Disallow telemarketing of health insurance

TWO years ago I bought a health insurance plan from Ace Insurance through a telemarketing agent. A few months later, I was offered a disability care plan through the same channel.

Although I had a few health insurance plans, I was persuaded that taking up these co-policies would enable me to enjoy enhanced benefits alongside those of my existing policies.

The policy was also affordable, easy and convenient to sign up for. Approval was instant via the telephone, the policy documents arrived by mail and I paid via monthly credit card billings.

Subsequently, I was offered a third add-on, for dental care protection. Thinking it useful, I signed up, to my regret.

Since I signed up for the dental plan in September last year, I have had four dental treatments. But for reasons I am still unable to fathom, I was told that only one qualified for a claim.

Even so, I was told that I would be reimbursed for only half the amount because I used my dentist and not one in the insurer's list. Finally, I was told that I would be reimbursed for $126.80 for a bill that cost me $856. As the insurer's sum was arbitrary, and a mystery to me, I refused to agree to accept payment.
As the dental plan I was persuaded to buy increased rather than lightened my dental expenses, I decided to cancel it and seek a refund.

But the responses I received - other than the auto-generated ones from a call centre abroad - were often slow in coming, and when the responses came, detracted from the issue at hand.

I hope that there is a watchdog body or a relevant agency which takes up cases on behalf of aggrieved consumers like me.

But what is deplorable is that in the midst of my complaints and dispute with the insurer, I received two more sales pitches from the telemarketer about more products.

Perhaps it is time to look into the viability and credibility of health insurance sold through telemarketing.
In an era of rising health-care costs, we do not need more of such schemes to add to the burden of already high medical expenses which may be incurred.

Christine Loo (Ms)
Source: The Straits Times

Author's comment: Financial Industry Disputes Resolution Center (FIDReC) is the venue for resolving the disputes with the financial institutions in Singapore. If the customer feels that the insurance company has been unfair to you and did not pay out your claims in line with the terms and conditions of the policy you should file a complaint through FIDReC.

Having said that, the view that the telemarketing as a whole should be disallowed is surprising. Unfortunately, there are negative precedents in all industries and sales channels so it simply has to be managed better to ensure sufficient customer disclosure and understanding of their purchases.

The best approach when buying insurance is to be very careful with the details of the policy (usually policies sold in Singapore are subject to 14 day freelook period). When buying through an agent in person or through a telephone or online you can review the policy and make sure that the coverage is sufficiently covers your needs and is reflective of what your understanding when buying. As always you are the very person who has your best interest at heart, if something in the policy is not clear its worth to check with customer service of the financial institution directly. If at the end you decide that the policy is not a good "fit" with your needs you should surrender it within the 14 days period to get your full refund of premiums.