Mis-selling of ILAS (similar to ILP) in Hong Kong

LAS in Hong Kong is the same as ILP in Sigapore. The consumers in Hong Kong are angry that these products are being mis-sold to them. 
http://www.scmp.com/business/money/investment-products/article/1262327/hong-kong-consumers-angry-after-being-sold

Improve your recruitment

This website helps the recruiting manager to reduce the time taken to recruit the right people.
http://tankinlian.com/admin/file.aspx?id=838&IID=845

Driving Holiday in Malaysia

Driving Holiday in Malaysia
Singapore is a small island and does not provide the space for motorists to enjoy the experience of driving a long distance. 

Malaysia has the space but many Singaporeans are reluctant to drive there, as they are not familiar with the roads and worry about their safety.

A good solution is to join a group driving tour, or motor rally, conducted by an experienced organizer.  Here are two events that may interest you.

Day tour to Johore on Saturday 6 July
http://tklcloud.com/book/69

Free talk/workshop on Driving Holidays on 25 July and 3 August
http://tklcloud.com/book/71

Register early to reserve your place.

Tan Kin Lian

Magic Box

Motivate your child to study and behave well, with the Magic Box. And have fun with your child. Watch them get excited when they earn a star and a reward and put into their magic box.
http://tankinlian.com/admin/file.aspx?id=837&IID=844

Dollar and Sense website

Dear Mr Tan

A quick introduction. I am Timothy, one of the co-founders of DollarsAndSense.sg, a Singapore-focused financial literacy website that aims to be the destination for timely and relevant information on personal finance matters, written especially with the Singaporean readers in mind. 

DollarsAndSense.sg may not be entirely new to you. Back in February, you linked one of our article (which was also published on TRE)onto your blog - http://tankinlian.blogspot.sg/2013/02/unethical-profiteering.html. 

The purpose of our email today is to share with you on more such articles that we have written since - that we believe you might be interested in. If you like, you could feature them on your blog & even provide your insight and/or comments to the articles. We believe that your readers will find them an interesting and relevant read.

Articles

1. http://dollarsandsense.sg/becoming-worlds-richest-at-what-cost/

2.  http://dollarsandsense.sg/singapore-retirement-myths-debunked/

3. http://dollarsandsense.sg/two-cent-rant-just-how-much-should-hello-kitty-singing-bone-cost/

Having been reading your blog since 2008, I believe that we both share a common objective of wanting the general public to be well informed to make the right financial decisions in life. Please feel free to include our website address as part of your "blog partner list". If there are any ways that you feel we could work together, please let us know and we will be glad to discuss on it. 

Please Note: All of the articles that are featured on our websites are written by our own team of writers. Our motivation for doing this is because we believe the awareness level of Singaporean when it comes to financial matters is inadequate. We hope through this site, readers will better appreciate the importance of financial literacy and have a platform to learn more. We are not  "hidden insurance agents" who have sales pitches in mind for our readers :) 

Wishing you a good week ahead! 

Best Regards,
Timothy Ho

Integrity of agents and insurance companies

Dear Mr Tan,

I am reading your blog . I think you are a person with intergrity.

 

I supposed it is not the agent who want to behave wrongly. Is the way the insurance company teach their agent in selling to the market.

 

They use strategy and  incentive to push the agent to sell insurance to their client. Some old agent have to make a living thus they have to sell to fulfill the contract maintenance.

  

Newspaper awards are publicized by the insurer. This create the impression that agents are well to do. This create a lot of future problems as agents only focus on the first year commission used in the measurement. There are a lot of angry clients in the market.

 

The people who train the agent give biased comparison and teach the agent wrongly. They increase the agent's target.  Some old agents suffer and have to sell thing that don’t want.

 

Some insurers measure by life cases and force the agents to sell life insurance only. They internally throw challenge to the agent and force the agent to sell these biased product.

 

The agents are misled the insurer that they are building a franchise. The franchise cannot be sold, so the agents have to work like to hell.

  

We should stop pushing the blame to the agent. The insurer play a big part and is the party that  give the information , instruction, strategy and compensation plan. The agent has to follow.

