The Spirit of Enterprise invites nomination for the 2006 awards. Any business that meets the criteria below can be nominated, inculding pizza parlors, clothing stores, discos etc.
Criteria: These are just general guidelines, and the panel exercise flexibility. (for past nominees see: www.soe.org.sg )
1. In business for at least 5 years and is successful enough to provide the family’s needs.
2. Is in good standing with whoever licenses the business and is not under any court, tax or police filing.
3. A small to medium enterprise, which has an inspiring and interesting story to be told. Preferably, it has some historical antecedents in the history of Singapore.
4. Special attention will be paid to an entrepreneur who is innovative, forward-looking, constantly planning to bring the company to another greater phase. For example, entering new markets, introducing new products or services or willing to use new technologies to increase productivity and consumer services.
5. Not a recipient of Temasek or any similar government investment programmes.
6. Has not been honoured by any similar group.
Send your nomination to: www.soe.org.sg
Tuesday, December 27, 2005
Estate duty puts retirees in a dilemma
Editor
Forum Page
Straits Times
I refer to the letter from Ms Janice Ong entitled "Estate Duty puts retirees in a dilemma" (ST 28 Dec 2005).
Currently, estate duty is payable on liquid assets in excess of $600,000. Ms Ong said that a retiree needs more than $600,000 to maintain a reasonable standard of living.
I wish to give the following suggestions to a retiree with large savings on how to avoid paying estate duty.
1. Invest a significant portion of your lifetime savings in a life annuity. It pays an attractive monthly income which is guaranteed for a lifetime. As the life annuity includes the gradual release of capital during the expected lifetime of the retiree, it will be free of estate duty.
2. Invest in a participating annuity which increases with bonus in most years. The increased payment will help to offset the higher cost of living.
3. Keep up to $600,000 in liquid assets. This gives you the flexibility to meet unexpected cash needs, and is within the exemption limit.
4. Transfer any remaining savings to your children earlier, rather than on your death. If you do not wish to make a lump sum gift, you can buy a term annuity to transfer the money in annual sums over a certain number of years.
You can find more about life annuity from our website, http://www.income.coop/insurance/glannuity
NTUC Income has a market share of about 60 percent of all annuities sold in Singapore. Nearly 30,000 people have bought an annuity from us. Most retirees invest between $50,000 to $100,000. The largest investment in an annuity exceed $1 million.
Tan Kin Lian
Chief Executive Officer
Forum Page
Straits Times
I refer to the letter from Ms Janice Ong entitled "Estate Duty puts retirees in a dilemma" (ST 28 Dec 2005).
Currently, estate duty is payable on liquid assets in excess of $600,000. Ms Ong said that a retiree needs more than $600,000 to maintain a reasonable standard of living.
I wish to give the following suggestions to a retiree with large savings on how to avoid paying estate duty.
1. Invest a significant portion of your lifetime savings in a life annuity. It pays an attractive monthly income which is guaranteed for a lifetime. As the life annuity includes the gradual release of capital during the expected lifetime of the retiree, it will be free of estate duty.
2. Invest in a participating annuity which increases with bonus in most years. The increased payment will help to offset the higher cost of living.
3. Keep up to $600,000 in liquid assets. This gives you the flexibility to meet unexpected cash needs, and is within the exemption limit.
4. Transfer any remaining savings to your children earlier, rather than on your death. If you do not wish to make a lump sum gift, you can buy a term annuity to transfer the money in annual sums over a certain number of years.
You can find more about life annuity from our website, http://www.income.coop/insurance/glannuity
NTUC Income has a market share of about 60 percent of all annuities sold in Singapore. Nearly 30,000 people have bought an annuity from us. Most retirees invest between $50,000 to $100,000. The largest investment in an annuity exceed $1 million.
Tan Kin Lian
Chief Executive Officer
Sunday, December 25, 2005
1,500 people visited educational website within 2 days
1,500 people visited the educational website, www.KnowYourInsurance.com.sg,
within 2 days of its launch.
180 passed the test. They are eligible for a discount when they buy insurance from NTUC Income.
within 2 days of its launch.
180 passed the test. They are eligible for a discount when they buy insurance from NTUC Income.
Thursday, December 22, 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.
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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.
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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.
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.
Wednesday, December 21, 2005
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.
