Singapore: New Premium Payment Framework from 1 Sep
Source: Asia Insurance Review | Oct 2016
From 1 September, the General Insurance Association of Singapore (GIA) has implemented the revised Premium Payment Framework (PPF), which has been substantially improved to boost efficiency in the collection of premiums for all classes of general insurance policies.
The revision also aims to minimise claim disputes between insurers and customers arising from delay in paying premiums or their non-payment.
The GIA worked jointly with the Singapore Insurance Brokers’ Association (SIBA), with the support of MAS, to address three key areas related to premium payments:
• New, renewal policies as well as endorsements,
• oOverdue premiums, and
• Re-marketing by general insurers after cancellation due to breach of premium payment warranty.
GIA Chief Executive Derek Teo said: “The key point in the revision of the premium framework is about introducing certainty to all the parties involved. It makes it clearer to the general public when their coverage starts and ends. Likewise, it provides greater clarity to the general insurers in the industry. At its core, it removes any source of disputes that could potentially arise.”