An average of 1,100 visitors read my blog daily for the past week. This is unusually high, and is due to news of my impending departure from NTUC Income.
I expect the number to drop back to the normal traffic of 300 daily, after the news wears off.
I shall be writing more about my future plans in this blog. I shall explore the feasibility of introducing a "private pension plan" or "lifestyle fund" for the CPF members.
Saturday, September 30, 2006
Basic courtesy to call back
Dear Mr Tan,
I wish to highlight is the service quality of the enquiry hotline. If you have been promised that someone from a Company would check and revert to you within a stipulated time, isn't it at least basic courtesy to return call to the customer even if you do not have the answer to the query?
FG
-------------------------------
Dear FG
I agree with you. It is basic courtesy to return the call within the promised time, even if we do not have the answer.
I have been caught in this situation personally. I returned a call at the promised time, but the other person is not available or the call cannot get through.
I hope that you do not consider this to be an excuse, because it does happen quite often.
Tan Kin Lian
I wish to highlight is the service quality of the enquiry hotline. If you have been promised that someone from a Company would check and revert to you within a stipulated time, isn't it at least basic courtesy to return call to the customer even if you do not have the answer to the query?
FG
-------------------------------
Dear FG
I agree with you. It is basic courtesy to return the call within the promised time, even if we do not have the answer.
I have been caught in this situation personally. I returned a call at the promised time, but the other person is not available or the call cannot get through.
I hope that you do not consider this to be an excuse, because it does happen quite often.
Tan Kin Lian
Friday, September 29, 2006
Some views on Income agents
Hi,
I am not a policy holder of Income or any other insurance companies.
Recently, insurance agents had been stalking bus stations, MRTs, shopping malls and any other places where there is a crowd. In pretence of doing a survey, then they try to hard sell.. Perhaps I am not so versatile enough to travel round Singapore
because up to now. I have yet to see any Income insurance agents doing that.
So far, from my encounters when Income Agents had leave me a good impression. They explain, elaborate but never really hard sell. And I think that needs a lot of discipline within the corporate company itself. Of course it might not be totally your merit but a healthy corporate image do needs a lot of effort in it.
SL
I am not a policy holder of Income or any other insurance companies.
Recently, insurance agents had been stalking bus stations, MRTs, shopping malls and any other places where there is a crowd. In pretence of doing a survey, then they try to hard sell.. Perhaps I am not so versatile enough to travel round Singapore
because up to now. I have yet to see any Income insurance agents doing that.
So far, from my encounters when Income Agents had leave me a good impression. They explain, elaborate but never really hard sell. And I think that needs a lot of discipline within the corporate company itself. Of course it might not be totally your merit but a healthy corporate image do needs a lot of effort in it.
SL
Thursday, September 28, 2006
Invest in an indexed fund
An indexed fund is a large fund that is benchmarked against the market index. The fund manager's job is to make investments to follow the components of the market index. This is also called "passive investment".
The advantages of an indexed fund are:
- it is usually a very large fund
- it is well diversified
- the annual charge is very low, maybe 0.5% or less
The fund manager can keep the charges at a low level, as they do not have to pay analysts to study the individual stocks. They just invest mainly to follow the market index.
Studies over the past years have shown that, by investing in the index, the results are better than the average performance of actively managed funds. This is probably due to the low fees and transaction costs.
If you invest in an indexed fund, you do not have to worry about how to pick the right managers. This reduces another challenge.
Many experts have recommended the consumers to invest in the indexed funds.
NOTE: An indexed fund with low charges is not available in Singapore today. But, I expect it to be available in the near future. Watch out for it.
The advantages of an indexed fund are:
- it is usually a very large fund
- it is well diversified
- the annual charge is very low, maybe 0.5% or less
The fund manager can keep the charges at a low level, as they do not have to pay analysts to study the individual stocks. They just invest mainly to follow the market index.
Studies over the past years have shown that, by investing in the index, the results are better than the average performance of actively managed funds. This is probably due to the low fees and transaction costs.
If you invest in an indexed fund, you do not have to worry about how to pick the right managers. This reduces another challenge.
Many experts have recommended the consumers to invest in the indexed funds.
NOTE: An indexed fund with low charges is not available in Singapore today. But, I expect it to be available in the near future. Watch out for it.
High telephone charges in England
I stayed in Manchester for 4 days. I used the telephone in the hotel room to connect to the internet.
I was shocked to received a bill for GBP 220 for 4 days of stay. I asked why the cost is so high.
I was told that the telephone charge is GBP 0.75 for 1 minute by fixed line and GBP 2.50 for mobilephone. This is easily about 30 to 70 times of the charges in Singapore. Apparently, this is the public rate, i.e. not loaded by the hotel.
The hotel agreed to reduce the charge by 50%. It is a nice gesture, but the net sum is still very high.
It seems that the telephone charges are very expensive all over Europe. It must be due to the high tender prices that the telephone companies paid for the 3G network. This is probably a way to recover their large investment.
I was shocked to received a bill for GBP 220 for 4 days of stay. I asked why the cost is so high.
I was told that the telephone charge is GBP 0.75 for 1 minute by fixed line and GBP 2.50 for mobilephone. This is easily about 30 to 70 times of the charges in Singapore. Apparently, this is the public rate, i.e. not loaded by the hotel.
The hotel agreed to reduce the charge by 50%. It is a nice gesture, but the net sum is still very high.
It seems that the telephone charges are very expensive all over Europe. It must be due to the high tender prices that the telephone companies paid for the 3G network. This is probably a way to recover their large investment.
Wednesday, September 27, 2006
Customer for 30 years!
Dear Mr Tan,
I am a loyal INCOME policy holder for the last 30 years since my days in national service. I bought my 1st life insurance policy while I was in the Officer Cadet
Course.
Subsequently, I attended a talk by you as the GM of INCOME introducing INCOME to the policy holders.
You are a very hands-on person. Care for the interest of the policy holders. I had some small investments in INCOME because I trust your words. I have confidence in you! You had many innovative products.
Sad to know that you are stepping down though you had been with the Company coming to 30 yrs. You still wants to contribute to the company and care for the
Policy holders. I am sure there are many ways that you can still do it.
Best wishes to you and a BIG Thank you for your contributions to INCOME and the Insurance industry.
NTK
I am a loyal INCOME policy holder for the last 30 years since my days in national service. I bought my 1st life insurance policy while I was in the Officer Cadet
Course.
Subsequently, I attended a talk by you as the GM of INCOME introducing INCOME to the policy holders.
You are a very hands-on person. Care for the interest of the policy holders. I had some small investments in INCOME because I trust your words. I have confidence in you! You had many innovative products.
Sad to know that you are stepping down though you had been with the Company coming to 30 yrs. You still wants to contribute to the company and care for the
Policy holders. I am sure there are many ways that you can still do it.
Best wishes to you and a BIG Thank you for your contributions to INCOME and the Insurance industry.
NTK
Invest for the long term
If you wish to invest for 10 years or longer, my advice is:
- invest in a large fund which is benchmarked to the market index
- choose global equities
- choose a fund with low charges (upfront and annual charges)
- select the right time to realise the investment.
A large fund allows you to diversify and minimise your risk. The fund should have 100 or more investments. If any of the investments turn bad, the impact is likely to be small and is more than offset by the good investments.
By investing for a long period, you can average out the good and bad years. This will give you a good average return. The average return on global equities over a 10 year period has been from 7% to 10% per annum. This is higher than other asset classes.
A global equity fund gives better diversification, compared to investing in any specific country (eg Japan) or sector (eg technology).
By benchmarking to the market index, the fund manager has to invest in the large, well managed companies. This will reduce the speculative risk.
If your fund has low charges, say less than 1% per year, you will be earn most of the return (instead of paying the fund manager).
If you choose the right time to realise your investment, you can get a better return than average. Do not quit when the market is depressed. By patient. Wait some times for the market to recover, and quit at that time.
- invest in a large fund which is benchmarked to the market index
- choose global equities
- choose a fund with low charges (upfront and annual charges)
- select the right time to realise the investment.
A large fund allows you to diversify and minimise your risk. The fund should have 100 or more investments. If any of the investments turn bad, the impact is likely to be small and is more than offset by the good investments.
By investing for a long period, you can average out the good and bad years. This will give you a good average return. The average return on global equities over a 10 year period has been from 7% to 10% per annum. This is higher than other asset classes.
A global equity fund gives better diversification, compared to investing in any specific country (eg Japan) or sector (eg technology).
By benchmarking to the market index, the fund manager has to invest in the large, well managed companies. This will reduce the speculative risk.
If your fund has low charges, say less than 1% per year, you will be earn most of the return (instead of paying the fund manager).
If you choose the right time to realise your investment, you can get a better return than average. Do not quit when the market is depressed. By patient. Wait some times for the market to recover, and quit at that time.
Tuesday, September 26, 2006
Top managers have strong cooperative values
A customer said that he will withhold further purchase from NTUC Income until he finds out the "true colours" of the next chief executive.
I think that this is not necessary.
The general and senior managers who will remain with NTUC Income have strong commitment towards our cooperative principles, to look after the interest of our policyholders. They asked me to convey this message to the public.
After my departure, I will keep my insurances with NTUC Income and will also add to my investments.
NTUC Income is financially strong and is well managed. You can continue to get good value from the cooperative.
I think that this is not necessary.
The general and senior managers who will remain with NTUC Income have strong commitment towards our cooperative principles, to look after the interest of our policyholders. They asked me to convey this message to the public.
After my departure, I will keep my insurances with NTUC Income and will also add to my investments.
NTUC Income is financially strong and is well managed. You can continue to get good value from the cooperative.
A lot of my sales is due to you
FROM A PART TIME AGENT
Dear Mr Tan,
It was a tremendous shock when i read in the media that you are stepping down from Income from April 2007.
I have been an organiser from 1978. A lot my friends and clients have found you to be a very down to earth person who cares for the policyholders.
I find you to be an great gentleman, who is very sincere and a very likeable person even though i was upset with one policy of yours.
Frankly a lot of my sales was done on the strength that you are the CEO. I am small person who is not in the MDRT or COT, but you leaving INCOME brings so much of
sadness in my heart.
For whatever reasons you are leaving , may i wish you all my best wishes, good
health, prosperity and happiness in your future endeavours.
PS
Dear Mr Tan,
It was a tremendous shock when i read in the media that you are stepping down from Income from April 2007.
I have been an organiser from 1978. A lot my friends and clients have found you to be a very down to earth person who cares for the policyholders.
I find you to be an great gentleman, who is very sincere and a very likeable person even though i was upset with one policy of yours.
Frankly a lot of my sales was done on the strength that you are the CEO. I am small person who is not in the MDRT or COT, but you leaving INCOME brings so much of
sadness in my heart.
For whatever reasons you are leaving , may i wish you all my best wishes, good
health, prosperity and happiness in your future endeavours.
PS
Thanks for everything
Hi Mr Tan
Saw your departure news only from Big Trumpet just now.
I just want to express my admiration and respect to you for been there for us through NTUC. I am not an Income policy holder except just a happy consumer at the NTUC supermarket.
Hopefully the new CEO will continue to run NTUC with the S'porean's pocket in mind.
Continue to keep us informed of your happenings through your blog. I wish you good health.
Yours sincerely
GT
Saw your departure news only from Big Trumpet just now.
I just want to express my admiration and respect to you for been there for us through NTUC. I am not an Income policy holder except just a happy consumer at the NTUC supermarket.
Hopefully the new CEO will continue to run NTUC with the S'porean's pocket in mind.
Continue to keep us informed of your happenings through your blog. I wish you good health.
Yours sincerely
GT
A job well done!
Dear Mr. Tan
I'm a loyal fan (a shareholder too)of NTUC Income with serveral policies for 2 reasons:
1. INCOME policies are really competitive in terms of rates and return
2. The fact that you always put comsumers' interest as top priority under your leadership, even at the expense of antagonising your competitors and detractors
You also value 2-way communication and very hands-on, instead of letting your staff do all the work.
I remember an incident that after an unpleasant trip to the snow city, I received a customer service officer of INCOME for my feedback the next day, and this actually gives me an avenue to convey my dissatisfaction.
Such move of valuing customers' opinion is admirable and worth emulating by other service providers.
With your departure, I really do not know how would the next one seating on your hot seat performs.
I wish you all the best in your future endeavours!
Regards
MC
---------------
Dear MC,
Thank you. I am sure that the new CEO will continue all the good things that make our customers happy. Wish you all the best.
Tan Kin Lian
CEO, NTUC Income
I'm a loyal fan (a shareholder too)of NTUC Income with serveral policies for 2 reasons:
1. INCOME policies are really competitive in terms of rates and return
2. The fact that you always put comsumers' interest as top priority under your leadership, even at the expense of antagonising your competitors and detractors
You also value 2-way communication and very hands-on, instead of letting your staff do all the work.
I remember an incident that after an unpleasant trip to the snow city, I received a customer service officer of INCOME for my feedback the next day, and this actually gives me an avenue to convey my dissatisfaction.
Such move of valuing customers' opinion is admirable and worth emulating by other service providers.
With your departure, I really do not know how would the next one seating on your hot seat performs.
I wish you all the best in your future endeavours!
Regards
MC
---------------
Dear MC,
Thank you. I am sure that the new CEO will continue all the good things that make our customers happy. Wish you all the best.
Tan Kin Lian
CEO, NTUC Income
Big shoe to fit
Hi Mr Tan,
You may not know me as there are so many customers that you have delighted in one way or another.
I just read the eNN e-newsletter and realised that you will be leaving the
coop.
Indeed, this will be a big shoe for anyone to fit in and you will be missed. I want to thank you on behalf of all consumers and customers of the coop which you have helped.
You have been an exceptional leader and showed your impartiality in assessment of matters.
Personally, I had 2 cases in the last decade which sought your assistance for resolution and I cant thank you enough for addressing such trivial matters.
Thank you once again and my best wishes to you on your furture endeavours.
Take care.
Best Regards,
TBH
You may not know me as there are so many customers that you have delighted in one way or another.
I just read the eNN e-newsletter and realised that you will be leaving the
coop.
Indeed, this will be a big shoe for anyone to fit in and you will be missed. I want to thank you on behalf of all consumers and customers of the coop which you have helped.
You have been an exceptional leader and showed your impartiality in assessment of matters.
Personally, I had 2 cases in the last decade which sought your assistance for resolution and I cant thank you enough for addressing such trivial matters.
Thank you once again and my best wishes to you on your furture endeavours.
Take care.
Best Regards,
TBH
Why does NTUC Income educate its customers about cooperative values?
HERE IS MY REPLY TO THIS QUESTION FROM A NEW ZEALAND COOPERATIVE LEADER.
NTUC Income has to compete in a competitive market.
In the case of life insurance products that will only mature in 20 years or longer, the consumer is often not clear about the return that they can get from our products, compared to other products offered by the commercial insurance companies. Some of our competitors make bold projections of the return from their products. As the projections are not guaranteed, they can get away with high projections that may be unsustainable.
In such situations, it is important for us to educate the consumers about the cooperative model. Our cooperative shareholders get a modest return on their shares. The remaining profits is distributed as bonus to the policyholders of participating policies.
By educating the consumers, they are more likely to choose NTUC Income for their long term investments.
We educate the consumers at various levels:
- through our insurance advisers who meet them face to face
- through our newsletters sent regularly to our policyholders
- through advertisements and media releases.
We also educate our policyholders that they pay a lower premium on their non-life insurance products, as our aim is to cover the claims and expenses. We do not aim to make a large profit for shareholders.
Tan Kin Lian
CEO, NTUC Income
NTUC Income has to compete in a competitive market.
In the case of life insurance products that will only mature in 20 years or longer, the consumer is often not clear about the return that they can get from our products, compared to other products offered by the commercial insurance companies. Some of our competitors make bold projections of the return from their products. As the projections are not guaranteed, they can get away with high projections that may be unsustainable.
