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Are you buying insurance blindly? Find out

16 June 2016 By admin Leave a Comment

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Financial planners never tire of telling their clients not to mix insurance with investment. “If a policy generates investment returns for you, it stops being an insurance policy. It will neither give you good protection nor good returns,” says Sanjeev Govila, a Sebi-registered investment adviser and CEO of Hum Fauji Initiatives.

Yet, almost everybody has an insurance plan in his portfolio. Many buyers fall into the trap because a close relative or family friend makes them buy an insurance plan from them.

To be fair, many insurance buyers are misled by agents and financial advisers. Banks are at the forefront of mis-selling. If you go to a branch, relationship managers pounce on you with unsolicited investment advice. This used to be a problem only in foreign establishments and private banks but now even PSU banks are indulging in these unethical practices. The hefty sales targets and lucrative earnings from commissions (sometime more than the salary) have turned relationship managers into mis-sellers of insurance.

Banks have already been warned by the RBI. “The RBI would take strict action, including heavy penalties, if the banking industry continues to mis-sell third party products,” RBI Deputy Governor S.S. Mundra said recently. He has suggested that banks put in place a system of period inspection on sale of third-party products by their own staff or direct selling agents.

However, more needs to be done. One critical step is to ban the sharing of bank account details with the sales team. Most of the mis-selling happens because the sales team knows who has how much in his bank account. The RBI also needs to strengthen the ombudsman system and make the complaint procedure more customer friendly.

Read more at economictimes.indiatimes.com

Should Singapore revive unemployment insurance?

7 June 2016 By Digital Curator Leave a Comment

unemployment insurance

BY ADRIAN TAN

In the recent climate of fear due to a spate of retrenchments, the debate on unemployment insurance has intensified. However, unemployment insurance is not a new idea to Singapore as there have been previous attempts to run such plans.

As an insurance scheme, policy holders contribute funds into a common pool, which can be tapped on should the policyholders hit certain requirements.

Hence, the concept of unemployment insurance (where premiums are typically paid by the workers and companies), is fundamentally different from the concept of unemployment benefits (a welfare scheme where unemployed workers receive an allowance from the government).

Organisations which have rolled out unemployment insurance-related plans include NTUC Income, Singapore Professionals and Executives Cooperate (SPEC), and Pana Harrison. These plans were unsuccessful as the claims exceeded what the insurers were prepared to pay, or the take-up rate was low.

For example, NTUC Income launched a Retrenchment Insurance Plan in 2004 for all Singaporeans and PRs who were Income policyholders. The take-up rate was not sufficient, causing the plan to be withdrawn.

Regardless of these failures to implement a full-scale unemployment or retrenchment-related insurance plan, there are still insurance plans that incorporate an element of unemployment or retrenchment-related coverage

See full story at sbr.com.sg

How to avoid travel accidents

22 April 2016 By Alex Tan Leave a Comment

Image via Flickr user Jens Schott Knudsen

Travellers might spend a lot on immunisations but the truth is that the biggest holiday health risks are not vaccine-preventable. The vast majority of fatalities are caused either by illnesses that would have killed anyway and trauma – accidents, falls, violence. Below is a list of travel’s most deadly, and how you can decrease the risk.

1. Roads

Road traffic accidents such as car collisions and vehicles hitting pedestrians and cyclists are the biggest cause of death of otherwise healthy travellers. The risk is especially high in resource-poor destinations where 90% of fatalities on the road happen in low- or middle-income countries. Vehicles in such places may not have seat belts, and lights and brakes may not work.

Get yourself familiarise with the traffic laws there and look out for vehicles before crossing the road. Always wear your safely belt if there is one. Avoid travelling at night when it is dark.

2. Pools

Most people will assume they need to be more cautious when wild swimming however it is known that pools are more dangerous as the drowning risk is more than 12 times higher in a swimming pool than in open water; children under seven are most vulnerable. Rules are strict in the UK but, even at popular overseas holiday destinations, there may not be lifeguards.

It is important to know your limits or get in the depth of your ability range, look out for warning signs. Stay sober, to prevent yourself getting plunge into the water and suffer hypothermia quicker.

3. Accommodation

There are a surprising number of injuries, and even deaths, connected with travellers’ accommodation. Hotels lacking smoke alarms or sprinkler systems, and poorly- vented heating devices emitting carbon monoxide are risks. Wild camping in remote spots can be dangerous if you don’t know the local terrain.

Always check for the fire escape route, and think about what kind of hotel you have choose. Keep a torch with you especially when you are in a destination where there are frequent power cut. And always remember, never smoke in bed. When it comes to camping, try not to light a stove in the entrance while you are inside.

