Forum: Easy to sign up for medical insurance, but hard to claim

I welcome Health Minister Ong Ye Kung’s recent speech (Insurance firms urged to relook products, July 13). I was particularly interested when he mentioned that private insurance companies have been offering very attractive terms to encourage sign-ups and win market share.

In 2023, my wife was diagnosed with breast cancer. When we submitted the insurance claim, the insurance company rejected it, and voided the policy, even though the premium had been paid for over three years. 

The policy was purchased via a mobile banking app. Signing up was easy – perhaps too easy.

After we had answered some “yes/no” questions on the mobile app, the policy was approved. There was no medical check. 

After we submitted the insurance claim, following the cancer diagnosis, the insurance company claimed that full information was not provided at the time of application of the policy, and hence the policy was voided.

We disagree – the very simple questions were answered in good faith, based on the understanding of any layperson reading the questions. My wife’s doctors agree too.

This simplified process of encouraging sign-ups needs to stop. It gives the policyholder a false sense of insurance protection, when in fact the insurance company can void the policy unilaterally.

It is a win-win-lose situation. The insurance company makes returns on the premiums it has collected. It avoids making an insurance payout. The insured person, after receiving a cancer diagnosis, gets nothing.

We would rather not have to claim against an insurance policy. But should illness happen, the insurance payout will help defray costs.

I hope action will be taken to stop such irresponsible practices, so that others will not experience the same disappointment we did after receiving devastating medical news. 

Albert Tjoeng