Singapore passes bill for compulsory long-term disability insurance

Singapore passes bill for compulsory long-term disability insurance | Insurance Business Asia

Singapore passes bill for compulsory long-term disability insurance

The Singapore Parliament has passed a bill that will make long-term disability insurance compulsory for all Singaporeans born in 1980 or later.

The CareShield Life and Long-term Care Bill will institute a disability insurance scheme, known as CareShield Life, which will be launched in mid-2020, Channel News Asia reported. The new scheme’s pay-outs start at SG$600 per month, and will increase over time, the Ministry of Health said, noting that the pay-outs are higher than the current ElderShield scheme.

Read more: Singapore government to take over ElderShield scheme in 2021

A person is considered to have a sever disability if they are unable to perform at least three activities of daily living (ADLs). These include feeding, dressing, washing, and moving oneself.

ElderShield’s payouts are between SG$300 to SG$400 monthly, for a period of up to six years. Meanwhile, Careshield Life’s payouts will last as long as the person remains severely disabled, which in some cases, could be for life.

“This provides universal coverage for future generations of Singaporeans, ensuring Careshield Life coverage for them regardless of their health, pre-existing disability, or financial status,” Health Minister Gan Kim Yong.

The MOH will gradually launch the scheme to Singaporeans born in 1979 and earlier, beginning mid-2021. The scheme will be optional for this population segment.