4. Mountains

Mountains are dangerous places despite the changeable weather, thin air and sheer drops. Most people died from falling off cliff paths and one common cause of which is being pushed over by passing yaks, mules or even goats. Some even died from altitude sickness, something travellers climbing over 3,000m need to be very aware of.

It is crucial that trek-leaders be gently reminded to follow sensible safety precautions. Always check the weather there, and prepare all the equipment needed for safely precautions. Do not overlook this.

5. Diving

Scuba-diving has a reputation for being dangerous, but under proper conditions with safe equipment the risks may be low but higher at some destinations: medical examinations, or even ability to swim, are not always mandatory when hiring scuba equipment.

6. Extreme adventures

Rafting, bungee jumping, jetboating etc. The list of possible extreme sports you can try overseas is long and terrifying. Few travellers die but there are fatalities even in experienced ventures; it can be instructive to Google the possible injuries and likelihood of death before signing up. The list for bungee-jumping, for example, is especially impressive.

By Dr Jane Wilson Howarth

See full story on Wanderlust

Should you buy Travel Insurance?

21 April 2016 By Alex Tan Leave a Comment

Image via Flickr user Heneghan

I have never bought travel insurance in my life because instinct has always told me that it’s a bad deal. I rarely pay for hotel rooms, tours or rental cars in advance. I don’t pack designer clothing in my checked luggage. I’m generally healthy, and I have medical insurance that covers me abroad.

But instinct is a poor way to make decisions about insurance. So with a three-week trip to Asia approaching, I finally decided to figure out whether I should be traveling with insurance, and, in general, when it is smart to have it and when is it unnecessary.

Travelers tend to buy insurance if they are more at risk or more likely than the average policyholder to make a claim. In economics that’s called “adverse selection” — but it’s adverse only for the insurance companies. For consumers, it’s just smart. Imagine two people looking at a $100 insurance policy for a two-week trip: one is a 65-year-old heading to India, where he plans to rent a scooter, eat street food and sleep in already-reserved five-star hotels every night. The other is a 30-year-old going to London, planning to crash at a friend’s apartment and buy discount theatre tickets every night. It’s pretty clear who should buy insurance.

Generally, travel insurance is sold in packages, combining various categories of coverage. Go through them all, determining what you need and what you don’t, either because you’re not at risk or you’re already covered. If a package doesn’t seem worth it, more customized policies offer certain options. But you may not end up saving that much.

Medical

If you have regular health insurance which doesn’t cover you while abroad, you need some when you travel. Medicare participants and citizens of countries covered by national health services generally fall into this category. Others should check on the specifics of their policies.

Emergency Evacuation

This one is simple: without coverage, if I have to be medically evacuated home from a distant land, I’m out something like $30,000. So it comes down to how likely the scenario is. Headed to a particularly isolated region? Climbing mountains or fording rivers? Then having evacuation coverage as part of a package or separately is a good idea.

Travel Protection

This kind of insurance offers reimbursement (sometimes partial) for prepaid reservations if your trip is cancelled, interrupted or delayed. I rarely spend much on a trip before I leave beyond the plane ticket (always coach) and maybe the first night in a hotel (always cheap). But for others, with expensive seats and long prepaid reservations, it might make sense.

Also worth noting: some credit cards will provide similar coverage.

Baggage Protection

It’s worth it to determine the value of what’s inside your baggage and do the math.

Of course, whether you get reimbursed is partly up to you. A World Nomads customer service representative gave this example: if you leave your cell phone in your bathing suit and go into the water, it’s not covered.

Accidental Death and Dismemberment

I’ve never understood this one. If you need life insurance, wouldn’t you want it for the whole year, not just when you’re traveling? And if you lose a limb, will a few grand — what World Nomads offers — really help? (Note that life insurance companies will ask about your travel habits; so be sure you’re honest when you apply — and if you already have coverage, be sure it covers the countries you’re visiting.)

So Is It Worth It?

Though my initial instinct to avoid package insurance had been (coincidentally) right, the process was valuable anyway: I now know a lot more about my medical coverage and credit card perks. Everyone should make similar calculations.

