Eldershield features are based on industry norms

14 Sep 2004, The Straits Times

Question

Eldershield features are based on industry norms

ST Forum (p16) carried a letter by Mr J.M. Jumabhoy on some terms in the Eldershield policy which, he claimed were incompatible with the purposes for which the scheme was set up. He would like the Ministry of Health to comment on the compatibilities that he raised and his comment on why insurers, here and overseas, do not accept Singapore hospital's certification and reports.

Reply

Reply from MOH 

Mr J. M. Jumabhoy commented on several features of ElderShield which were "incompatible with the purposes for which the insurance scheme was set up" (ST, Sep 14).

ElderShield was introduced in June 2002 to provide the elderly with basic financial protection if they become severely disabled. The scheme pays $300 a month for up to 5 years to help defray part of the expenses for long term care.

The features of ElderShield are based on industry norms. Most life and severe disability insurance (SDI) plans require policyholders to substantiate their claims with medical reports obtained at their own expense. In the case of ElderShield, claimants pay a standard assessment fee at specially-negotiated rates, which are lower than the usual charges for a medical consultation or house-call.

To ensure consistency and fairness in the claims process, the assessment of disability under ElderShield is based on standardized criteria. Hence, the two private insurers (Great Eastern Life and NTUC Income) who administer the scheme rely on assessments from appointed assessors who are familiar with these criteria, instead of general appraisals by any medical practitioner. Other SDI plans overseas also adopt a similar approach.

Like virtually all long-term disability schemes, ElderShieldyyys benefits are paid out only after a "deferment period". This is to allow the claimantyyys medical condition to stabilize. Only then can the assessoryyys assessment of the disability status be established.

We thank Mr Jumabhoy for his feedback and ideas on how ElderShield can be improved. The contract for the ElderShield insurers runs for 5 years. Towards the end of the contract, in 2007, the Ministry will review the performance of the scheme as well as the insurers.