SINGAPORE – An industry-wide program to assist policyholders defer paying their premiums amid the coronavirus pandemic will decline as purposes shut on March 31, the Life Insurance coverage Affiliation stated on Monday (March 8) from Singapore.

The deferred premium cost program has seen roughly 41,000 claims final 12 months since its inception. This represented about 0.3% of the overall insurance policies in pressure as of March 31 of final 12 months.

There was a noticeable drop in participation charges after the second quarter of final 12 months, when most new purposes – 29,000 – have been acquired, which continued via the primary two months of this 12 months. The variety of requests fell to round 6,000 from October to December.

The vast majority of the requests have been accepted, which eased the monetary stress for a lot of policyholders, stated the president of the affiliation, Mr. Khor Hock Seng.

The variety of policyholders who’re nonetheless unable to totally pay deferred premiums on the finish of their deferment interval is low, given the requests for help acquired, the affiliation famous.

Since October 1, there have been roughly 5,900 such claims, that means that solely three in 10 insurance policies within the plan have requested extra assist after the deferral expired.

The variety of such requests has additionally steadily declined every month since then, the affiliation stated, with out giving any figures.

He stated the insurance coverage {industry} will proceed to help policyholders who’re financially affected by Covid-19 and are unable to pay their premiums after March 31, 2021.

These at present benefiting from the premium deferral program will proceed to learn from it till their relevant finish date.

Policyholders who nonetheless face monetary hardship and can’t pay deferred premiums in full on the finish of the deferment interval can flip to their insurers for assist, the affiliation stated.

In such instances, they could be supplied a three-month program extension or a three-month installment cost schedule.

“After March 31, life insurers are nonetheless prepared to supply particular help to the corporate, and our precedence stays to make sure the safety of policyholders over the long run,” stated Mr. Khor.

Prudential Singapore chief govt Dennis Tan stated the corporate might lengthen the deferment program on a case-by-case foundation for purchasers nonetheless dealing with monetary hardship and requiring help paying their premiums.

“Every time potential, we need to assist our purchasers preserve their protection as a result of the insurance coverage is long run,” he stated.

Mr. Ong Chong Tee, Deputy Managing Director of the Financial Authority of Singapore for Monetary Supervision, stated: “(The) industry-wide one-year deferred bonus cost program has introduced reduction. helpful for policyholders who’ve encountered money move difficulties as a result of Covid -19 pandemic.

“MAS is happy to see that even because the industry-wide measure decreases, many life insurers are dedicated to persevering with to supply help to their policyholders who proceed to face monetary challenges.”

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