We will actively advertise our website, and will attract more visitors.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Pay $6 an hour?
Editor
Today Paper
I refer to the article "15 jobless citizen enlisted in the mozzie inspector brigade" (Today, 11 Oct 2005).
I congratulate the Holland Bukit Timah Town Council for this excellent initiative to provide jobs to our unemployed citizens and to get them to do useful work. They go round the housing estate to look for potential breeding places of mosquitoes and take the remedial action.
These inspectors are paid $100 a week for 25 hours of work. This works out to a hourly rate of $4.
I suggest that the town council should consider paying $6 an hour. For a person that works 8 hours a day, this will give an income of $1,000 a month. This is necessary to meet the high cost of living in Singapore.
By paying a more adequate rate, the workers can work with pride and treasure their job. They will not move to another employer that pays slightly more. They can build expertise.
I understand the reluctance of the government to impose a minimum wage, due to the need to keep business cost down in Singapore.
Perhaps, the publicly funded bodies can set an example to pay a more adequate wage, and this can set the benchmark for other employers?
Tan Kin Lian
Today Paper
I refer to the article "15 jobless citizen enlisted in the mozzie inspector brigade" (Today, 11 Oct 2005).
I congratulate the Holland Bukit Timah Town Council for this excellent initiative to provide jobs to our unemployed citizens and to get them to do useful work. They go round the housing estate to look for potential breeding places of mosquitoes and take the remedial action.
These inspectors are paid $100 a week for 25 hours of work. This works out to a hourly rate of $4.
I suggest that the town council should consider paying $6 an hour. For a person that works 8 hours a day, this will give an income of $1,000 a month. This is necessary to meet the high cost of living in Singapore.
By paying a more adequate rate, the workers can work with pride and treasure their job. They will not move to another employer that pays slightly more. They can build expertise.
I understand the reluctance of the government to impose a minimum wage, due to the need to keep business cost down in Singapore.
Perhaps, the publicly funded bodies can set an example to pay a more adequate wage, and this can set the benchmark for other employers?
Tan Kin Lian
Monday, October 10, 2005
Culture of Goodies
The organiser of a corporate outdoor event said that they gave out 1,500 goodie bags, with tee-shirts and other attractive items.
1,500 people collected the goodie bags. Only 300 took showed up for the outdoor event.
Is this cheating?
1,500 people collected the goodie bags. Only 300 took showed up for the outdoor event.
Is this cheating?
Cheating on bus fares
Some people cheated on bus fares. They tap their ezLink card immediately on boarding the bus (instead of time of exit), so that they pay a lower fare. The government is passing a law to punish these cheats.
Is there a better way to handle this problem?
Is there a better way to handle this problem?
Saturday, October 08, 2005
Deductible under Shield plans
QUESTION:
I am currently a IncomeShield Plan B policyholder and will like to seek some clarifications on how claims are processed under IncomeShield.
An agent shared with me the attached article. It is taken from Business Times. It was doing a comparison on the payouts from the different Insurers. I was very surprised that most of the insurers, including Income does not pay a cent in the example where a policyholder stays at Mt Elizabeth for 2 nights.
Could Income explain how the claims are processed? For example, what items will be considered for the deductible. Lastly, if the policyholder had bought the IncomeShield rider, how does it helps in this example?
ANSWER:
All the Shield plans are required to have a deductible, representing approximately 5 days of hospital stay. The principle is that the patient should pay for the first 5 days, and the insurance will pay for 90% of the bill in excess of the deductible.
This condition is imposed by the Ministry of Health.
We offer a rider that charges a separate premium (to be paid by cash) that will cover the deductible and the balance of 10%. Many people have opted to buy this rider.
Tan Kin Lian
CEO, NTUC Income
I am currently a IncomeShield Plan B policyholder and will like to seek some clarifications on how claims are processed under IncomeShield.
An agent shared with me the attached article. It is taken from Business Times. It was doing a comparison on the payouts from the different Insurers. I was very surprised that most of the insurers, including Income does not pay a cent in the example where a policyholder stays at Mt Elizabeth for 2 nights.
