Singapore: Life insurance industry refines critical illness definitions
Source: Asia Insurance Review | Oct 2019
The Life Insurance Association Singapore (LIA Singapore) has amended critical illnesses (CI) definitions and names for clarity and continued relevance.
Standard definitions of 21 severe stage CIs and names of 14 CIs have been refined to clearly reflect the intent of coverage. The LIA CI Framework includes standardised definitions of 37 severe stage CIs in total.
An example of these changes is that the definition of “Deafness (Loss of Hearing)” is amended to “Deafness (Irreversible Loss of Hearing)” and the term “irreversible” defined, to recognise the possibility of future medical treatments that can restore hearing to some level as medical advances are made. Before this amendment, the definition does not cover reversible hearing loss.
Effective from 26 August 2020, all CI products based on definitions of 2014 (when the previous update to CI definitions was made) may no longer be sold in Singapore. Policyholders with existing CI policies are not affected by the new CI definitions. Claims assessment and benefits will follow the definitions, and the terms and conditions stated in their existing policy contracts.
All member companies of LIA Singapore and the General Insurance Association of Singapore will adopt the set of revised definitions. A