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Singapore, 14 Oct 2003...Over the last few months, MAS has received complaints from the public about life insurance policies with Critical Year features. In response, MAS has encouraged companies that had issued such policies to deal fairly with the complaints, and has been monitoring their actions to address the concerns of affected policyholders. One company which sold a large number of Critical Year policies was the Singapore branch of American International Assurance (AIA).
2 In July, AIA announced a support package for affected policyholders. The package included benefits for certain affected policyholders that varied according to their circumstances. It also offered an adjudication process for policyholders who were dissatisfied with the benefits AIA offered.
3 In response to concerns raised by affected policyholders and the Consumers Association of Singapore (CASE), AIA has improved its overall support package and adjudication process for affected policyholders. MAS welcomes this development. As requested by MAS, AIA has also issued a public statement to explain fully and clearly the revised support package and adjudication process.
4 MAS is of the view that the improved support package and adjudication process announced today warrant careful consideration by affected policyholders and their representatives and advocates. MAS is also of the view that AIA's public statement is a comprehensive and accurate summary of what AIA is offering to the affected policyholders.
5 AIA remains responsible for its offers to policyholders, and for treating policyholders fairly. Policyholders must decide for themselves whether to accept AIA's offer, having regard to their individual circumstances.
6 MAS has previously informed insurers, including AIA, that its policy is not to permit any insurance company to charge the cost of remedying the mis-selling of insurance policies to its policyholders.
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For media queries, please contact:
Angelina Fernandez
Director (Communications)
Tel: 62299105
Fax: 62270705
Email: angelina@mas.gov.sg
Diana Koh
Assistant Director (Communications)
Tel: 62299104
Fax: 62270705
Email: dkoh@mas.gov.sg
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