Could Income explain how the claims are processed? For example, what items will be considered for the deductible. Lastly, if the policyholder had bought the IncomeShield rider, how does it helps in this example?
ANSWER:
All the Shield plans are required to have a deductible, representing approximately 5 days of hospital stay. The principle is that the patient should pay for the first 5 days, and the insurance will pay for 90% of the bill in excess of the deductible.
This condition is imposed by the Ministry of Health.
We offer a rider that charges a separate premium (to be paid by cash) that will cover the deductible and the balance of 10%. Many people have opted to buy this rider.
Tan Kin Lian
CEO, NTUC Income
Wednesday, October 05, 2005
Private shield plan can cost up to $3,500 per year
Customers compare the coverage offered by private shield plans. They think that the higher coverage, the better the plan.
Here are a few important facts:
- in most cases, the higher coverage is not needed, especially if the patient is treated in the appropriate ward in a restructured hospital.
- a plan that offers a higher coverage can cost up to 60% more in premium.
For example, under plan A, a plan that pays "as charged" will cost $3,500 per year at age 80. NTUC Income offers a similar plan that charges a premium of about $2,100 at age 80, ie $1,400 lower. Our plan pays the same amount for most of the typical hospital stays.
Here are a few important facts:
- in most cases, the higher coverage is not needed, especially if the patient is treated in the appropriate ward in a restructured hospital.
- a plan that offers a higher coverage can cost up to 60% more in premium.
For example, under plan A, a plan that pays "as charged" will cost $3,500 per year at age 80. NTUC Income offers a similar plan that charges a premium of about $2,100 at age 80, ie $1,400 lower. Our plan pays the same amount for most of the typical hospital stays.
Monday, October 03, 2005
Private Pension Plan - opt out scheme
Prime Minister Lee has announced that the CPF is studying an opt-out pension plan for CPF contributors. The aim is to encourage CPF members to invest in a pension plan that can provide:
- a better return than CPF interest rate
- well diversified
- low charges.
The Combined Fund from NTUC Income fit into this description. By investing in the Combined Fund, the CPF member can get the benefits of the proposed opt-out plan and enjoy the freedom of choice.
- a better return than CPF interest rate
- well diversified
- low charges.
The Combined Fund from NTUC Income fit into this description. By investing in the Combined Fund, the CPF member can get the benefits of the proposed opt-out plan and enjoy the freedom of choice.
Claim 100% of ward fees
Snow White asked this question: "What is your advice regarding the enhanced medical plan, where policyholders can claim 100% of the ward fees (less co-insurance) even if they opt to stay in better wards like B1 or A-wards? The premium are almost 3 times of the original Medishield plan. Should I stay with a hospital and surgical plan."
My reply:
- the limits provided under Incomeshield plan (from NTUC Income) is suffient to cover the charges in B1 and A ward in restructured hospital.
- our premiums are about 50% to 100% higher than Medishield, but are lower than the medical plans provided by other insurers.
- 800,000 people are insured with Incomeshield (giving the largest market share)
- it is better to buy an Incomeshield plan earlier, as it provides lifetime coverage. The H&S plan is a yearly renewable plan. You may not get the coverage when you leave your present employer.
My reply:
- the limits provided under Incomeshield plan (from NTUC Income) is suffient to cover the charges in B1 and A ward in restructured hospital.
- our premiums are about 50% to 100% higher than Medishield, but are lower than the medical plans provided by other insurers.
- 800,000 people are insured with Incomeshield (giving the largest market share)
- it is better to buy an Incomeshield plan earlier, as it provides lifetime coverage. The H&S plan is a yearly renewable plan. You may not get the coverage when you leave your present employer.
Sunday, October 02, 2005
Test your Logic: www.income.coop/logic9
Test your logic.
Try the Logic9 game at www.income.coop/logic9. This game is similar to the game called SuDoku, which is the craze in many countries.
You are to fill the blank squares with the digit 1 to 9, so that it is not repeated in any row, any column or any box (3 x 3).
For the easy version, you have to fill 3 out of 9 boxes. For the more difficult verion, you have to fill 4, 5 or 6 out of 9 boxes.
