Insurers' Responsibility in Informing and Giving Adequate Notice to Policyholders for Changes in Coverage and Claims
Ministry of HealthSpeakers
Summary
This question concerns the responsibility of insurers to provide clear and timely communication regarding adjustments to Integrated Shield Plan coverage and policy terms. Ms Joan Pereira and Mr Yip Hon Weng raised concerns about the notice periods and the clarity of information provided to policyholders during such changes. Minister for Health Ong Ye Kung stated that insurers must safeguard policyholder interests and adhere to Ministry of Health requirements on key plan parameters. He noted that the Ministry and the Monetary Authority of Singapore require insurers to provide clear and relevant information to support informed decision-making. Under insurance regulations, insurers are specifically mandated to notify policyholders of any changes at least 30 days before they take effect.
Transcript
31 Ms Joan Pereira asked the Minister for Health with regard to hospitalisation insurance plans' coverage for upgrades (a) what measures are in place to ensure that policyholders are provided with sufficient time to be informed of the changes in coverage payments; and (b) how does the Ministry ensure that insurance companies explain the changes clearly to their policyholders.
32 Mr Yip Hon Weng asked the Minister for Health in light of recent changes to Integrated Shield Plans (IPs) by insurers, particularly in the adjustments to coverage for Class A and B1 policyholders (a) what measures are in place to ensure that insurers provide clear, timely and comprehensive communication regarding policy adjustments; and (b) how does the Ministry hold insurers accountable for lapses in informing policyholders adequately.
Mr Ong Ye Kung: Integrated Shield Plans (IPs) are private commercial products subject to the Ministry of Health's (MOH's) requirements on key parameters, such as the co-payment and deductible. Private insurers can make changes to their IPs, such as in the claim limits and scope of coverage, in accordance with the policy contractual terms and based on commercial and actuarial considerations.
In making these changes, MOH expects insurers to ensure that their policyholders' interests and well-being are safeguarded. Together with the Monetary Authority of Singapore (MAS), we also require insurers to provide customers with clear, relevant and timely information on any changes to their policy terms and conditions, so that policyholders can make informed decisions. Under MAS' insurance regulations, insurers must notify their policyholders of any change in policy terms and conditions at least 30 days before it takes effect.