Tuesday, December 20, 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
Friday, December 16, 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
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.
Wednesday, December 14, 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%
Tuesday, December 13, 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.
Monday, December 12, 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/
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).
Sunday, December 11, 2005
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
Saturday, December 10, 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.
Friday, December 9, 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.
------------------------------------
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.
Thursday, December 8, 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
New Paper: Electrician bullied me
9 December 2005
Editor
The New Paper
I refer to the letter by Ms Lynn Aw entitled, "Electrician bullied me" (TNP, 08 Dec 2005).
Ms Aw shared her unfortunate experience with an electrician engaged by her to fix her faulty toilet light. She found the contractor through an advertisement in the newspaper.
NTUC Income provides an alternative way for home-owners to engage a contractor. They can call our 24-hour Home Service hotline, 6788 8878. We serve our policyholders and members of the public.
Under our Home Service portal, we register reliable contractors who can provide a wide range of 40 different types of services. The most popular services are plumbing, electrical, refrigeration, air-conditioning and tuition.
We check that the registered contactors are licensed and have undergone the required training for the service that they have provided. They are also required to commit to deliver deliver quality and professional service at a reasonable price, and to provide a 90-day warranty on the work.
If the customer finds the service to be unsatisfactory, they can lodge a complaint to us. We will investigate the complaint and find a solution. The complaint rate is low, representing less than 1% of the cases handled through our portal. Most of these complaint are resolved at the first level.
We handle an aveage of 150 calls a day for various servics through our portal. More information can be found at our website: www.income.coop/homeservices or by calling 6788 8878.
Tan Soon Heng
General Manager
NTUC Income
Editor
The New Paper
I refer to the letter by Ms Lynn Aw entitled, "Electrician bullied me" (TNP, 08 Dec 2005).
Ms Aw shared her unfortunate experience with an electrician engaged by her to fix her faulty toilet light. She found the contractor through an advertisement in the newspaper.
NTUC Income provides an alternative way for home-owners to engage a contractor. They can call our 24-hour Home Service hotline, 6788 8878. We serve our policyholders and members of the public.
Under our Home Service portal, we register reliable contractors who can provide a wide range of 40 different types of services. The most popular services are plumbing, electrical, refrigeration, air-conditioning and tuition.
We check that the registered contactors are licensed and have undergone the required training for the service that they have provided. They are also required to commit to deliver deliver quality and professional service at a reasonable price, and to provide a 90-day warranty on the work.
If the customer finds the service to be unsatisfactory, they can lodge a complaint to us. We will investigate the complaint and find a solution. The complaint rate is low, representing less than 1% of the cases handled through our portal. Most of these complaint are resolved at the first level.
We handle an aveage of 150 calls a day for various servics through our portal. More information can be found at our website: www.income.coop/homeservices or by calling 6788 8878.
Tan Soon Heng
General Manager
NTUC Income
Q&A: Financial Planning for the Young
Question: Should young adults think about financial planning, when their earning is still low?
Yes. Each person should save at least 10% of their earnings. This is very important, as jobs are uncertain. They may also need their saving to meet an unexpected payment, including a large medical bill, or when they lose their job.
Question: How should they invest their saving?
They should invest in a flexible saving plan that can give an attractive rate of return over several years. An investment-linked plan from NTUC Income is probably the best. It is more appropriate than a bank account or a traditional life insurance plan.
Question: Does this plan have high charges?
Most investment-linked plans have high charges. But you can choose a plan that invest 100% of your monthly savings immediately, and incur low charges.
Question: Does this plan provide insurance protection?
It is better for you to buy a decreasing term assurance. It provides high coverage at a low premium that remains fixed during the term.
Yes. Each person should save at least 10% of their earnings. This is very important, as jobs are uncertain. They may also need their saving to meet an unexpected payment, including a large medical bill, or when they lose their job.
Question: How should they invest their saving?
They should invest in a flexible saving plan that can give an attractive rate of return over several years. An investment-linked plan from NTUC Income is probably the best. It is more appropriate than a bank account or a traditional life insurance plan.
Question: Does this plan have high charges?
Most investment-linked plans have high charges. But you can choose a plan that invest 100% of your monthly savings immediately, and incur low charges.
Question: Does this plan provide insurance protection?
It is better for you to buy a decreasing term assurance. It provides high coverage at a low premium that remains fixed during the term.
