Mr Gerald Giam Yean Song (Aljunied): Mr Chairman, PwDs or special needs often receive inadequate insurance coverage to cover to protect themselves. Even if they manage to get insured, the scope of coverage and the insured amounts is often limited.
MAS is proposing to issue guidelines to insurers that they should not indiscriminately reject an application, solely based on a declared personal information subject to disability. Instead, insurers are expected to carry out an objective assessment of every application, based on reliable information or data relevant to the risk being insured.
However even under the new proposed guidelines, insurers are not prohibited from declining applications, setting higher premiums or applying conditions in view of the risks presented by an applicant with a disability. Can the Minister explain when these guidelines will be issued and how they will be materially different or more beneficial to PwDs or special needs?
The Minister of State for Trade and Industry (Mr Alvin Tan): Allow me to start first by addressing Mr Ong Hua Han’s and Mr Gerald Giam’s questions on adopting fair and responsible practices towards PwDs and persons with mental health conditions. The MAS expects all insurers to deal fairly with their customers, including PwDs and persons with mental health conditions.
The Chairman: Are there any clarifications? Yes, Mr Gerald Giam.
Mr Gerald Giam Yean Song: I thank Minister of State Tan for responding. Sir, from what I understand from his reply, the guidelines will only benefit PwDs if insurers had hitherto been applying inappropriate differential treatment indiscriminately. But even if insurers properly followed all their underwriting principles, many PwDs will still find themselves excluded.
Does the Government have any plans to step in to assist these PwDs who do not have enough coverage?
Mr Alvin Tan: I thank Mr Gerald Giam for his clarification. In fact, we have received feedback on this through Mr Ong Hua Han, Mr Gerald Giam and others who have written directly to us, both at MAS and MOH.
Maybe what I can share is that MAS has not found instances where insurers have indiscriminately rejected applications by PwDs in our review of cases highlighted to us thus far. But we are doing a few things to ensure that overall, both insurers and the applicants are able to understand what PwDs and persons with mental health conditions require, and their circumstances. So, let me enumerate a few different aspects, so that it is rather comprehensive.
Government agencies are committed to continue working with stakeholders to improve the accessibility to PwDs and overall to provide greater assurance that PwDs are treated fairly. I explained that in my reply. In this regard, MSF, partners such as the Autism Resource Centre, the Life Insurance Association and us have embarked in the following efforts – and I hope that the Members can also support us in these efforts.
First, it is important to further enhance the awareness and understanding on PwDs and the various support systems in Singapore. This is to enable insurers themselves to better take into account all of these different factors in their underwriting. That is one.
The second is to provide further training on communications with PwDs.
Third, to raise an overall awareness on health underwriting among consumers, including PwDs.
Fourth, we are working on this – to explore initiatives to further improve the insurance application process.
Later on, in the middle of this year when the guidelines are out, many of these, as I mentioned earlier on, will be put in place, but there are also ongoing efforts to increase awareness in this regard. So, it is ongoing. And I think we are in line with international best practices. But it is an iterative process, it is an evolving process.
Prime Minister’s Office
28 February 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2344
Office of the Leader of the Opposition 