E.T.H.I.C.S.

 

E-xcellence –> To be the best one can be

T-rustworthiness –> An Insurance Agent possesses specialized knowledge that an average person will not usually know, thus they are reliant on the Agent to provide professional service & expertise

H-onesty –> Telling the whole truth and being fair

I-ntegrity –> Incorruptible

C-aring –> Having a caring attitude is the motivation behind the work of an Insurance Agent, no amount of money or recognition is reward enough for the challenges Insurance Agents face everyday

S-elflessness –> To identify the risks and to help clients get adequate cover for the risks they are facing, by serving others’ best interests, Insurance Agents indirectly serve their own interests

What is Co-Insurance?

 

Co-Insurance is a method where several Insurers share direct responsibility for a risk, it increases the capacity of a market to underwrite risks.

What is Reinsurance?

 

Reinsurance is where an Insurer transfer part of a risk to another Insurance company (Reinsurer).

The Reinsurer can also transfer part of their risk to other Reinsurers, this is called Retrocession.

Reasons for Reinsuring:

1] Stability – It stabilizes the insurers losses by smoothening the fluctuations of the losses from each year

2] Capacity – The direct Insurer might not have the underwriting capacity to accept certain risks

3] Catastrophe Protection – Catastrophes can lead to massive claims, Reinsurance can cushion the effects of such events

Methods of Reinsuring:

1] Facultative – Customizable, time-consuming and costly

2] Treaty – Not customizable, Reinsurers are bound to accept risks without prior knowledge, less cumbersome and less costly

Types of Reinsurance:

1] Proportional – The amount of risks & premiums retained are shared in the same proportion by the Insurer & Reinsurer

2] Non-proportional – Reinsurer automatically accepts liability for all losses in excess of an agreed amount

Claim Disputes

 

Claim disputes between the Insured and Insurer may arise if the Insured is dissatisfied with the Insurer with respect to the quantum of loss.

The parties involved may go to Court to settle their disagreement, but it is expensive and time consuming.

Alternative methods of settlement are available, these include:

1] Mediation

This is a voluntary process, a Third-party (Mediator) helps to resolve the differences amicably between the interested parties.

The Mediator’s opinion is strictly without prejudice, his role is not to decide whose fault it is but to help the parties understand the whole situation and reach a solution that is acceptable to everyone.

Once an agreement is reached, it is enforceable by Law. if at the end of Mediation the parties are unable to come to an agreement they are free to proceed to Litigation or Arbitration.  

The main mediation centre in Singapore is the “Singapore Mediation Centre” (SMC).

Advantages of dispute resolution by Mediation includes:

- Parties have more control over the outcome

- Parties work together to solve the problem

- Time and Money is saved

- It is a less Formal and Confrontational proceeding

- It is more confidential

 

2] Arbitration

If the dispute is purely on the amount of compensation, Arbitration may be resorted to resolve the dispute.

Advantages of Arbitration includes:

- Less formal and can be completed quickly

- Less expensive

- The dispute is resolved fairly by specialized persons

 

Litigation

When unable to reach an amicable resolution, a claimant may have to resort to Litigation.

Advantages of Litigation:

- Gives the parties access to the knowledge and experience of the Judiciary

- The Court will give detailed reasons for its decisions

Disadvantages:

- Procedural requirements require interviewing witnesses and reconstructing facts after the event thus it is likely to be expensive

- Litigation takes more time, may even take years for a complex dispute 

Independent Damage Assessment Centre (IDAC)

 

IDAC was launched to help improve the vehicle accident reporting and Insurance claims process.

IDAC will ensure that the extent of damage following an accident is ascertained immediately so as to reduce any chances for aggravated damages or inflated claims.

This will help control the rise of Motor Insurance Premiums.

Motorists may visit IDAC for vehicle damage assessment after an accident, IDAC will help complete the accident reporting form.

Who are Loss Adjusters?

 

Loss Adjusters are independent intermediaries who assist in validating claim settlements fairly.

They investigate claims on the Insurer’s behalf.

They can help the policyholders contact the relevant specialist services, and ensure the eventual claim is fair to both the Insured and Insurer.

The idea of an independent adjuster is based on the principle that both the Insured and Insurer are interested parties, it is important to have the opinion of an independent professional who is acceptable to both parties as well as the Court of Law in the event of a dispute.

Canadian woman loses benefits over Facebook photo

 

“BROMONT, Quebec – A Canadian woman on sick leave for depression says she lost her benefits after her insurance agent found photos of her apparently having fun on Facebook.

Nathalie Blanchard said Monday she was diagnosed with major depression and was receiving monthly sick-leave benefits until payments dried up this fall.

When Blanchard called her insurance provider, Manulife, to find out why she says she was told the Facebook photos showed she was able to work.

"If you have insurance, be careful. This is a major battle and it's not going to be easy," Blanchard, 29, said in a telephone interview from her home in Bromont Quebec.

She said her insurance agent described several pictures Blanchard posted on Facebook, including ones showing her having a good time at a Chippendales bar show, at her birthday party and on a sun holiday.

Blanchard said Manulife told her it was evidence she is no longer depressed.

Her lawyer, Tom Lavin, said Blanchard was wrongfully dismissed from her benefits, and she had the right to go on holiday.

"The issue for me is that they stopped her disability benefits without the proper medical recommendations. Her doctor recommended she go on vacation," he said.

Blanchard said she took three four-day trips when she was feeling especially low, on her psychiatrist's advice.

Manulife declined to comment on the case specifically but has said in a statement that "we would not deny or terminate a valid claim solely based on information published on Web sites such as Facebook."

Blanchard's case will be before Quebec Superior Court Dec. 8.”

 

SOURCE: http://sg.news.yahoo.com/ap/20091122/twl-cn-canada-facebook-insurance-1be00ca.html