 

Can we look at a bigger picture and talk about the insurer as they are the root of the problem rather on the agent. 

Recently, the commission has been cut. Newer agents have problem to enter the market and pass the examination. In the future, we will be left with old agents and brokers. I supposed more problem will occur.

 

Agents have to lead a poor lifestyle and need to tune to the timetable of the client every day. In the long run, they are promised nothing by the insurer - no retirement plan and regulatory changes. The problem is faced by older agents who have to take more examinations. 

We have to look into the welfare of the agents.  They are not protected by any party and cannot turn to the Ministry of Manpower if they have any problem.

 

REPLY

What you have described applies to half of the agents, who are forced by circumstances or ignorance to sell products that are bad for customers.

But, after some time, these agents become aware. Some continue to sell the bad products to earn the good income or even to become the trainers and to recruit other people. Their integrity becomes questionable.

Other agents decide to leave the industry or opt to see the good products that are fair to customers. These agents have the integrity and interest of their customers. There are many of them.

The insurance companies should review their operation and offer products that are fair to customers. If they design bad products, their integrity is questionable. . 

Sell essential items at controlled prices

22 June 2013

Editor, Forum Page

Straits Times

The recent scramble for the N95 masks and the steep

increase in price reveals the need for the Government to 

be prepared for future emergencies.

I suggest a procedure be in place to provide essential 

items at controlled prices during an emergency. It may be

the N95 mask today, but it could be other items in the

future.

The steps could include:

• The Government sources for the supplies in bulk at
  discounted prices
• Offers these items at controlled prices through the
  appointed retail chains
• Appoint a logistic company to handle the logistics of
  distribution and accounting.

It is better to be prepared to deal with future emergencies.

If funds have to be provided to the citizens, and more funds

for the poor, it can be credited to their bank account. It is better
for the government to register the bank account of
each citizen that can be used for these money credits.

Tan Kin Lian

9A Cactus Crescent
Singapore 573970
Mobile: 81685845
Email: kinlian@gmail.com

Can I claim for sudden loss of hearing under an accident policy?

Dear Mr. Tan, 
Lately, I am suffering from "Sudden Hearing Loss" and I was told by my specialist that there is 1/3 of the chance that the situation will not be recovered. Now, my left ear can barely hear - and there is an ongoing buzzing sound there. 
Can I make a claim under my QBE accidental plan - which stated 25% of the sum assure for one ear hearing loss? I am not sure whether this is consider accident in the insurance term, but certainly it is an accident for me .... just come in sudden and when I am working in the office. 
REPLY
An accident policy usually defines an accident as being "unexpected, forceful, external" and usually excludes impairment due to natural causes. 
From your description, your loss of hearing is likely to be caused by natural causes and not by accident. This claim is not likely to succeed. 
If you want me to read the policy wordings, you have to use my consultancy service. Register at www.tklcloud.com/consult/2

Cars damaged by fallen tress

Richard Goh asked:
Yesterday, a few cars were damaged by fallen trees. Under such circumstances, if the  cars were parked in designated car park lots, can the owners claim from their insurances or the car park management, like URA or HDB or Town Councils. Your advice to all will be appreciated. 

REPLY
 If you want to claim against the car park management, you have to prove that they were negligent. They can easily point out that the trees fell not because of their negligence, but by "an act of God". The claim is not likely to succeed.
The owner can claim for the damage to the cars under their own motor insurance policy.

How is progress towards the National Authentication Framework?

22 June 2013 

Editor, Forum Page
Straits Times

According to the website of the Infocomm Development Authority, the 
National Authentication Framework (NAF) seeks to provide a secure and trusted 
enabling infrastructure for delivery of online services by the public and private 
sectors. 

It will allow consumers to enjoy the convenience of using a single 
authentication device to access multiple online services.
The NAF was targeted to be ready by 2015. How is the progress toward 
achieving this goal?

Instead of using a single device, I now carry three separate devices issued by 
my bank for my personal and corporate accounts. The bank insisted on issuing 
separate devices to me, even though I am the same person who has the 
signing authority.

