Content Page
Risk-based Regulatory Regime
Fine-Tuning Regulatory framework
Ensuring Sound Market Conduct
Innovative Systems for Efficient Payment
and Settlement
Publishing Unlicenced Operators . Box 6 – Integrated Dispute Resolution Scheme
Enhancing Management of Insurance Agents . Helping Consumers Better Understand “Critical Year”
Consulting Industry on CIS . Box 7 – MoneySENSE – Singapore’s Financial Education Programme
Health Insurance and Changing Demographics . Box 9 – Coping with E-Banking Risks
Helping Consumers Better Understand “Critical Year”
Throughout 2003, many complaints were received from policyholders alleging that they had been mis-sold insurance policies with the Critical Year (CY) feature. These policyholders said they had been misled into taking up CY policies believing that they need not pay premiums after the illustrated CY. As these were commercial disputes between the insurance companies and their policyholders, MAS clarified that we have no power to arbitrate and that the disputes must be resolved between the two parties concerned. However, MAS takes a serious view of mis-selling and misrepresentation
by insurance companies or their agents. We expect them to act in good faith and to handle all complaints fairly, promptly and consistently. We issued the “Policyholders’ Guide to Insurance Policies with CY Feature” in June 2003 to help policyholders better understand the CY feature in their insurance policies.

In July 2003, American International Assurance (AIA) proposed a range of support packages for affected policyholders according to their circumstances. It also offered an adjudication process for policyholders who were dissatisfied with the benefits offered.

Following concerns raised by affected policyholders and the Consumers Association of Singapore, AIA announced an improved support package and adjudication process in October 2003. MAS welcomed this development and said AIA’s move warranted careful consideration by affected policyholders and their representatives.