I received a copy of this letter written by a policyholder to the appointed actuary of NTUC Income.
Dear
I'm glad to receive the INCOME 2008 annual Bonus Statement yesterday but was shocked with the contents.
My family of 5 have a total of 25 insurance policies with NTUC INCOME, nothing else but our trust on the house brand that give us protection and more reasonable returns.
I'm deeply disappointed with the new formulas used in calculating the annual bonus.
My family 5 Living Policies got the greatest hits. Based on the presentation by your agent, I accepted these Whole Life Policies and hope that in case needs arise, I can anticipate the Cash Value at that point of times in need. Now that INCOME told us
that we can expect the good returns after we leave this world and amount is up to INCOME mercy at that time. We have lost on planning of our insurance asset and unable to anticipate the amount we can get.
Your cut of about 50% in annual bonus for Whole Life Policy give a BIG BLOW to INCOME Policy Holders.
Friday, May 2, 2008
Visitors hit a new record 1,318
The visitors to my blog hit a new record, 1,318 visitors, on Friday 2 May 2008. It surpassed the previous record on Tuesday.
The average daily visitors has now passed 1,000. It hit 1,021 visitors for the past week. It seems that the bonus cut of NTUC Income is attracting many more visitors to my blog.
The average daily visitors has now passed 1,000. It hit 1,021 visitors for the past week. It seems that the bonus cut of NTUC Income is attracting many more visitors to my blog.
Uncompetitive motor premium rates
Dear Mr. Tan,
Recently my Motor Insurance was due for renewal with NTUC Income. I rang the customer service with the intention of renewing my insurance. I was shocked to learn that it has increased from $690 to $815 after 50% NCB and 5% direct discount and 5% loyalty discount.
When I asked if the premium can be lowered since I have been insuring with NTUC Income for 8 years, I was told it was company's policy and the premium is fixed. I then called AA and was offered a premium of $766 with another insurance company.
My question is why can't NTUC look at the insurance coverage of each individual and fix the premium. All my family insurance are covered by NTUC Income, yet I find NTUC Income to be rigid and does not consider the loyalty placed by an individual
Can I have your comments?
REPLY
I suggest that you pass the feedback direct to the new management of NTUC Income. You can send to sq@income.com.sg.
I also experienced a large increase in premium on my wife's motor car recently. I was able to get a much lower premium rate from another insurance company. I decided to move my motor insurance to the new company, in spite of having insured with NTUC Income for many years, without any claim.
Recently my Motor Insurance was due for renewal with NTUC Income. I rang the customer service with the intention of renewing my insurance. I was shocked to learn that it has increased from $690 to $815 after 50% NCB and 5% direct discount and 5% loyalty discount.
When I asked if the premium can be lowered since I have been insuring with NTUC Income for 8 years, I was told it was company's policy and the premium is fixed. I then called AA and was offered a premium of $766 with another insurance company.
My question is why can't NTUC look at the insurance coverage of each individual and fix the premium. All my family insurance are covered by NTUC Income, yet I find NTUC Income to be rigid and does not consider the loyalty placed by an individual
Can I have your comments?
REPLY
I suggest that you pass the feedback direct to the new management of NTUC Income. You can send to sq@income.com.sg.
I also experienced a large increase in premium on my wife's motor car recently. I was able to get a much lower premium rate from another insurance company. I decided to move my motor insurance to the new company, in spite of having insured with NTUC Income for many years, without any claim.
Thursday, May 1, 2008
Home insurance claim
Dear Mr. Tan,
My maid was replacing the bulb on my expensive lamp fixture. The ladder slipped. She fell and pulled the fixture down with her. Is the loss of this fixture covered under a home insurance policy? I am insured for the building and the content as well.
REPLY
I checked with an insurance claim expert. Here is his reply:
quote
The lamp fixture falls under the scope of "contents". Inorder for the policy to respond, the damage or loss must be within the insured perils. Home insurance is a fire policy that have been extended to cover floods, water damage (e.g. overflowing sewerage pipes), damage by lighning. It does not cover accidental damage to the lamp fixture under the circumstances described by you.
unquote
My maid was replacing the bulb on my expensive lamp fixture. The ladder slipped. She fell and pulled the fixture down with her. Is the loss of this fixture covered under a home insurance policy? I am insured for the building and the content as well.
