1) Does the insurance company factor in the inflated claims in calculating the premium rate?
Reply: The insurance company uses the claim experience to determine the premium rate. This usually includes a certain proportion of fraudalent claim. If there are more fraudulent claims, the insurance company makes a loss. They will increase the premium rate to cover the loss.
2) Can the insurance company mark a "ceiling" on the claim amount in case of loss of bag during travel, rather than approve the amount submitted by the claimant?
Reply: For some type of loss, there is a limit specified in the policy. Usually this limit is quite high, and there is room for fraudulent claims up to this limit. It can still be quite costly, if many people make fraudlent claims.
Wednesday, June 20, 2007
Inflated Claims on Travel Insurance
A friend told me that it is now quite common for Singaporeans to make inflated claims on their travel insurance policy. They lose a bag for (say) $200 and they make a claim for $800 on a false invoice.
These claimants do not realise that they are committing a crime of cheating, and can lead to quite severe punishment. It is not worth making such a false claim.
The inflated claims will also cause insurance companies to raise their premium rates for travel insurance. This will not be fair to the honest policyholders who do not make inflated claims.
These claimants do not realise that they are committing a crime of cheating, and can lead to quite severe punishment. It is not worth making such a false claim.
The inflated claims will also cause insurance companies to raise their premium rates for travel insurance. This will not be fair to the honest policyholders who do not make inflated claims.
Target savings at retirement
How much savings do you need at the time of retirement?
Here is my rule of thumb:
* calculate the annual sum that you need to cover your living expenses
* multiply it by 25 times
Assume:
* you retire today
* you have a fully paid home
* your children are all grown up
* you need $1,000 a month for your living expense
* you will need a capital sum of 25 X 12 X $1,000 = $300,000
You can invest 80% of the capital sum (say $240,000) to buy a life annuity (which is likely to give you $1,000 a month, but it depends on your age) and keep the remaining 20% ($60,000) as a contingency fund.
If you retire in 10 years time, you need to add inflation to the target sum at the rate of (say) 2% per year. If your target sum is $300,000 today, it will have to be $366.000 in 10 year's time.
Read this FAQ on Life Annuity.
Here is my rule of thumb:
* calculate the annual sum that you need to cover your living expenses
* multiply it by 25 times
Assume:
* you retire today
* you have a fully paid home
* your children are all grown up
* you need $1,000 a month for your living expense
* you will need a capital sum of 25 X 12 X $1,000 = $300,000
You can invest 80% of the capital sum (say $240,000) to buy a life annuity (which is likely to give you $1,000 a month, but it depends on your age) and keep the remaining 20% ($60,000) as a contingency fund.
If you retire in 10 years time, you need to add inflation to the target sum at the rate of (say) 2% per year. If your target sum is $300,000 today, it will have to be $366.000 in 10 year's time.
Read this FAQ on Life Annuity.
Retirement
Source: Wikipedia
Retirement is the point where a person stops employment completely.
A person may also semi-retire and keep some sort of job, although usually out of choice rather than necessity. This usually happens upon reaching a determined age, when physical conditions don't allow the person to work any more (by illness or accident), or even for personal choice (usually in the presence of an adequate pension or personal savings).
The retirement with a pension is considered a right of the worker in many societies, and hard ideological, social, cultural and political battles have been fought over whether this is a right or not. In many western countries this right is mentioned in national constitutions.
Retirement is the point where a person stops employment completely.
A person may also semi-retire and keep some sort of job, although usually out of choice rather than necessity. This usually happens upon reaching a determined age, when physical conditions don't allow the person to work any more (by illness or accident), or even for personal choice (usually in the presence of an adequate pension or personal savings).
The retirement with a pension is considered a right of the worker in many societies, and hard ideological, social, cultural and political battles have been fought over whether this is a right or not. In many western countries this right is mentioned in national constitutions.
Buy Insurance For A Discount
Dear Mr Tan,
I went to NTUC Income to purchase Enhanced Incomeshield with cash rider for my whole family.
I wanted to purchase the policy directly, instead of going through an agent, and to get a discount. But since you left the organisation, it seem to withdraw this benefit.