Q&A: How to select an investment fund
Question: There are many funds in the market. What are the main categories of funds?
You can choose an equity fund, a bond fund or a balanced fund, which invest in both asset types.
Over the past 10 years, a global equity fund earn an average of 10% per annum. The bond fund earn an average of 5% per annum. These averages are also reflective of the returns over a longer period.
Question: Is it risky to invest in equities?
Equities have higher risk than bonds. But the risk can be reduced through diversification. You should invest in a fund that invest in many equities. If any investment turns bad, the impact on the fund is small, and can be offset by the good investments.
If you invest for the long term, you are also able to diversify through the years. Your fund may perform well in some years and poorly in other years. But, over a long period, it is likely to give you a fairly attractive return.
Question: Is there a guarantee on my capital?
If you wish to have a guarantee, you should invest in government bonds that has the highest rating. However, the return is quite low at around 3% p.a. for 5 years.
It is better to invest in an large, well diversified fund that can give a better return, with minimal risk, over a longer period.
Question: Am I committed to invest for a fixed number of years?
You have the flexibility to choose the right time to realise your investments. If you choose a good time, you can turn risk to your advantage and realise a better return than average.
You are also allowed to realise your investment, if you need cash for other purpose without suffering any penalty (except for the termination charge in some case). You get the net asset value fo the fund.
Question: Do I have to incur high charges?
You have to check the initial, annual and termination charges on the fund. Some fund have low charges, and give a better return to the investor.
You can choose an equity fund, a bond fund or a balanced fund, which invest in both asset types.
Over the past 10 years, a global equity fund earn an average of 10% per annum. The bond fund earn an average of 5% per annum. These averages are also reflective of the returns over a longer period.
Question: Is it risky to invest in equities?
Equities have higher risk than bonds. But the risk can be reduced through diversification. You should invest in a fund that invest in many equities. If any investment turns bad, the impact on the fund is small, and can be offset by the good investments.
If you invest for the long term, you are also able to diversify through the years. Your fund may perform well in some years and poorly in other years. But, over a long period, it is likely to give you a fairly attractive return.
Question: Is there a guarantee on my capital?
If you wish to have a guarantee, you should invest in government bonds that has the highest rating. However, the return is quite low at around 3% p.a. for 5 years.
It is better to invest in an large, well diversified fund that can give a better return, with minimal risk, over a longer period.
Question: Am I committed to invest for a fixed number of years?
You have the flexibility to choose the right time to realise your investments. If you choose a good time, you can turn risk to your advantage and realise a better return than average.
You are also allowed to realise your investment, if you need cash for other purpose without suffering any penalty (except for the termination charge in some case). You get the net asset value fo the fund.
Question: Do I have to incur high charges?
You have to check the initial, annual and termination charges on the fund. Some fund have low charges, and give a better return to the investor.
Wednesday, December 7, 2005
No claim discount for health insurance
SUGGESTION FROM POLICYHOLDER:
I hope one day NTUC will also offer NCD for all its health products (there
is one in the industry that offers up to 30% NCD at this moment), which will
reward those people that maintain their good health. This is for sharing
only...
-------------------------------
MY REPLY:
We now offer 10% discount under Incomeshield if there is no claim for 3 years. We hope to be able to maintain this discount in the future, provided that our claim experience remain favourable.
I want you to know why the scale of NCD for motor insurance is different from health insurance.
In motor insurance, we have a claim rate of 20%. In Incomeshield, the claim rate is about 5%.
Due to the difference in claim rate, the NCD has to be reflected differently. Generally, if the claim rate is higher, it is possible to justify a higher rate of NCD to different between the good risk and the poor risk.
I hope one day NTUC will also offer NCD for all its health products (there
is one in the industry that offers up to 30% NCD at this moment), which will
reward those people that maintain their good health. This is for sharing
only...
-------------------------------
MY REPLY:
We now offer 10% discount under Incomeshield if there is no claim for 3 years. We hope to be able to maintain this discount in the future, provided that our claim experience remain favourable.
I want you to know why the scale of NCD for motor insurance is different from health insurance.
In motor insurance, we have a claim rate of 20%. In Incomeshield, the claim rate is about 5%.
Due to the difference in claim rate, the NCD has to be reflected differently. Generally, if the claim rate is higher, it is possible to justify a higher rate of NCD to different between the good risk and the poor risk.
