25,000 apply to insurers to defer premium payments

About 25,000 life and health insurance policyholders applied to their insurers between April 1 and June 5 to temporarily stop paying their premiums for up to six months as part of the industry-wide relief measures rolled out amid the Covid-19 pandemic.

Some 90 per cent of the applications have been approved so far, figures from the Monetary Authority of Singapore (MAS) showed, and the deferred premiums totalled $47.6 million.

Another 826 policyholders have asked to switch to flexible instalment plans for general insurance policies such as for property and vehicles.

About 80 per cent of these applicants have received approval for their requests, which were also made between April 1 and June 5.

Individual policyholders comprise 584 of the applicants, while corporate policyholders make up the remaining 242.

Insurance protection is maintained during the period of deferment or flexible instalments.

The MAS said on March 31 that it had worked with the Life Insurance Association and the General Insurance Association, among others, to roll out a slew of relief measures to help those affected by the economic fallout from the coronavirus pandemic.

Life and health insurance policyholders could apply to defer premium payments for up to six months while maintaining insurance coverage.

General insurance policyholders, such as for property and vehicles, could also apply to their insurers for instalment payment plans.

An MAS survey of insurers showed that 3,857 claims totalling $4.4 million had been paid as of June 5, with most claims related to hospital cash benefits. Three disbursements were for deaths.

Policyholders have also put in claims for quarantine order and diagnosis benefits.

Tokio Marine said it has received over 600 deferment requests and that it has also disbursed $5,000 each to 23 of its life insurance policyholders who contracted Covid-19, as part of its outreach campaign.