Crane crash onto neighbour's house

Most professional contractors will take out a Contractors' All Risks policy covering (I) the Contract Works and (II) Third Party Liability before they start such works.

Increasingly also, discerning consumers will require that their contractors take out such policies to indemnify themselves from losses/damages/injuries caused to the public (third party) by their contractors. Even if they don't, should the works extend to public roads or drains, LTA will still make it compulsory for the contractors to take out a Public Liability policy to indemnify LTA and its officers against legal suits for losses caused to third parties.

For the above case, it is fortunate that no one appeared to have suffered any injuries. Otherwise, the ensuing expensive legal suits could result in huge losses to both the contractor and his principal (the owner of the neighbouring unit), IF they are not insured.

Quality of Care at ParkwayHealth hospitals

I hold a few lots of Parkway Holdings shares, so I hope they will be able to reap the benefits of increase in medical tourism. I have also heard good comments on the quality of healthcare at Singapore's private hospitals from some of my expat clients.

By subscribing to As Charged Shield plans which provides hospital & surgical coverage in our private hospitals, locals can also have access to such hospital care, without burning a big hole in their pockets.

Forbes' list of Singapore's Richest

Interesting to note that of the top 40, 35 are of ethnic Chinese origins.

Of the five non-Chinese, four people have links to India: Vivian Chandran, