Average Clause

It is tricky to give advice when it comes to Home Insurance. The concern of under-insuring the property or over-paying the premium when one insured too much is one of the difficulties the homeowner faced and we cannot blame them for it. Different people view the valuation of the same property differently as seen below in a jokingly manner.

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The safest approach is to insured a higher value than the actual worth of the property but it is not really practical as it will increase the premium of the policy. In most cases, homeowners tends to under-insured the property either to save the premiums or there was no proper valuation for the insured items. It is common that the insurance policy was purchased many years ago and there was no review done even though the property had appreciated in value. The under-insuring of property is unhealthy to insurance company. Imagine your property is worth a million but you declare and purchase a Home Insurance for only $700,000 and the insurance company have to pay the full amount of $1mil when a claim arise. It is not fair to the insurance company or those who declared and paid the full amount of their property valuation. Thus, insurance have the “Average clause”.

The Average Clause is a term used when the settlement of a claim at the point of loss is greater than the sum insured. The reality is valuation of contents, stocks, properties fluctuate over time and insurer will not penalise just because the sum assured was less than the insured items. There are acceptable thresholds for insurers before the average clause kicks in and it can varies from 80-85%. If a insurer have a 80% threshold, it will not penalise the policy holder if the sum assured is below the actual claim valuation if it not less than 20%. When the average clause kicks in, the payout regardless of total or partial loss will be base on the below formula

Payout  = Loss Suffered x Sum Assured/Current Value.

For e.g. John insured his $1mil property for $600,000. A fire broke out and the valuation of the property $1.2mil . The loss and repair cost was assessed to be $200,000. Using the average clause,

Payout  = Loss Suffered x Sum Assured/Current Value.

= $200,000 x $600,000/$1,200.000

=$100,000

John will be penalised 50%.

As we can see, under-insuring can cause a policy holder to suffer badly at the point of loss. ASK are some ways to avoid under-insurance.

  1. Always review your valuation of your contents that you are insuring.
  2. Speak to your financial advisors to understand how your average clause works.
  3. Know what is the threshold of your policy before the average clause kicks in.

 

 

 

Pet Insurance

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A cat or a dog is more than just a pet. To some, it is part of the family. Most pet owners will allocate part of their expenses to take care of their pets for routine checkups and maintenance but there will be unexpected expenses when the pet falls sick.  Luckily these cost are still manageable although they are not cheap. But what if the pets met with an accident? The procedure cost is not any much cheaper than the cost of treating a human. A quick check shows that a bone fracture can cost $2,000-$4,000 to be treated.

Good news for pet owners, there is a pet insurance to protect your financial loss should you incur medical and surgical expenses due to illness or accidents that may befall your beloved pet.

Benefits at a Glance

  1. Covers up to 70% of eligible vet bills arising from illness or accidents, up to S$10,000 each year
  2. No medical examination required
  3. Freedom to use any vet, anywhere in Singapore
  4. Covers third party liability arising from owning the pet
  5. Covers loss due to theft or accidental death

For enquiries and more information on Pet Insurance, please complete the form below and I will get back to you.

 By submitting this form, you agree that Avallis Financial Pte Ltd may collect, use and disclose your personal data, which you have provided in this form, for providing marketing material that you have agreed to receive, in accordance with the Personal Data Protection Act 2012 and our data protection policy .

Policies extend benefits to cover Zika Virus

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The number of cases for Zika Virus in Singapore have increase to more than 300 in less than a month since Patient Zero was identified. The preventive measures advised by NEA is the most effective way to minimise the risk of becoming the next Zika virus patient.

Insurance companies have also taken the initiative to extend the benefits of some plans to cover Zika virus at no extra cost. The following are the policies that cover Zika virus at the moment. I will update the list accordingly.

Personal Accident 

Juvenile Personal Accident 

Travel Insurance

Home Insurance

Maternity Plan

Medical Plans

 

I will update the list when more companies include Zika virus in the benefits. For more information, please contact me by submitting the form below.

By submitting this form, you agree that Avallis Financial may collect, use and disclose your personal data, as provided in this entry form, for the following purposes in accordance with the Personal Data Protection Act 2012 :

(a) to contact you for the purpose of the reply to your queries.

Motor insurance from Aviva at a lower cost.

norwichunionlogoI am able to place motor insurance for your car insurance with Aviva now. While you can get it online, there are some benefits to place the business with me and they are stated as follow.

For used cars

  • Additional 15% discount

*Campaign period : Now till 16 June 2017

For Brand New cars

  • $150 petrol voucher
  • Additional 15% discount

*Campaign period : Now till 30 Sep 2016

Please note this offer is exclusively to my clients who are having Aviva Term, Myshield &and/or MyCare policy.

