Flexible premium instalment plans for general insurance
Consumers can get help with general insurance payments on policies such as those covering vehicles and property.
They can ask their insurers for flexible premium instalment plans while maintaining insurance protection for the paid-up period.
Insurers have internal criteria to assess if a policyholder is eligible for this initiative.
The instalment plan allows you to pay your premiums in smaller amounts instead of outlaying a lump sum premium for the entire policy period at the start.
This is in addition to other options that insurers might already have, such as one that reduces insurance coverage and sum assured in order to help a customer lower the size of payable premiums.
Insurers will still respond to any valid claims made by the policyholder in the instalment period.
However, general insurers do not offer customers the premium deferment plans that life insurers provide as the nature and duration of risks covered by life and general insurers are different.
The Monetary Authority of Singapore said: “Life insurance policies tend to be long term in nature with annual, quarterly or monthly premium payments, while the coverage period for general insurance policies are typically one year, with premiums normally paid on a one-time basis.
“Hence, given the different nature of their products, the life and general insurance industry have come up with relief packages based on their own considerations and they are not comparable.”
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