What is permanent and total disability?

Hi Mr Tan,

I came across your blog while surfing and read through some of your postings. I am grateful that though being the CEO, you have not been baised on your comments.

I wish to seek your clarification on this clause.

"Totally and Permanently Disabled" means the complete and continuous inability of the Life Assured at that time and at all times thereafter to engage in any business or occupation or perform any work of any kind for remuneration or profit.

The total and irrecoverable loss of sight of both eyes or the loss by complete severance of both limbs at or above the wrist or ankle or the total and irrecoverable loss of sight of 1 eye and the loss by complete severance of 1 limb at or above the wrist or ankle will also be regarded as constituting Total and Permanent
Disability"

If a person has no control over both limbs but choose not to amputate them, can it be regarded as constituting Total and Permanent Disability?

C

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Dear C

If it can be medically proven that the life assured cannot use two limbs totally and permanently, then it should qualify as a total disability claim. Perhaps the difficulty is to establish this fact, if the limbs are not amputated. Perhaps you can tell me more about the medical condition, and I can ask a doctor for his opinion.

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Hi Mr Tan,

The reason I'm asking that specific clause is because an agent claims that his company does not require the life assured to amputate the limbs in order to claim for total disability whereas other companies including Income required the limbs to be
amputated and must be at or above the wrist or ankle as specified in the clause.

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Dear C

Although the clause states that amputation is one condition of proof of total disability, there is also another condition and that is the inability to carry out any occupation. If two limbs are totally useless, it is easy to prove the inability to perform any occupation.

Anyway, it is NTUC Income's policy to interpret the clause fairly. I am sure that they will not insist on imputation under the circumstances that you have describe.

It is important for you to buy a product that gives you better value. Do not be swayed by minor differences such as this type of condition, which affect maybe 1 in a million people.