We thank Mr Tan Kin Lian for his letter (Check medical status at point of application for insurance; Nov 5).

Consumers who wish to purchase new insurance policies or upgrade their existing cover must complete an insurance application form.

This is to allow an appropriate underwriting assessment to be done.

It is only with accurate and complete disclosure by consumers that insurers are able to price each policy accurately.

This is to ensure fairness to all policyholders.

Most health policies do not cover pre-existing conditions. Only MediShield Life will cover pre-existing conditions.

The Monetary Authority of Singapore requires insurers to have clear and prominent disclosures in insurance application forms.

For example, it must be clearly stated that an applicant may forfeit his intended cover if he does not fully and faithfully give the facts as he knows them or ought to know them.

Insurers must also ensure that their agents do not misrepresent product coverage.

Insurers typically provide a series of guiding questions to make clear to the applicant the types of health information he is required to provide.

Insurance agents are also required to explain that the applicant is responsible for the accuracy and completeness of information provided in the insurance application form.

We will ensure that insurers' application forms remain clear and easy to understand.

We are stepping up our financial education initiatives to highlight the importance of proper and accurate disclosures when purchasing insurance products.

Jerome Lee

Director (Corporate Communications)

Monetary Authority of Singapore