The bank has also changed their devices a few times.  Its latest devices 

for their personal and corporate accounts have many functions and are quite 

complicated to use.

I am also appalled at the heavy cost of issuing so many tokens, including 
replacements. This must ultimately be borne by consumers.

I understand that my bank has no plans to allow its device to be used its customers 
for authentication to other online services, This is against the goal of the 
NAF. 
I am aware that online banking may require another level of security to prevent 
hacking, but this could be done using some other means, instead of 
building it into an authentication device. 

May I seek the views of the Monetary Authority of Singapore on this matter? Are
they encouraging the banks to adopt the framework or to go their own way?

Tan Kin Lian

Difficulty in submitting e-invoice

21 June 2013

Editor, Forum Page

Straits Times

I thank the Accountant General's office and the Inland Revenue Authority of

Singapore for giving a prompt reply to my issue about the difficulty in 

submitting an e-invoice (Password for e-invoice system a necessary 

safeguard).

They have also contacted me directly to discuss the underlying issues

involved in the government processes. I thank them for their pro-active and

helpful approach.

As an active user of the Internet, I have created hundreds of passwords for

various websites, and in most cases, it has been an easy process. 

I hope that our government agencies find the right approach, to avoid wasting much 

time from the public and their employees providing support to the public.

I also support the online submission of invoices, and will be suggesting to 

these agencies on how the processes can be simplified to provide

the right level of security and convenience. 

We need to adopt a practical approach and recognize that there are vendors 

who transact with the government infrequently, and should not be required to spend so much 

time to go through a big learning curse to submit an invoice.

Tan Kin Lian

Opportunity for long term investor

Dear Mr Tan,
With regards to the recent market turmoil, the market has reacted strongly to the easing of QE by 2014 and possible interest rates hike thereafter, but seems to have forgotten that this easing shows the FED's confident in the recovery of the US economy.

When the selling is done, people may realized that they have over-reacted and bargain hunting may kick in.

For now, the market will continue its free fall due to the outflow of institutional funds to the States and the herd selling mentality by the retail investors.

REPLY
Yes. For the long term investor, the selling gives a good buying opportunity, But the selling may last a few months.

Supplementary Retirement Scheme benefits those above 47 years

This book explains the impact of the Supplementary Retirement Scheme on local employees and foreigners and on workers at different ages and tax brackets. 

The SRS is likely to be beneficial for tax payers contributing at an older age, after age 47 years. 

http://tklcloud.com/pdfbook/25

Allow submission using fill-able PDF forms

I sent my proposal to IRAS to allow tax payers to submit their tax using a fill-able PDF form. 

It is easier for the tax payer to complete this form offline and submit it. The portal can extract the data from the form and send it to the backend system of IRAS for validation, acceptance and processing.

The offline PDF form will be especially helpful for individuals who have rental or other sources of income to complete, or for filing corporate tax accounts. 

I will be discussing this suggestion further with IRAS.

Here is my proposal
http://tankinlian.com/admin/file.aspx?id=836&IID=843

A new version of Facecard

Thank you for participating in the earlier trial of Facecard. We have taken down the current version and will be launching a new version in in July. The new version will require a fresh registration. 

The key features of the new version are:

• Simpler to use
• Allow the user to see the facecard of those nearby (who chose to make it visible) and to exchange cards with them
• Provides mini-iPad or other attractive prizes based on regular contests

I will notify you of the new version when it is ready and invite you to participate in it again.

If you have any existing data that you wish to extract from the current database, please send an e-mail to kinlian@gmail.com.

How to deal with the haze

http://www.tremeritus.com/2013/06/21/tre-reader-gives-advice-on-how-to-deal-with-haze/

The key message is that the haze is not serious to health for most people. I walked outside for 1 hour yesterday, taking bus to a few places. It is hot and haze, but I don't feel that my health is badly impacted due to this short walk. 

