Happy New Year Everyone!!
Let this coming year be better than all the others!!!
Thursday, December 31, 2009
U—Save rebates tweaked
“SINGAPORE: From Friday, HDB owners who fully sublet their flats to non—citizens will no longer be eligible for U—Save rebates to offset their utility bills.
The Finance Ministry (MOF) said in a statement that U—Save is aimed at Singaporeans.
However, over the past few years, there has been an increase in the number of Singaporean—owned HDB flats which are fully sub—let to non—citizens.
MOF said the scheme was fine—tuned to better target the rebates at Singaporeans, as intended.
Home—owners who sublet their flats to at least one Singaporean will still qualify for U—Save.
Some 800,000 HDB households will receive S$106 million worth of U—Save rebates in 2010.
The first payout, amounting to S$60 million of utility rebates, will be made in January. The second payout will be in July.
Households will get a total of between S$55 and S$200, depending on the size of their flats.
The U—Save rebates will cost the government some S$620 million over five years.
The rebates are part of the GST Offset Package announced in 2007 to help Singaporeans, especially low and middle income households, cope with the GST increase.”
SOURCE:
http://sg.news.yahoo.com/cna/20091231/tap-895-u-save-rebates-tweaked-better-ta-231650b.html
Tuesday, December 29, 2009
Thursday, December 24, 2009
Merry Christmas!
Christmas arrives in a few more hours, if you haven’t completed your Christmas shopping here are some suggestions…
Christmas Gift Ideas:
To your enemy, forgiveness
To an opponent, tolerance
To a friend, your heart
To a customer, service
To all, charity
To every child, a good example
To yourself, respect
Wishing all my Clients and Friends a Bright and Cheerful Christmas!
Friday, December 18, 2009
Question From Reader: Can i have two Medisave-approved Integrated Insurance Plans?
I was asked this question through email
Qn: Can i have two Medisave-approved Integrated Insurance Plans?
The answer is no, each individual is only allowed 1 Medisave-approved Insurance plan.
Once you apply for a plan from another Insurer your current plan with your current Insurer will have to end.
Feel free to send me more emails if you have other questions: mark.lim@aia.com.sg
Monday, December 14, 2009
Corruption
“SINGAPORE: A 43—year—old Singaporean has been charged with corruption.
Self—employed Hamzah Karim had acted as a coordinator, referring motor vehicle accident cases to law firms in order to file a claim with insurance companies.
In August 2006, the accused had allegedly arranged for learner bike rider Liyana Mohamed Noor to make a false accident report.
The female rider met the accused at Changi General Hospital while seeking treatment for an injury that she sustained during a practical test for her bike licence.
The accused said she could use her injury to make a false accident claim to make more money.
Sometime later, the accused introduced a male friend and instructed her to lie that she was riding pillon when Liyana and the male friend collided with a taxi.
If found guilty, Hamzah could face a maxmum penalty of S$100,000 fine and imprisonment of five years. “
— 938 LIVE/yb
http://sg.news.yahoo.com/cna/20091214/tap-677-43-year-old-man-charged-corrupti-231650b.html
Sunday, December 13, 2009
HDB flat value will rise as long as economy grows: MM Lee
“SINGAPORE: Public flats will continue to appreciate in value as long as the Singapore economy continues to grow. And with limited space, the future of public housing looks set to go up — with more skyscraper flats to be built.
Minister Mentor Lee Kuan Yew said this as he launched The Pinnacle@Duxton, which at 50 storeys, is the tallest HDB development in Singapore.
The first rental HDB blocks in Tanjong Pagar were built in 1963 on the site where The Pinnacle@Duxton stands. Today, it is the site of the tallest HDB in the country and the scene has changed significantly.
Minister Mentor Lee attributes the change to an early policy decision to build a home—owning society, which is what motivates Singaporeans to upgrade this asset for a better life, something which could not have happened with just rental flats.
Going forward, Mr Lee expects more such flats to be built.
He said: "The Pinnacle@Duxton is therefore a good example that if the nation continues to do well, we can build more flats of this standard. But we should not make a quick profit from a resale of HDB flats. The rules on minimum occupation and requirement for family units nucleus are to discourage speculative purchases."
Mr Lee gave out keys to seven of the first families to move in and visited one family, whose father had rented a flat in the area previously.
Speaking to reporters later, he said the government could have built a condominium in its place but preferred to build public flats in this central area and share the growth of the city with the people who had rented flats in the area before.
Responding to questions later on about young couples who are concerned about flat affordability, Mr Lee said this is linked to the country’s growth — if the country is doing well, property prices go up.
But if the economy goes down, unemployment goes up but incomes and property values decline.
One thing that will be going up is the height of future public housing.
Mr Lee said: "Well, it’s a very special problem we face because we can’t expand the city laterally, we have to expand the city vertically. Yes, we can have more (land) reclamations but that’s only about 10, 15 per cent and we’ve reached the limit. Therefore, I see more and more of the old blocks being demolished and new blocks like The Pinnacle@Duxton being built."
Units at The Pinnacle@Duxton cost an average of $486,000 for a 4—room flat and $590,000 for a 5—room flat, when the last of the units were released in October.
The 50th—storey skybridge will also be open to non—residents for a $5 fee.”
SOURCE: http://sg.news.yahoo.com/cna/20091213/tap-558-hdb-flat-value-rise-long-economy-231650b.html
“Me And My Friend” Screening
“In observance of the International Day of Persons with Disabilities on December 3, MARUAH (Singapore Working Committee for an ASEAN Human Rights Mechanism) is holding a series of events, themed “Me and My Friend”, to highlight the often-overlooked rights of people with disabilities and to build friendships based on mutual respect between the able-bodied and people with disabilities.”
- http://maruah.org/MeAndMyFriend/
Sometimes we forget that people with special needs also deserve the same rights and dignity as all of us, do support the following event!
Screening Details:
Thursday, December 10, 2009
Mortgage Loan Insurance
Mortgage loan insurance takes care of unpaid home repayments, should any unforeseen event such as death or total and permanent disability happen to the homeowner.
Homeowners with Mortgage loan Insurance will not be burdened with mortgage repayments or face the possibility of losing their home.
An example using AIA Mortgage Reducing Term Assurance (MRTA):
A 27-year old servicing a mortgage loan of $400,000 at an interest rate of 3%, only needs to make a one-time premium payment of $5,528 to ensure that should anything happen to him, his remaining home repayments will be handled by the Insurance company.
For more information on MRTA Insurance please send me a email: mark.lim@aia.com.sg
One–Year Extension of 4% Floor Rate for all SMA and RA Monies
“To help members cope with the current economic climate, the Government will maintain the 4% floor rate for interest earned on all Special and Medisave Accounts (SMA) monies and Retirement Account (RA) monies for another year until 31 December 2010. After 31 December 2010, the 2.5% floor rate will apply for all CPF accounts.
An additional 1% interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). The additional interest received on the OA will go into the member’s SA or RA to enhance his retirement savings. If the member is above 55 years old and participates in the LIFE scheme, the additional 1% interest will also apply to his annuity premium, less annuity payouts already made. The additional interest earned on the member’s LIFE annuity monies will be paid into his RA.”
SOURCE:http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_09Dec2009.htm
What is an Insurance Bond?
An Insurance Bond is a three-party instrument whereby one party (Insurer or Bank) guarantees a second party (the principal) financial protection against a third-party (the contractor or Insurer’s client) failing to perform in accordance to the terms and conditions of a contract.
In the event that the client fails to meet the obligation or complete the contract in time, the Insurer has to pay the principal for losses incurred up to the amount specified in the Bond or undertake to complete the project.
Why are Bonds used?
- With the Bond, the Principal is assured that he will be compensated in the event of any non-performance
- It helps reduce the chances of incomplete, bankruptcy or poor workmanship causing the project to be abandoned
- Bonds are subject to stringent underwriting, thus there is a good chance the contractor/client will complete the project
- From the viewpoint of the contractor/client, it helps them with their cash flow as they only need to pay a small premium for the Bond as compared to the large Security deposit
Credit Insurance
Credit Insurance provides cover to companies in the event of default in payments by their customers/buyers for the goods or services provided.
This cover will help improve one’s credit management.
Money Insurance
Money Insurance is an Insurance for cash, cheques, bank drafts..etc
It can help companies prevent cash-flow problems when large sums of money are stolen or go missing.
Fidelity Guarantee Insurance
Fidelity Guarantee Insurance is an undertaking by the Insurer to make good any financial loss incurred by the Insured resulting from employee’s defalcation, forgery or fraudulent acts.
Tuesday, December 8, 2009
Aviation Insurance
Aviation Insurance covers the physical damage(Hull Insurance) and the legal liability of the Insured.
Marine Liability Insurance
Marine Liability Insurance includes:
- Ship Repairer’s Liability Insurance
- Charterers’ Liability Insurance
- Port Authorities Liability Insurance
- Stevedore Liability Insurance
- Terminal Operators’ Liability Insurance
The more common types of Marine Liabilities cover in Singapore are Ship Repairer’s Liability, Charterers’ Liability and Port Authorities Liability Insurance.
Marine Hull Insurance
Marine Hull Insurance covers the ship owner against the physical loss or damage to a vessel or ship.
All types of vessels from tug and barges to ocean-going vessels can be insured.
Marine Cargo Insurance
Marine Cargo Insurance provides the Insured with indemnity for loss of or damage to the goods during transit.
Types of Clauses:
1] Institute Cargo Clause A (ICC A) – Covers the Goods against loss or damage subject to exclusions
2] Institute Cargo Clause B And C (ICC B & C) – Cover is specifically named in the clauses, unnamed perils are not covered
Examples of Risks covered are:
- Fire/Explosion
- Vessel Stranded, grounded, sunk or capsized
- Collision
- Entry of Sea/River water into Vessel
- Total loss of any package lost overboard
Errors And Omissions Insurance
The Errors And Omissions Insurance covers persons with E&O liability exposure like council members of management committees of social clubs and condominiums.
Although these members usually offer their services without remuneration the Law does not exempt them if they are found to have failed in their duty of care.
The E&O Insurance indemnifies the Insured against their legal liability to pay damages and claimant’s costs and expenses arising from neglect, errors or omissions.
Libel And Slander Insurance
The Libel And Slander Insurance indemnifies the Insured against his liability at Law for damages and claimant’s costs and expenses in respect of claims against the Insured for:
- Libel (written word of defamation)
- Slander (spoken word of defamation)
- Infringement of Trademark (registered, design, copyright, patent..etc)
- Misappropriation of ideas under a contract
- Unfair Competition
Directors’ And Officers’ Liability Insurance
The Directors’ And Officers’ Liability Insurance is designed to indemnify the Insured for the amount that he becomes legally bound to pay for claims made against him for wrongful acts committed during the period of Insurance.
The Directors’ And Officers’ part covers any negligence, default, breach of duty or breach of trust in relation to the company.
The Company Reimbursement part covers against the claims payments and defence costs which is legally obligated and permitted to reimburse its Directors or Officers for any claims made against them arising out of their wrongful acts.
Professional Indemnity Insurance
The Professional Indemnity Insurance is designed to protect Professionals (Lawyers, Doctors..etc) against claims which might be made against them.
It covers against their liability to their principles or clients arising out of neglect, omission or error in their discharge of their professional duties. Both Actual and Alleged negligent acts are covered.
Products Liability Insurance
Products Liability Insurance is designed to cover legal liability for injury or damage to property of any third-party resulting from the products manufactured, sold, supplied or distributed by the Insured.
The policy covers all costs and expenses of litigation.
Medisave-Approved Medical Insurance for serving Public Officers
AIA has been awarded the new tender to provide Medisave-Approved Medical Insurance for serving public officers and their family members (i.e. spouse and unmarried children).
Public officers and their family members will be able to enjoy specially discounted rates for AIA’s HealthShield Gold Plans.
(All full-time employees of Ministries and Statutory boards who possess a staff card issued by the Ministry/Statutory Board and their immediate family are eligible for the premium discounts)
There is quite a number of eligible Statutory Boards, i.e. A%Star, AVA, CPF, DSTA, HDB, ITE, JTC, LTA, Polytechnics, National Arts Council, NLB, URA and many others..
If you are unsure if you are eligible, please send me an email and i will check it out for you. mark.lim@aia.com.sg
Stay Healthy!
Singaporeans lived with rotting corpse for months
“SINGAPORE (AFP) - – Residents of a public housing block in Singapore ignored the stench coming from a dead man's flat for months because they did not want to disturb him, the Straits Times reported Tuesday.
A coroner's enquiry was told Monday that Tan Cheng Soon, 69, might have been dead for between six and 12 months when his skeletal remains were finally discovered after a neighbour called the police in January, according to the newspaper.
Foo Jong Ming, 30, told the daily that he had not seen Tan since May last year and decided to inform the police when he could no longer take the foul smell from the loner's one-room apartment.
"Nobody wanted to disturb him," said Foo's wife Khanittha.
A spokesman for the Singapore Civil Defence Force told AFP Tuesday that they broke into Tan's locked flat and found a decomposed body, but it was only in October that DNA tests confirmed the identity of the remains.
The coroner recorded an open verdict on Tan's death, which means the exact cause could not be determined.
Most Singaporeans live in densely populated public housing estates like Tan's because of land scarcity, and an increasing number of elderly citizens live on their own due to longer life expectancy.
Tan lived on the 12th floor of a rent-controlled apartment building close to the city centre.”
SOURCE: http://sg.news.yahoo.com/afp/20091208/tap-singapore-people-corpse-06f3cb7.html
Why is Health Insurance Important?
Nothing is more important than your health and well-being, loss of good health can mean a loss of earnings if you are unable to work, and it can also mean medical bills that are extremely expensive.
Health Insurance can help you cover a big part of those costs and it can also help individuals to lead more healthy lives by paying for preventive measures such as regular check ups (for example, AIA’s Woman of Wisdom & Glow of Life provides free medical checkups every 2-years for ladies.)
In Singapore, most of us are covered by Medishield, this is a low-cost insurance scheme which provides the most basic protection.
In recent years medical costs have been on the rise and it can easily wipe out a lifetime of savings with just one major medical event. Even the most routine of surgeries can cost over thousands of dollars, more sophisticated procedures can easily run into the hundreds-of-thousands of dollars. Basic coverage may not be enough anymore.
Health Insurance can help you pay those skyrocketing cost and save you from financial ruin.
If you would like to know more about Health Insurance, feel free to send me an email @ mark.lim@aia.com.sg
Stay Healthy!
Public Liability Insurance
Public Liability Insurance is designed to indemnify an Insured if he is sued by members of the public (or companies) who have suffered a loss, damage or injury due to the Insured’s negligence.
Workmen’s Compensation Insurance
The Workmen’s Compensation Insurance is a compulsory Insurance which employers in Singapore are required to purchase according to the Workmen’s Compensation Act 1998.
It is an offence for employers no to provide their workmen with the Insurance Cover. Penalty is a fine of up to $10,000, jail term of up to 1-year or both.
What is considered a “Workman”?
- A Person engaged in manual labour regardless of how much he earns
- A Person engaged in non-manual labour where his average monthly salary does not exceed $1,600
Coverage:
1] Medical Expense Benefit
2] Temporary Incapacity Benefit
3] Permanent Incapacity Benefit
4] Dependent’s death benefit
What is Business Interruption Insurance?
Business Interruption Insurance provides protection against losses of the immediate and future earning capacity of your business.
It is also known as “Loss of Profits” or ”Consequential Loss”.
Types of Business Interruption Insurance:
- Loss of Profits (following Fire & Additional Perils Insurance)
- Loss of Profits (following Machinery Breakdown Insurance)
- Industrial All Risks (combination of Material Damage & Business Interruption Insurance)
Standard Cover compensates for:
1] Loss of “Gross Profits” – This compensates the Insured for not being able to generate revenue while the premises is damaged
2] Additional Cost of Working – Additional costs incurred while trying to restore activities (ie, hiring alternative premises, contracting out to other companies)
3] Wages – Salaries paid to staff during the indemnity period
Monday, December 7, 2009
Theft Insurance
General Scope of Cover of Theft Insurance:
- Theft involving entry to or exit from the premises by forcible and violent means
[Forcible – means with the use of force, Violent – means with notion of aggression]
Underwriting Considerations:
- Type of Good Insured
- Value of Good Insured
- Location where Good will be stored
- Types of security measures taken for the premises
Extensions to Theft Insurance:
1] Hold-Up/Robbery – Defined as Theft accompanied by assault or violence
2] Full Theft Cover – Covers loss/damage by Theft without violent & forcible entry into the premises
[Extensions are additional benefits available to the Insured]
Fire Insurance
General Scope of Cover of Fire Insurance:
- Fire
- Lightning (with or without fire)
- Property damaged in the act of putting out the Fire (Proximate Cause)
Underwriting considerations:
- Construction of the Building, storage arrangements
- Geographic location
- Description and Occupation of property
- Loss history
- Sum to be Insured
Sunday, December 6, 2009
Singaporean dies after being hit by a car in Johor Bahru
“SINGAPORE: A Singaporean was killed when he was hit by a car at a car—wash centre in Johor Bahru, at about 11pm on Saturday.