By Seth Kugel

See full story on New York Times Blog

The Importance of Travel Insurance Abroad

20 April 2016 By Alex Tan Leave a Comment

Image via Flickr user Astrid Westvang

Don’t Leave Home without It

Several years ago, I went to visit some friends in the U.S. in the Cascade Mountains of Washington. On arrival, I realized that I had forgotten to buy travel insurance. Feeling young, fit, and reckless, I decided that it would not matter as the trip was only to be two weeks long. What could possibly go wrong in such a short space of time? As if to tempt fate, I decided to join my friends snowboarding for a day. I was slightly more nervous given the knowledge that I had no insurance, but my friends persuaded me little could go wrong since I was a beginner and wouldn’t be moving fast enough to have an accident. Unfortunately, due to some bad amateur coaching, I ended up being taken off of the slopes on a stretcher and in a daze, with no memory of the day, date or year for that matter. When the safety workers were about to put a neck brace on me and take me to hospital, I admitted that I had no insurance and preferred it if they left me to get better by myself. I did, luckily. But I have never travelled without insurance since then.

Who Needs Travel Insurance?

Majority of world travellers tend to be quite young, and some are reckless. Youngers always have the idea that youth is on their side, and ignore that travel insurance are not needed. The idea of paying what seems like a large sum of money, and most often will never be use can seem to be ridiculous for a young traveller. However, accident or illness could happen and usually happen in a foreign country. Regardless of age, if you do not have any form of travel insurance, your life could be in danger and in terms of the financial damage on medical costs.

Your insurance policy should offer at least US$2,000,000 in medical expenses in case the very worst happens, preferably more if possible. It should also offer 24-hour emergency service and repatriation in case you need to be flown home.

How Much Insurance Should You Take Out?

Once you have decided to buy travel insurance, your next decision is whether to try and save money by not including your cash and belongings covered under the insurance plan. By deleting this coverage, it will bring down your premium slightly. However, if you have new camera equipment etc. you may pay the extra few dollars and have these things covered too.

On the other hand, don’t pay out too much for a premium if you aren’t going to make the most of it. Travel insurance for people doing winter sports often doubles because of the associated risks, so it makes a huge dent in your wallet. However, unless you plan to be on the slopes every single day of you trip, it’s worth considering other options. There is daily travel insurance, and some covers for single trip travel as well.

What Should The Insurance Plan Cover?

Some final factors to consider before buying travel insurance include checking to see that the policy covers you for what you will be doing. Aside from winter sports, there are other sports that require a higher premium.

And an important point for many will be whether you will be covered for manual labour. Many of us take part in various forms of manual labour when working or volunteering abroad and some companies don’t cover this. If you are in any doubt, contact the insurance company and ask them before you buy your policy.

Don’t Forget to Read the SMALL PRINT!

Once you have bought your insurance, ALWAYS READ THE SMALL PRINT, no matter how tedious this job might be. If you know what to do in terms of your insurance company in case of an emergency, it could make a difference between making a valid claim or not.

Important Things to Remember That Could Make All the Difference

Now, you have your insurance policy that covers you for everything that you need, and you have arrived at your destination. As much as you should have fun on your trip, don’t assume that just because you do have travel insurance, it makes you invulnerable or able to take excessive risks.

Any accidents caused by alcohol or drug abuse, no matter how small, will completely invalidate your claim so BE VERY CAREFUL. Alcohol and drug abuse in an unknown country is usually a very bad idea anyway as you are less aware of local risks, more vulnerable to attack, and penalties can be much higher than at home.

One final thing to remember is that once you have stepped onto that flight your chances of buying travel insurance for that particular trip are greatly diminished. Most insurers will only cover you if you buy the insurance before you leave. Some will provide insurance once you have already left but these are quite difficult to find.

And finally, don’t forget to take your insurance details with you wherever you go, otherwise they are useless! And where possible, make photocopies and leave them with a friend or family back home in case your gets stolen.

By Caroline Nye

See full story on Transitionsaboard

Benefits of travel insurance

18 April 2016 By Alex Tan Leave a Comment

Image via Flickr user Moyan Brenn

While many travellers spend a lot of time and effort in planning the perfect vacations, they tend to neglect the importance of getting a good travel insurance policy. Especially for travellers visiting certain places for their first time, they are more prone to fall ill and get into accidents despite the climate change in unfamiliarised places.

There will always be unfortunate incidents that might happen during their travels, anything could happen. Although travel insurance cannot help people from avoiding these misfortunes, it does offer support and comfort in terms of monetary compensation, which will be useful in certain situations like medical bills or trip cancellation.

For travel insurance policy, it offers financial recovery for medical expenses that are incurred because of accidents and illnesses. These medical treatment can be very costly in some countries especially for those who get involved in serious injuries. With travel medical insurance, travellers can be assured to get reimbursement for the total amount of money that they spend on medical treatment.

Besides this, they also covers medical evacuation, which travellers do not have to pay medical emergency transportation expenses with their own money.