In such situations, it is important for us to educate the consumers about the cooperative model. Our cooperative shareholders get a modest return on their shares. The remaining profits is distributed as bonus to the policyholders of participating policies.
By educating the consumers, they are more likely to choose NTUC Income for their long term investments.
We educate the consumers at various levels:
- through our insurance advisers who meet them face to face
- through our newsletters sent regularly to our policyholders
- through advertisements and media releases.
We also educate our policyholders that they pay a lower premium on their non-life insurance products, as our aim is to cover the claims and expenses. We do not aim to make a large profit for shareholders.
Tan Kin Lian
CEO, NTUC Income
Commission on motor insurance in Europe
I am now in Manchester, UK.
The motor insurance manager of a Swedish insurance company told me that the commission payable to the agent is an upfront commission of about 5% to 7%. There is no renewal commission.
Most of the motor insurance are done through the telephone. The agent does not have to do much work.
In Germany, many large insurers follow a similar system, ie a small upfront commission with no renewal commission.
The competitive market has forced down the commission to this level. This has been the case for many years. Lower commission means lower cost to the consumers.
The motor insurance manager of a Swedish insurance company told me that the commission payable to the agent is an upfront commission of about 5% to 7%. There is no renewal commission.
Most of the motor insurance are done through the telephone. The agent does not have to do much work.
In Germany, many large insurers follow a similar system, ie a small upfront commission with no renewal commission.
The competitive market has forced down the commission to this level. This has been the case for many years. Lower commission means lower cost to the consumers.
Monday, September 25, 2006
Private Pension Plan
Three years ago, the CPF wanted to introduce a Private Pension Plan (PPP) for their members.
The aim was:
- offer large, well diversified funds for members to invest
- a small number of fund managers will be selected
- no upfront fee
- marketing and educating will be done by CPF
- a modest annual charge
- a trailer charge, for members who encash earlier
The fund management industry did not like the "no upfront fee". The PPP plan was shelved.
I think that the earlier proposal by CPF is sound. I hope that someone will introduce this PPP option for CPF members. It will help them to make the right investments.
The aim was:
- offer large, well diversified funds for members to invest
- a small number of fund managers will be selected
- no upfront fee
- marketing and educating will be done by CPF
- a modest annual charge
- a trailer charge, for members who encash earlier
The fund management industry did not like the "no upfront fee". The PPP plan was shelved.
I think that the earlier proposal by CPF is sound. I hope that someone will introduce this PPP option for CPF members. It will help them to make the right investments.
Migrated agent done well
MESSAGE FROM MIGRATED AGENT
Dear Mr Tan,
I have spoken to a journalist and I told her that I would like to give her an honest and fair view.
Spoken to her that I am a migrated agent and have done very well in NTUC Income.
company.
I have a good support from company, management and we have a very good CEO, who have contributed much to NTUC Income for so many years.
I told her the direct channel has not affected my business.
Commercial companies have bancassurance, so to have a direct channel is good. As
a Cooperative, we have always kept our expenses low.
VS
Dear Mr Tan,
I have spoken to a journalist and I told her that I would like to give her an honest and fair view.
Spoken to her that I am a migrated agent and have done very well in NTUC Income.
company.
I have a good support from company, management and we have a very good CEO, who have contributed much to NTUC Income for so many years.
I told her the direct channel has not affected my business.
Commercial companies have bancassurance, so to have a direct channel is good. As
a Cooperative, we have always kept our expenses low.
VS
Top insurance advisers earn well
Several top insurance advisers in NTUC Income earn more than $300,000 a year. They actually earn a lower rate of commission on each policy (about half of the market rate), but they earn more than a large volume of sales.
They are showing an increase in earnings compared to past years.
It is easy to sell the products from NTUC Income because they give good value to the customers. We have a good brand image. Customers prefer to buy from NTUC Income.
The advisers also benefit from the increased cross selling activities this year. We now generate 25,000 new sales leads each month, most of which come from existing customers. It is easy for our advisers to follow up and close more sales.
More sales are now done by the advisers by entering through the internet. The adviser does not need to visit the customer or complete any application form. This reduces the time to close the sale and increase the productivity.
Several agents who migrated to us from other companies are seeing a large increase in their earnings.
They are showing an increase in earnings compared to past years.
It is easy to sell the products from NTUC Income because they give good value to the customers. We have a good brand image. Customers prefer to buy from NTUC Income.
The advisers also benefit from the increased cross selling activities this year. We now generate 25,000 new sales leads each month, most of which come from existing customers. It is easy for our advisers to follow up and close more sales.
More sales are now done by the advisers by entering through the internet. The adviser does not need to visit the customer or complete any application form. This reduces the time to close the sale and increase the productivity.
Several agents who migrated to us from other companies are seeing a large increase in their earnings.
Sunday, September 24, 2006
Next CEO will continue to take good care of consumers
MESSAGE FROM POLICYHOLDER
Hi Mr Tan,
I am both sad and concerned that you are going into early retirement.
Sad because you have run the cooperative so well, notwithstanding the controversies you sometime stirred.
I am worried because the next CEO might adopt a different marketing tack, raising premium rates.
I have Living Policies, Incomeshield and a number of other policies with Income precisely because I like what you have been doing at the cooperative. I am afraid that the next CEO might not share your approach in keeping costs down and allowing customers to share the savings.
Very concerned.
Regards,
TTY
------------------------
Dear TTY
I also share your hope that the next CEO will continue the same strategy to take good care of the consumers.
Tan Kin Lian
CEO, NTUC Income
Hi Mr Tan,
I am both sad and concerned that you are going into early retirement.
Sad because you have run the cooperative so well, notwithstanding the controversies you sometime stirred.
I am worried because the next CEO might adopt a different marketing tack, raising premium rates.
I have Living Policies, Incomeshield and a number of other policies with Income precisely because I like what you have been doing at the cooperative. I am afraid that the next CEO might not share your approach in keeping costs down and allowing customers to share the savings.
Very concerned.
Regards,
TTY
------------------------
Dear TTY
I also share your hope that the next CEO will continue the same strategy to take good care of the consumers.
Tan Kin Lian
CEO, NTUC Income
The next CEO will lead Income well
FROM POLICYHOLDER
Hi Mr Tan,
I read with much disappointment about your decision to retire from NTUC Income.
Two months ago, I emailed and sought your advice regarding buying a growth or annuity plan and indicated my high regard for your leadership and capable management of NTUC Income.
Like many others, I bought policies from NTUC Income because we trust your caring interest and responsible stewardship of monies of Income clients. It's precisely because you're the top man there that I decided to buy another growth policy just recently. The amount is modest but it represents my retirement fund and means a fortune to me.
I share with others the deep disappointment of your intended departure and wish you could change your mind. You're very well respected in the insurance industry but you remain humble and approachable to the common folks . It's hard to get someone to fit into your shoes. It'ld be great if you could you reconsider your move.
Sincerely,
CGC
------------------
Dear CGC
Thank you.
I am sure that the new CEO will be able to lead the organisation well, towards the next stage of its development.
Hi Mr Tan,
I read with much disappointment about your decision to retire from NTUC Income.
Two months ago, I emailed and sought your advice regarding buying a growth or annuity plan and indicated my high regard for your leadership and capable management of NTUC Income.
Like many others, I bought policies from NTUC Income because we trust your caring interest and responsible stewardship of monies of Income clients. It's precisely because you're the top man there that I decided to buy another growth policy just recently. The amount is modest but it represents my retirement fund and means a fortune to me.
I share with others the deep disappointment of your intended departure and wish you could change your mind. You're very well respected in the insurance industry but you remain humble and approachable to the common folks . It's hard to get someone to fit into your shoes. It'ld be great if you could you reconsider your move.
Sincerely,
CGC
------------------
Dear CGC
Thank you.
I am sure that the new CEO will be able to lead the organisation well, towards the next stage of its development.
1,200 visitors to my blog
I used to have an average of 250 visitors to my blog.
Since the news of my impending departure from NTUC Income, 1,000 people visited my blog on Saturday and 1,200 on Sunday.
This will probably continue for a few days, before it reverts to the normal traffic.
Since the news of my impending departure from NTUC Income, 1,000 people visited my blog on Saturday and 1,200 on Sunday.
This will probably continue for a few days, before it reverts to the normal traffic.
Dare to be different
MESSAGE FROM A FORMER ASSOCIATE
Dear Mr Tan
Reading the ST report on your departure on Saturday makes me feel that corporate entrepreneurship is not seen as a virtue, at least by some people in Singapore.
Daring to be different from industry norm is one way for Singapore Inc to remake itself, especially so for a giant such as NTUC Income, which is competing with MNCs such as AIA, Prudential and the likes.
I salute the way you apply out of the box thinking method on motor insurance as well as agents' renumeration. The thinking behind is to offer the best value to consumers at the lowest possible price, which can only be made possible with a lowest viable cost structure.
I feel that the ST Saturday's report did not provide a balance enough coverage of the merits and demerits of your policies. I do not think they have gathered sufficient facts and figure to give a fair comment on such policies.
Nevertheless, I trust that Singaporeans are smart enough to see that. So no worries.
WL
Dear Mr Tan
Reading the ST report on your departure on Saturday makes me feel that corporate entrepreneurship is not seen as a virtue, at least by some people in Singapore.
Daring to be different from industry norm is one way for Singapore Inc to remake itself, especially so for a giant such as NTUC Income, which is competing with MNCs such as AIA, Prudential and the likes.
I salute the way you apply out of the box thinking method on motor insurance as well as agents' renumeration. The thinking behind is to offer the best value to consumers at the lowest possible price, which can only be made possible with a lowest viable cost structure.
I feel that the ST Saturday's report did not provide a balance enough coverage of the merits and demerits of your policies. I do not think they have gathered sufficient facts and figure to give a fair comment on such policies.
Nevertheless, I trust that Singaporeans are smart enough to see that. So no worries.
WL
I urge you to retire
I RECEIVED THIS E-MAIL FROM HONG XIANSHENG
Tan Kin Lian,
"I am very sad at the inconsiderate behaviour of the Straits Times. They are willing to advance their own agenda, without regard to the harmful impact on other people." This is your comments about the ST having ignored your request to publish your departure from income, you are not happy about it.
I think you deserve it because as the CEO of Income, your stubborn behaviours also created many dissatisfactions among your subordinates, colleages, agents and business associates as reported in the ST times, therefore ended up that you have to leave Income, you said you planned to work till age of 70, however, I urge you to go retire, don't think that any one likes to work with you. Less people will suffer. "
Tan Kin Lian,
"I am very sad at the inconsiderate behaviour of the Straits Times. They are willing to advance their own agenda, without regard to the harmful impact on other people." This is your comments about the ST having ignored your request to publish your departure from income, you are not happy about it.
I think you deserve it because as the CEO of Income, your stubborn behaviours also created many dissatisfactions among your subordinates, colleages, agents and business associates as reported in the ST times, therefore ended up that you have to leave Income, you said you planned to work till age of 70, however, I urge you to go retire, don't think that any one likes to work with you. Less people will suffer. "
Air flight to Manchester
I took the Singapore Airlines plane to Manchester on Saturday night. Two stewards recognised me. They came to check and talk to me. They wanted to confirm that I was the person that appeared in the front page of the Straits Times and Sunday Times.
Copies of the papers were distributed to all passengers.
We had a nice chat. I introduced them to Logic9 and taught them how to play the game. I left the pocketbook with them as a souvenir.
Copies of the papers were distributed to all passengers.
We had a nice chat. I introduced them to Logic9 and taught them how to play the game. I left the pocketbook with them as a souvenir.
Why the English love tea
I am now in Manchester. Due to low humidity, my throat is dry. So, I need a drink of tea.
Saturday, September 23, 2006
My future plans
I will leave the services of NTUC Income on 1 April 2007. By then, I shall be 59 years old.
I intend to work actively for another 11 years, until I am 70. My key priorities during the first two years will be:
- build the technology and business platform for the "insurance company of the future"
- provide management consultancy on business strategy, marketing, human resource, customer service and operational excellence
- give lectures, talks and training
I also intend to set up a company to promote Logic9, BEST simulation game and language training. This will allow the colleagues to own and build the business.
More details will be provided over the next few weeks.
I intend to work actively for another 11 years, until I am 70. My key priorities during the first two years will be:
- build the technology and business platform for the "insurance company of the future"
- provide management consultancy on business strategy, marketing, human resource, customer service and operational excellence
- give lectures, talks and training
I also intend to set up a company to promote Logic9, BEST simulation game and language training. This will allow the colleagues to own and build the business.
More details will be provided over the next few weeks.
Friday, September 22, 2006
I ignore gossip
Terence: On a personal note, there are gossips about you over the years. How would you handle these kinds of stuff?
TKL: I ignore gossips.
Terence: Good for you that you ignore them as gossips comes from both internal and
external. I think the best is hear from the horse's mouth. I shall not quote those gossips to you - since you are ignoring them.
TKL: I ignore gossips.
Terence: Good for you that you ignore them as gossips comes from both internal and
external. I think the best is hear from the horse's mouth. I shall not quote those gossips to you - since you are ignoring them.
A sudden announcement
My earlier plan was to announce my departure from NTUC Income on 5 October (Income Day). This will allow some time for some of the details to be finalised.
The Straits Times heard about about the "rumour". They insisted on writing the story. I requested them to wait for a few days for the media release.
When I learned that the Straits Times insist on carrying the story, I had to get my chairman to agree to issue the media release earlier.
I had also to inform my colleagues about the announcement, so that they do not hear about it from the papers. This has to be done at midnight.
I am very sad at the inconsiderate behaviour of the Straits Times. They are willing to advance their own agenda, without regard to the harmful impact on other people.
In my dealing with other papers, including the foreign media, I generally find that they are more considerate.
The Straits Times heard about about the "rumour". They insisted on writing the story. I requested them to wait for a few days for the media release.
When I learned that the Straits Times insist on carrying the story, I had to get my chairman to agree to issue the media release earlier.
I had also to inform my colleagues about the announcement, so that they do not hear about it from the papers. This has to be done at midnight.
I am very sad at the inconsiderate behaviour of the Straits Times. They are willing to advance their own agenda, without regard to the harmful impact on other people.
In my dealing with other papers, including the foreign media, I generally find that they are more considerate.
Please don't go
MESSAGE FROM A FORMER EMPLOYEE OF NTUC INCOME
I read from the newspapers that you are leaving Income?
This company was single-handedly run by you since our days in the early 1980s. I feel it a pity that you are leaving the company.
Just read your blog - especially on that Stanley Jermiah's leaving the company.
Now that he has left Income, don't you think that you ought to stay behind and
steer the company? Any impact on the policyholders' confidence if there is no
main driver at the driver's seat?
Terence
-----------------------
Dear Terence,
The next CEO will be a younger, capable person who can take NTUC Income towards the next important stage in the career.
I am confident that NTUC Income will continue to do well in the future. There are many dedicated, capable, colleagues in NTUC Income who will continue to look after the best interest of our policyholders.
We have appointed another capable person to head the life insurance department. He is a qualified actuary with many years of senior management experience. The media release on his appointment was sent out a few days earlier. It is now posted in my blog.
Tan Kin Lian
I read from the newspapers that you are leaving Income?
This company was single-handedly run by you since our days in the early 1980s. I feel it a pity that you are leaving the company.
Just read your blog - especially on that Stanley Jermiah's leaving the company.
Now that he has left Income, don't you think that you ought to stay behind and
steer the company? Any impact on the policyholders' confidence if there is no
main driver at the driver's seat?
Terence
-----------------------
Dear Terence,
The next CEO will be a younger, capable person who can take NTUC Income towards the next important stage in the career.
I am confident that NTUC Income will continue to do well in the future. There are many dedicated, capable, colleagues in NTUC Income who will continue to look after the best interest of our policyholders.
We have appointed another capable person to head the life insurance department. He is a qualified actuary with many years of senior management experience. The media release on his appointment was sent out a few days earlier. It is now posted in my blog.
