Insurers' Responsibility in Informing and Giving Adequate Notice to Policyholders for Changes in Coverage and Claims

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.

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.