Someone said, " The consumer (patient) goes to the doctor with total trust, submits to the various procedures recommended and seldom questions the fees that are being charged".
As private medical practice is so lucrative, it is difficult to keep good doctors in the public sector.
What is the underlying problem?
* we allow medical practice to be a business
* we leave to the free market
* the consumers are at a disadvantage
* the doctors have a conflict of interest
What is a better solution?
* medicine should be a profession (not a business)
* doctors should operate on a code of ethics (i.e. look after the patient's interest)
* consumers need access to impartial, independent advice
* some suitable body (the government?) should monitor the conduct of doctors
* the interest of consumers should be better protected
My remark applies to many other services, including the marketing of financial services.
Friday, July 13, 2007
Difficult to find a good law minister?
Today paper had an editorial about the difficulty of finding a good law minister in Singapore. The underlying problems, and possible solutions, are explained in detail in the article.
My view?
The root cause is our system of selecting ministers. They have to be selected from among the elected members of parliament. This reduces the pool of potential candidates considerably. (We follow the British system).
What is the alternative?
We can consider the American system. The citizens elect their members of Congress (ie Parliament) and a President.
The President picks his ministers (i.e secretary of the various departments) from the entire population. The nominated perons have to be approved by the Congress.
Many other countries also follow the American system. It gives a wider choice of suitable people.
-
My view?
The root cause is our system of selecting ministers. They have to be selected from among the elected members of parliament. This reduces the pool of potential candidates considerably. (We follow the British system).
What is the alternative?
We can consider the American system. The citizens elect their members of Congress (ie Parliament) and a President.
The President picks his ministers (i.e secretary of the various departments) from the entire population. The nominated perons have to be approved by the Congress.
Many other countries also follow the American system. It gives a wider choice of suitable people.
-
Singapore system - good, bad and ugly
My friend has been invited to speak on several occasions at international conferences. His topic? The Singapore system - good, bad and ugly.
I asked him:
* what is good about the Singapore system?
* what is bad?
He shared his views with me. (But, I do not wish to quote him, without his permission.)
Here are my views about what is good with the Singapore system:
* low corruption
* meritocracy
* economic development
* efficiency
* stable and good government.
What is bad about the Singapore system?
I shall share my views in a few days time!
I asked him:
* what is good about the Singapore system?
* what is bad?
He shared his views with me. (But, I do not wish to quote him, without his permission.)
Here are my views about what is good with the Singapore system:
* low corruption
* meritocracy
* economic development
* efficiency
* stable and good government.
What is bad about the Singapore system?
I shall share my views in a few days time!
Cycling on pedestrain walks
There is some debate on whether cyclists should be allowed to ride on pedestrain walks.
Let us look at the underlying problems:
* there is insufficient bicycle paths
* cyclists cannot ride on the roads (as it is dangerous)
* so, they ride on pedestrain paths (which is harmful to pedestrains).
Can bicycle be used for local transport?
* it is not practical, due to our weather
* there is a need for storage space at MRT or bus stops
The solution?
* have low cost, feeder service for local transport.
Let us look at the underlying problems:
* there is insufficient bicycle paths
* cyclists cannot ride on the roads (as it is dangerous)
* so, they ride on pedestrain paths (which is harmful to pedestrains).
Can bicycle be used for local transport?
* it is not practical, due to our weather
* there is a need for storage space at MRT or bus stops
The solution?
* have low cost, feeder service for local transport.
Fuel economy
Here is the key points of a survey report of car owners, as reported in the newspaper.
* Only 1% of Singaporeans bother to learn about fuel economy of their car, ie how many kilos can be driven for 1 litre of petrol. This is among the lowest in the countries surveyed.
* Only 25% of Singaporeans bother about the impact of cars on the environment, compared to 60% in the other countries.
Lesson: After paying so much for the upfront cost of owning a car, Singaporeans are more concerned about the convenience of using the car. They do not bother about fuel economy. Maybe it does not make much difference, after paying for the ERP charges?