Tan Kin Lian
Media Release: Chief Executive Officer
NTUC Income wishes to announce that its CEO, Mr Tan Kin Lian, will be leaving the Cooperative on 1 April 2007 to pursue other interests. The Board of NTUC Income accepts his departure with regret.
Mr Tan, who joined NTUC Income on 1 April 1977 as its General Manager, would have completed 30 years of service on 1 April 2007.
During the past 30 years, Mr Tan has built a strong financial foundation for the Cooperative. From an asset base of $40 million in 1977, the Cooperative now has total assets exceeding $17 billion and annual premiums exceeding $2 billion. NTUC Income, rated "AA" by Standard & Poor's, is the highest rated insurance company from Asia.
The Board will be commencing a search for a new chief executive.
Mr Tan said, "It has been a great privilege for me to work in NTUC Income for the past 30 years. Time has passed so quickly. I enjoy working with many wonderful colleagues who shared the same passion and dedication to build a strong organisation that is dedicated to serve the interest of our 1,800,000 policyholders. I am confident that under a new leadership, my colleagues will be able to take NTUC Income through the next important stage of its development. I wish them well."
Mr Ng Kee Choe, Chairman of NTUC Income said, "Kin Lian has led the Cooperative well and built it to what it is today, the largest composite insurance company in Singapore. Members of the Board and I wish him well and every success in his future endeavours."
Karen Ng
Head (Media Relations)
NTUC Income
DID: 6877 3492
Hp : 9619 0912
Mr Tan, who joined NTUC Income on 1 April 1977 as its General Manager, would have completed 30 years of service on 1 April 2007.
During the past 30 years, Mr Tan has built a strong financial foundation for the Cooperative. From an asset base of $40 million in 1977, the Cooperative now has total assets exceeding $17 billion and annual premiums exceeding $2 billion. NTUC Income, rated "AA" by Standard & Poor's, is the highest rated insurance company from Asia.
The Board will be commencing a search for a new chief executive.
Mr Tan said, "It has been a great privilege for me to work in NTUC Income for the past 30 years. Time has passed so quickly. I enjoy working with many wonderful colleagues who shared the same passion and dedication to build a strong organisation that is dedicated to serve the interest of our 1,800,000 policyholders. I am confident that under a new leadership, my colleagues will be able to take NTUC Income through the next important stage of its development. I wish them well."
Mr Ng Kee Choe, Chairman of NTUC Income said, "Kin Lian has led the Cooperative well and built it to what it is today, the largest composite insurance company in Singapore. Members of the Board and I wish him well and every success in his future endeavours."
Karen Ng
Head (Media Relations)
NTUC Income
DID: 6877 3492
Hp : 9619 0912
Pursue other interest
I will be leaving NTUC Income from 1 April 2007 to pursue other interest. By that time, I will have completed 30 years of service.
This will allow the board to find a new chief executive officer to take NTUC Income through the next important stage of its development.
I am confident that NTUC Income will continue to do well in the future. I have many dedicated, capable, younger colleagues in NTUC Income who will continue to look after the best interest of our policyholders.
I shall be pursuing other interest.
If you have any questions, send them to tankl@income.com.sg. I shall be answering these questions in my blog. Get your friends to read the blog.
This will allow the board to find a new chief executive officer to take NTUC Income through the next important stage of its development.
I am confident that NTUC Income will continue to do well in the future. I have many dedicated, capable, younger colleagues in NTUC Income who will continue to look after the best interest of our policyholders.
I shall be pursuing other interest.
If you have any questions, send them to tankl@income.com.sg. I shall be answering these questions in my blog. Get your friends to read the blog.
Faster settlement of Incomeshield claims
In June 2006, there was a backlog of Incomeshield claims. It took an average of 28 days to clear the claims in Income (compared to a service target of 7 days).
The delay were due to two factors:
- increase in volume of claims
- migrating to a new computer system
The following measures were implemented and they have contributed in speeding up the processing of the claims. We carried a once-off exercies in August to clear off the outstanding claims held back from earlier months.
The average number of days has reduced as follows:
July : 24 days
August : 20 days
September: 12 days
We expect to reach our service target of 7 days in October.
William Fong
Head, Group & Health Dept
The delay were due to two factors:
- increase in volume of claims
- migrating to a new computer system
The following measures were implemented and they have contributed in speeding up the processing of the claims. We carried a once-off exercies in August to clear off the outstanding claims held back from earlier months.
The average number of days has reduced as follows:
July : 24 days
August : 20 days
September: 12 days
We expect to reach our service target of 7 days in October.
William Fong
Head, Group & Health Dept
Report from my daughter Jamie Tan in Bangkok
22 September 2006
For anyone residing in Thailand on 20 September 2006, it started like any normal day in Bangkok but ended in a state of confusion.
The first realization that something was amiss was when the tanks started to roll into central Bangkok at about 9.30pm, into the area 30 minutes from where I worked and lived in Bangkok.
At that time, I was having dinner at one of the major shopping centers and everything
was normal, no commotions or indications that something was not right.
When I had returned to the hotel and turned on the television to the CNN, there were news flashes on rumors of a military coup in Thailand.
There were also confirmed reports of tanks moving in the streets towards the Prime Minister's Office and that a couple of hours earlier, army chief general had been sacked from the office. It wasn't long before CNN was cut off and all the Thai television channel services were terminated.
When the channel services were resumed, all Thai television channels were broadcasting the same video repeats of their beloved king and the only source of information ironically, was from CNN, BBC and Channel Newasia.
By this time, my hotel phone started ringing non stop with concerned Thai colleagues giving me the latest updates as the situation unfolded.
According to my sources, some people had expected this revolt and also provided theories on 3rd party involvement. I also started receiving short messages from colleagues outside of Bangkok that had learnt about this from the TV and were telling be to be safe.
News spread and we tried to get in touch with as many colleagues in Bangkok to inform them on the situation and get them into safety lest violence broke out. It wasn't long before the telecommunication networks got unstable and I was not able to make or receive calls on my phone.
Outside my window, I noticed that the streets had started to clear (also because it was getting late into the night) and there were more than the usual number of police cars on the streets.
Glued to the TV, I learnt that PM Thaksin had declared a state of emergency and the last news that I had received before I went to bed was that PM Thaksin, in USA, was starting to regain control of the situation to put a stop to the military coup.
The next morning, I started receiving phone calls at 6am. There was a complete turn of events as compared to the night before. Overnight, the military had gotten complete control of the country (without firing a single shot) and that Thailand had become a military state. The key persons from the overthrown government had either fled the country or were in custody. To regain control of the situation, the interim
government declared a public holiday.
I spent the day in the apartment with my colleagues working and by evening, boredom got the best of me and we went for a walk on the streets. For the normal Thai people, life was almost back to normal. A poll held in the evening confirmed that over 85% of the people in Thailand supported the military coup.
After work, the next day, the team had a late dinner and later took a drive towards the PM office. We saw many tanks on the way with soldiers, situated at strategic places, guarding. The soldiers and military police were very friendly and allowed us to take pictures with them and the tank. The tanks had also lots of decorations of flowers given by the Thai people which reflected the support that the military was given for their actions. Also, on the same day, the king of Thailand issued his
support for the interim government.
Two days after the incident, things have gotten back to 90% normal. People going back to work, leading their normal lives because no matter what happens, everyone has to work to survive. There is still tension in the air, expecting for the overthrown government to reorganize and launch retaliation. However, for now, with PM Thaksin in England with his family, having a "holiday", the general view of the people here is that things can only get better from here on.
JAIME TAN
For anyone residing in Thailand on 20 September 2006, it started like any normal day in Bangkok but ended in a state of confusion.
The first realization that something was amiss was when the tanks started to roll into central Bangkok at about 9.30pm, into the area 30 minutes from where I worked and lived in Bangkok.
At that time, I was having dinner at one of the major shopping centers and everything
was normal, no commotions or indications that something was not right.
When I had returned to the hotel and turned on the television to the CNN, there were news flashes on rumors of a military coup in Thailand.
There were also confirmed reports of tanks moving in the streets towards the Prime Minister's Office and that a couple of hours earlier, army chief general had been sacked from the office. It wasn't long before CNN was cut off and all the Thai television channel services were terminated.
When the channel services were resumed, all Thai television channels were broadcasting the same video repeats of their beloved king and the only source of information ironically, was from CNN, BBC and Channel Newasia.
By this time, my hotel phone started ringing non stop with concerned Thai colleagues giving me the latest updates as the situation unfolded.
According to my sources, some people had expected this revolt and also provided theories on 3rd party involvement. I also started receiving short messages from colleagues outside of Bangkok that had learnt about this from the TV and were telling be to be safe.
News spread and we tried to get in touch with as many colleagues in Bangkok to inform them on the situation and get them into safety lest violence broke out. It wasn't long before the telecommunication networks got unstable and I was not able to make or receive calls on my phone.
Outside my window, I noticed that the streets had started to clear (also because it was getting late into the night) and there were more than the usual number of police cars on the streets.
Glued to the TV, I learnt that PM Thaksin had declared a state of emergency and the last news that I had received before I went to bed was that PM Thaksin, in USA, was starting to regain control of the situation to put a stop to the military coup.
The next morning, I started receiving phone calls at 6am. There was a complete turn of events as compared to the night before. Overnight, the military had gotten complete control of the country (without firing a single shot) and that Thailand had become a military state. The key persons from the overthrown government had either fled the country or were in custody. To regain control of the situation, the interim
government declared a public holiday.
I spent the day in the apartment with my colleagues working and by evening, boredom got the best of me and we went for a walk on the streets. For the normal Thai people, life was almost back to normal. A poll held in the evening confirmed that over 85% of the people in Thailand supported the military coup.
After work, the next day, the team had a late dinner and later took a drive towards the PM office. We saw many tanks on the way with soldiers, situated at strategic places, guarding. The soldiers and military police were very friendly and allowed us to take pictures with them and the tank. The tanks had also lots of decorations of flowers given by the Thai people which reflected the support that the military was given for their actions. Also, on the same day, the king of Thailand issued his
support for the interim government.
Two days after the incident, things have gotten back to 90% normal. People going back to work, leading their normal lives because no matter what happens, everyone has to work to survive. There is still tension in the air, expecting for the overthrown government to reorganize and launch retaliation. However, for now, with PM Thaksin in England with his family, having a "holiday", the general view of the people here is that things can only get better from here on.
JAIME TAN
Thursday, September 21, 2006
Our motor rates are up to 30% lower than some competitors
Dear Mr Tan,
In your blog, you claimed that Income's motor insurance is 30% cheaper than competitors, I beg to differ.
When my company's van insurance was due, I renewed with Income.
I received a flyer from one insurance broker (with my company's name and van number on the flyer) and the amount of premium. It was much cheaper than NTUC. I called my Income agent and told him about what the other insurance company's charged.
About 2 weeks later, I received a letter from Income with a cheque inside the letter. Income gave me a discount on the insurance premium and the cheque was for the 'refund' of the discounted amount.
Therefore till now I do not believe that your premium is cheaper than competitors. Fthe next renewal, I will shop around for better rate.
ET
------------------------------------------
Dear ET
Our market survey shows that our premium is "up to 30%" cheaper than our major competitors. It does depend on the model, and the market situation (as some of our competitors adjust their premium rates to match our rates).
Please refer to this page for the comparison:
Comparison
Tan Kin Lian
Chief Executive Officer
In your blog, you claimed that Income's motor insurance is 30% cheaper than competitors, I beg to differ.
When my company's van insurance was due, I renewed with Income.
I received a flyer from one insurance broker (with my company's name and van number on the flyer) and the amount of premium. It was much cheaper than NTUC. I called my Income agent and told him about what the other insurance company's charged.
About 2 weeks later, I received a letter from Income with a cheque inside the letter. Income gave me a discount on the insurance premium and the cheque was for the 'refund' of the discounted amount.
Therefore till now I do not believe that your premium is cheaper than competitors. Fthe next renewal, I will shop around for better rate.
ET
------------------------------------------
Dear ET
Our market survey shows that our premium is "up to 30%" cheaper than our major competitors. It does depend on the model, and the market situation (as some of our competitors adjust their premium rates to match our rates).
Please refer to this page for the comparison:
Comparison
Tan Kin Lian
Chief Executive Officer
Reply: Policyhlder ask for projection
Editor
Forum Page
Straits Times
We refer to the article posted by Mr Poon Foo Keong entitled "Insurance policyholders have right to know whether insurers meet projections" (St Times, 21 Sept).
Each year, we also notify our policyholder about the bonus declared under their policy.
If there is a reduction in the bonus rates, we send a statement to notify the policyholder of the revised projected bonus, so that their expectation will be corrected. This is accompanied by a detailed explanation.
We receive requests from some policyholders asking for a detailed projection, for each future year, of the projected bonus under their policy. These requests are made at other times. They are often followed by a request for a detailed explanation. It can take a lot of time for our customer service officer to answer the enquiry.
To cover our cost of providing the projection and explanation, we impose a modest fee of $20. However, if the request is done through the insurance adviser, we will usually waive the charge.
In Mr Poon's case, we did waive the charge. We did provide an explanation of our practice to Mr Poon at the time of his request.
Peh Chee Keong
Head, Life Insurance
Forum Page
Straits Times
We refer to the article posted by Mr Poon Foo Keong entitled "Insurance policyholders have right to know whether insurers meet projections" (St Times, 21 Sept).
Each year, we also notify our policyholder about the bonus declared under their policy.
If there is a reduction in the bonus rates, we send a statement to notify the policyholder of the revised projected bonus, so that their expectation will be corrected. This is accompanied by a detailed explanation.
We receive requests from some policyholders asking for a detailed projection, for each future year, of the projected bonus under their policy. These requests are made at other times. They are often followed by a request for a detailed explanation. It can take a lot of time for our customer service officer to answer the enquiry.
To cover our cost of providing the projection and explanation, we impose a modest fee of $20. However, if the request is done through the insurance adviser, we will usually waive the charge.
In Mr Poon's case, we did waive the charge. We did provide an explanation of our practice to Mr Poon at the time of his request.
Peh Chee Keong
Head, Life Insurance
Be considerate
I wish to share this story of a third party claimant who has behaved inconsiderately.
The claimant approached me for help. I asked my manager to assist him. The claimant did not get a return call within 4 days. Instead of calling my manager to find out, the claimant send a impolite e-mail to me, and copy to the Prime Minister of Singapore.
Here is his e-mail and my reply.
-------------------------------
Dear Mr. Tan Kin Lian.
Thank you for sending Mr. Goh to assist me on my third party insurance claim.
Mr. Goh called me on 22 August at 2205 hrs. He told me that he will get back to me in four working days. Now I am still waiting for his call. I wonder how he calculate his four working days?
Can you please tell me how this will enhance your glory or the glory of NTUC income?
PN
-------------------------------
Dear PN,
Normally, Mr Goh is quite prompt. I think that he may have some difficulty in contacting you. I shall remind him.
Tan Kin Lian
The claimant approached me for help. I asked my manager to assist him. The claimant did not get a return call within 4 days. Instead of calling my manager to find out, the claimant send a impolite e-mail to me, and copy to the Prime Minister of Singapore.
Here is his e-mail and my reply.
-------------------------------
Dear Mr. Tan Kin Lian.
Thank you for sending Mr. Goh to assist me on my third party insurance claim.
Mr. Goh called me on 22 August at 2205 hrs. He told me that he will get back to me in four working days. Now I am still waiting for his call. I wonder how he calculate his four working days?
Can you please tell me how this will enhance your glory or the glory of NTUC income?
PN
-------------------------------
Dear PN,
Normally, Mr Goh is quite prompt. I think that he may have some difficulty in contacting you. I shall remind him.
Tan Kin Lian
Wednesday, September 20, 2006
A wise move - get advice early
I RECEIVED THIS REQUEST FOR ADVICE:
Hi Mr Tan,
I am 22 year old. I have 1 protection and 1 Ideal plan. Is this sufficient for me?
I want an insurance that has a saving plan. Currently, I am serving national service
LJL
-----------------
Dear LJL
I will arrange for a consultant to advice you.
