Friday, December 23, 2005

NTUC Income offers fair settlement of claims

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.


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.

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.

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

New website to educate public on insurance

NTUC Income is pleased to announce the launch of an educational and interactive website on insurance at

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. 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

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