Positive feedback from our policyholder
FEEDBACK FROM POLICYHOLDER TO OUR ADVISER:
Dear
We am very fortunate and privilege to know you. You have been providing an excellent and effective services over almost a decade. You understand your products and can communicate effectively. This had helped me to make my choice as I compare with your competition.
NTUC Income's vehicle insurance differential itself from the competition with NCD waiver for car insurance as an example.
I learned from this experience that the upper management in NTUC Income are extremely active and effective to resolve matters.. and it is a rare find.
I must also add that your customer service folks are also great in processing my car insurance renewal with Income, ahead of the usual due date to accommodate for my absence in Singapore in Dec, as I had mentioned in my earlier email.
Congratulation on your success and attainment of LIFE MEMBERSHIP for MDRT. May I you have an enjoyable congress in San Diego. If you got time, visit the Sea World and Wild Animal Park...
Dear
We am very fortunate and privilege to know you. You have been providing an excellent and effective services over almost a decade. You understand your products and can communicate effectively. This had helped me to make my choice as I compare with your competition.
NTUC Income's vehicle insurance differential itself from the competition with NCD waiver for car insurance as an example.
I learned from this experience that the upper management in NTUC Income are extremely active and effective to resolve matters.. and it is a rare find.
I must also add that your customer service folks are also great in processing my car insurance renewal with Income, ahead of the usual due date to accommodate for my absence in Singapore in Dec, as I had mentioned in my earlier email.
Congratulation on your success and attainment of LIFE MEMBERSHIP for MDRT. May I you have an enjoyable congress in San Diego. If you got time, visit the Sea World and Wild Animal Park...
Tuesday, December 6, 2005
Tips for motorists
Tips for motorists
1. Motor insurance.
Shop around for your insurance. You can save up to
$200 a year, if you buy from the right place.
Call 6477 7722 for a quote. We insure about 40% of all vehicles,
due to our competitive rates and good service.
2. Accident
Use your mobilephone or camera to take photos of the
damages. It helps to identify the party at fault and prevent
the other party from inflating the damages.
Send your vehicle to an assessment center (Idac)
immediately. Let your insurer handle the repair. You
enjoy expert and hassle free service.
Call 6788 6616 for assistance (if you are insured
with NTUC Incoem).
3. No Claim Discount
If the damages are slight, make a private settlement, i.e.
pay cash for the damage. You can protect your discount
and enjoy savings over the next few years.
If you are not at fault, your insurer will help you to make
the claim against the other party and allow you to keep
the discount.
1. Motor insurance.
Shop around for your insurance. You can save up to
$200 a year, if you buy from the right place.
Call 6477 7722 for a quote. We insure about 40% of all vehicles,
due to our competitive rates and good service.
2. Accident
Use your mobilephone or camera to take photos of the
damages. It helps to identify the party at fault and prevent
the other party from inflating the damages.
Send your vehicle to an assessment center (Idac)
immediately. Let your insurer handle the repair. You
enjoy expert and hassle free service.
Call 6788 6616 for assistance (if you are insured
with NTUC Incoem).
3. No Claim Discount
If the damages are slight, make a private settlement, i.e.
pay cash for the damage. You can protect your discount
and enjoy savings over the next few years.
If you are not at fault, your insurer will help you to make
the claim against the other party and allow you to keep
the discount.
Website: Know Your Insurance
This website aims to:
- educate people about investment and insurance
- help them to make the right choice
- offers a discount when they decide to buy direct.
Try it: www.KnowYourInsurance.com.sg
IT IS NOW READY FOR ACCESS!
- educate people about investment and insurance
- help them to make the right choice
- offers a discount when they decide to buy direct.
Try it: www.KnowYourInsurance.com.sg
IT IS NOW READY FOR ACCESS!
Sunday, December 4, 2005
Educational Talks
NTUC Income organises educational talks about insurance and investments.
We aim to educate consumers, so that they can make the right choice.
The talks are free, but you have to register your attendance at our website: www.income.coop/talks or call 6877 3366.
You will see a list of talks scheduled for the next few weeks, ie title of talk, date, time, venue.
An attractive offer will be given at each educational talk. You can benefit by attending. Several of the talks are given by our chief executive officer or senior managers.