Just give me a call for more information.

 

Selection of products via the intangible way.

My colleagues and myself carry almost 95% of the life insurance, general insurance and unit trust available to the retail market.
There are reasons why although a product from one company may look cheaper n better but we choose not to recommend it especially for general insurance such as travel insurance or personal accident plans. I dare say commission is usually not the main reason cos the commission across companies are the same and it’s peanuts regardless what we choose.
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One main reason is the ease of claims or the ease to speak to a human being after-sales service. As a financial adviser, our job do not end when you buy. On the contrary, our job starts when you buy because that’s why a claim is likely to happen. Neither the client nor financial adviser likes to make a claim from the minor issues such as travel delay to a major one such as death claim. As a financial advisers, we super-duper hate making claims cos the client is making one claim but we are assisting to make multiple claims from different clients. We really appreciate a company that pays out claims without asking too many questions. Once, a claim officer asked questions to & fro 6 email correspondences asking silly questions over a claim of $500 despite providing them with all document necessary for claims while another claim of same nature with another company made at the same time had paid out a week earlier!  My 7th email to them was to tell them if they cannot afford to pay, just close the file and don’t pay. As these insurance companies are still our partners at the end of the day, we refrain from speaking bad about them and the best we can do is not to recommend that company’s product.
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Recently, I did a review for a long time friend and suggest a change of personal accident from Company A to B. The friend decided to discuss with his insurance agent from Company A who sold him the plan and later told me he will stick with it. I asked him why and the reply was ” The agent said Company A is easier to claim.” My reply was,” I am able to do both Company A & B on top of many others. I had claim from both company A, B & the few others to know who is easier to claim. Have your insurance agent tried to claim from Company B before?? If not, how is he suppose to know Company A is easier?” I could had counter-proposed to say I am able to sell Company A’s product too. Why not place it under me but I choose not to cos I don’t deal with difficult claims. I leave the choice to him.

I trust my fellow Independent Financial Advisors to do the same as me cos we have the choice to choose the better solution for our clients.

Maid Insurance

Do you know there are 70,000 Filipino maids in Singapore? And we have not look at maids with other nationalities such as Indonesia, India or Myanmar. Regardless of the nationalities of the maids, one thing they have in common i.e. as an employer, you need to purchase a Maid Insurance during their stay in Singapore.

Housewife-Maid-Duster-1024x1024An average Maid Insurance can cost around $200 to $400 plus and the policy will usually cover 26 months. The Maid Insurance policies varies between insurance companies, do you know what you are paying or to look out for?

Please allow me to make a disclaimer before you move on. I try to make this post as simple to understand as possible. Therefore, the description here may not be what the actual definition in the policy contract so please check with your advisers or seek further advice before taking any action.

First, the Ministry of Manpower(MOM) requires the employer to have a minimum coverage of $15,000 per annum of hospital and surgical expenses for the maid. The pre- and post- hospitalisation expenses within 90 days of treatment are covered too. This is is safeguard her medical expenses if the maid is warded.

During her stay in hospital, the maid insurance allows you to claim against her wages and levy. Some companies allow you to claim against the extra money you have to pay to get a temporary replacement maid during your maid’s hospitalisation.

For minor incidents due to accidents, the maid policy allows you to claim for the medical expenses incurred when you seek out-patient treatments.

Next, it is common to have $40,000 of benefit if the maid dies or suffer from permanent disablement. There is also a repatriation expenses of $10,000 so that you can send the maid’s body back to her country if she dies in Singapore. It is common to have the re-hiring expenses covered too. Some insurance companies provide an extra lump sum to her legal representative in the event of her death.

If the maid’s belongings are lost or damaged in a fire or theft, it can be covered as well. As an employer, you can opt to purchase “Fidelity Guarantee” to indemnify yourself if your money or valuables are stolen by the maid.

It is very likely that you know you are require to place a $5,000 deposit to MOM and this amount will be forfeited if the maid runs away. Most employer will use a Guarantee bond (security bond) or Letter of Guarantee issued by insurance company instead of placing the real hard cash of $5,000 with MOM. It is widely misunderstood that the insurance company will pay the $5,000 when the maid runs away. The fact is that the insurer only act as a “guarantor”, they might pay for you FIRST and will counter claim the amount of $5,000 from the employer.

Good news is you can further reduce your risk such that you just need to pay the excess which is usually $250 instead of paying the full $5,o00 if the maid runs away by adding a wavier of counter indemnity cover.

