Stronger Protection for Insurance Policyholders


Hi, most of you guys should be back at the school! I myself also have returned to law school studying hard, I hope all of you exceed your academic goals this semester. Today’s topic is on amendments made to insurance policy terms to better protect consumers’ rights and interests. There have been numerous complaints made by policyholders to exclusive window for customer services on topics of unreasonable and unsatisfactory provisions. Against this backdrop, financial authorities along with Financial Services Commission plan to come up with measures to reinforce policyholders’ rights and interests.


Let’s find out what are the changes to be made.

  1. From now on, insurance companies will be banned from naming their insurance products in the manner to mislead potential consumers. For example, including a distinctive bank’s name in a product that might lead a policyholder to misunderstand that the product is from the bank when it is only of collaboration will be strictly banned.
  2. Second, this policy will restrict unreasonable and unnecessary terms that will make a consumer to join a special contract. This will provide a policyholder with a strong waive of an opinion when making a contract.
  3. Third, insurance companies, from now on will face stronger obligations for explanation when a policyholder is changed. The company should explain the provisions carefully and also provide with reasonable answers to the questions being asked.
  4. Fourth change being made is indeed significant which are the improvements made on basis of paying insurance due to long-term care policies. This was considered very much unfavorable for the policyholders but, according to this policy to be propelled, the standards are to be significantly declined for the benefits of the policyholders.
  5. Fifth, the insurance companies from now on have to list down the changes to be made for the policyholders in case that a policyholder withdraws its insurance costs in the middle. There were lots of small and big conflicts made because policyholders did not specifically know what the changes to be done were.

These changes to insurance policies will be executed from April 1, 2013. The FSC will continue to closely monitor business and sales practices of insurance companies and address unreasonable terms or provisions if any to provide insurance consumers with stronger protection.


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