After discussion with my wife, we decided to leave the place without purchasing the policy as we find no benefit of purchasing without any discount.
We might as well ask for an agent in case we need service in the future to make a claim. Do you have any good agent to recommend for me who will look after our long term benefit?
----------------
REPLY:
I will get X to assist you.
I went to NTUC Income to purchase Enhanced Incomeshield with cash rider for my whole family.
I wanted to purchase the policy directly, instead of going through an agent, and to get a discount. But since you left the organisation, it seem to withdraw this benefit.
After discussion with my wife, we decided to leave the place without purchasing the policy as we find no benefit of purchasing without any discount.
We might as well ask for an agent in case we need service in the future to make a claim. Do you have any good agent to recommend for me who will look after our long term benefit?
----------------
REPLY:
I will get X to assist you.
Financial Planning for Teachers
I have been invited to give a talk on financial planning for teachers. For those who are not able to attend my talk, you can read about my tips here
Financial Planning for the Young
Financial Planning for Senior
Financial Planning for the Young
Financial Planning for Senior
Hong Kong's public transport system
COMMENT POSTED IN MY BLOG
Hong Kong’s public transport network seems more well-connected and three-dimensional, consisting of railway, MTR, tram cars, bus, minibuses, taxi, ferries, etc; all these are viewed as convenient transportation means for residents. Hong Kong and Beijing' MRT interval seems to be 2 or 3 minutes only. Actually buses carry largest volume of passages in many large cities. "Public transit first" and public bus ways is also common in Hong Kong, Paris and Beijing, etc.
An interesting thing is, Hong Kong people seems more to enjoy the walking, I often see lots of people walking along lanes or walking-skyway in HK island, while Singaporeans seem less willing to walk, with walking-way system everywhere.
Hong Kong’s public transport network seems more well-connected and three-dimensional, consisting of railway, MTR, tram cars, bus, minibuses, taxi, ferries, etc; all these are viewed as convenient transportation means for residents. Hong Kong and Beijing' MRT interval seems to be 2 or 3 minutes only. Actually buses carry largest volume of passages in many large cities. "Public transit first" and public bus ways is also common in Hong Kong, Paris and Beijing, etc.
An interesting thing is, Hong Kong people seems more to enjoy the walking, I often see lots of people walking along lanes or walking-skyway in HK island, while Singaporeans seem less willing to walk, with walking-way system everywhere.
What is Research?
This is a hot subject for all those who are involved or want to be involved in Research as their occupation, profession or career. Research is getting very important in our increasingly competitive world.
Dr. Lee Kum Tatt has vast experience in these activities in his life. He is going to share with us his thoughts on this subject using special cases as his illustrations. Read some of the interesting stories of how research has helped him and others.
Dr. Lee Kum Tatt has vast experience in these activities in his life. He is going to share with us his thoughts on this subject using special cases as his illustrations. Read some of the interesting stories of how research has helped him and others.
Difficult life of a taxi driver in Singapore
I RECEIVED THIS E-MAIL
Hi,
I refer to the post of your blog regarding grouses of taxi drivers in Singapore.
One thing I understand is that KL taxi drivers actually own the taxi after repaying off the whole amount. And more so happy when they costs the same as a Singapore taxi but in RM$. They do not have to answer to anyone.
In Singapore, a normal taxi costs about $60K+. The hirer has to pay rental of $90 on average everyday. After 2 full years, the costs of the taxi can be recovered back but the poor hirer still continue to pay rental to the company. He does not own the taxi. He is still working for the company. Worse still, there are no benefits like MC, CPF, leave, bonus,etc. & has to work like a slave to earn more than $90 per day so as to make an earning. There is no freedom. If the driver wants to rest by taking offday, he still has to pay rental.
Thus how can the Singaporean taxi driver be happy?
I personally feel taxi drivers in Singapore are a bunch of pitiful people.
Hi,
I refer to the post of your blog regarding grouses of taxi drivers in Singapore.
One thing I understand is that KL taxi drivers actually own the taxi after repaying off the whole amount. And more so happy when they costs the same as a Singapore taxi but in RM$. They do not have to answer to anyone.
