Forum: Protect insurance policyholders’ interests before changes to terms are allowed
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The article “Great Eastern cuts coverage for A and B1 policyholders who upgrade to a higher-class ward” (Jan 20) highlights a serious issue with medical insurance in Singapore.
Essentially, policyholders cannot be certain of what they have paid for, as insurers may alter the terms of their policies when faced with rising claims.
Health insurance is meant to provide long-term protection, with the insurer agreeing to cover healthcare costs in exchange for regular premiums – payments that typically start years or even decades before the first claim is made. This agreement loses its value if insurers are allowed to back out of their promises.
The Monetary Authority of Singapore must strike a balance between ensuring the stability of the financial system and safeguarding the interests of policyholders before permitting changes to policy terms.
If there is no guarantee of insurance coverage, individuals may as well opt for self-insurance, relying on family and the state in the event of serious illness.
Kevin Lim Fung Ming