By having a travel insurance, it provides protection against trip cancellation and interruption. When an emergency arises before or during a vacation, travellers may have to cancel or cut short their trips. Since they have already paid everything for their vacations, they will definitely have to lose certain amount of money if there is any last minutes changes. With this, travel insurance ensures that they will get compensation for their losses from trip cancellation or interruption.

In addition, those who have a travel policy will get coverage for any loss baggage or personal belongings. Other types of coverage include travel delay, tour operator default, personal liability, accidental death, legal expense etc.

Travel insurance policy does not only ensure that you will get coverage for unforeseen losses, it also provide you travel assistance and 24 hour emergency services to help their customers deal with tough situations during their vacation.

Your insurance company will offer you the best advice to solve your problems in the shortest time possible, which this kind of assistance is especially important when you are travelling to a country where locals do not speak your language.

By Damian Tysdal

See full story on USTIA

Introducing Liberty Insurance

24 March 2016 By Alex Tan Leave a Comment

We would like to take this opportunity to announce that we have partnered Liberty Insurance Singapore as our third general insurer. It has been a while since we contemplated having a third insurer. However, in order to provide more competitive options for our clients, we have selected Liberty Insurance as our final partner.

Liberty Insurance Pte Ltd is a licensed general insurer regulated by MAS and a member of the General Insurance Association of Singapore. They are a 100% owned strategic business unit of Liberty Mutual Insurance Group. Headquartered in Boston, Liberty Mutual Insurance Group is a diversified global insurer and the 3^rdlargest property and casualty insurer in U.S. based on 2013 direct premiums

Liberty Insurance wrote a gross written premium of S$159 million in Year 2014 (based on Singapore Insurance Fund) and is ranked 7^th largest insurer in the general insurance industry. With a strong insurer as our partner, we are confident of providing more insurance coverage that suits your needs and risk exposure.

Liberty Insurance offers a wide range of personal and commercial insurance products including liability, motor, travel, home, personal accident, medical, property, work injury compensation, bonds, employee benefits and marine cargo.

We look forward to better serving you with your insurance needs. For any insurance enquiries, do contact us at enquiry@credence.agency or call our office at 68978226.

See more details at Liberty Insurance Singapore

Motor insurance fraud lead mastermind to jail

15 March 2016 By Digital Curator Leave a Comment

Image via Flickr user Michael Coghlan

A man who was one of the brains behind a motor insurance fraud syndicate that submitted false claims of about $380,000 in relation to nine staged accidents was jailed yesterday for three years and four months.

Su Chia Ern, 45, who owned the now-defunct car workshop Concept Services Enterprise, pleaded guilty to six charges of cheating.

The two other masterminds were Teo Kok Hwee, a managing director of a recruitment services firm, and Pan Weida Pepin, a car dealer.

Su, Teo and Pan would recruit car owners and drivers to make false reports stating they had been in traffic accidents, when they had not.

The trio would stage the accidents, but got others to submit property damage and personal injury insurance claims in their names.

To support the claims, Su would take photos of the damaged vehicles. He would sometimes even remove parts of a vehicle to make it look like it had been involved in a genuine accident.

In 2009, Su got Godfrey Liew Kok Hon, 41, the husband of his girlfriend’s sister, to submit a false claim when he found out Liew was having financial difficulties.

The prosecution asked for 31/2 years’ jail for Su, noting that such cases involve multiple layers of deception, and cause premiums for all motor insurance policyholders to rise. In 2013, the General Insurance Association of Singapore said it conservatively estimated one-fifth of all claims to be inflated or fraudulent, and such claims cost about $140 million a year.

Su is out on $200,000 bail, pending an appeal against the sentence. He could have been jailed for 10 years and fined on each cheating charge.

In all, 15 people in the syndicate, including Su, have been convicted.

by Amir Hussain

See Full Story at straitstimes.com

THINK AGAIN BEFORE ILLEGALLY MODIFYING YOUR VEHICLE

25 November 2015 By admin Leave a Comment

Repeat Offenders Will Be Subject to More Frequent Mandatory Vehicle Inspections

From 1 November 2015, vehicle owners caught with illegally modified engines or exhaust systems in their vehicles for a second or subsequent time will be subjected to more frequent mandatory vehicle inspections.

o Second-time offenders will be required to bring their vehicles for mandatory inspections every six months for a period of two years

o Third-time or subsequent offenders will need to bring their vehicles for mandatory inspections every three months for a period of two years.

This represents a more stringent inspection regime as compared to that for normal vehicles, which are typically inspected once every one or two years, depending on their age and type.

Any owner who does not comply with the inspection regime is guilty of an offence and can be fined up to $1,000 or jailed for up to three months on conviction for the first offence. On conviction for a second or subsequent offence of failing to comply, the maximum penalty will be doubled.

