Friday, February 27, 2009

My Personal Accident Claims

Not sure how many of you remembered that I had sprained my back on 7th December when I helped my Father-in-law to carry a chair up the stairs then. I went A&E for treatment and was paralzed for several days.

I submitted the claims to the insurance company 1 week after the sprain and as of today, this claim of $75 is still not settled. Let me share what happened.

* Mid December - I submitted all claim forms with my original CGH receipt
* Early January - There was nothing heard from the company and I decided to call. I was surprised to learn that they they did not receive the claim forms and receipts. I specifically told them where I submitted it and they told me that they will check.
* Mid January - There was again nothing heard from them if they found my forms and I called again. They told me that they are still searching. I decided to submit a fresh claim with duplicate medical bill which I had retained myself and not wait for them to search.
* 3rd week January - I received a letter from them and they told me that they are processing the claim.
* Early February - I called them to enquire status of claims. They told me that they are processing it.
* 3rd Week Feb - I received a letter from them. I thought that it must be the claim cheque but I received this instead...

* 3 days ago - I called the company with regards to this letter. I argued that they are the one who lost my original receipts and it make no sense for me to go back to the doctor and ask for a note on the cause and nature of the injury and pay another $75 again?
* They told me that I should know that a doctor's note is required for accident claims and I rebutted that I really don't know where on the claim form stated that I must have a note from doctor as I thought my declaration on the cause and nature in the claim form is sufficient. I did many claims before and I enountered problem for my own case. They promised to relook into my claims again.

From this experience, I think I'm able to better advice my clients. Better get a memo from doctor on the cause and nature of accident.


Anonymous said...


As a financial adviser you should know better when to insure and when to self-insure. Your claim is only $75. This amount can be self-insure.

Most of the PA plan is unnecessary. Because if an accident results in hospitalization, the medical bill is reimbursement by a good shield plan.

If the accident results in inability to perform your own job, the lost of income can be compensated via disability income.

Some advisers tell their client that PA plan is meant to pay for expenses not covered by anything else like the GP treatment or for medical bills which require no hospitalzation. However, how large this bill will get? $75? $750? If it is going to be $7500 or $75,000 this is likely a surgery which requires hospitalization (and thus shield plan reimbursement).

For potentially small bills/expenses, you should self-insure. Insure those potentially huge bills/expenses.

The exception is for those occupation disallow disability income insurance like police, military, pilots. For police/military, a value for money PA plan will be from their Aviva's SAF Group and NTUC Income's HomeTeam Group.

BTW, many advisers recommend PA plan because of its perpetual renewal commissions. How about you?

Anonymous said...

very noisy la, zhummmeng

Khiat Han Hwee Adrian said...

Accidental Permanent Disablement is another area of concern. If one is to lose one hand or an eye in an accident, he or she might not be covered in other policies.

An adviser who work for profit will not sell PA or even medical plans because he will get hundreds of clients with similar amount of claims and problems such as forgot to renew premium or reviving a lapsed policy etc every year.

If an adviser has 20 policies renewed monthly and each policy cost $100 and commission rate is 10%, the renewal comm is only $200/mth. 20 policies monthly is 240 clients. There are bound to be a lot of legwork for the adviser.

I recommend PA plan because I saw a need, not so much due to the renewal comm.

Anonymous said...

Commission rate not 10% for PA plans lah. It can be up to 40%. Also with GIRO, renewals are automatic. It will be not 20 policies. It can be 1000 policies. 1000 is possible for an agent who has work for 10 years. Each year just get 100 clients from the bus interchange.

Khiat Han Hwee Adrian said...

Maybe some companies paying as much as 40% which I'm not aware of. Could be direct agencies.

For FAs like myself, our GI commission still have to be shared with the company and our renewal are usually as little as 10% or even 3%. 1000 PA policies is certainly possible especially if one sell for a group like a company, but the adviser will likely need a staff to manage all the loose ends.

Anonymous said...

Interesting that after being an adviser for a few years, you only learnt to advise your customers better about personal accidents claims after your own claims took some time. So what have you been doing all this time?

You said that you recommend PA based on needs not for commissions, that's tough to believe. Maybe I may sound harsh, but truth is, if you really ask yourself even after writing many posts about your good intentions, the bottomline for you will be the commissions.

Maybe 2009 is a year you can consider seriously about switching lines.

Anonymous said...

Do you know how many brain cells die when you meet with such problems? I too have a travel claim for missing items when I travelled. When I go submit the claim they do not tell you what is needed. Then weeks later when you call, they then send a letter telling you to make a police report. Ha, the items were missing in another country and they tell you to make a police report. The incident happened last year and till now still have not resolved. Received one of those letters like yours that showed they are not thinking but blindly following some SOP. I say, forget about insurance, it is hazardous to your health. The little money one can claim is not worth the hassle and the opportunity costs of dealing with them.

Anonymous said...

Adrian, don't lose heart.

some people have been abused in reality, that's why they come onto the internet to abuse others. Such people are weaklings and you should ignore them.

Anonymous said...

I already have problems claiming my PA, regreting buying them now.


Khiat Han Hwee Adrian said...

Just received my $75 cheque. They waived off the requirement to get the doctor's statement.

Though not a lot of money but felt relieved. I got additional $75 for my this month pocket money. Enough to pay for my 2 weeks MRT fare.