In Singapore, a normal taxi costs about $60K+. The hirer has to pay rental of $90 on average everyday. After 2 full years, the costs of the taxi can be recovered back but the poor hirer still continue to pay rental to the company. He does not own the taxi. He is still working for the company. Worse still, there are no benefits like MC, CPF, leave, bonus,etc. & has to work like a slave to earn more than $90 per day so as to make an earning. There is no freedom. If the driver wants to rest by taking offday, he still has to pay rental.
Thus how can the Singaporean taxi driver be happy?
I personally feel taxi drivers in Singapore are a bunch of pitiful people.
Make my blog more interesting
Someone complained that I have censored his comments in my blog. In his case, the statement is not correct. I posted his comment into the main page of my blog and separated a paragraph into two (to make it easier to read). His original comment remained in my blog.
I do have the ability to censor a comment in my blog. I will do it under the following situations:
* where the comment is offensive to another person
* where it is defamatory
* where it has a mischievous intent
So far, I have not found the need to use this censorship power (except for a rare occasion long ago).
I respect the views of other people, even if they differ from my views. I only ask that they express the view in a respectful manner.
When I copy someone's comment into the main page of my blog, I observe the following principles:
* I may edit the comment to be briefer and clearer (only if necessary)
* The original message is kept intact
* I do not quote that person's name (unless I have his or her permission)
* I may change some details to avoid that person being identified by his friends
I hope to receive views and comments from readers for posting into my blog. It becomes more interesting, if it is contributed by several people (and not just my views).
I do have the ability to censor a comment in my blog. I will do it under the following situations:
* where the comment is offensive to another person
* where it is defamatory
* where it has a mischievous intent
So far, I have not found the need to use this censorship power (except for a rare occasion long ago).
I respect the views of other people, even if they differ from my views. I only ask that they express the view in a respectful manner.
When I copy someone's comment into the main page of my blog, I observe the following principles:
* I may edit the comment to be briefer and clearer (only if necessary)
* The original message is kept intact
* I do not quote that person's name (unless I have his or her permission)
* I may change some details to avoid that person being identified by his friends
I hope to receive views and comments from readers for posting into my blog. It becomes more interesting, if it is contributed by several people (and not just my views).
Strange simple English
Someone described my writing as "strange simple English". A few other people told me that they find my views to be easy to understand.
I observe the following:
* use short sentences
* use simple language
* write like I speak
* write in a positive manner
For example, I do not say "not bad". I say "good".
I observe the following:
* use short sentences
* use simple language
* write like I speak
* write in a positive manner
For example, I do not say "not bad". I say "good".
Universal ID - now known as OpenID
I posted a suggestion to create a universal ID. Someone said that this idea is now being worked on, as "OpenID".
Here is the description from Wikipedia:
OpenID is a decentralized single sign-on system. Using OpenID-enabled sites, web users do not need to remember traditional authentication tokens such as username and password. Instead, they only need to be previously registered on a website with an OpenID "identity provider", sometimes called an i-broker. Since OpenID is decentralized, any website can employ OpenID software as a way for users to sign in; OpenID solves the problem without relying on any centralized website to confirm digital identity.
OpenID is increasingly gaining adoption among large sites, with organizations like AOL acting as a provider. In addition, integrated OpenID support has been made a high priority in Firefox 3[1] and Microsoft is working on implementing OpenID 2.0 in Windows Vista
Here is the description from Wikipedia:
OpenID is a decentralized single sign-on system. Using OpenID-enabled sites, web users do not need to remember traditional authentication tokens such as username and password. Instead, they only need to be previously registered on a website with an OpenID "identity provider", sometimes called an i-broker. Since OpenID is decentralized, any website can employ OpenID software as a way for users to sign in; OpenID solves the problem without relying on any centralized website to confirm digital identity.
OpenID is increasingly gaining adoption among large sites, with organizations like AOL acting as a provider. In addition, integrated OpenID support has been made a high priority in Firefox 3[1] and Microsoft is working on implementing OpenID 2.0 in Windows Vista
Photos of my grand-daughter
You can see more photos of my grand-daughter, Vera. Her mother is my eldest daughter, Su Ling. Her father is Vitali Zagorodnov from Russia.
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