MAS says endowment and investment link insurance not PPF protect, only life policies!

[masgnoeL]

Well, read the bold print below and be very worried should a bank or insurance company go bankrupt. The problem with MAS's reply is that it gives one a false sense of security.

I called up a few insurance companies. All say if one need clarification on whether the policy holders are protected, don't ask them...BUT ask MAS since it is the institution regulating, not them. They do not know. I thought the insurance companies owe the policy-holders a proper explanation if it collapses but I was so damned wrong.

One says and insists that AIG's collapse will not affect AIG and AIA in Singapore, since Singapore economy is doing well and they are separate entities.

But obviously, these imbeciles do not know the ACRA meaning of wholly-owned subsidiaries.

Read further and be very scared.

http://www.mas.gov.sg/news_room/let...nse_to_do_more_to_protect_policy_holders.html

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5. In the unlikely event that an insurer is unable to meet it obligations to policy owners, the Insurance Act already provides for the setting up of a Policy Owner's Protection Fund ("PPF") to compensate policy owners. Under the current provisions, the PPF will cover up to 90% of an insurer's liability on any life policy. For motor bodily injury and work injury insurance policies, the PPF provisions will cover 100% of an insurer's liability arising from compulsory insurance policies underwritten by the insurer.

Angelina Fernandez
Director (Communications)
Monetary Authority of Singapore

 

[Zombie]

Re: MAS says endowment and investment link insurance not PPF protect, only life polic

wholly-owned subsidiaries.

We should not worry about wholly-owned subsidiary company, because the parent company cannot take the assets of the subsidiary company to pay the debts of the parent company. Just like if you fully own a company, you cannot take the assets of that company to pay your own personal debt.

The only worry is how much the local company have committed in the market through the parent company.

 

[masgnoeL]

Re: MAS says endowment and investment link insurance not PPF protect, only life polic

We should not worry about wholly-owned subsidiary company, because the parent company cannot take the assets of the subsidiary company to pay the debts of the parent company. Just like if you fully own a company, you cannot take the assets of that company to pay your own personal debt.

The only worry is how much the local company have committed in the market through the parent company.

From the way you read the announcement in MAS website, does the PPF protects endowment and investment link policies or not?

Seem like MAS is silent on this. That's why it will easily send jitteries on policy-holders who still cannot confirm if their policies are protected in adverse situations or not. Rather vague and murky, don't you think so?

On your point about wholly owned subsidiaries having its own balance sheet away from the parent company, I hope you're right but from my own experience as one, my corporate HQ has means to transfer funds to me to make me look good on my bottom line legally and it can strip my assets apart and sell it to someone else if it chooses to. Because I am a wholly owned subsidiary and I report totally to the board. I have no say.

 

[congo9]

Re: MAS says endowment and investment link insurance not PPF protect, only life polic

We should not worry about wholly-owned subsidiary company, because the parent company cannot take the assets of the subsidiary company to pay the debts of the parent company. Just like if you fully own a company, you cannot take the assets of that company to pay your own personal debt.

The only worry is how much the local company have committed in the market through the parent company.

If i am going to bankrupt , i cannot strip and sell my SUBSIDARY company to survive ? I can clean off the cash and asset any time i like. Which set of law forbide you to do that ?

 

[Adidas]

Re: MAS says endowment and investment link insurance not PPF protect, only life polic

so those with investment link insurance or policies,now it is time for you to decide if you want to hold and wait.
or sell and terminate the investment policies at a lost.

 

[Zombie]

Re: MAS says endowment and investment link insurance not PPF protect, only life polic

From the way you read the announcement in MAS website, does the PPF protects endowment and investment link policies or not?

I think PPF is an industry-level fund to cover only life and compulsory insurance, when a "member" insurance company collapses.

On the company level, each company must maintain a class-level fund to protect each type of insurance. I believe it only covers the insurance part of the policy.

my corporate HQ has means to transfer funds to me to make me look good on my bottom line legally and it can strip my assets apart and sell it to someone else if it chooses to. Because I am a wholly owned subsidiary and I report totally to the board. I have no say.

When nothing happens, nobody cares.
But US AIG is having problem, everyone will be staring hard at local AIA, to make sure that nothing above the law will happen.

 

[Zombie]

Re: MAS says endowment and investment link insurance not PPF protect, only life polic

If i am going to bankrupt , i cannot strip and sell my SUBSIDARY company to survive ? I can clean off the cash and asset any time i like. Which set of law forbide you to do that ?

You can strip and sell the company, but you must first pay its creditors and all other financial commitments, before you can use the cash and assets to pay your own creditors.