* Only 1% of Singaporeans bother to learn about fuel economy of their car, ie how many kilos can be driven for 1 litre of petrol. This is among the lowest in the countries surveyed.
* Only 25% of Singaporeans bother about the impact of cars on the environment, compared to 60% in the other countries.
Lesson: After paying so much for the upfront cost of owning a car, Singaporeans are more concerned about the convenience of using the car. They do not bother about fuel economy. Maybe it does not make much difference, after paying for the ERP charges?
Adviser gave misleading information
My friend and I visited an insurance booth at an exhibition. The insurance adviser promoted "buy term and invest the difference" (Good!).
They have good marketing materials. The adviser showed the performance of the different funds, and how they fit into the different risk profile. (Good!)
My friend asked about the cost of the funds. The brochure showed an upfront cost of 3% and an annual fee of slightly less than 1%. (Good!)
My friend asked, "What about the distribution cost?" The adviser pretended to be ignorant, and pointed to the investing cost shown in the brochure (ie 3% and 1%).
I asked, "what percentage of the regular premium is allocated for investment?"
The adviser reluctantly brought up another thick booklet (also nicely printed), turned to a page. It showed that 20% was invested in the first year, and other percentages were invested the next few years. The total deduction is more than 150% for the initial years. It is a costly product.
Lesson: It is quite sad that insurance companies design costly products and train their advisers to hide the fact. Indeed, the adviser give a misleading impression and show only part of the total cost.
Who is the blame? The insurance company? The adviser? The marketing system? The regulators?
They have good marketing materials. The adviser showed the performance of the different funds, and how they fit into the different risk profile. (Good!)
My friend asked about the cost of the funds. The brochure showed an upfront cost of 3% and an annual fee of slightly less than 1%. (Good!)
My friend asked, "What about the distribution cost?" The adviser pretended to be ignorant, and pointed to the investing cost shown in the brochure (ie 3% and 1%).
I asked, "what percentage of the regular premium is allocated for investment?"
The adviser reluctantly brought up another thick booklet (also nicely printed), turned to a page. It showed that 20% was invested in the first year, and other percentages were invested the next few years. The total deduction is more than 150% for the initial years. It is a costly product.
Lesson: It is quite sad that insurance companies design costly products and train their advisers to hide the fact. Indeed, the adviser give a misleading impression and show only part of the total cost.
Who is the blame? The insurance company? The adviser? The marketing system? The regulators?
Consumer information - from Australia
I found the website of the Online magazine produced by the Australian consumer association. It is impressive. Take a look at it.
Reduce offer for Excess and Loss of Use
Hi Mr Tan
I see from your blog that you are answering reader's doubt on insurance issue. I like to get your advice on a case involving our company lorry.
Our lorry was travelling straight along Rochor Road. a car suddenly turn left from the extreme lane and hit our lorry's door.
Both vehicles are insured with X. The own damage claim (before GST) was settled.
There is a claim for loss damages and expenses. X gave us a release form to accept this as a full and final settlement, and we did.
X's lawyer later called for a mediation meeting between the drivers, and offered a lower sum to close the case.
We follow up with X's claims officer and were told when lawyer is involved, we can make a counter offer, but to insist on the full sum may mean incurring expenses to hire our own lawyer.
-----------------------
REPLY:
The items that you are claiming fall under the category of "third party claim". You are making a third party claim against the other party on the basis that they are entirely at fault.
If there is no dispute on the fault, then the insurer should pay for this claim in full, and not try to negotiate a lower sum.
I suggest that you talk to the lawyer and ask for the reason for the reduced offer. You can also approach your insurer for their advice and assistance. They should render this assistance as part of their customer service.
If your insurer does not provide good service, you should look for a new insurer on your next renewal.
You also have the right to make a complaint against your insurer. The body to receive your claimant is the FiDREC (Financial Industry Dispute Resolution Center). Here is their website.
I see from your blog that you are answering reader's doubt on insurance issue. I like to get your advice on a case involving our company lorry.
Our lorry was travelling straight along Rochor Road. a car suddenly turn left from the extreme lane and hit our lorry's door.
Both vehicles are insured with X. The own damage claim (before GST) was settled.