Hi Mr Tan,
I am 22 year old. I have 1 protection and 1 Ideal plan. Is this sufficient for me?
I want an insurance that has a saving plan. Currently, I am serving national service
LJL
-----------------
Dear LJL
I will arrange for a consultant to advice you.
Observing the coup in Bangkok
My daughter Jamie is in Bangkok during the past few days. She has first hand experience of the coup. She reported that things are quite normal. I have asked her to send her observations for me to post into this blog.
Request for advice on AIA policy
REQUEST FOR ADVICE
Hi, Tan.
Saw your blog. Just thinking you could be the right person to give me a piece of advice on insurance and saving for future.
I bought an AIA Investment Link Plan that has life coverage of $100k, critical illness of $50k and medical plan.
The annual premium is $1,800 and I took up AIA managed fund. I am not a person who can take risk and feel uncomfortable seeing unpredictable return in future.
From your point of view, is investment link plan a good choice of saving + insurance with tight budget? Do I have to pay until the policy matured? How could future economic performance affect my insurance plan? Is it adviseable to top-up or ad-hoc now since the unit price is still low?
I have consulted 2 AIA insurance agents but their only give minimum words on this. I sincerely hope that you can help me on this decision making as on whether I should keep the 3-year-old policy or surrender it for a traditional insurance.
R
---------------------
Dear R
Please read this FAQ on the Ideal plan (which is similar to the investment plan that you have bought from AIA):
FAQ on Ideal Plan
Here is another FAQ that explains about investment risk (it applies to the Ideal plan as well):
FAQ on Investment Risk
Generally, if you are investing for the long term, an investment fund is suitable. You should choose a large, well diversified fund to minimise the risk of poor performance of certain investments. If you invest for 10 years or longer, you will average out the good and bad years and get an attractive return.
Looking at your AIA policy, you should consider two points:
- what is the annual charge on the fund?
- what is the upfront charge to pay commission to the agent?
These two charges can take away a large part of your return. It can amount to several tens of thousand of dollars. There is an example in my FAQ.
I will ask my product specialist to contact you, in case you need further asssitance.
Tan Kin Lian
Hi, Tan.
Saw your blog. Just thinking you could be the right person to give me a piece of advice on insurance and saving for future.
I bought an AIA Investment Link Plan that has life coverage of $100k, critical illness of $50k and medical plan.
The annual premium is $1,800 and I took up AIA managed fund. I am not a person who can take risk and feel uncomfortable seeing unpredictable return in future.
From your point of view, is investment link plan a good choice of saving + insurance with tight budget? Do I have to pay until the policy matured? How could future economic performance affect my insurance plan? Is it adviseable to top-up or ad-hoc now since the unit price is still low?
I have consulted 2 AIA insurance agents but their only give minimum words on this. I sincerely hope that you can help me on this decision making as on whether I should keep the 3-year-old policy or surrender it for a traditional insurance.
R
---------------------
Dear R
Please read this FAQ on the Ideal plan (which is similar to the investment plan that you have bought from AIA):
FAQ on Ideal Plan
Here is another FAQ that explains about investment risk (it applies to the Ideal plan as well):
FAQ on Investment Risk
Generally, if you are investing for the long term, an investment fund is suitable. You should choose a large, well diversified fund to minimise the risk of poor performance of certain investments. If you invest for 10 years or longer, you will average out the good and bad years and get an attractive return.
Looking at your AIA policy, you should consider two points:
- what is the annual charge on the fund?
- what is the upfront charge to pay commission to the agent?
These two charges can take away a large part of your return. It can amount to several tens of thousand of dollars. There is an example in my FAQ.
I will ask my product specialist to contact you, in case you need further asssitance.
Tan Kin Lian
Tuesday, September 19, 2006
More customers now visit the business center to buy insurance
REPORT FROM THE MANAGER OF THE TAMPINES BUSINESS CENTER
1. A customer telephoned the business centre to enquire on our Combined Funds. Our consultant arranged to meet him to present the benefits of investing in our Combined Funds. The consultant showed him the 5 slides from our chief executive officer. They highlight the low charges and better returns. The customer was convinced to place $240,000.
2. A customer visited the business center to collect the Logic9 gift. The consultant presented the FAQ on the Ideal and I-gift plans. The customer came back the following day to take up 4 Ideal policies for her four kids (saving of $180 per month for each policy) and the i-Gift of $30,000 for herself. She is using the monthly payout of the i-Gift to pay for her 4 Ideal policies.
1. A customer telephoned the business centre to enquire on our Combined Funds. Our consultant arranged to meet him to present the benefits of investing in our Combined Funds. The consultant showed him the 5 slides from our chief executive officer. They highlight the low charges and better returns. The customer was convinced to place $240,000.
2. A customer visited the business center to collect the Logic9 gift. The consultant presented the FAQ on the Ideal and I-gift plans. The customer came back the following day to take up 4 Ideal policies for her four kids (saving of $180 per month for each policy) and the i-Gift of $30,000 for herself. She is using the monthly payout of the i-Gift to pay for her 4 Ideal policies.
Monday, September 18, 2006
Financial Advice for Young Parents
Financial advice for young parents
by Mr Tan Kin Lian
Chief Executive Officer, NTUC Income
Many people do not plan well for their future financial needs.
They spend most of their regular income on meeting their immediate needs. They spend too much on luxuries, such as fashion, entertainment and holidays. They make the wrong decisions and pay more than necessary. They rely on credit and pay a high interest rate.
They make the wrong investments and get a poor rate of return.
It is important for young parents to have a proper financial plan, so that they can provide financial security for their family, save for their future retirement needs and for the education of their children.
They need insurance to protect against the risks of premature deaths, accidents or major illnesses. This can be purchased at a low premium.
Every working person should have a simple budget. It helps them to have financial discipline. Preferably, they should save 10 to 20 percent of the regular earnings. Saving is more important today, as jobs are less certain. We can draw down the savings during an emergency, to meet our cash flow needs, if we are out of work for a few months.
I advise most young parents to save and invest in a flexible investment plan. You should invest for the long term and aim for a higher rate of return. You should invest in a large, well-diversified fund, to reduce the risk of a few bad investments. By investing for many years, you can average the good and bad years and get a better return.
The Ideal Plan from NTUC Income has lower charges, compared to similar plans in the market. A higher proportion of the regular savings is invested during the initial years. It can amount to 12 months of additional savings and can contribute to a larger payout in the future.
You can invest your savings in the Combined Fund from NTUC Income. It has $3.7 billion of investments, is well-diversified and has low charges. It earned an average return of about 16 percent during the past three years (2003 to 2005). This is exceptional. Even if the return is at a more modest rate of say 6 percent, it can give a substantially higher return compared to other types of investments.
~ End ~
by Mr Tan Kin Lian
Chief Executive Officer, NTUC Income
Many people do not plan well for their future financial needs.
They spend most of their regular income on meeting their immediate needs. They spend too much on luxuries, such as fashion, entertainment and holidays. They make the wrong decisions and pay more than necessary. They rely on credit and pay a high interest rate.
They make the wrong investments and get a poor rate of return.
It is important for young parents to have a proper financial plan, so that they can provide financial security for their family, save for their future retirement needs and for the education of their children.
They need insurance to protect against the risks of premature deaths, accidents or major illnesses. This can be purchased at a low premium.
Every working person should have a simple budget. It helps them to have financial discipline. Preferably, they should save 10 to 20 percent of the regular earnings. Saving is more important today, as jobs are less certain. We can draw down the savings during an emergency, to meet our cash flow needs, if we are out of work for a few months.
I advise most young parents to save and invest in a flexible investment plan. You should invest for the long term and aim for a higher rate of return. You should invest in a large, well-diversified fund, to reduce the risk of a few bad investments. By investing for many years, you can average the good and bad years and get a better return.
The Ideal Plan from NTUC Income has lower charges, compared to similar plans in the market. A higher proportion of the regular savings is invested during the initial years. It can amount to 12 months of additional savings and can contribute to a larger payout in the future.
You can invest your savings in the Combined Fund from NTUC Income. It has $3.7 billion of investments, is well-diversified and has low charges. It earned an average return of about 16 percent during the past three years (2003 to 2005). This is exceptional. Even if the return is at a more modest rate of say 6 percent, it can give a substantially higher return compared to other types of investments.
~ End ~
Sunday, September 17, 2006
How accurate is the report on "net return on life policies"?
QUESTION:
How accurate is the analysis in the Sunday Times on the 10 year net rates of return on life policies?
The net rates of return for NTUC Income is above average. But Income lag behind for-profit insurers - Asia Insurance, AIA and HSBC Insurance.
How did they do better, and pay shareholders more as well? Is it due to better investment returns?
--------------------------
REPLY:
I believe that the analysis is not accurate. Income earns a better return than AIA. I think that the unrealised gains in equities are not shown (and AIA invest in a low proportion of equities that do not produce this gain).
The figures for HSBC is not reliable. Their business is quite small. They show more than 20% gain in 1 year (probably on a very small fund). This distorts the computation of the "average".
Asia does quite well, but their fund is virtually stagnant. If they grow their business, their results will be closer to the other large insurers.
We will make a more detailed study and give a fuller report.
The report shows that the fund "earns". It does not show what the fund pays out to the policyholders on their maturity. The difference is the profit that is taken away to give to the shareholders.
When an AIA policy matures, they pay out 10% to 20% lower than the maturity of a similar policy with NTUC Income. This has been the case for the past many years.
Tan Kin Lian
CEO, NTUC Income
How accurate is the analysis in the Sunday Times on the 10 year net rates of return on life policies?
The net rates of return for NTUC Income is above average. But Income lag behind for-profit insurers - Asia Insurance, AIA and HSBC Insurance.
How did they do better, and pay shareholders more as well? Is it due to better investment returns?
--------------------------
REPLY:
I believe that the analysis is not accurate. Income earns a better return than AIA. I think that the unrealised gains in equities are not shown (and AIA invest in a low proportion of equities that do not produce this gain).
The figures for HSBC is not reliable. Their business is quite small. They show more than 20% gain in 1 year (probably on a very small fund). This distorts the computation of the "average".
Asia does quite well, but their fund is virtually stagnant. If they grow their business, their results will be closer to the other large insurers.
We will make a more detailed study and give a fuller report.
The report shows that the fund "earns". It does not show what the fund pays out to the policyholders on their maturity. The difference is the profit that is taken away to give to the shareholders.
When an AIA policy matures, they pay out 10% to 20% lower than the maturity of a similar policy with NTUC Income. This has been the case for the past many years.
Tan Kin Lian
CEO, NTUC Income
IMF / World Bank meetings
I attended a seminar on Saturday under the umbrella of the IMF/ World Bank. The security was tight. It was quite a hassle to get past the security.
I had to collect my badge at City Hall. I took a shuttle bus to Suntec City. It had to go through a big round to the back entrance of Suntec City. It took 15 minutes longer than usual. So, I missed the first 30 minutes of the seminar.
There must be over 10 concurrent seminars or meetings held at the convention center and the nearby hotels, including those held by the investment banks. Locating the right meeting place is also quite difficult. Fortunately, there are many guides around that can show the way.
I have since attended 4 seminars. The quality of the seminars is excellent. The speakers are very good, very knowledgeable. The questions and answers were handled very well. There were active engagement.
Overall, it is a wonderful experience to participate in the IMF and World Bank seminars.
I had to collect my badge at City Hall. I took a shuttle bus to Suntec City. It had to go through a big round to the back entrance of Suntec City. It took 15 minutes longer than usual. So, I missed the first 30 minutes of the seminar.
There must be over 10 concurrent seminars or meetings held at the convention center and the nearby hotels, including those held by the investment banks. Locating the right meeting place is also quite difficult. Fortunately, there are many guides around that can show the way.
I have since attended 4 seminars. The quality of the seminars is excellent. The speakers are very good, very knowledgeable. The questions and answers were handled very well. There were active engagement.
Overall, it is a wonderful experience to participate in the IMF and World Bank seminars.
Nice Blog, but it has spelling and grammar mistakes
FROM A VISITOR TO MY BLOG
Dear Mr Tan Kin Lian,
Congratulations on your blog! I chanced upon it today and it has been a useful and riveting read.
I am already an NTUC Income policyholder, and am impressed with the level of effort that you put into your blog and NTUC Income. Your boldness in starting a blog has surely paid rich dividends for NTUC Income ... personally, I think it is great that a CEO of a company is also the "chief marketing officer" for the company.
One suggestion I have is perhaps, for you to let one of your colleagues look through the grammar of your replies before they are posted. While I understand that you are a busy man and content is more important than form, having one of your colleagues look through the grammer of your replies will put an even greater sheen on the professional image of NTUC Income.
Keep up the good work, Mr CEO!
Regards
Shawn
-------------------------
Dear Shawn,
Thank you.
I am aware about the grammar and spelling mistakes.
I think that it is okay, as it shows the "informal nature" of the blog.
When I come across the mistakes, I do edit them.
But, sometimes, it is too much trouble.
Dear Mr Tan Kin Lian,
Congratulations on your blog! I chanced upon it today and it has been a useful and riveting read.
I am already an NTUC Income policyholder, and am impressed with the level of effort that you put into your blog and NTUC Income. Your boldness in starting a blog has surely paid rich dividends for NTUC Income ... personally, I think it is great that a CEO of a company is also the "chief marketing officer" for the company.
One suggestion I have is perhaps, for you to let one of your colleagues look through the grammar of your replies before they are posted. While I understand that you are a busy man and content is more important than form, having one of your colleagues look through the grammer of your replies will put an even greater sheen on the professional image of NTUC Income.
Keep up the good work, Mr CEO!
Regards
Shawn
-------------------------
Dear Shawn,
Thank you.
I am aware about the grammar and spelling mistakes.
I think that it is okay, as it shows the "informal nature" of the blog.
When I come across the mistakes, I do edit them.
But, sometimes, it is too much trouble.
FAQ: Motor Insurance
1. Why must I insure my vehicle?
The law requires all motor vehicles to be insured against liability to third parties for death or bodily injuries.
Most owners also want to insure for the damage caused by accidents, vandalism, fire or flood. The insurance policy will cover the repair of their vehicle. It will pay the market value of the vehicle at the time of loss if cannot be repaired economically or if the vehicle was stolen.
With a motor insurance policy, you pay a small annual premium and protect yourself against the loss arising from those contingencies
2. What choices do I have?
Most owners prefer to take a comprehensive policy to cover liability to third parties and repair damage caused by accidents, vandalism, fire or flood, and loss of their vehicles from theft.
The comprehensive policy provided by NTUC Income is called the "quality plan".
3. Why should I choose NTUC Income?
NTUC Income is a cooperative society. We are not profit-driven, unlike the commercial insurance companies.
We charge a fair premium to cover our cost of claims and expenses and a modest margin. We keep a tight control against inflated claims, so that the premium can be kept low. In most cases, our premium rates are up to 30% lower than our competitors.
Other insurers charge a higher premium, because they pay more to their agents and want to make a bigger profit margin.
NTUC Income is the largest insurer of motor vehicles in Singapore. We insure 200,000 vehicles, representing about 32% of all vehicles in Singapore. We achieve a large market share due to our competitive rates and quality of service.
4. How is your standard of service?
We are prompt, fair and transparent in our dealings with our customers.
We conduct a customer survey for every repair arranged at our quality workship. Our customers consistently give us a high satisfaction rating above 96%.
5. Do you take good care of me, if I need your help?
We have a 24 hour hotline (Tel: 6788 6616) to provide immediate assistance to you in the following:
- location of the nearest Idac center (to report an accident)
- get accesss to road side assistance
- advice on how to submit your claim
- towing service if your car is immobilised after an accident.
You can also call or visit our claims service center. The colleagues are specialised in handling claim issues.
You will get a FAQ from the Idac center or our claim service center. It tells you about how your claim is being handled.
6. Can I pay my premium in monthly instalments?
You can pay your premium in 12 monthly instalments by GIRO. This is free of interest.