Witnesses said that Mr Seow Wei Hua was sitting on a sofa at the centre, waiting for his car to be washed, when the tragedy struck.
A foreign worker, believed to be a Bangladeshi, was washing another car when he accidentally stepped on the accelerator of the car, which rammed into Mr Seow.
The 31—year—old accountant suffered injuries to his body and was pronounced dead by paramedics at the scene.
The authorities in Johor Bahru are now looking for the worker who sped off. They said it is not clear why he drove off.
They said that he must surrender within 24 hours, or a warrant of arrest will be issued.”
SOURCE: http://sg.news.yahoo.com/cna/20091206/tap-979-singaporean-dies-hit-car-johor-b-231650b.html
My Condolences to Mr. Seow’s friends and family…
Thursday, December 3, 2009
What is Personal Liability Insurance?
There are many circumstances when an individual may incur losses as a result of his/her actions towards other people or their property.
Examples of Personal Liability are when:
- The individual’s pet bites and injures someone
- Potted plants fall from an individual’s apartment and injures a passer-by
- The individual’s child damages other peoples’ property while playing soccer
- A fire starts from the individuals home and spreads to someone else's home
Types of Liability Insurance:
1] Workmen’s Compensation – This is liability under statue, it is compulsory
2] Common Law Liability of employers – Usually included in Workmen’s Compensation policies
3] Public Liability – This is Common Law for death, injury, property damage to non-employee third-parties
4] Products Liability – Third-party liability arising from defective products
5] Professional Liability – Third-party liability concerned with mistakes or negligence of Professionals (doctors/lawyers/accountants)
6] Personal Liability – Covers sums the Insured is legally liable to to pay as damages to third-parties
Types of Travel Insurance
There are 3 general types of Travel Insurance Cover:
1] Per-Trip Basis – The Insured is covered from the time he/she leaves to when he/she arrives back in Singapore
2] Annual Basis – Coverage is provided for a full year, regardless of the number of trips the Insured makes (limit of each trip is 90days)
3] Family Basis – Maybe Insured under “Per-Trip” or “Annual” basis
Scope of Cover:
1] Personal Accident
- A lump sum is provided for accident Death or Total Permanent Disability
- Double Indemnity (pays twice the benefit for Death of Total Permanent Disability if the Insured is travelling as a fare-paying passenger in a public transport or private motor vehicle)
2] Medical & Associated Expenses
- Medical & Dental Expense (reimbursement basis)
- Hospital Confinement Benefit (additional payment if Insured is hospitalised for over 24-hours)
- Emergency Medical Evacuation & Repatriation
- Compassionate Visit, Insurer will pay for travel & accommodation expenses of 1 relative/friend of the Insured, to visit & stay with the Insured, provided:
- The Insured is hospitalised overseas for more than 5 days
- Medical condition forbids evacuation
- No adult member of his family is with him
3] Other Benefits
- Cancellation & Curtailment (Payment provided for Unforeseen circumstances)
- Personal Baggage (Covers loss/damage of baggage/effects)
- Baggage Delay (Covers delayed/misdirected luggage that occurs for more than 12-hours)
- Personal Money & Documents (Covers Robbery/Burglary/Theft of stated items)
- Travel Delay (Pays a cash benefit if departure is delayed for 12-hours)
- Personal Liability (Covers Insured’s legal liability to third-party)
General Cover of Packaged Property Insurance
Apart from insuring the physical household properties, there is also covers for contingencies related to your home.