Have fun.
Try the Logic9 game at www.income.coop/logic9. This game is similar to the game called SuDoku, which is the craze in many countries.
You are to fill the blank squares with the digit 1 to 9, so that it is not repeated in any row, any column or any box (3 x 3).
For the easy version, you have to fill 3 out of 9 boxes. For the more difficult verion, you have to fill 4, 5 or 6 out of 9 boxes.
Have fun.
Wednesday, September 28, 2005
About Life Annuity
Editor
Today Paper
I refer to the letter entitled "Annuity conumdrum if I die early" by Lim Boon Hee (Today, 27 September).
Under the CPF Minimum Sum Scheme, a retiree is allowed to invest the minimum sum of $90,000 in a life annuity plan at age 55 and to receive the annuity payment from age 62.
Mr Lim asked what happens if the annuitant dies before age 62 (without receiving any payment) or at age 65 (after receiving only a part of the $90,000). Will the annuitant lose part or all of the $90,000?
Under the annuity plan now offered by NTUC Income, we will refund back the balance of the $90,000 with interest up to age 62, after deducting any payment that has been received by the annuitant. If death occurs before age 62, we will refund back $90,000 with interest. If death occurs after age 62 and the annuitant has received $20,000 (say), we will refund back $70,000 with interest earned up to age 62.
The annuitant will only lose the interest after age 62. This interest is left in the annuity fund to benefit the annuitants who live longer. The life annuity will continue to be payable for the lifetime of the annuitant, even if the annuitant lives beyond age 90 or 95 years.
If the retiree leaves the money in the CPF to earn interest at 4% per annum and takes out the monthly sum allowed by CPF, the minimum sum will be fully used up by age 82. After age 82, the retiree will have no further source of income.
With longer life expectancy, many people are expected to live beyond age 82. We can see many people around, who have lived beyond that age.
About 28,000 people have invested in a life annuity from NTUC Income. They realise the benefit of this type of insurance product. They do not wish to take the risk of living too long, and running out of money. We provide about 65% of all life annuity in Singapore.
If the retiree wish to leave behind some money for their family, they probably have a property and perhaps other savings or assets.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Today Paper
I refer to the letter entitled "Annuity conumdrum if I die early" by Lim Boon Hee (Today, 27 September).
Under the CPF Minimum Sum Scheme, a retiree is allowed to invest the minimum sum of $90,000 in a life annuity plan at age 55 and to receive the annuity payment from age 62.
Mr Lim asked what happens if the annuitant dies before age 62 (without receiving any payment) or at age 65 (after receiving only a part of the $90,000). Will the annuitant lose part or all of the $90,000?
Under the annuity plan now offered by NTUC Income, we will refund back the balance of the $90,000 with interest up to age 62, after deducting any payment that has been received by the annuitant. If death occurs before age 62, we will refund back $90,000 with interest. If death occurs after age 62 and the annuitant has received $20,000 (say), we will refund back $70,000 with interest earned up to age 62.
The annuitant will only lose the interest after age 62. This interest is left in the annuity fund to benefit the annuitants who live longer. The life annuity will continue to be payable for the lifetime of the annuitant, even if the annuitant lives beyond age 90 or 95 years.
If the retiree leaves the money in the CPF to earn interest at 4% per annum and takes out the monthly sum allowed by CPF, the minimum sum will be fully used up by age 82. After age 82, the retiree will have no further source of income.
With longer life expectancy, many people are expected to live beyond age 82. We can see many people around, who have lived beyond that age.
About 28,000 people have invested in a life annuity from NTUC Income. They realise the benefit of this type of insurance product. They do not wish to take the risk of living too long, and running out of money. We provide about 65% of all life annuity in Singapore.
If the retiree wish to leave behind some money for their family, they probably have a property and perhaps other savings or assets.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Sunday, September 25, 2005
NTUC's plan for low income workers
NTUC has suggested that workers earning less than $1,000 be exempted from CPF. This will save them 20% of their wages. They need the full wages to meet a basic lifestyle, due to the high cost of living in Singapore.