You need only to pay the instalment 1 month in advance. At the start, you will pay 2 monthlh instalments. After than, we will collect the monthly instalments every month through GIRO.
7. Can I also pay my road tax in monthly instalments
You can apply for an advance to pay your road tax. We will collect it from you in 12 monthly instalments with a flat interest as follows :
- for customers with loyalty discount, flat rate of 3% per annum.
- for other customers, flat rate of 6% per annum.
Note : a customer enjoys a loyalty discount by insuring with us for at least 3 years.
8. Does your quality workshop provide a good standard of repair?
We select our quality workshops based on their ability to meet the following standard:
- abide by a code of professional conduct
- able to meet performance and quality standard
- meet our post-repair inspection checks
- provide 6 months guarantee on their repairs
For most repairs, our quality workshops are able to meet the same standard as the distributor workshops. Some distributors sub-contract most of the repair work to outside workshops anyway.
9. Can I go to a distributor workshop for repair to my vehicle ?
We will agree for the proprietary repairs (which require the use of specialised tools and skills) to be carried out at the distributor's workshop.
We prefer the general repairs to be carried out by our authorised workshops. If you wish to have it repaired at your distributor workshop, we will pay you a cash payment and you can negotiate for the repair at your distributor's workshop.
10. Will my car warranty be void if I repair at your authorised workshop ?
We will provide FREE protection against loss of car manufacturer's warranty, if the repair is done at our quality workshop.
If the distributor voids the warranty due to our repair, we will take over the warranty for the remaining period under the same terms and conditions provided for in the purchase of your car.
11. Can I switch my insurance to NTUC Income after the first year?
You have the choice to switch your insurance to us at any time.
You can enjoy a saving of up to 30%, compared to the rate charged by other insurers.
If you switch to us, we will make it hassle-free for you. We can help you cancel your existing policy and get the refund of the unused part of the premium from your existing policy. We will issue a replacement policy to take over the remaining period of insurance. It will be delivered to your home or office.
Call 98INCOME (9846 2663)
12. What are the special features provided by NTUC Income?
- FREE protection against loss of manufacturer's warranty.
- FREE NCD protection for policyholders who enjoy 50% NCD for 5 years.
- Replacement with a new car if your new car is stolen or totally damaged.
- Extension to cover you against third party liabilities while driving a rental car overseas.
- Extension to cover renting out of your car during public holidays.
- Cover of terrorism.
- No additional unnamed drivers excess.
- No elderly driver excess.
- No additional loading of your premium after a bad accident*.
* terms and conditions apply.
The law requires all motor vehicles to be insured against liability to third parties for death or bodily injuries.
Most owners also want to insure for the damage caused by accidents, vandalism, fire or flood. The insurance policy will cover the repair of their vehicle. It will pay the market value of the vehicle at the time of loss if cannot be repaired economically or if the vehicle was stolen.
With a motor insurance policy, you pay a small annual premium and protect yourself against the loss arising from those contingencies
2. What choices do I have?
Most owners prefer to take a comprehensive policy to cover liability to third parties and repair damage caused by accidents, vandalism, fire or flood, and loss of their vehicles from theft.
The comprehensive policy provided by NTUC Income is called the "quality plan".
3. Why should I choose NTUC Income?
NTUC Income is a cooperative society. We are not profit-driven, unlike the commercial insurance companies.
We charge a fair premium to cover our cost of claims and expenses and a modest margin. We keep a tight control against inflated claims, so that the premium can be kept low. In most cases, our premium rates are up to 30% lower than our competitors.
Other insurers charge a higher premium, because they pay more to their agents and want to make a bigger profit margin.
NTUC Income is the largest insurer of motor vehicles in Singapore. We insure 200,000 vehicles, representing about 32% of all vehicles in Singapore. We achieve a large market share due to our competitive rates and quality of service.
4. How is your standard of service?
We are prompt, fair and transparent in our dealings with our customers.
We conduct a customer survey for every repair arranged at our quality workship. Our customers consistently give us a high satisfaction rating above 96%.
5. Do you take good care of me, if I need your help?
We have a 24 hour hotline (Tel: 6788 6616) to provide immediate assistance to you in the following:
- location of the nearest Idac center (to report an accident)
- get accesss to road side assistance
- advice on how to submit your claim
- towing service if your car is immobilised after an accident.
You can also call or visit our claims service center. The colleagues are specialised in handling claim issues.
You will get a FAQ from the Idac center or our claim service center. It tells you about how your claim is being handled.
6. Can I pay my premium in monthly instalments?
You can pay your premium in 12 monthly instalments by GIRO. This is free of interest.
You need only to pay the instalment 1 month in advance. At the start, you will pay 2 monthlh instalments. After than, we will collect the monthly instalments every month through GIRO.
7. Can I also pay my road tax in monthly instalments
You can apply for an advance to pay your road tax. We will collect it from you in 12 monthly instalments with a flat interest as follows :
- for customers with loyalty discount, flat rate of 3% per annum.
- for other customers, flat rate of 6% per annum.
Note : a customer enjoys a loyalty discount by insuring with us for at least 3 years.
8. Does your quality workshop provide a good standard of repair?
We select our quality workshops based on their ability to meet the following standard:
- abide by a code of professional conduct
- able to meet performance and quality standard
- meet our post-repair inspection checks
- provide 6 months guarantee on their repairs
For most repairs, our quality workshops are able to meet the same standard as the distributor workshops. Some distributors sub-contract most of the repair work to outside workshops anyway.
9. Can I go to a distributor workshop for repair to my vehicle ?
We will agree for the proprietary repairs (which require the use of specialised tools and skills) to be carried out at the distributor's workshop.
We prefer the general repairs to be carried out by our authorised workshops. If you wish to have it repaired at your distributor workshop, we will pay you a cash payment and you can negotiate for the repair at your distributor's workshop.
10. Will my car warranty be void if I repair at your authorised workshop ?
We will provide FREE protection against loss of car manufacturer's warranty, if the repair is done at our quality workshop.
If the distributor voids the warranty due to our repair, we will take over the warranty for the remaining period under the same terms and conditions provided for in the purchase of your car.
11. Can I switch my insurance to NTUC Income after the first year?
You have the choice to switch your insurance to us at any time.
You can enjoy a saving of up to 30%, compared to the rate charged by other insurers.
If you switch to us, we will make it hassle-free for you. We can help you cancel your existing policy and get the refund of the unused part of the premium from your existing policy. We will issue a replacement policy to take over the remaining period of insurance. It will be delivered to your home or office.
Call 98INCOME (9846 2663)
12. What are the special features provided by NTUC Income?
- FREE protection against loss of manufacturer's warranty.
- FREE NCD protection for policyholders who enjoy 50% NCD for 5 years.
- Replacement with a new car if your new car is stolen or totally damaged.
- Extension to cover you against third party liabilities while driving a rental car overseas.
- Extension to cover renting out of your car during public holidays.
- Cover of terrorism.
- No additional unnamed drivers excess.
- No elderly driver excess.
- No additional loading of your premium after a bad accident*.
* terms and conditions apply.
Friday, September 15, 2006
Income policyholder forced to switch to another insurer
MESSAGE FROM A POLICYHOLDER TO MY ADVISER
Dear
I wish to register my observation on some industry practice in the field of insurance.
The recent purchase of my Honda Odyssey from Kah Motor in March this year came with several perks and discounts.
During the purchase, I was given the understanding that most of the financial benefits from the purchase "price package" are tied up with my signing up with AXA on car insurance.
After unsuccessfully negotiating to stay with Income on car insurance, I proceeded with the deal knowing fully that I would be able to switch back to Income after the deal had gone through, with the same NCD benefits intact.
I wish to express disagreement with such industry practice as it does not allow customers a "real" free choice. Such arrangements made between car distributors and Insurance companies concerned literally armtwist customers into signing up with insurance company not of their choice. And in the process, benefits and favoured services may be lost and unrecoverable.
Having stayed with Income for many years on different forms of insurance, it is perhaps most apt at this point in time, that I thank Income's various departments and agents for excellent services rendered, especially during my car's recent encounter with accident and repair, of which much stress was spared.
Please forward my view and appreciation to the departments and personnel concerned.
Dear
I wish to register my observation on some industry practice in the field of insurance.
The recent purchase of my Honda Odyssey from Kah Motor in March this year came with several perks and discounts.
During the purchase, I was given the understanding that most of the financial benefits from the purchase "price package" are tied up with my signing up with AXA on car insurance.
After unsuccessfully negotiating to stay with Income on car insurance, I proceeded with the deal knowing fully that I would be able to switch back to Income after the deal had gone through, with the same NCD benefits intact.
I wish to express disagreement with such industry practice as it does not allow customers a "real" free choice. Such arrangements made between car distributors and Insurance companies concerned literally armtwist customers into signing up with insurance company not of their choice. And in the process, benefits and favoured services may be lost and unrecoverable.
Having stayed with Income for many years on different forms of insurance, it is perhaps most apt at this point in time, that I thank Income's various departments and agents for excellent services rendered, especially during my car's recent encounter with accident and repair, of which much stress was spared.
Please forward my view and appreciation to the departments and personnel concerned.
Wednesday, September 13, 2006
FAQ: Making a motor insurance claim
1. Introduction
If you wish to make a claim against NTUC Income for the repair of your vehicle (whether you are claiming under your insurance or as a third party claim), please follow these guidelines.
We undertake to handle your claim promptly, fairly and conveniently, and to repair your vehicle to a satisfactory condition (ie at least to the same condition before the accident).
If you help us to reduce the claim cost (and still maintain a satisfactory standard of repair), we will be able to keep the premium rate at a low level, for the benefit of all policyholders.
2. Idac center
You should send your vehicle for the damages to be assessed at an Idac center. There are 13 centers located around Singapore. You can call Tel : 6788-6616 to find the location of the most convenient center.
The assessment should take about 20 minutes.
You have the following options for the repair of your vehicle:
- leave it at Idac center for us to arrange the repairs
- allow us to benchmark the repair cost, accept a cash settlement and find your own repairer
- choose your own repairer and have the repairer to negotiate the repair price with us
3. Option 1: Allow us to arrange the repair
Most claimants find it convenient to leave their vehicle at the Idac center for us to arrange the repairs.
We invite about 30 quality workshops to tender for the repair. They are required to observe our repair standard.
- carry out the repair to a satisfatory standard (ie at least to the same condition before the accident)
- use new parts for cars less than 3 years old, use suitable parts for cars more than 3 years old
- provide 6 months warranty on the repair
- pass the post-repair inspection (carried out by us, on your behalf)
The tender is usually awarded within two days of the reporting, and the repair completed within another four days. We will notify you, if the repair takes longer, due to the extensive damage,
We handle an average of 40 repairs daily. We carry out a survey of all claimants about the repair. We achieved a high satisfaction score. Over 96% of the claimants are satisfied with this arrangement and the quality of the repair.
4. Option 2: Accept a cash settlement
If the damages are minor, we are prepared to offer you a cash settlement and allow you to find your own repairer. This is based on our estimate of the repair cost and is usually slightly more than the price charged by our quality workshop.
You will usually be able to find a repairer who is willing to carry out the repair at a lower price. You can keep the difference.
Most claimants find it more convenient for us to arrange the repair (ie option 1 above).
5. Option 3: Get your repairer to negotiate with us
You can choose your own repairer and ask them to negotiate the repair price with us. We will offer a fair repair price, based on our estimate. This is usually slightly more than the price charged by our quality workshop.
If your repairer insist on a much higher price, the repair may be delayed. You should find a repairer that is willing to compromise with us, so that the claim can be settled earlier.
In practice, most claimants find this option to be the most difficult. We also find it to be the most troublesome to settle.
6. What party is liable for the accident?
The party deemed to be liable for the accident is determined according to a "barometer of liability" as agreed by the insurance companies (ie BOLA).
Preferably, all parties to the accident should sign the Singapore Accident Statement form (provided to all motorists) at the spot of the accident. This helps to determine the liability.
If you are liable for the accident, you will lose your No Claim Discount (NCD) partially or fully on the next renewal of your insurance.
If you are not liable (ie less than 20% according to BOLA), your will continue to enjoy an increase in your NCD, even if you make a "own" claim against us under your insurance policy.
If you are not insured with us, and you wish to make a third party claim against us, we will acept your claim only if our insured is liable for the accident (ie more than 20% according to BOLA).
Our claim officer will call you to give our assessment of liability within 2 days of the report at Idac, if all parties have submitted their report. We will make a fair assessment based on the facts of the accident. We hope that all parties will accept it.
If you disagree with the assessment, your case will be sent for a review by a more senior officer. The officer will contact you within 2 days.
7. Can I get a courtesy car to use?
If you are insured under our Quality Plus plan or you are not liable for the accident (ie less than 20% according to BOLA), you are entitled to the use of a courtesy car.
If we are not able to find a suitable courtesy car for your use, we will pay a cash allowance of $50 a day. This will apply from the date of the accident.
If you are not entitled to the courtesy car, you can rent it from us (subject to availabiity) at a special price of $65 a day.
8. Will you inform me about the status of the repair or claim?
We will notify you by SMS about the status of your repair as follows:
- the repairer who is assigned to carry out the repair
- the expected completion date
- any unexpected delay or problem.
For other types of claims, we will notify you by SMS or telephone, if there is a significant development, or if there has been no development for 4 or 14 days. We wish to settle the claim as early as possible, for the satisfaction of all parties.
9. Repair at distributor workshop
We will arrange for you car to be repaired at the distributor's workshop, if the repair requires proprietary equipment or technology or affects the integrity of the car.
In other cases, we will arrange for the repair to be done at our quality workshop. We will take over the warranty of the car (for the remaining period), if the warranty is voided by the distributor due to our repair. In practice, this situation has never occured.
If you prefer to have the repair done at the distributor workshop, you can opt for the cash settlement.
10. Injury
If any party is injured in an accident, please get the injured party to call our claim service center ( Tel:6877-3199 ). We will assist the claimant to get fair compensation.
11. Feedback
If you find that your claim has not been handled satisfactorily, according to this service standard, you should provide your feedback to the claim officer who is assigned to handle your claim. The mobilephone of this claim officer will be given to you immediately after your claim has been lodged.
If you are not satisfied with the handling of your claim by this assigned claim officer, you can give your feedback to our service quality officer ( Tel: 6877-3472 ).
If you wish to make a claim against NTUC Income for the repair of your vehicle (whether you are claiming under your insurance or as a third party claim), please follow these guidelines.
We undertake to handle your claim promptly, fairly and conveniently, and to repair your vehicle to a satisfactory condition (ie at least to the same condition before the accident).
If you help us to reduce the claim cost (and still maintain a satisfactory standard of repair), we will be able to keep the premium rate at a low level, for the benefit of all policyholders.
2. Idac center
You should send your vehicle for the damages to be assessed at an Idac center. There are 13 centers located around Singapore. You can call Tel : 6788-6616 to find the location of the most convenient center.
The assessment should take about 20 minutes.
You have the following options for the repair of your vehicle:
- leave it at Idac center for us to arrange the repairs
- allow us to benchmark the repair cost, accept a cash settlement and find your own repairer
- choose your own repairer and have the repairer to negotiate the repair price with us
3. Option 1: Allow us to arrange the repair
Most claimants find it convenient to leave their vehicle at the Idac center for us to arrange the repairs.
We invite about 30 quality workshops to tender for the repair. They are required to observe our repair standard.
- carry out the repair to a satisfatory standard (ie at least to the same condition before the accident)
- use new parts for cars less than 3 years old, use suitable parts for cars more than 3 years old
- provide 6 months warranty on the repair
- pass the post-repair inspection (carried out by us, on your behalf)
The tender is usually awarded within two days of the reporting, and the repair completed within another four days. We will notify you, if the repair takes longer, due to the extensive damage,
We handle an average of 40 repairs daily. We carry out a survey of all claimants about the repair. We achieved a high satisfaction score. Over 96% of the claimants are satisfied with this arrangement and the quality of the repair.