REPLY
I checked with an insurance claim expert. Here is his reply:
quote
The lamp fixture falls under the scope of "contents". Inorder for the policy to respond, the damage or loss must be within the insured perils. Home insurance is a fire policy that have been extended to cover floods, water damage (e.g. overflowing sewerage pipes), damage by lighning. It does not cover accidental damage to the lamp fixture under the circumstances described by you.
unquote
Transfer of shares to family members
After my retirement from NTUC Income, I decided to invest most of my savings in shares on the Singapore Exchange. The shares are kept in CDP.
I had considered the option of investing the additional savings in the Combined Fund in NTUC Income, but I find the upfront spread of 3.5% to be too high.
I have now decided to transfer some of my shares to my wife and children. I asked them to open a stockbroking and CDP account. My stockbroker said that I could approach CDP to make the transfer to family members at quite modest cost.
It is better to make the transfer now, so that my family members are able to learn about investing in shares. They can collect the annual dividend directly. Later, they can also learn about investing in low cost unit trusts. They should not have to pay high charges for investment-linked funds marketed by life insurance companies.
This is also a good way of distributing some of my assets now (instead of waiting until I leave this world! )
I had considered the option of investing the additional savings in the Combined Fund in NTUC Income, but I find the upfront spread of 3.5% to be too high.
I have now decided to transfer some of my shares to my wife and children. I asked them to open a stockbroking and CDP account. My stockbroker said that I could approach CDP to make the transfer to family members at quite modest cost.
It is better to make the transfer now, so that my family members are able to learn about investing in shares. They can collect the annual dividend directly. Later, they can also learn about investing in low cost unit trusts. They should not have to pay high charges for investment-linked funds marketed by life insurance companies.
This is also a good way of distributing some of my assets now (instead of waiting until I leave this world! )
Cooperative principles and values
Dear Mr. Tan Kin Lian,
I have been a strong supporter of Income for many years. My family has several policies with Income. I am also a member of NTUC union.
You said that the bonus cut by Income is unilateral and arbitrary. Is this the proper behaviour for a cooperative soceity. I thought that the coop acts in an open, transparent manner and look after the interest of the policyholders. This behaviour is as bad as the commercial companies, maybe even worse. Is there any body in the board and management of Income that understand coop values? What about the NTUC?
REPLY
As you are a union member, you can bring this matter up with the leaders of NTUC. They have been promoting cooperative principles and values and wish to see the NTUC cooperatives behave differently from commercial companies. Maybe, the NTUC leaders can intervene to rectify this matter.
In my frank opinion, the cut in bonus is to the detriment of the policyholders. It will destroy the trust of policyholders in NTUC Income and in the NTUC as a whole (as many union members are affected).
I have been a strong supporter of Income for many years. My family has several policies with Income. I am also a member of NTUC union.
You said that the bonus cut by Income is unilateral and arbitrary. Is this the proper behaviour for a cooperative soceity. I thought that the coop acts in an open, transparent manner and look after the interest of the policyholders. This behaviour is as bad as the commercial companies, maybe even worse. Is there any body in the board and management of Income that understand coop values? What about the NTUC?
REPLY
As you are a union member, you can bring this matter up with the leaders of NTUC. They have been promoting cooperative principles and values and wish to see the NTUC cooperatives behave differently from commercial companies. Maybe, the NTUC leaders can intervene to rectify this matter.
In my frank opinion, the cut in bonus is to the detriment of the policyholders. It will destroy the trust of policyholders in NTUC Income and in the NTUC as a whole (as many union members are affected).
Thai workers protest for higher minimum wage
Thousands of workers waving flags and banners gathered in the Thai capital on Labour Day to call on the government to raise the minimum wage and improve their welfare.
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