The Maid Insurance covers the employer’s liability to Third Party if the maid cause accidental bodily injury or property damage due to her negligence. As a employer, you can indemnify your own risk when the maid claim against you for injury or diseases sustained while working for you. This is similar to the more common Workman injury and compensation insurance.

To summarise, the  basic benefits of a maid insurance are

  • Personal accident – Death & Permanent Disablement
  • Medical expenses due to accidents
  • Hospital & surgical expenses
  • Wages and Levy Reimbursement
  • Repatriation expenses
  • Termination and Re-hiring expenses (due to death or permanent disablement of your existing maid)
  • Third party Liability
  • Maid’s personal belongings

Optional add-ons

  • Guarantee bond
  • Waiver of counter indemnity for Guarantee bond
  • Fidelity Guarantee
  • Dread disease for the maid
  • Employer’s liability

….. The list goes on.

May I remind again that the description here may not be what the actual definition in the policy contract so please check with your advisers or seek further advice before taking any action.

 

 

 

 

 

AXA Motor Grand Prix Campaign 2016

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The AXA Grand Prix Campaign begins from 1 January to 31 March 2016!

For more info or quote,please submit your details using the form below.

AIG Protects Your HDB Flat for Free

AIG will be providing a complimentary one-year home contents plan if you had receive the keys to your new or resale HDB flats in 2015. This is in celebration of Singapore’s 50th birthday.

To apply, click here

If you need more information on Home Insurance, drop me a mail

Travel Insurance & the supporting documents for claims

NATAS Fair had started and the same goes for promotion for Travel Insurance. Do drop me a mail/watsapp if you need any information on the different promotion packages for Travel Insurance.

One of the delays in claiming a benefit under Travel Insurance is the lack of supporting document or information to let the claim officers assess a claim. I hope this article can provide you with information of the supporting documents required for respective benefits in a travel insurance policy so as to expedite & make your claim as hassle free as it can be.

The following are compulsory documents regardless of your claims

  1. Flight itinerary/Boarding pass/Passport stamp that shows the departure date and date of arrival.

 

Personal Accident/Injury

  • Police report
  • Medical Report/Discharge summary for the inquiry.
  • Original medical bills

Medical Expenses/ Death claim

  • Original medical bills
  • Medical report or discharge summary for the injury or illness
  • Death certificate, autospy report, coroner’s findings (death claim)
  • Proof of relationship between deceased and claimant (death claim)

Trip Cancellation/Curtailment claim

  • Tour itinerary
  • Tour booking invoice or receipt
  • Travel agency/airline confirmation on the cost of non-refundable prepaid travelling expenses (including cancellation fees)
  • Written advice/medical certificate from a qualified attending medical practitioner confirming unfit to travel
  • Death certificate (Where someone’s death caused this cancellation & the decease must be your Next-of -kin. Check policy for details )
  • Proof of relationship between deceased/injured/sick person

Overbooked Flight/Missed Connection/Travel Delay/Baggage Delay claim

  • Airline/bus/cruise operator or their handling agent(s) confirmation on the cause and duration of delay/overbooked flight/missed connection
  • Delay report and acknowledgement slip from the Airline if  it is a baggage delay claim

Personal Baggage/Loss of money/Travel Documents claim

  • Police report lodged at place of loss within 24 hours
  • Baggage loss or damage report from the airport.
  • Authority (eg. airline) confirmation letter stating compensation amount.
  • Photographs of damage
  • Take note of the Make & Model of the luggage if its a damage claim.
  • Original repair bill (damaged items)/purchase receipt or warranty card of lost/damaged items

 

The details may seem long and to help you, just remember

– If any item damages/loss or injury occur in public, make a police report.

– If it happen in the hotel or other places of stay, get a report from the incident reporting center.

– If it happens during transit, get the report from the airline, train station etc or the Airline.

And of course, the easiest way is to get it from a financial advisor so he can advice you on what to do during a claim.

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An epic situation when a web designer does not think as a web user.

I was searching for some information on my client’s motor insurance policy on the insurer’s webpage. I need to know the latest list of repair centers for his policy so I click on the question – Where can I send my vehicle for any repairs?

In most cases, the webpage will return with a page that shows the list of repair centers, the contact number, the address and operating hours of these centers. However, this particular insurer is interesting… it return with a answer that says “Please refer to your Auto Certificate of Insurance for the list of workshops where you may send your vehicle for repairs. “.

As a consumer, I would like to have such information on the net as these repair centers are changed often without anyone’s knowledge. There are instances where consumers called up the list of repair centers on the policy documents only to find that they are no longer in contract with the insurer.

I’m also wondering I’m just wondering how many of us will look for information over the net when the information is easily accessible in your hand.