A recent Singapore court judgment underscores the importance for consumers to consider not only the premium, coverage and exclusions of an insurance policy, but also how the insurer manages and settles valid claims.
In a publicly reported case involving NTUC Income (now known as Income Insurance), a Singapore district court ordered the insurer to pay over S$417,000 in damages to the estate of 78-year-old Mr Ko Wah. He was struck in a traffic accident in June 2019, suffered severe brain injury, was bedridden for years and died in October 2024.
What Happened Regarding The Case Between NTUC Income And Mr Ko Wah’s Estate
The insurer, acting on behalf of its policyholder, was found by the court to have behaved unreasonably in contesting parts of the family’s claim. Among the disputed claim items were:
- Medical expenses that had already been reimbursed under the national scheme MediShield Life, which the insurer argued should reduce or negate its own liability. The court rejected this argument and awarded S$122,889.52 in medical expenses, noting that reimbursement under other schemes did not reduce liability.
- Ambulance expenses totalling about S$1,992, which the insurer refused to pay despite invoices showing the injured man was transported when bedridden. According to the report, the judge noted that there was nothing unreasonable about using ambulance services to transport a bedridden patient for hospital visits.
- Claims for pain and suffering / loss of amenities, which the insurer asked to be denied on the basis the injured person was “comatose the entire time”. The court rejected this, noting he had intermittent alertness and was therefore capable of experiencing pain or deprivation.
Why the court’s rebuke matters
The judgment included strong language from the deputy registrar, who described some objections as ‘callous and meritless’ and characterised the approach as ‘casually impersonal stonewalling. This illustrates that, even when liability was clear, disputes can still arise over specific claim items.
For consumers, this raises a crucial point: the risk is not only of an uncovered exclusion, but of an insurer who may resist payment even where the contract appears valid. In some situations, claim disputes may occur even when policyholders believe they have a valid case.
What this means when choosing an insurance provider
When selecting a provider for personal accident or disability insurance policy, do not stop at the headline cost or benefit limit. Pay attention to how efficiently and transparently the insurer handles claims. Here are some questions to ask:
- What is the insurer’s track-record when it comes to claim approval and prompt payments? (Look for public cases, reputational issues or consumer complaints.)
- How transparent are the claims processes? Are the time-frames clearly defined, and are you required to jump through many hoops (e.g., excessive documentation, repeated reviews)?
- What exclusions and conditions apply, and are they realistic in practice? Has the insurer been involved in publicly reported disputes regarding commonly expected claims?
- How does the contract deal with reimbursement from other sources (e.g., national health schemes, third-party payments)?
As seen in the case above, the insurer argued that MediShield Life reimbursements should offset part of its liability; however, the court did not accept this interpretation.
What support will you receive in the event of a claim? Is the insurer likely to treat you as a partner in paying out a valid claim, or adopt a defensive approach?
Look Beyond the Headline Benefits and Premium Schedule
The case regarding Mr Ko is a sobering reminder that having insurance is only part of the safeguard — what matters equally is having an insurer who honours claims in a fair, timely and transparent way. The headline “benefit amount” matters, but the ease of successful claim execution is a just-as-important factor.
When you next compare policies, consider not only how much you pay and how much you might get back – but also what your experience will be when you need to make a claim. An insurer known for fair, timely and transparent claims handling can make all the difference when you need protection most.
Disclaimer: This article is intended for general information and educational purposes only and does not constitute financial or legal advice. The case mentioned above is based on information publicly reported in court documents and mainstream media. 365Asia does not express any opinion regarding the parties involved or their business practices. Readers should verify details with official sources or consult a licensed financial adviser before making any insurance-related decision.
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Disclaimer: 365Asia aims to provide accurate and up-to-date information, our contents do not constitute medical or any professional advice. If medical advice is required, please consult a licensed healthcare professional. Patient stories are for general reading. They are based on third-party information and have not been independently verified.