There is a claim for loss damages and expenses. X gave us a release form to accept this as a full and final settlement, and we did.
X's lawyer later called for a mediation meeting between the drivers, and offered a lower sum to close the case.
We follow up with X's claims officer and were told when lawyer is involved, we can make a counter offer, but to insist on the full sum may mean incurring expenses to hire our own lawyer.
-----------------------
REPLY:
The items that you are claiming fall under the category of "third party claim". You are making a third party claim against the other party on the basis that they are entirely at fault.
If there is no dispute on the fault, then the insurer should pay for this claim in full, and not try to negotiate a lower sum.
I suggest that you talk to the lawyer and ask for the reason for the reduced offer. You can also approach your insurer for their advice and assistance. They should render this assistance as part of their customer service.
If your insurer does not provide good service, you should look for a new insurer on your next renewal.
You also have the right to make a complaint against your insurer. The body to receive your claimant is the FiDREC (Financial Industry Dispute Resolution Center). Here is their website.
Profession or business?
Law, medicine and education were the hallmarks of the professions.
The professionals act honestly in the interest of their client, are trusted by them, and receive a good income for their expertise. However, they do not receive the exceptional profits of businesses.
In recent years (especially in the developed countries), many of these professions are being converted into businesses. As a business, they aim to make a big profit - the bigger the better.
Business pressures may force these professionals to cut corners and (in order to survive), they may resort to "cheating" the clients.
I hope that the professions continue to be practised on ethics, fairness and high standards. They should not be turned into businesses.
The professionals act honestly in the interest of their client, are trusted by them, and receive a good income for their expertise. However, they do not receive the exceptional profits of businesses.
In recent years (especially in the developed countries), many of these professions are being converted into businesses. As a business, they aim to make a big profit - the bigger the better.
Business pressures may force these professionals to cut corners and (in order to survive), they may resort to "cheating" the clients.
I hope that the professions continue to be practised on ethics, fairness and high standards. They should not be turned into businesses.
CASE to start a blog?
POSTING IN MY BLOG (BY WILLIAM)
As a consumer, I detest this opt-out scheme and also telemarketers who somehow have your mobile number making sales pitch at you.
Hmm.. Mr Tan, maybe you should consider running for President of CASE. I think you are quite suitable for that position. :) Or maybe CASE should start a blog to communicate with their intended audience, the consumers, on decisions that affect their everyday life.
This is my 1st post here but I must say I have enjoyed reading your posts.
On an unrelated topic, it goes to show that Passion wins over $$. You are not paid to blog but you blog because you want to share your passion of insurance and finance.
Hmmm..Wait.. I think you can even run for President next time round. ;) Jazz up our Presidential election a little.
-------------------------------------------
REPLY:
Thank you for your nice words.
I don't think that I am suitable as President of CASE or President of Singapore. They are too many people who dislike me.
I have been using some materials from the Consumer Magazine (produced by CASE) for my blog. I simplifed the materials, so that the key message comes across. For those who are interested in the magazine, you can pay a subscription to CASE.
As a consumer, I detest this opt-out scheme and also telemarketers who somehow have your mobile number making sales pitch at you.
Hmm.. Mr Tan, maybe you should consider running for President of CASE. I think you are quite suitable for that position. :) Or maybe CASE should start a blog to communicate with their intended audience, the consumers, on decisions that affect their everyday life.
This is my 1st post here but I must say I have enjoyed reading your posts.
On an unrelated topic, it goes to show that Passion wins over $$. You are not paid to blog but you blog because you want to share your passion of insurance and finance.
Hmmm..Wait.. I think you can even run for President next time round. ;) Jazz up our Presidential election a little.
-------------------------------------------
REPLY:
Thank you for your nice words.
I don't think that I am suitable as President of CASE or President of Singapore. They are too many people who dislike me.
I have been using some materials from the Consumer Magazine (produced by CASE) for my blog. I simplifed the materials, so that the key message comes across. For those who are interested in the magazine, you can pay a subscription to CASE.
Subscribe to:
Posts (Atom)