We aim to educate consumers, so that they can make the right choice.
The talks are free, but you have to register your attendance at our website: www.income.coop/talks or call 6877 3366.
You will see a list of talks scheduled for the next few weeks, ie title of talk, date, time, venue.
An attractive offer will be given at each educational talk. You can benefit by attending. Several of the talks are given by our chief executive officer or senior managers.
Compliment on good service
MESSAGE FROM a policyholder
Hi Mr. Tan Kin Lian (CEO of NTUC),
I have read the numerous response/letters in the ST Forum coming from NTUC. It is rare that a CEO of an organization respond to public queries. You have always make it a point to ensure that the public queries are answered.
Below is a chain of e-mail that reflects how quick and responsive your folks reply to a customer request, even though the customer (me) has indicated that 15th Dec is still alright.
It is something that you should know, that the good effort of your folks is being
recognized.
If they went out of the normal procedure to assist the customer, I hope that they are not being reprimanded.
The intent of this letter is a feedback to you form a satisfied customer and a way that the NTUC staff be recognized for the good service.
The feedback phone call which normally comes few days after the service request has been made, showed the effort an organization is willing to put in, to improve its service.
Thank you for having such a team of people. The time taken to write this letter is deserving. I do hope to hear from your good self, so I know that the letter has reached you.
Hi Mr. Tan Kin Lian (CEO of NTUC),
I have read the numerous response/letters in the ST Forum coming from NTUC. It is rare that a CEO of an organization respond to public queries. You have always make it a point to ensure that the public queries are answered.
Below is a chain of e-mail that reflects how quick and responsive your folks reply to a customer request, even though the customer (me) has indicated that 15th Dec is still alright.
It is something that you should know, that the good effort of your folks is being
recognized.
If they went out of the normal procedure to assist the customer, I hope that they are not being reprimanded.
The intent of this letter is a feedback to you form a satisfied customer and a way that the NTUC staff be recognized for the good service.
The feedback phone call which normally comes few days after the service request has been made, showed the effort an organization is willing to put in, to improve its service.
Thank you for having such a team of people. The time taken to write this letter is deserving. I do hope to hear from your good self, so I know that the letter has reached you.
Offer of refund to annuitants
5 December 2005
Editor
Forum Page
Straits Times
I wish to respond to two recent stories in the Straits Times about the buyback offer offered by NTUC Income to 12,000 purchasers who bought their annuities prior to 2002 (? November and 3 December).
Both stories indicate that the refund offer is not attractive as the deal that they are getting now. This is correct.
The interest rate of 4.5 percent that is used to compute the refund is based on the actual yield earned by our investments during the past 10 years. This is lower than the guaranteed return of 5 per cent that was used to compute the annuity payments.
A small number from this group of annuitants were unhappy that they did not get any bonus for the past three years. We decided to make this refund offer, so that they can find a better way to invest their money.
Less than 10 people took up the offer of the refund. The majority decide to stay with their current annuity plan. For others who need a longer time to decide, our offer is still available for them for a few more weeks.
We sent an explanatory note to our 28,000 annuitants to explain our practice in declaring bonus. This supplements the communication that was sent in past years.
During the past two weeks, we also held two dialogue sessions that were attended by 600 people. The sessions went on well. Several annuitants were interested to top up their annuity.
NTUC Income is a cooperative society. We collect the annuity money and invest them into an annuity fund. We invest the fund prudently to earn an attractive long term return. We use the surplus of the annuity fund to declare bonuses to our annuitants. We exercise fairness in declaring the bonus to the different series of annuitants who have bought their annuities on different guaranteed terms.
We will continue to hold dialogue sessions in the future. We invite the public to attend these sessions and learn more about the principle of pooling is applied to help annuitants to manage their risks. We want to educate retirees about the advantages of investing in annuities.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Forum Page
Straits Times
I wish to respond to two recent stories in the Straits Times about the buyback offer offered by NTUC Income to 12,000 purchasers who bought their annuities prior to 2002 (? November and 3 December).
Both stories indicate that the refund offer is not attractive as the deal that they are getting now. This is correct.
The interest rate of 4.5 percent that is used to compute the refund is based on the actual yield earned by our investments during the past 10 years. This is lower than the guaranteed return of 5 per cent that was used to compute the annuity payments.