1] Liability To the Public
- This indemnifies the Insured for sums which he/she is legally liable to pay as compensation, examples include:
- The Insured’s dog bites and injures his neighbour
- The Insured’s friend slips and falls while visiting
- The Insured’s child breaks an expensive vase of the neighbour
2] Personal Accident
- A lump sum is paid to the Insured in the event of Death or Total Permanent Disability due to Insured perils
3] Medical Expenses
- The Insured is indemnified if he/she is injured due to Insured perils
The Average Clause (Property Insurance)
In the case where a property is Under-Insured.
When the Average clause is in effect, the Insurer will not pay the full reinstatement cost, but will pro-rate the payment according to the Under-Insurance.
What is Excess? (Property Insurance)
“Excess” in Property Insurance represents the 1st part of the claim that must be paid by the Insured.
The purpose of the “excess” is not an attempt by Insurers not to pay claims, but rather to eliminate small claims, and keep premiums low.
“Excess” is usually kept to a small sum (ie. $200) that will not be a financial burden for the Insured
Types of Property Insurance
1] Buildings
- This policy covers only the structure, fixtures and fittings of the building, general cover includes:
- Fire
- Lightning
- Explosion
- Aircraft damage
- Bursting of water pipes
- Earthquake
- Vehicle impact damage, or other impacts such as a falling tree
- Landslide
- A notable buildings policy is the “Fire Insurance Scheme for HDB Apartments” which is compulsory for all HDB homeowners with a mortgage loan taken after 1st Sept 1994
2] Contents
- This covers household contents of the building only
3] Buildings & Contents Combined
- Covers both Building & Contents in the Building
4] Valuable Articles
- This policy is designed to cover the Insured’s valuables such as:
- Antiques
- Paintings
- Jewellery
- Musical Instruments
- And any item with high monetary value
- This cover is usually limited to a percentage of the actual value of the item(s)
Factors that affect Premium rates of Motor Insurance
1] Car Usage – The more the car is on the road the higher the exposure to risk of accidents (3 General Categories: Private, Company & Commercial)
2] Make & Model – Provides indication of the performance, risk potential & market value
3] Car Engine Capacity – Higher performance cars attract higher premiums
4] Car Age – Reduced value of an older car may result in a lower premium
5] Driver Characteristics
–> Age, Gender – Statistics have shown that young drivers have higher accident rates than more mature drivers
-> Driving experience – Inexperienced drivers may be more susceptible to meeting with accidents
-> Occupation – If the occupation requires the Insured to be on the road frequently, premiums may be higher
-> Claims experience – Drivers with good records are entitled to discounts on premiums
Wednesday, December 2, 2009
Extensions to Motor Insurance
Extensions are additional benefits available to the Insured under a Private Motor Car Insurance policy.
Here are 3 examples of Extensions:
Legal liability of Passengers
- This is liability incurred due to the negligent acts of pasengers, ie. a passenger opens the door of the vehicle without due care or proper look-out for passer-by, vehicle, cyclists.
Windscreen Damage
– The windscreen is already covered under the standard policy, but if a claim for such a damage is applied the NCD will be affected
- If this extension is purchased, damaged to windscreen will be treated as a separate issue and NCD will not be affected
No Claim Protector
- This extension allows motorists to make claims on their own Insurance policies without losing the entitlement to their NCD
- This extension is only valid for motorist who already have 50% NCD
ie. Motorist ‘A’ already has 50% NCD, if he meets with an accident the NCD on renewal will be reduced to 20%.
IF he purchased the extension, Motorist ‘A’ will be able to preserve his NCD of 50% even after an accident.
What to do in the event of a Motor Accident
1] Notify the Insurer as soon as possible, take note of:
- details of the accident, time & location
- circumstances leading to the accident
- third-party’s vehicle number, Insurance company, policy number, name & contact details of third-party
2] Forward all related documents to the Insurer (letters, summons..etc)
3] Advise the Insurer regarding knowledge of any impending prosecution, inquest or inquiry
4] Make a Police report if someone is injured
IF you have an Insurance Agent servicing you, just give him/her a call
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