Two major insurance industry associations – the General Insurance Association of Singapore (GIA) and the Life Insurance Association Singapore (LIA) – have announced further support measures for customers affected by the COVID-19 pandemic.
The GIA has extended, until December 31, the deadline for policyholders to apply for flexible premium instalment payment plans with their insurers. Under this scheme, policyholders will keep their insurance protection for the paid-up period while paying their premium under more flexible terms.
“COVID-19 continues to present significant challenges for our industry and the nation,” said Craig Ellis, GIA president, in a statement. “The general insurance sector will continue to respond swiftly and with agility to support our customers now and beyond the pandemic. We are committed to ensure our customers remain protected during this challenging period.”
Meanwhile, the LIA has also extended the Deferred Premium Payment (DPP) scheme, which is supposed to end its six-month run on September 30. A second window for DPP applications has been opened, lasting from October 01, 2020 to March 31, 2021.
Only policies which are not already on DPP are eligible for the second window, according to the LIA, and insurance coverage will be maintained during the period of deferment.
The LIA said that policyholders with policies on DPP who continue to face financial difficulties and remain unable to pay the deferred premiums in full at the end of their deferment period should approach their respective life insurers to find out about available options. These include instalment payment plans of three months, an extension of policyholder’s DPP by three months, and existing options stated in the policy contract, such as an automatic premium loan, conversion to a paid-up policy, or a premium holiday.
“Life insurers in Singapore are providing these industry-wide support measures to further assist policyholders in financial difficulties,” said LIA Singapore president Khor Hock Seng. “In addition, individual insurers also have their own initiatives to help their policyholders to tide through the current situation. Let us stand together and emerge from these challenging times in a stronger position to face the future.”