NTUC suggested that the government should top up the CPF savings of these low income workers, so that they can buy their HDB flat.
I think that this is a wonderful idea.
In some countries, the government pays people who do not work. It is called unemployment benefit.
The approach by NTUC is to encourage these unemployed workers to work, even if it is a low income job. The government can help them by contributing to their CPF savings. It is an indirect way to give some help to these workers, but they must work.
NTUC suggested that the government should top up the CPF savings of these low income workers, so that they can buy their HDB flat.
I think that this is a wonderful idea.
In some countries, the government pays people who do not work. It is called unemployment benefit.
The approach by NTUC is to encourage these unemployed workers to work, even if it is a low income job. The government can help them by contributing to their CPF savings. It is an indirect way to give some help to these workers, but they must work.
Wrong way to attract people to attend a seminar
I attended a seminar recently on investment-linked product. It was organised by a few important organisations.
There was no charge for the seminar. More than 500 people attended.
The organiser gave an attractive goodie bag (worth $15) and a sumptious meal (worth another $15). Some of the attendees appear to be regular attendees at these seminars.
Do we need to spend so much money to organise the seminar? Are we attracting the wrong people who attend for the wrong reason?
There was no charge for the seminar. More than 500 people attended.
The organiser gave an attractive goodie bag (worth $15) and a sumptious meal (worth another $15). Some of the attendees appear to be regular attendees at these seminars.
Do we need to spend so much money to organise the seminar? Are we attracting the wrong people who attend for the wrong reason?
Reply to: Policies similar but returns differ
Editor
Forum Page
Straits Times
I refer to the letter from Mdm Dorothy Ballard entitled "Policies similar but returns differ" (Straits Times, 11 Aug 2005).
Mdm Ballard said that the endowment policy that she bought from NTUC Income 20 years ago gave a return on maturity of 5.47 percent compounded annually. A similar policy taken from another insurer gave a lower return of 4.29 per cent.
This difference in return, compounded over 20 years, produces a 14% higher payout from NTUC Income.
I wish to explain why it is possible for NTUC Income to give a better return to our policyholders:
- we are a cooperative society
- we pay lower commission to our insurance agent
- we keep our salaries and expenses at a modest level
- our shareholders receive a modest rate of dividend.
By spending less, we are able to give a better return to our policyholders through lower premium or higher bonus. This can amount to a lot of money over many years.
Many people think that the key factor is skill in investment management. This is not so. Over a period of years, most large sized funds will produce an average rate of return that reflect the economic fundamentals.
We hope to convince Mdm Bollard and other policyholders that it does matter who they choose to invest their long term savings with, and that they will choose a well managed cooperative.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Forum Page
Straits Times
I refer to the letter from Mdm Dorothy Ballard entitled "Policies similar but returns differ" (Straits Times, 11 Aug 2005).
Mdm Ballard said that the endowment policy that she bought from NTUC Income 20 years ago gave a return on maturity of 5.47 percent compounded annually. A similar policy taken from another insurer gave a lower return of 4.29 per cent.
This difference in return, compounded over 20 years, produces a 14% higher payout from NTUC Income.
I wish to explain why it is possible for NTUC Income to give a better return to our policyholders:
- we are a cooperative society
- we pay lower commission to our insurance agent
- we keep our salaries and expenses at a modest level
- our shareholders receive a modest rate of dividend.
By spending less, we are able to give a better return to our policyholders through lower premium or higher bonus. This can amount to a lot of money over many years.
Many people think that the key factor is skill in investment management. This is not so. Over a period of years, most large sized funds will produce an average rate of return that reflect the economic fundamentals.
We hope to convince Mdm Bollard and other policyholders that it does matter who they choose to invest their long term savings with, and that they will choose a well managed cooperative.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Add a term rider to your Ideal plan (ILP)
Add a term rider (LTA or DTA) to an Ideal plan. It should be 20 years of savings. For example, if the policyholder wish to save $250 a month, the term rider can be for $60,000.