4. Option 2: Accept a cash settlement
If the damages are minor, we are prepared to offer you a cash settlement and allow you to find your own repairer. This is based on our estimate of the repair cost and is usually slightly more than the price charged by our quality workshop.
You will usually be able to find a repairer who is willing to carry out the repair at a lower price. You can keep the difference.
Most claimants find it more convenient for us to arrange the repair (ie option 1 above).
5. Option 3: Get your repairer to negotiate with us
You can choose your own repairer and ask them to negotiate the repair price with us. We will offer a fair repair price, based on our estimate. This is usually slightly more than the price charged by our quality workshop.
If your repairer insist on a much higher price, the repair may be delayed. You should find a repairer that is willing to compromise with us, so that the claim can be settled earlier.
In practice, most claimants find this option to be the most difficult. We also find it to be the most troublesome to settle.
6. What party is liable for the accident?
The party deemed to be liable for the accident is determined according to a "barometer of liability" as agreed by the insurance companies (ie BOLA).
Preferably, all parties to the accident should sign the Singapore Accident Statement form (provided to all motorists) at the spot of the accident. This helps to determine the liability.
If you are liable for the accident, you will lose your No Claim Discount (NCD) partially or fully on the next renewal of your insurance.
If you are not liable (ie less than 20% according to BOLA), your will continue to enjoy an increase in your NCD, even if you make a "own" claim against us under your insurance policy.
If you are not insured with us, and you wish to make a third party claim against us, we will acept your claim only if our insured is liable for the accident (ie more than 20% according to BOLA).
Our claim officer will call you to give our assessment of liability within 2 days of the report at Idac, if all parties have submitted their report. We will make a fair assessment based on the facts of the accident. We hope that all parties will accept it.
If you disagree with the assessment, your case will be sent for a review by a more senior officer. The officer will contact you within 2 days.
7. Can I get a courtesy car to use?
If you are insured under our Quality Plus plan or you are not liable for the accident (ie less than 20% according to BOLA), you are entitled to the use of a courtesy car.
If we are not able to find a suitable courtesy car for your use, we will pay a cash allowance of $50 a day. This will apply from the date of the accident.
If you are not entitled to the courtesy car, you can rent it from us (subject to availabiity) at a special price of $65 a day.
8. Will you inform me about the status of the repair or claim?
We will notify you by SMS about the status of your repair as follows:
- the repairer who is assigned to carry out the repair
- the expected completion date
- any unexpected delay or problem.
For other types of claims, we will notify you by SMS or telephone, if there is a significant development, or if there has been no development for 4 or 14 days. We wish to settle the claim as early as possible, for the satisfaction of all parties.
9. Repair at distributor workshop
We will arrange for you car to be repaired at the distributor's workshop, if the repair requires proprietary equipment or technology or affects the integrity of the car.
In other cases, we will arrange for the repair to be done at our quality workshop. We will take over the warranty of the car (for the remaining period), if the warranty is voided by the distributor due to our repair. In practice, this situation has never occured.
If you prefer to have the repair done at the distributor workshop, you can opt for the cash settlement.
10. Injury
If any party is injured in an accident, please get the injured party to call our claim service center ( Tel:6877-3199 ). We will assist the claimant to get fair compensation.
11. Feedback
If you find that your claim has not been handled satisfactorily, according to this service standard, you should provide your feedback to the claim officer who is assigned to handle your claim. The mobilephone of this claim officer will be given to you immediately after your claim has been lodged.
If you are not satisfied with the handling of your claim by this assigned claim officer, you can give your feedback to our service quality officer ( Tel: 6877-3472 ).
Reply to St Times: Resignation of Stanley Jeremiah
14 September 2006
Editor
Forum Page
Straits Times
I refer to your article entitled "Income's GM quits amid talk of tension with chief executive" (St Times, 12 Sep 2006).
The media release was prepared jointly by me and Stanley Jeremiah. Both parties had the opportunity to state our perspective of the important points relating to this event. It highlighted Mr Jeremiah's key contribution during the past eight months.
You have quoted two specific instances of a possible clash of views between Mr Jeremiah and me:
- feasibility of a new product suggested by Mr Jeremiah
- remuneration of agents and financial advisers
I wish to state the facts on these issues.
Mr Jeremiah did suggested a new term insurance product that has a wider definition of the permanent disability benefit. My concern was that the wider cover could cause confusion with the existing definition that was already applied to nearly 1 million policies issued previously. As this matter was not critical, we mutually agreed to shelve this proposed change.
NTUC Income has been paying a lower scale of commission (compared to the market) to our agents and insurance advisers for the past 36 years. This has allowed us to lower our premium rates and give better value to our policyholders. Our agents benefit from an increased volume of sales generated by our competitive products.
I confirm that Mr Jeremiah has not made any request to change our commission rates (except for a new term insurance product). If he did, it would still need to get the support of our appointed actuary and the general manager in charge of our sales. It would also require a re-pricing of our existing products to reflect the higher cost.
We have had some differences of views on a few issues, but these do not amount to a "clash". We bring out the facts and discuss the options. We try to narrow the diffences and come to a common position. We approach it in an open and transparent way.
We did also agree on many other issues.
I am sorry to lose the services of Mr Jeremiah, as I believe that he has qualities that are suitable for NTUC Income. I respect his wishes to seek a future career that is more compatible with his strengths and interest.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Forum Page
Straits Times
I refer to your article entitled "Income's GM quits amid talk of tension with chief executive" (St Times, 12 Sep 2006).
The media release was prepared jointly by me and Stanley Jeremiah. Both parties had the opportunity to state our perspective of the important points relating to this event. It highlighted Mr Jeremiah's key contribution during the past eight months.
You have quoted two specific instances of a possible clash of views between Mr Jeremiah and me:
- feasibility of a new product suggested by Mr Jeremiah
- remuneration of agents and financial advisers
I wish to state the facts on these issues.
Mr Jeremiah did suggested a new term insurance product that has a wider definition of the permanent disability benefit. My concern was that the wider cover could cause confusion with the existing definition that was already applied to nearly 1 million policies issued previously. As this matter was not critical, we mutually agreed to shelve this proposed change.
NTUC Income has been paying a lower scale of commission (compared to the market) to our agents and insurance advisers for the past 36 years. This has allowed us to lower our premium rates and give better value to our policyholders. Our agents benefit from an increased volume of sales generated by our competitive products.
I confirm that Mr Jeremiah has not made any request to change our commission rates (except for a new term insurance product). If he did, it would still need to get the support of our appointed actuary and the general manager in charge of our sales. It would also require a re-pricing of our existing products to reflect the higher cost.
We have had some differences of views on a few issues, but these do not amount to a "clash". We bring out the facts and discuss the options. We try to narrow the diffences and come to a common position. We approach it in an open and transparent way.
We did also agree on many other issues.
I am sorry to lose the services of Mr Jeremiah, as I believe that he has qualities that are suitable for NTUC Income. I respect his wishes to seek a future career that is more compatible with his strengths and interest.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Car dealers should give consumers more choice
14 September 2006
Editor
Straits Times Online Forum
I refer to the letter from Balajee Shrikanth entitled "Car dealers should give customers more choices on insurance and loans" (12
Sept).
I hope that Balajee Shrikanth will take this matter up with the Consumer Association or the government agency that is responsible to implement the Competition Act. It is in the public interest that the consumer should be given more choices and not be locked into tied arrangements.
Balajee Shrikanth has suggested that NTUC Income should re-look at our car repair policy and be willing to work with the distributors.
We have been and remain willing to work with the car distributors in a fair and transparent manner, in the interest of the consumers.
- for repairs that require the use of proprietary equipment and technology or affect the integrity and safely of the vehicle, we use the distributor workshops for the repair and pay their repair charges (which tend to be quite costly).
- for other repairs which can be done at our quality workshop, we are willing to pay up to 50% more to the distributor workshop (ie to recognise their higher overheads).
Some of the distributors find our proposal to be fair and work with us. We hope that the other distributors will also work with us.
I also hope that consumers realise that NTUC Income is encouraging competition and fair dealing in this market. This is being done in the interest of all consumers. We need more consumers to come forward and help us achieve our common goal.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Straits Times Online Forum
I refer to the letter from Balajee Shrikanth entitled "Car dealers should give customers more choices on insurance and loans" (12
Sept).
I hope that Balajee Shrikanth will take this matter up with the Consumer Association or the government agency that is responsible to implement the Competition Act. It is in the public interest that the consumer should be given more choices and not be locked into tied arrangements.
Balajee Shrikanth has suggested that NTUC Income should re-look at our car repair policy and be willing to work with the distributors.
We have been and remain willing to work with the car distributors in a fair and transparent manner, in the interest of the consumers.
- for repairs that require the use of proprietary equipment and technology or affect the integrity and safely of the vehicle, we use the distributor workshops for the repair and pay their repair charges (which tend to be quite costly).
- for other repairs which can be done at our quality workshop, we are willing to pay up to 50% more to the distributor workshop (ie to recognise their higher overheads).
Some of the distributors find our proposal to be fair and work with us. We hope that the other distributors will also work with us.
I also hope that consumers realise that NTUC Income is encouraging competition and fair dealing in this market. This is being done in the interest of all consumers. We need more consumers to come forward and help us achieve our common goal.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Did AXA quoted the correct motor premium rate?
There was an article in the Sunday Times of 3 September from Leong Chan Teik showing the lowest premium rates quoted by AXA Insurance and by NTUC Income. They are based on the figures provided by both companies.
Most of the rates under AXA appeared to be quite low.
My colleage called the hotline in AXA Insurance and asked for a quote for a similar profile of driver and vehicle (Ford Escort 1.3) reported in the article.
The article quoted a premium of $367. The hotline quoted a premium of $449 (ie 18% higher).
When asked about why the Sunday Times article showed a lower figure, the hotline staff said:
- don't know who provided the quote to the newspaper and the assumptions used
- the article was a rough guide
- we cannot believe newspaper articles
- there may be other factors used (not mentioned in the article)
I asked my colleague to write to the Sunday Times journalist.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Most of the rates under AXA appeared to be quite low.
My colleage called the hotline in AXA Insurance and asked for a quote for a similar profile of driver and vehicle (Ford Escort 1.3) reported in the article.
The article quoted a premium of $367. The hotline quoted a premium of $449 (ie 18% higher).
When asked about why the Sunday Times article showed a lower figure, the hotline staff said:
- don't know who provided the quote to the newspaper and the assumptions used
- the article was a rough guide
- we cannot believe newspaper articles
- there may be other factors used (not mentioned in the article)
I asked my colleague to write to the Sunday Times journalist.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Tuesday, September 12, 2006
Magnet Train in Shanghai
I took the magnet train (MagLev) from Shanghai city to the airport in Pudong. It travelled at a speed of 430 kph. Wow!
The train journey took 7 mins. It is 4 times of the speed of ordinary train. It is really, really fast.
There will soon be a train from Guangzhou to Shanghai. It will take less than 1 hour. Previously, it took more than 4 hours.
Wow! China is really developing in an impressive way.
The train journey took 7 mins. It is 4 times of the speed of ordinary train. It is really, really fast.
There will soon be a train from Guangzhou to Shanghai. It will take less than 1 hour. Previously, it took more than 4 hours.
Wow! China is really developing in an impressive way.
Friday, September 8, 2006
Customer wish to make a gift to a grandchild
A customer wanted to invest a lump sum, to provide $1 million to a grandchild at age 25.
I suggested the following solution:
- take an investment-linked policy in the payor's name
- endorse the policy to be transferred to the grandchild at age 25
I recommend to invest $250,000 in our combined fund. If it earns 6% per annum (not guaranteed) for 24 years, it will accumulate to more than $1 million.
----------------------
For other customers, you can leave a more modest sum for your grandchild. If you invest $10,000, it can grow to $40,000 in 24 years time, assuming an average yield of 6% (not guaranteed).
I suggested the following solution:
- take an investment-linked policy in the payor's name
- endorse the policy to be transferred to the grandchild at age 25
I recommend to invest $250,000 in our combined fund. If it earns 6% per annum (not guaranteed) for 24 years, it will accumulate to more than $1 million.
----------------------
For other customers, you can leave a more modest sum for your grandchild. If you invest $10,000, it can grow to $40,000 in 24 years time, assuming an average yield of 6% (not guaranteed).
I repaired my new car at quality workshop
A customer told me that he faced a delay in the repair of his car. His car was hit from behind by another car insured by Income. The bumper was damaged.
As his car was new, he asked for the bumper to be replaced by the distributor workshop. It took two days for us to negotiate the price.
I told the customer that the distributor workshop normally charged 2 to 3 times of the price of our quality workshop. If he had agreed for his bumper to be replaced by our quality workshop, it would have been done immediately.
Earlier this year, my new car (Mercedes Benz) was involved in a accident at the car park. The door had to be replaced. The driver of the other vehicle agreed to pay for the repair, out of his pocket, as he was careless.
I sent the car (which is still under warranty) for repair at our quality workshop. I helped the other driver to pay a smaller repair bill.
I hope that all customers can help us to reduce the repair bills.
As his car was new, he asked for the bumper to be replaced by the distributor workshop. It took two days for us to negotiate the price.
I told the customer that the distributor workshop normally charged 2 to 3 times of the price of our quality workshop. If he had agreed for his bumper to be replaced by our quality workshop, it would have been done immediately.
Earlier this year, my new car (Mercedes Benz) was involved in a accident at the car park. The door had to be replaced. The driver of the other vehicle agreed to pay for the repair, out of his pocket, as he was careless.
I sent the car (which is still under warranty) for repair at our quality workshop. I helped the other driver to pay a smaller repair bill.
I hope that all customers can help us to reduce the repair bills.
Thursday, September 7, 2006
Advice on insurance
I RECEIVED THIS E-MAIL
Hi Mr Tan,
I've read your blog with interest. I've shopped around with a few insurance companies, and am unable to find an agent who can intelligently advise me.
I am looking for a insurance policy that covers 1)Death, 2)Total permanent disability and 3)30 critical illness for my husband.
I am looking for a term policy without any cash value to cover him till he's 80 years old. I would need coverage for the above 3 criteria for the whole period
D
-------------------------------------
Dear D
My colleague will get a product expert to call you.
In the meantime, you can read the following plans at our website:
Living policy:
http://www.income.coop/insurance/living/
Term insurance (can apply online):
http://www.income.coop/insurance/term/faq.asp
Invest your CPF savings:
http://www.income.coop/insurance/flexilink/faq2.asp
Invest your regular savings
http://www.income.coop/insurance/ideal/faq2.asp
Hi Mr Tan,
I've read your blog with interest. I've shopped around with a few insurance companies, and am unable to find an agent who can intelligently advise me.
I am looking for a insurance policy that covers 1)Death, 2)Total permanent disability and 3)30 critical illness for my husband.
I am looking for a term policy without any cash value to cover him till he's 80 years old. I would need coverage for the above 3 criteria for the whole period
D
-------------------------------------
Dear D
My colleague will get a product expert to call you.
In the meantime, you can read the following plans at our website:
Living policy:
http://www.income.coop/insurance/living/
Term insurance (can apply online):
http://www.income.coop/insurance/term/faq.asp
Invest your CPF savings:
http://www.income.coop/insurance/flexilink/faq2.asp
Invest your regular savings
http://www.income.coop/insurance/ideal/faq2.asp
Wait for a better time
An investor who is locked into a 10 year structured product (sold by a bank) asked my advice if it is better to encash now and take a loss. Here is my reply:
Dear
If you keep the investment for the remaining 8 years, you can get a return of about 1.5% p.a. You avoid the loss of 20% (or about 2.5% for each year). Your total opportunity cost is 4% per year.
If you take a loss now and re-invest it, you must earn 4% to break even.
If I were you, I will keep the investment for the time being and wait for a better time to encash it, eg if the loss is reduced significantly.
Otherwise, I will keep it till the maturity date.