A new job portal for Singaporeans

http://mrnewbird.wordpress.com/2013/06/22/a-new-job-portal-for-singaporean/

Is it necessary to have regular fogging during the hazy period?

Hi Mr Tan

I find it puzzling and disappointing that NEA, HIMC or MEWR did not issue any advice, suggestion or restriction as to the necessary adjustment to our daily routine so as not to add to the haze presently choking spore.

 

One point in mind is the regular fogging carried out by pest control company. I am sure these can be suspended temporally since it will definitely add to the haze in spore. 

When PSI is in unhealthy (> 100), very unhealthy (>200) and hazardous (>300) level, I think we do not need to carry out the routine fogging. Spore is like been fogged 24/7 now compliment from our neighbour. I am not expert in mosquito control and dengue may still be a concern but I think the experts in NEA or MEWR should let us know whether we still need to fog when air quality is already so bad. 

Other steps include limiting unnecessary travelling, car pooling, use public transport whenever possible, routine grass cutting, limit incense and routine burning of sacrifice during prayers, smoking etc. The haze from Indonesia we cannot stop but I think we can do more to limit adding to the haze. 

Like in Australia, during  water restrictions when there are droughts, limit are set on watering lawns, using sprinkler systems, washing vehicles, hosing pavement, refilling swimming pools, etc. I think spore should consider similar restriction on non essential activities that will aggravate the already alarming situation.

 

I know the haze is beyond our control but then again I think we could have done better preparing for it when the haze did not choke us so badly. After all haze has been an annual routine and it has been 16 years since it last hit above 200. 

Each public flat in spore comes with a bomb raid shelter. I think the chance of war is spore is definitely more remote than having haze attack. Instead of having air raid shelters would it not be more useful and practical to have places where large group of people or those who do not have the luxury of aircon to go take shelter when PSI hits above 300 or god forbids beyond 400?

 

As for those who think that because we have little control of things happening outside spore and so that provide us with a good alibi or excuse... I would like to refer him to chapter 25 of Machiavelli's The Prince:

 

" IT is not unknown to me how many men have had, and still have, the opinion that the affairs of the world are in such wise governed by fortune and by God that men with their wisdom cannot direct them and that no one can even help them; and because of this they would have us believe that it is not necessary to labour much in affairs, but to let chance govern them. 

This opinion has been more credited in our times because of the great changes in affairs which have been seen, and may still be seen, every day, beyond all human conjecture. Sometimes pondering over this, I am in some degree inclined to their opinion. Nevertheless, not to extinguish our free will, I hold it to be true that Fortune is the arbiter of one-half of our actions, but that she still leaves us to direct the other half, or perhaps a little less.

 

I compare her to one of those raging rivers, which when in flood overflows the plains, sweeping away trees and buildings, bearing away the soil from place to place; everything flies before it, all yield to its violence, without being able in any way to withstand it; and yet, though its nature be such, it does not follow therefore that men, when the weather becomes fair, shall not make provision, both with defences and barriers, in such a manner that, rising again, the waters may pass away by canal, and their force be neither so unrestrained nor so dangerous. So it happens with fortune, who shows her power where valour has not prepared to resist her, and thither she turns her forces where she knows that barriers and defences have not been raised to constrain her."

 

May the haze situation improves sooner rather than later.

Foo

How to find peace in current financial turmoil

In the midst of current financial turmoil, is it possible to find peace? Dr. Tommy Wong, professor turned international author, has written five books on "Wisdom on How to Live Life". In this series of books, Dr. Wong shared spiritual concepts which can be used to find peace irrespective of external happenings. The e-book series can be ordered here, and will be delivered immediately upon payment. May peace be with you!

FISCA Members Get-together 12 July 2013

In a recent survey, several members expressed interest to attend a member's get-together to discuss financial and consumer issues. 

This will be a free format discussion, to be facilitated by our committee member, Victor Lee. Victor is knowledgeable in investments - so you may find the discussion to be interesting.

This event is open to open to members only, and will be FREE. for those who attend. Those who register and do not attend will have to pay $10.

Register now at www.fisca.sg/events. (Members have to login to register)