Under LTA (level term assurance), the term rider pays $60,000 on death during 20 years, plus the saving in the Ideal plan. After 20 years, the rider expires, and the accumulated savings (which is $60,000 plus gains) will be paid.
Under DTA (decreasing term assurance), the term rider pays $60,000 reducing by $3000 each year over 20 years, plus the savings in the Ideal plan. Although the term rider reduces yearly it is more than offset by the additional savings in the year.
On death at any time, the total payout (including the savings in the Ideal plan) should be more than $60,000.
The annual premium is:
The premium rate for DTA is less than half of LTA. The cost difference is more significant at the higher entry ages.
The premium rate for female is about one-third lower than males.
The annual cost of LTA and DTA at the younger entry ages (ie less than 35) is less than $200, and is highly affordable.
RECOMMENDATION: Add a LTA or DTA to our Ideal plan. The premium is level and does not increase with age.
Under LTA (level term assurance), the term rider pays $60,000 on death during 20 years, plus the saving in the Ideal plan. After 20 years, the rider expires, and the accumulated savings (which is $60,000 plus gains) will be paid.
Under DTA (decreasing term assurance), the term rider pays $60,000 reducing by $3000 each year over 20 years, plus the savings in the Ideal plan. Although the term rider reduces yearly it is more than offset by the additional savings in the year.
On death at any time, the total payout (including the savings in the Ideal plan) should be more than $60,000.
The annual premium is:
Entry -- Male -- -- Female -
Age LTA DTA LTA DTA
25 84 42 55 25
35 211 85 139 57
45 686 290 455 190
The premium rate for DTA is less than half of LTA. The cost difference is more significant at the higher entry ages.
The premium rate for female is about one-third lower than males.
The annual cost of LTA and DTA at the younger entry ages (ie less than 35) is less than $200, and is highly affordable.
RECOMMENDATION: Add a LTA or DTA to our Ideal plan. The premium is level and does not increase with age.
Thursday, September 15, 2005
Training Bond
New employees joining NTUC Income is required to sign an agreement to pay us back one month's salary if they leave our service within the first year.
This is a training bond. It is intended to compensate us for the cost of training the new employee. Our actual cost is much higher.
We have implemented this condition for the past five years. It has produced an unexpected benefit. A new employee who is not serious about joining us will not accept our job offer. Those who accept our offer are serious about making a career with us.
This is an effective "selection process". We get the right employee to join us. We enjoy a low turnover rate, and reduced wastage in recruiting and training the wrong people.
We have a few cases where the new employee is not suitable for the job. We ask the employee to leave and waive the training bond.
This is a training bond. It is intended to compensate us for the cost of training the new employee. Our actual cost is much higher.
We have implemented this condition for the past five years. It has produced an unexpected benefit. A new employee who is not serious about joining us will not accept our job offer. Those who accept our offer are serious about making a career with us.
This is an effective "selection process". We get the right employee to join us. We enjoy a low turnover rate, and reduced wastage in recruiting and training the wrong people.
We have a few cases where the new employee is not suitable for the job. We ask the employee to leave and waive the training bond.
Singapore has adequate talent
I often hear the remark, "Singapore is short of talent".
I disagree. We have adequate talent. However, they are not well used.
We have many well educated people. Look at the number of graduates, including those who have pursued university degrees on their own. We have many MBAs.
The problem is: are they able to apply their knowledge well? The answer is, "many people are over-educated and under-utilised".
If they learn how to apply their knowledge effectively, we will have more than sufficient talent.
I disagree. We have adequate talent. However, they are not well used.
We have many well educated people. Look at the number of graduates, including those who have pursued university degrees on their own. We have many MBAs.
The problem is: are they able to apply their knowledge well? The answer is, "many people are over-educated and under-utilised".
If they learn how to apply their knowledge effectively, we will have more than sufficient talent.
Saturday, September 10, 2005
Pay an adequate hourly rate
I found, to my surprise, that casual workers are paid as low as $3 an hour, for example, at fast food outlets.
If they work for 8 hours a day, they earn only $500 a month. This is too low to make a living. The cost of living is quite high.