A small number from this group of annuitants were unhappy that they did not get any bonus for the past three years. We decided to make this refund offer, so that they can find a better way to invest their money.
Less than 10 people took up the offer of the refund. The majority decide to stay with their current annuity plan. For others who need a longer time to decide, our offer is still available for them for a few more weeks.
We sent an explanatory note to our 28,000 annuitants to explain our practice in declaring bonus. This supplements the communication that was sent in past years.
During the past two weeks, we also held two dialogue sessions that were attended by 600 people. The sessions went on well. Several annuitants were interested to top up their annuity.
NTUC Income is a cooperative society. We collect the annuity money and invest them into an annuity fund. We invest the fund prudently to earn an attractive long term return. We use the surplus of the annuity fund to declare bonuses to our annuitants. We exercise fairness in declaring the bonus to the different series of annuitants who have bought their annuities on different guaranteed terms.
We will continue to hold dialogue sessions in the future. We invite the public to attend these sessions and learn more about the principle of pooling is applied to help annuitants to manage their risks. We want to educate retirees about the advantages of investing in annuities.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Reply to Chia Yoong Song on Incomeshield M
4 December 2005
Editor
Forum Page
Straits Times
I refer to the article "Host of errors in policy documents Incomeshield Plans MA, MB" by Chia Yoong Song (Straits Times, 3 December).
Mr Chia insured his wife under our Incomeshield Plan A. He and his two children were insured under Medishield Plus, which was recently converted to our Incomeshield Plan MA.
When we selected his wife's record to print the renewal notice in November, we accidentally linked it to Mr Chia's policy number under the Medishield Plus. This resulted in a printing error and caused the duplicated printing. When we spotted the error, we sent a new set of renewal notice fo his wife, to supercede the renewal notice.
We apologise for the error and inconvenience caused to Mr Chia. This error has now been rectified.
On a positive note, we now have a large base of 800,000 policyholders under our Incomeshield plan. With the economy of scale, we will be able to improve our insurance plans over time. Our aim is to provide adequate coverage for a lifetime and keep the premium at an affordable cost for our policyholders.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Forum Page
Straits Times
I refer to the article "Host of errors in policy documents Incomeshield Plans MA, MB" by Chia Yoong Song (Straits Times, 3 December).
Mr Chia insured his wife under our Incomeshield Plan A. He and his two children were insured under Medishield Plus, which was recently converted to our Incomeshield Plan MA.
When we selected his wife's record to print the renewal notice in November, we accidentally linked it to Mr Chia's policy number under the Medishield Plus. This resulted in a printing error and caused the duplicated printing. When we spotted the error, we sent a new set of renewal notice fo his wife, to supercede the renewal notice.
We apologise for the error and inconvenience caused to Mr Chia. This error has now been rectified.
On a positive note, we now have a large base of 800,000 policyholders under our Incomeshield plan. With the economy of scale, we will be able to improve our insurance plans over time. Our aim is to provide adequate coverage for a lifetime and keep the premium at an affordable cost for our policyholders.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Policyholder have second thoughts about going to distributor workshop
I RECIEVED THIS MESSAGE FROM A POLICYHOLDER (IT HAS BEEN EDITED BY ME)
Dear Tan,
Your blog is extremely educational. I discovered it by accident following a search for your full name.
Like many people, I did not know earlier that there can be a significant difference between a distributor's cost of repair versus your authorised workshop.
After reading your blog, I have now become aware that it can make sense to get value for money by repairing at normal workshop, especially if the distributor is also sub-contracting work out.
I have reconsider my plan to go to my distributor workshop for the spraying. I will go to a normal workshop.
Thanks for every thing. Most importantly, the education that you have provided to the general public. I know I can trust your views.
Dear Tan,
Your blog is extremely educational. I discovered it by accident following a search for your full name.
Like many people, I did not know earlier that there can be a significant difference between a distributor's cost of repair versus your authorised workshop.
After reading your blog, I have now become aware that it can make sense to get value for money by repairing at normal workshop, especially if the distributor is also sub-contracting work out.
I have reconsider my plan to go to my distributor workshop for the spraying. I will go to a normal workshop.
Thanks for every thing. Most importantly, the education that you have provided to the general public. I know I can trust your views.