It is good to take investment risk, if your cost of funds is 2.5% (like money in the CPF or bank deposit). It may not be worth the risk, if the cost of funds is higher, at 4%.
Dear
If you keep the investment for the remaining 8 years, you can get a return of about 1.5% p.a. You avoid the loss of 20% (or about 2.5% for each year). Your total opportunity cost is 4% per year.
If you take a loss now and re-invest it, you must earn 4% to break even.
If I were you, I will keep the investment for the time being and wait for a better time to encash it, eg if the loss is reduced significantly.
Otherwise, I will keep it till the maturity date.
It is good to take investment risk, if your cost of funds is 2.5% (like money in the CPF or bank deposit). It may not be worth the risk, if the cost of funds is higher, at 4%.
More about structured products
If you want to know more about structured products offered in Singapore, you can get a detailed explanation from this website:
Details of recent structured products
Explanation on Structured Products
Details of recent structured products
Explanation on Structured Products
Similar plan from NTUC Income likely to pay 16.9% more
E-MAIL RECEIVED FROM SOMEONE
Hello Mr Tan
I was very disappointed when company A informed me that the projected reversionary bonus were much lower than projected.
Plan : 20 year endowment
Entry date: Apr 1991
Maturity date: Apr 2011
Premium : $551.10 per annum
Projected benefit (original) : $20,080
Age Entry : 24 years old
New Projected benefit:
(a) $14,597 (3.7%)
(b) $15,172 (4.7%)
(c) $15,746 (5.7%)
J
----------------------------------------
Dear J
If you had bought a similar endowment policy from NTUC Income in 1991 with the same annual premium, your projected maturity amount in 2011 would be $17,736.
This is 16.9% higher than the middle projected benefit of $15,172.
This difference is consistent with other polcies of 20 years duration that have matured recently. We pay about 15% more than company A.
Hello Mr Tan
I was very disappointed when company A informed me that the projected reversionary bonus were much lower than projected.
Plan : 20 year endowment
Entry date: Apr 1991
Maturity date: Apr 2011
Premium : $551.10 per annum
Projected benefit (original) : $20,080
Age Entry : 24 years old
New Projected benefit:
(a) $14,597 (3.7%)
(b) $15,172 (4.7%)
(c) $15,746 (5.7%)
J
----------------------------------------
Dear J
If you had bought a similar endowment policy from NTUC Income in 1991 with the same annual premium, your projected maturity amount in 2011 would be $17,736.
This is 16.9% higher than the middle projected benefit of $15,172.
This difference is consistent with other polcies of 20 years duration that have matured recently. We pay about 15% more than company A.
Wednesday, September 6, 2006
Thank you for supporting our insurance advisers
I want to thank our policyholders for supporting our insurance advisers.
Our advisers earn a modest commission. It is about half of the commission paid to other company's agents.
The lower commission allows us to reduce our expenses and give you a better return on your life insurance savings.
In most cases, we give 10% to 20% more on the maturity of your policy. If the maturity amount is $100,000, you can get $10,000 to $20,000 more from NTUC Income.
Some companies (not NTUC Income) make unrealistic projections of their return. They pay high commission and incur high expenses. Many years later, they are not able to fulfil their projections. Their policyholders are disappointed, but it is too late.
You can trust NTUC Income. We keep our expenses low and give a better return to our policyholders.
Once again, thank you for your support.
Tan Kin Lian
Chief Executive Officer
Our advisers earn a modest commission. It is about half of the commission paid to other company's agents.
The lower commission allows us to reduce our expenses and give you a better return on your life insurance savings.
In most cases, we give 10% to 20% more on the maturity of your policy. If the maturity amount is $100,000, you can get $10,000 to $20,000 more from NTUC Income.
Some companies (not NTUC Income) make unrealistic projections of their return. They pay high commission and incur high expenses. Many years later, they are not able to fulfil their projections. Their policyholders are disappointed, but it is too late.
You can trust NTUC Income. We keep our expenses low and give a better return to our policyholders.
Once again, thank you for your support.
Tan Kin Lian
Chief Executive Officer
Can I get out of this structured product?
HERE IS AN E-MAIL THAT I RECEIVED RECENTLY
Hi Mr Tan,
I refer to your blog on the above topic.
I believe that the Structured Product that I bought from X Bank was not as good as described to us.
After reading your blog, I decided to come back to see what I have bought. To my horror, the worst case scenario is approximately 1.225% per annum over eight years and 1.58% over ten years.
This is way below the 6.5% per annum a normal investment-link product with NTUC income would be likely to yield.
When the product was introduced to us, the bank officer said that it was very likely for the product to be redeemed early. After 2 years, I really doubt that it will ever happen.
Is there any way out for us? With $20,000 invested, the value is now only $15,810. During the first year, we collected some interest, but I cannot remember the exact amount.
Please should I do? Can CASE help?
------------------------------------
Dear
I will ask an expert to study this product.
I find it difficult to understand the design of most structured products, including this product.
My conclusion is that the financial expert working for the bank is able to design the product to give a good profit margin for the bank. This is usually done at the expense of the customer.
Hi Mr Tan,
I refer to your blog on the above topic.
I believe that the Structured Product that I bought from X Bank was not as good as described to us.
After reading your blog, I decided to come back to see what I have bought. To my horror, the worst case scenario is approximately 1.225% per annum over eight years and 1.58% over ten years.
This is way below the 6.5% per annum a normal investment-link product with NTUC income would be likely to yield.
When the product was introduced to us, the bank officer said that it was very likely for the product to be redeemed early. After 2 years, I really doubt that it will ever happen.
Is there any way out for us? With $20,000 invested, the value is now only $15,810. During the first year, we collected some interest, but I cannot remember the exact amount.
Please should I do? Can CASE help?
------------------------------------
Dear
I will ask an expert to study this product.
I find it difficult to understand the design of most structured products, including this product.
My conclusion is that the financial expert working for the bank is able to design the product to give a good profit margin for the bank. This is usually done at the expense of the customer.
Vehicle Breakdown Assistance Service
NTUC Income offers a service to our motor policyholders. If their vehicle breaks down, they can call our hotline 6788-8788. We will send a service van to provide assistance to the motorist.
During the first 6 months of this year, a total of 2,700 motorists called us for assistance.
The assistance is provided by our partners, namely STAR Automotive Centre, Automobile Association of Singapore and Comfort Delgro Engineering Pte Ltd. This service is provided free to the motorist. On average, it takes about 60 minutes for the service van to appear on the scene.
Our customer service survey indicated that 95% of the motorists are happy with the service provided by our partners. If they require repair, the work will be done by our partner. They give a discount to our policyholders for towing charge.
During the first 6 months of this year, a total of 2,700 motorists called us for assistance.
The assistance is provided by our partners, namely STAR Automotive Centre, Automobile Association of Singapore and Comfort Delgro Engineering Pte Ltd. This service is provided free to the motorist. On average, it takes about 60 minutes for the service van to appear on the scene.
Our customer service survey indicated that 95% of the motorists are happy with the service provided by our partners. If they require repair, the work will be done by our partner. They give a discount to our policyholders for towing charge.
Tuesday, September 5, 2006
FAQ: Are the projections realistic?
Several policyholders have complained about the reduction in the actual payouts on maturity, which were much lower than the amounts that were projected at the time that the policy was sold.
1. Who is responsible for the projection?
It is the responsibility of the insurer and the actuary to ensure that the projection is realistic. It has to take into account the likely investment yield in the future, and the expenses, mortality and other charges that are incurred by the insurer.
2. What do you consider to be unrealistic?
An insurance fund is invested in a mix of equities, bonds and other investments. The actuary has to study the past return on these investments over a period of several years, and make a realistic projection of the yield in the future.
Some insurers use a higher invetment yield for their projection. This can be unrealistically high.
3. Did NTUC Income make a realistic projection?
We consider it our duty to make a realistic projection. In the early 1990s, we were using a gross investment yield of 6.5%, which was realistic based on the conditions at that time.
In subsequent years, we faced the Asian financial crisis and the low interest environment. We found that the projected yield of 6.5% was unsustainable. We reduced the projections on two subsequent occasions. With the lower projection, we reduced the bonus rates for existing policies and used the lower bonus rates for projecting the yield on new policies.
We have since increased our bonus rates for three subsequent years. This was possible because of the improved investment climate.
Currently, our projected gross yield is 5.25%. The net yield, after deducting expenses, mortality and other charges, is between 4% to 4.5%.
4. How can policyholders ensure that they are not misled by unrealistic projections?
All insurers in Singapore now use the same gross investment yield of 5.25%. The risk of unrealistic projection has been largely removed.
5. What about high projections on terminal bonus?
Some insurers project a high rate of terminal bonus on certain products. They are not funded and not supported by the actual investment return.
They jack up the cash value and bonuses at certain long durations, usually at 20 years and later. The policyholder may be misled by these unrealistic projected values.
Some of these projected terminal bonuses are shown at several hundred percent of the accumulated bonus. This is excessive. It will take the policyholders 20 years to find out if the projected bonuses will be paid.
6. Can I rely on the projection of terminal bonus?
NTUC Income has been paying out a special bonus (or terminal bonus) of 25% for the past many years. Many policyholders have received this rate of special bonus on their matured policies. We have maintained this rate of special bonus through good and bad years.
We have been using this modest rate of special bonus in our projection (in contrast to several hundred percent used by some other insurers).
We have a track record of paying out these terminal bonus. You can trust us.
Some other insurers vary their terminal bonus according to the investment condition in each year. In some years, they removed the terminal bonus entirely. You cannot rely on their projections of terminal bonuses, as they are unreliable.
7. How can consumers check that the projections are realistic?
The consumer should be wary about new products which project high rates of annual and terminal bonuses, when there are no past track record. This is especially the case for terminal bonuses that are payable only after 20 years or longer.
8. What is the problem with the "Prime Life" product?
Many years ago, several insurers have introduced a "Prime Life" product that projects terminal bonus of several hundred percent on reaching 20 years or later. Prior to 20 years, the terminal bonus is nil.
NTUC Income refuses to introduced this type of product. We consider it to be not sound. It is also not equitable for the insurer should hold back the surplus for 20 years (if the surplus had indeed been earned) and give it out in a large terminal bonus after 20 years. This goes against the principle of a participating life insurance contract.
Many consumers bought this product from other insurers. They trusted that the insurers will pay out the projected terminal bonuses. They have been disappointed.
1. Who is responsible for the projection?
It is the responsibility of the insurer and the actuary to ensure that the projection is realistic. It has to take into account the likely investment yield in the future, and the expenses, mortality and other charges that are incurred by the insurer.
2. What do you consider to be unrealistic?
An insurance fund is invested in a mix of equities, bonds and other investments. The actuary has to study the past return on these investments over a period of several years, and make a realistic projection of the yield in the future.
Some insurers use a higher invetment yield for their projection. This can be unrealistically high.
3. Did NTUC Income make a realistic projection?
We consider it our duty to make a realistic projection. In the early 1990s, we were using a gross investment yield of 6.5%, which was realistic based on the conditions at that time.
In subsequent years, we faced the Asian financial crisis and the low interest environment. We found that the projected yield of 6.5% was unsustainable. We reduced the projections on two subsequent occasions. With the lower projection, we reduced the bonus rates for existing policies and used the lower bonus rates for projecting the yield on new policies.
We have since increased our bonus rates for three subsequent years. This was possible because of the improved investment climate.
Currently, our projected gross yield is 5.25%. The net yield, after deducting expenses, mortality and other charges, is between 4% to 4.5%.
4. How can policyholders ensure that they are not misled by unrealistic projections?
All insurers in Singapore now use the same gross investment yield of 5.25%. The risk of unrealistic projection has been largely removed.
5. What about high projections on terminal bonus?
Some insurers project a high rate of terminal bonus on certain products. They are not funded and not supported by the actual investment return.
They jack up the cash value and bonuses at certain long durations, usually at 20 years and later. The policyholder may be misled by these unrealistic projected values.
Some of these projected terminal bonuses are shown at several hundred percent of the accumulated bonus. This is excessive. It will take the policyholders 20 years to find out if the projected bonuses will be paid.
6. Can I rely on the projection of terminal bonus?
NTUC Income has been paying out a special bonus (or terminal bonus) of 25% for the past many years. Many policyholders have received this rate of special bonus on their matured policies. We have maintained this rate of special bonus through good and bad years.
We have been using this modest rate of special bonus in our projection (in contrast to several hundred percent used by some other insurers).
We have a track record of paying out these terminal bonus. You can trust us.
Some other insurers vary their terminal bonus according to the investment condition in each year. In some years, they removed the terminal bonus entirely. You cannot rely on their projections of terminal bonuses, as they are unreliable.
7. How can consumers check that the projections are realistic?
The consumer should be wary about new products which project high rates of annual and terminal bonuses, when there are no past track record. This is especially the case for terminal bonuses that are payable only after 20 years or longer.
8. What is the problem with the "Prime Life" product?
Many years ago, several insurers have introduced a "Prime Life" product that projects terminal bonus of several hundred percent on reaching 20 years or later. Prior to 20 years, the terminal bonus is nil.
NTUC Income refuses to introduced this type of product. We consider it to be not sound. It is also not equitable for the insurer should hold back the surplus for 20 years (if the surplus had indeed been earned) and give it out in a large terminal bonus after 20 years. This goes against the principle of a participating life insurance contract.
Many consumers bought this product from other insurers. They trusted that the insurers will pay out the projected terminal bonuses. They have been disappointed.
Our premium rates can be up to 30% lower!
6 September 2006
Editor
Forum Page
Straits Times
I refer to the article by your senior correspondent, Christopher Tan, "No. 1 car insurer risks being overtaken", (ST, 1 Sep).
Christopher Tan's article has not given a fair and complete description of the changes in the motor insurance market during the past year. He has also failed to present the relevant points in our reply to him. I wish to ask for my points to be printed.
There were two significant changes in the car market during the past year.
There was a large increase in the purchase of new cars, due to the drop in COE (Certificate of Entitlement) prices. A total of 61,069 new private cars were sold during the past six months, representing an increase of about 12 per cent over the previous period.
Many car distributors made it compulsory for the motor insurance to be placed with their tied insurance company. It is offered as a package with the sale of the new car. The owner is not given a choice of selecting their insurer. The distributor jacks up the cost of the car to include the cost of insurance.
Previously, most distributors gave the choice to their customers to choose their insurer, but offered a large discount if they select their tied insurer. Now, this choice has been taken away.
Many long-standing customers of NTUC Income were forced to take the insurance with the tied insurer when they buy a new car. They were not even told about the premium rate for the insurance.
These two changes account for a large proportion of our temporary drop in market share.
I believe that this practice is anti-competition. I will let CASE or the relevant authority consider if it contravenes the new Competition Act.
I encourage the owners of the new cars to shop around for the premium rate when their insurance policy comes up for renewal during the second and subsequent years.
From our market study, the premium rate charged by the tied insurers could be up to 30 per cent higher than premium rate charged by NTUC Income. The actual difference may vary according to the model of vehicle and to competitive forces.
NTUC Income will be advertising our competitive premium rates for most popular models of cars. We hope to set a benchmark for the benefit of the consumers.
The report stated that we were not able to retain our customers. This is incorrect. Our renewal rate has been consistently above 75 per cent which is one of the highest in the industry.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Forum Page
Straits Times
I refer to the article by your senior correspondent, Christopher Tan, "No. 1 car insurer risks being overtaken", (ST, 1 Sep).
Christopher Tan's article has not given a fair and complete description of the changes in the motor insurance market during the past year. He has also failed to present the relevant points in our reply to him. I wish to ask for my points to be printed.
There were two significant changes in the car market during the past year.
There was a large increase in the purchase of new cars, due to the drop in COE (Certificate of Entitlement) prices. A total of 61,069 new private cars were sold during the past six months, representing an increase of about 12 per cent over the previous period.
Many car distributors made it compulsory for the motor insurance to be placed with their tied insurance company. It is offered as a package with the sale of the new car. The owner is not given a choice of selecting their insurer. The distributor jacks up the cost of the car to include the cost of insurance.