I suggest that the minimum wage should be at least $6 an hour. A person working 8 hours a day should earn about $1,000 a month all-in.
Maybe $6 is still inadequate, but it is better than $3.
If they work for 8 hours a day, they earn only $500 a month. This is too low to make a living. The cost of living is quite high.
I suggest that the minimum wage should be at least $6 an hour. A person working 8 hours a day should earn about $1,000 a month all-in.
Maybe $6 is still inadequate, but it is better than $3.
Digital navigation system a hazard?
Editor
Forum Page
Straits Times
I refer to the letter entitled "Digital navigation system a hazard?" by Michael Yeo Khee Hiang (St Times, 10 Sept).
I have tried a few PDA and PC-based navigation systems in my car over the past 12 months.
They are very useful and quite safe to use. All provide clear voice directions and do not require the driver to watch the video screen.
By giving directions earlier, it helps the driver to keep to the correct lane and drive more carefully. It avoids accidents due to unfamiliarity with the roads.
It may take a new user a few days to get used to the system. During the initial period, the problem raised by Michael Yeo could arise. But, the benefit will accrue after that.
I encourage more cars to be installed with the navigation system to promote safe driving.
Tan Kin Lian
(sent in my personal capacity)
Forum Page
Straits Times
I refer to the letter entitled "Digital navigation system a hazard?" by Michael Yeo Khee Hiang (St Times, 10 Sept).
I have tried a few PDA and PC-based navigation systems in my car over the past 12 months.
They are very useful and quite safe to use. All provide clear voice directions and do not require the driver to watch the video screen.
By giving directions earlier, it helps the driver to keep to the correct lane and drive more carefully. It avoids accidents due to unfamiliarity with the roads.
It may take a new user a few days to get used to the system. During the initial period, the problem raised by Michael Yeo could arise. But, the benefit will accrue after that.
I encourage more cars to be installed with the navigation system to promote safe driving.
Tan Kin Lian
(sent in my personal capacity)
Friday, September 09, 2005
Car sharing for newly qualified drivers?
The Editor
ST Online
9 September 2005
I refer to the letter from Tan Tiong Heng (ST Forum Online 8 Sep 2005).
NTUC Income operates the car sharing scheme to provide an afforable means for its members to share the use of the cars owned by the cooperative. We operate a fleet of 180 cars located at 70 convenient locations. The current fleet serves 5,200 members.
At present, we impose a condition that a member must have at least 30 months of driving experience. This is to reduce the incidence of accidents. If there are many accidents, the cars will not be available and will adversely affect the quality of service to other members.
New drivers can borrow a car from family members, friends or colleagues. They also often benefit from being accompanied by another experienced driver while practising.
We do not think it is suitable for the car cooperative to mix the needs of new drivers with the general needs of our members. Nevertheless, we do adopt a flexible approach and will be prepared to waive the 30 month bar if the applicant can demonstrate his car handling capability.
We have taken note of the views of Mr Tan. We will see if we can set aside a few additional cars to serve the needs of newly qualified drivers.
Lewis Chen
General Manager
NTUC Income Car Co-Op
ST Online
9 September 2005
I refer to the letter from Tan Tiong Heng (ST Forum Online 8 Sep 2005).
NTUC Income operates the car sharing scheme to provide an afforable means for its members to share the use of the cars owned by the cooperative. We operate a fleet of 180 cars located at 70 convenient locations. The current fleet serves 5,200 members.
At present, we impose a condition that a member must have at least 30 months of driving experience. This is to reduce the incidence of accidents. If there are many accidents, the cars will not be available and will adversely affect the quality of service to other members.
New drivers can borrow a car from family members, friends or colleagues. They also often benefit from being accompanied by another experienced driver while practising.
We do not think it is suitable for the car cooperative to mix the needs of new drivers with the general needs of our members. Nevertheless, we do adopt a flexible approach and will be prepared to waive the 30 month bar if the applicant can demonstrate his car handling capability.
We have taken note of the views of Mr Tan. We will see if we can set aside a few additional cars to serve the needs of newly qualified drivers.
Lewis Chen
General Manager
NTUC Income Car Co-Op
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