Financial Planning: Tips for the Young
1. Save up to 15% of your monthly income. You may need you savings for an emergency or when you lose your job. Invest the savings in a flexible insurance plan that gives an attractive return.
2. Buy a low cost insurance plan that offers up to $100,000 in coverage against death, accident and hospital expenses for only $100 a year. Accidents can happen and you should be protected.
3. Learn the basic facts about investments and insurance on your own. You can make the right choice and earn a better return for your savings. Visit this website: www.KnowYourInsurance.com.sg or attend an educational talk (call: 6877 3366).
CONTEST
Visit this website: www.income.coop to participate in this contest and win prizes of $5,000.Eligible only for people between 20 to 30 years old. (Note: this will only be available from 15 Dec 2005).
2. Buy a low cost insurance plan that offers up to $100,000 in coverage against death, accident and hospital expenses for only $100 a year. Accidents can happen and you should be protected.
3. Learn the basic facts about investments and insurance on your own. You can make the right choice and earn a better return for your savings. Visit this website: www.KnowYourInsurance.com.sg or attend an educational talk (call: 6877 3366).
CONTEST
Visit this website: www.income.coop to participate in this contest and win prizes of $5,000.Eligible only for people between 20 to 30 years old. (Note: this will only be available from 15 Dec 2005).
Financial Planning: Tips for Young Parents
1. Save up to $200 monthly for your child. Invest the savings in a flexible insurance plan that gives an attractive return. The savings can be used for your tertiary education or give your child a head start in life.
2. Choose a plan that gives you an attractive return and invest 100% of your savings from the first month. Protect your savings with a decreasing term assurance that charges a very low premium, and allow more of your savings to accumulate.
3. Learn the basic facts about investments and insurance on your own. You can make the right choice and earn a better return for your savings. Visit this website: www.KnowYourInsurance.com.sg or attend an educational talk (call: 6877 3366).
CONTEST
Visit this website: www.income.coop to participate in this contest and win prizes of $5,000. Eligible only for people expecting a child or with a child less than 2 years old. (Note: this will only be available from 15 Dec 2005).
2. Choose a plan that gives you an attractive return and invest 100% of your savings from the first month. Protect your savings with a decreasing term assurance that charges a very low premium, and allow more of your savings to accumulate.
3. Learn the basic facts about investments and insurance on your own. You can make the right choice and earn a better return for your savings. Visit this website: www.KnowYourInsurance.com.sg or attend an educational talk (call: 6877 3366).
CONTEST
Visit this website: www.income.coop to participate in this contest and win prizes of $5,000. Eligible only for people expecting a child or with a child less than 2 years old. (Note: this will only be available from 15 Dec 2005).
My personal views on the Melvyn Tan's eposide
Melvyn Tan is a world renowned pianist. He is a Singaprean.
When Melvyn was young, he went overseas to study. He did not return to perform his national service. His parents paid a bond of $30,000. It was a large sum of money at that time.
Many many years later, Melvyn Tan achieved world fame. He agreed to return to Singapore to perform at the Esplanade, Theatre by the Bay.
He voluntarily attended court to face the charge of failing to do his national service. He was fined $3,000.
Some Singaporeans were still not happy. They wrote strong letters to the newspapers. There was an uproar.
Finally, Melvyn Tan decided to cancel his performance at the Esplanade.
I like to ask the following questions:
- what have we achieved as a result of this uproar?
- how may times should a person be penalised for an offence?
- was the penalty of $30,000 on the bond sufficient?
- can we be a more forgiving people?
- do we want Melvyn to stay away from Singapore for a lifetime?
When Melvyn was young, he went overseas to study. He did not return to perform his national service. His parents paid a bond of $30,000. It was a large sum of money at that time.
Many many years later, Melvyn Tan achieved world fame. He agreed to return to Singapore to perform at the Esplanade, Theatre by the Bay.
He voluntarily attended court to face the charge of failing to do his national service. He was fined $3,000.
Some Singaporeans were still not happy. They wrote strong letters to the newspapers. There was an uproar.
Finally, Melvyn Tan decided to cancel his performance at the Esplanade.
I like to ask the following questions:
- what have we achieved as a result of this uproar?
- how may times should a person be penalised for an offence?
- was the penalty of $30,000 on the bond sufficient?
- can we be a more forgiving people?
- do we want Melvyn to stay away from Singapore for a lifetime?
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