Previously, most distributors gave the choice to their customers to choose their insurer, but offered a large discount if they select their tied insurer. Now, this choice has been taken away.
Many long-standing customers of NTUC Income were forced to take the insurance with the tied insurer when they buy a new car. They were not even told about the premium rate for the insurance.
These two changes account for a large proportion of our temporary drop in market share.
I believe that this practice is anti-competition. I will let CASE or the relevant authority consider if it contravenes the new Competition Act.
I encourage the owners of the new cars to shop around for the premium rate when their insurance policy comes up for renewal during the second and subsequent years.
From our market study, the premium rate charged by the tied insurers could be up to 30 per cent higher than premium rate charged by NTUC Income. The actual difference may vary according to the model of vehicle and to competitive forces.
NTUC Income will be advertising our competitive premium rates for most popular models of cars. We hope to set a benchmark for the benefit of the consumers.
The report stated that we were not able to retain our customers. This is incorrect. Our renewal rate has been consistently above 75 per cent which is one of the highest in the industry.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Shop around for your motor premium rates
6 September 2006
Dear Motorist
Shop around to get the best motor premium rates
Many car distributors have made it compulsory for the motor insurance for the first year to be placed with their tied insurance company. It is offered as a package with the sale of the new car. The owner is not given a choice of selecting their insurer.
From our market study, the premium rate charged by the tied insurers could be up to 30% higher than the premium rate charged by NTUC Income. The actual difference may vary according to the vehicle model and to competitive forces.
I encourage the owners of the new cars to shop around for the premium rate when their insurance policy comes up for renewal during the second and subsequent years.
Our premium rates for the popular models of cars are shown below. You can also get a quotation from our website at www.income.coop/xxxxxxxxxxxxx
NTUC Income has enjoyed the strong loyalty of our policyholders due to our competitive rates and good service. Our renewal rate has been consistently above 75% which is one of the highest in the industry.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Dear Motorist
Shop around to get the best motor premium rates
Many car distributors have made it compulsory for the motor insurance for the first year to be placed with their tied insurance company. It is offered as a package with the sale of the new car. The owner is not given a choice of selecting their insurer.
From our market study, the premium rate charged by the tied insurers could be up to 30% higher than the premium rate charged by NTUC Income. The actual difference may vary according to the vehicle model and to competitive forces.
I encourage the owners of the new cars to shop around for the premium rate when their insurance policy comes up for renewal during the second and subsequent years.
Our premium rates for the popular models of cars are shown below. You can also get a quotation from our website at www.income.coop/xxxxxxxxxxxxx
NTUC Income has enjoyed the strong loyalty of our policyholders due to our competitive rates and good service. Our renewal rate has been consistently above 75% which is one of the highest in the industry.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Monday, September 4, 2006
Did you get a satisfactory return on your matured policy?
Did you get a satisfactory return on your matured policy, taken with another insurance company (not NTUC Income)?
If you want to find out, you can send the following data to me:
year taken
type of policy, eg endowment, whole life
age at entry
premium
year matured
maturity benefit
We will tell you about the amount that you would have obtained for a similar policy taken for the same period with NTUC Income. You can decide, if the amount that you have obtained is "satisfactory".
Send you request to TANKL@income.com.sg
If you want to find out, you can send the following data to me:
year taken
type of policy, eg endowment, whole life
age at entry
premium
year matured
maturity benefit
We will tell you about the amount that you would have obtained for a similar policy taken for the same period with NTUC Income. You can decide, if the amount that you have obtained is "satisfactory".
Send you request to TANKL@income.com.sg
Tied arrangement is illegal in New Zealand
I told an insurance CEO from New Zealand about the practice in Singapore, where the car distributor has a tied arrangement with an insurance company and the car purchaser is force to take insurance from this tied insurer.
My visitor said that this type of arrangement is illegal in New Zealand. The car owner must be given the choice of the insurer that they wish to go to.
My visitor said that this type of arrangement is illegal in New Zealand. The car owner must be given the choice of the insurer that they wish to go to.
Did you get a good deal on your financial product?
Many customers were misled into buying a financial product. They were told the good points, but not the bad points. When they realise the full picture, they were not allowed to withdraw. They were locked into the product.
Many of the structured products belong to this category. It could also include insurance products with high charges.
Did you experience this? If so, you can send the details to me. I will pass them to the Consumer Association (CASE) and see if there is anything that they can do.
Send to TANKL@income.com.sg
Many of the structured products belong to this category. It could also include insurance products with high charges.
Did you experience this? If so, you can send the details to me. I will pass them to the Consumer Association (CASE) and see if there is anything that they can do.
Send to TANKL@income.com.sg
Customer comes to us after the first year
Dear
I think tied arrangements such as the one that Borneo Motors had with AIG is unfair to buyers of vehicles. In an open market environment, the customer should be given his own choice of insurer.
Unfortunately, due to the fact that we (my wife and I) wanted to buy the car from Borneo Motors, we had no choice but to insure our car with AIG when we signed the purchase agreement.
However, we reverted to NTUC INCOME once the first year's insurance expired. The reason is that NTUC INCOME offers a better deal.
More importantly, we would like to have an agent we can relate to and who has been providing us good service for many years now. It's a natural choice for us.
Regards,
CBH
I think tied arrangements such as the one that Borneo Motors had with AIG is unfair to buyers of vehicles. In an open market environment, the customer should be given his own choice of insurer.
Unfortunately, due to the fact that we (my wife and I) wanted to buy the car from Borneo Motors, we had no choice but to insure our car with AIG when we signed the purchase agreement.
However, we reverted to NTUC INCOME once the first year's insurance expired. The reason is that NTUC INCOME offers a better deal.
More importantly, we would like to have an agent we can relate to and who has been providing us good service for many years now. It's a natural choice for us.
Regards,
CBH
Most stockmarkets went up 8% during 2 1/2 months
Most stockmarkets reach their low point in mid June. Around that time, we advised our investors to top up their investments.
During the next 2 1/2 months, several stockmarkets went up:
- Singapore, Malaysia, USA by about 8%
- Japan, Hong Kong, Korea by 12% to 16%
Most of our investors who topped up our investors gained by an average of 4%. This is due to:
- some of our funds have a proportion invested in bonds, which did not show the same gain
- some of our investors topped up later, and benefitted partially from the gain
Nevertheless, the gain of 4% is quite satisfactory. We have many happy policyholders.
During the next 2 1/2 months, several stockmarkets went up:
- Singapore, Malaysia, USA by about 8%
- Japan, Hong Kong, Korea by 12% to 16%
Most of our investors who topped up our investors gained by an average of 4%. This is due to:
- some of our funds have a proportion invested in bonds, which did not show the same gain
- some of our investors topped up later, and benefitted partially from the gain
Nevertheless, the gain of 4% is quite satisfactory. We have many happy policyholders.
Sunday, September 3, 2006
Our Flexi Link offers the best deal in town
The upfront charge (or spread) for investing in our funds (ie managed by NTUC Income) is 3.5%. The investor buy at a price that is loaded by 3.5% over the net asset value.
This is lower than the spread of 5% charged by most other unit trusts and insurance funds. They charge at additional 1% or 2% for the insurance cover. So their total charge is 6% or 7%.
Some unit trust have a lower charge of 2.5%. Some investors asked NTUC Income to reduce our spread to match these unit trusts.
During our promotion (which is on-going now), we offer bonus units of 1% or 2%, depending on the amount of investment. This effectively reduces our spread to 2.5% or even as low as 1.5%.
Our annual charge is now less than 1% for most funds. Other unit trusts or insurance funds charge 1.5% to 2%. They may have other hidden costs that is deducted from their yield. Over 10 to 20 years, the difference in the annual charge can be STAGGERING.
Invest your CPF and cash funds in our Flexi-link plan. It offers the best deal in town.
This is lower than the spread of 5% charged by most other unit trusts and insurance funds. They charge at additional 1% or 2% for the insurance cover. So their total charge is 6% or 7%.
Some unit trust have a lower charge of 2.5%. Some investors asked NTUC Income to reduce our spread to match these unit trusts.
During our promotion (which is on-going now), we offer bonus units of 1% or 2%, depending on the amount of investment. This effectively reduces our spread to 2.5% or even as low as 1.5%.
Our annual charge is now less than 1% for most funds. Other unit trusts or insurance funds charge 1.5% to 2%. They may have other hidden costs that is deducted from their yield. Over 10 to 20 years, the difference in the annual charge can be STAGGERING.
Invest your CPF and cash funds in our Flexi-link plan. It offers the best deal in town.
What is a professional?
A professional is a person who uses his or her expert knowledge for the benefit of the client.
Some examples of professionals are:
- doctors
- lawyers
- insurance and financial advisers
A professional should normally charge based on the time spent, and the charging rate is clearly disclosed and accepted by the client.
Some people act in a non-professional way. They use their knowledge to make profit at the expense of their client. Examples are:
- a doctor who prescribes unnecessary treatment (to jack up the medical fees)
- a lawyer who drags a case to chalk up more time to charge the client
- a financial adviser who recommends a product to earn a higher commission.
The risk of non-professional conduct is greater for insurance and financial advisers, because the commission is hidden in the product, and the product is designed to be quite complex and potentially misleading.
Many people in the advanced countries have been disillustioned with the practices of the financial advisers. More people now invest in simple and low charge product, and keep most of the gain for themselves.
Here is my advice. Learn about the simple fact of the financial product. Shop around and compared. Do not rely solely on your financial or insurance adviser. Read the FAQ of a similar product from NTUC Income.
Our FAQs can be found here: http://www.income.coop/insurance/faq/
Look for
- Flexi-link (to invest your CPF or cash funds)
- Ideal (to invest your regular savings)
- Ideal for your Child (to save for your child's education)
- Growth (to invest your CPF or cash funds)
In each FAQ, we show the difference in the charges between NTUC Income and other insurance companies. The difference can be STAGGERING.
Shop around and get the best deal. It is for your own good.
Some examples of professionals are:
- doctors
- lawyers
- insurance and financial advisers
A professional should normally charge based on the time spent, and the charging rate is clearly disclosed and accepted by the client.
Some people act in a non-professional way. They use their knowledge to make profit at the expense of their client. Examples are:
- a doctor who prescribes unnecessary treatment (to jack up the medical fees)
- a lawyer who drags a case to chalk up more time to charge the client
- a financial adviser who recommends a product to earn a higher commission.
The risk of non-professional conduct is greater for insurance and financial advisers, because the commission is hidden in the product, and the product is designed to be quite complex and potentially misleading.
Many people in the advanced countries have been disillustioned with the practices of the financial advisers. More people now invest in simple and low charge product, and keep most of the gain for themselves.
Here is my advice. Learn about the simple fact of the financial product. Shop around and compared. Do not rely solely on your financial or insurance adviser. Read the FAQ of a similar product from NTUC Income.
Our FAQs can be found here: http://www.income.coop/insurance/faq/
Look for
- Flexi-link (to invest your CPF or cash funds)
- Ideal (to invest your regular savings)
- Ideal for your Child (to save for your child's education)
- Growth (to invest your CPF or cash funds)
In each FAQ, we show the difference in the charges between NTUC Income and other insurance companies. The difference can be STAGGERING.
Shop around and get the best deal. It is for your own good.
Saturday, September 2, 2006
More parents now buy Ideal plan for their child's education
In the past, parents buy an education or foundation policy to save for their child. These are endowment plans, that give a fairly attractive return on maturity.
In recent years, more parents are taking an Ideal plan to save for their child. The proportion of parents buying the Ideal plan has now reached 20%, which is more than 3 times of the proportion two years ago.
I expect the proportion to increase over the next two years, as more parents become aware about this option.
The Ideal plan has the following advantages:
- potential of earning a better return
- more flexibility in the savings and the maturity date
- lower charges, giving a better return to the parent.
Our Ideal plan is much better than the education savings plan offered by other insurance companies (that pays high commission to their agents).
I advice parents to approach our insurance advisers or consultants (at our business center) to ask about the "Ideal plan for your Child".
You can also read the FAQ at
http://www.income.coop/insurance/ideal/faq-4child.asp
In recent years, more parents are taking an Ideal plan to save for their child. The proportion of parents buying the Ideal plan has now reached 20%, which is more than 3 times of the proportion two years ago.
I expect the proportion to increase over the next two years, as more parents become aware about this option.
The Ideal plan has the following advantages:
- potential of earning a better return
- more flexibility in the savings and the maturity date
- lower charges, giving a better return to the parent.
Our Ideal plan is much better than the education savings plan offered by other insurance companies (that pays high commission to their agents).
I advice parents to approach our insurance advisers or consultants (at our business center) to ask about the "Ideal plan for your Child".
You can also read the FAQ at
http://www.income.coop/insurance/ideal/faq-4child.asp
Enjoy the wonderful free service of the National Library
POSTING IN OUR INTERNAL FORUM
You have borrowed a book from the National Library. Due to lack of time, you decide to renew. You are told that a $0.50 fee per book is payable.
I feel the renewal should be free if it's a first one for the said book and there are no prior resevations by another.
K P
----------------------------------------
The National Library is doing a wonderful service to offer so many books to be borrowed for free.
They have to meet their expenses. Now, they are imposing some user charges, such as renewing a book or a "fine" for returning the book late.
Going forward, I think that the library users (especially adults) should expect to pay a membership fee. It is good value for money.
In the meantime, when membership is free, let us accept the other user charges. We are still getting good value for money.
Tan Kin Lian
You have borrowed a book from the National Library. Due to lack of time, you decide to renew. You are told that a $0.50 fee per book is payable.
I feel the renewal should be free if it's a first one for the said book and there are no prior resevations by another.
K P
----------------------------------------
The National Library is doing a wonderful service to offer so many books to be borrowed for free.
They have to meet their expenses. Now, they are imposing some user charges, such as renewing a book or a "fine" for returning the book late.
Going forward, I think that the library users (especially adults) should expect to pay a membership fee. It is good value for money.
In the meantime, when membership is free, let us accept the other user charges. We are still getting good value for money.
Tan Kin Lian
2,600 policyholders benefited from their top up
In July, we sent letters with a FAQ to encourage policyholders to top up their existing investments in our funds. This was to take advantage of the recent decline in the stockmarket.
2,600 policyholders responded and invested $21 million.
Their top up investment earned 4.2% over sligly more than a month. They gained a total of $870,000.
Wow. We have 2,600 happy policyholders.
2,600 policyholders responded and invested $21 million.
Their top up investment earned 4.2% over sligly more than a month. They gained a total of $870,000.
Wow. We have 2,600 happy policyholders.
Friday, September 1, 2006
Trade union invested in Growth Fund and Flexi Cash
A trade union invested $1 million in our Growth Fund in June 06. They made a gain of $18,000 over 2 months. The committee is happy with the investment. They decided to make an additional additional of $1 million.
They have a regular revenue of about $300,000 a month. They are interested to keep the money in our FlexiCash instead of bank account.
They have a regular revenue of about $300,000 a month. They are interested to keep the money in our FlexiCash instead of bank account.
Competitors scared of our competitive rates
We received a feedback from a new motor policyhoder. She called up about 10 insurers for a quote and finally decide to choose us, because of our lower price. She told us about a finding she found quite "unique".
She mentioned that whenever she told our competitor she is going to take up with NTUC Income, they told her not to do so. Reasons include: need to go IDAC, slow claims. They told the policyholder, "You can take up with another company but not NTUC Income."
This policyholder made the effort to call us and find out the truth. She was convinced about our service standard.
It seems that our competitors are not able to match our competitive rates and have to resort to scare away the customers with their false statements.
She mentioned that whenever she told our competitor she is going to take up with NTUC Income, they told her not to do so. Reasons include: need to go IDAC, slow claims. They told the policyholder, "You can take up with another company but not NTUC Income."
This policyholder made the effort to call us and find out the truth. She was convinced about our service standard.
It seems that our competitors are not able to match our competitive rates and have to resort to scare away the customers with their false statements.
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