The enhanced inspection regime will complement existing penalties to deter motorists from modifying their vehicle engines or exhaust systems illegally. Any person who is convicted of an illegal modification can be fined up to $2,000 or jailed for up to three months, for the first offence. Repeat offenders can be fined up to $5,000 or jailed up to six months.

In addition, if a vehicle is found with a tampered engine, it will need to be deregistered and the owner may not be granted the rebates for the residual Certificates of Entitlement (COE) and Preferential Additional Registration Fee (PARF), if any.

The Land Transport Authority (LTA) takes a serious view of such illegal modifications, as an illegally modified engine or exhaust system can create serious safety and environmental hazards. Once a vehicle’s engine or exhaust system is modified without due certification and approval, the existing vehicle components may not be able to handle the increased power or speed. Such modifications may also affect the durability and reliability of a vehicle.

Currently, motorists may choose to legally install after-market exhaust systems that are certified to be suitable for the specific vehicle make and model. These exhaust systems which are specifically designed and engineered for a particular vehicle make and model will have undergone testing, either by the vehicle manufacturer or by independent test laboratories, to ensure compliance with internationally recognised standards.

See Full Story at LTA

Tips for your Car Insurance in Singapore

23 November 2015 By admin Leave a Comment

Driving and owning a car in Singapore can be a costly undertaking. It is not only the car and its license that is expensive, but also the car insurance can weigh heavy on one’s finances. No matter how much money one has, there isn’t any chance that one can lower the government-imposed charges for the usage of the car. Therefore, it is even more important that one finds a beneficial deal for the car insurance.

1. Drive safely

If one met a car accident, the rate one has to pay for its car insurance monthly or yearly is instantly increased. However, If you are driving safely around Singapore over a long period of time, your car insurance will remain the same or even shrink slightly.

2. No Claim Discount (NCD)

Many car insurances offer a NCD which allows a 10% discount for every year in which you haven’t claimed anything. Let’s say you have only a minor dent in the car, you may want to consider not claiming it from your insurance, as you can possibly save more with the discount. The NCD can reach a maximum discount of 50%, with which one can safe potentially thousands of hard-earned dollars. Thus, It is important to think twice before making any claims.

3. Being a Safe Driver

This also means being a law-obeying driver. Fancy and fast cars are extremely attractive in Singapore, but even if you have one of those race cars, you are still subject to the speed limits. If you have a clean license over an extended period of time, you can earn a further discount instead of another ticket. After three years driving without committing a traffic offence, you can even get the Certificate of Merit (COM), which brings you a further 5% discount on top of NCD.

4. Get the right insurance policy

When you are arranging a new car insurance policy. Often, pay attention to what you actually commit. Many policies often include unnecessary points. Go through them and use your common sense. It can be that your car insurance also covers you for something that you are already covered for. Being covered twice for the same cause will not bring you double money and doesn’t mean you can claim it twice.

5. Young drivers and insure driver

Inexperienced drivers has the tendency to crash a car more often than older and more experienced drivers which thus, results in a higher insurance policy for younger drivers in general. Even if you’re driving perfectly, you are paying more by default.

However, one can insure the car on another person or include a driver with more experience into the policy. Mixing a high risk and a low risk profile will in most cases reduce the insurance. Therefore, one should check who is a low risk profile. Statistically older or female drivers will fall in this category. Listing such as the main driver in one’s car insurance policy, can save some money.

6. Car engine

Each car is categorized with a certain amount of insurance money that the owner has to pay. It is generally known that the bigger the engine of the car, the higher is this amount. The reasoning of the car insurance companies is the higher risk. Statistically cars with a higher engine are more likely to crash. For obvious reasons, insurances are all about statistics. So if you can beat the statistic, you will save some money.

7. Modified Car

Most people will not modify their car, however there are car enthusiasts that do. A simple engine tweak or any other car modification can quickly become very expensive. What seems like a body shop bargain, can become a killer within the insurance policy. Therefore, it is worthwhile to check with your car insurance whether an upgrade is necessary.

Of course one could say that the insurance company doesn’t have to know. This is however an extremely risky undertaking. In case you do have an accident with your modified car and you haven’t notified your insurance about it, you can lose your cover immediately. Even if you haven’t caused the accident, the insurance company can refuse to pay anything. Hence, one shouldn’t modify outside the regulations of the Land Transport Authority (LTA) and definitely not keep it a secret. Handling your car insurance correctly doesn’t take too long and can award you with some extra cash.

By Peter Schimke

See Full Story at MoneyDigest

Insurance Agency Singapore | Commercial Insurance and Personal Insurance