Insurance company should be upfront about changes

The holiday season will soon be upon us and families across Singapore will be going on their well-earned vacations.

Most families will, like me, purchase travel insurance for the trip.

To my surprise, I discovered that my regular insurer had drastically reduced coverage under its travel insurance policy.

My suspicions were first raised when I saw emblazoned across the application form: "New and Enhanced Benefits!".

For me, the most important clause in the travel insurance policy (and sometimes the only reason I purchase it) is coverage for accidental death.

To my surprise, my regular insurer had reduced such coverage from $500,000 to $300,000 for its premier plan.

The insurer's application form trumpets those clauses that involve "enhancements" to the coverage (such as mobility aid reimbursement, for example), but makes no mention of any reductions in coverage, especially not the 40 per cent reduction in death benefit.

I wrote to the insurer inquiring if I could purchase a second policy for the difference in diminution of the insurance coverage.

I was told it does not permit additional policies to be purchased in such cases and that it would honour only one of the policies.

In my view, the insurer should not reduce its coverage by 40 per cent.

However, if it feels that it must make such cuts, then it should inform its customers accordingly.

Certainly, it should not place the words "New and Enhanced Benefits!".

Peter Wadeley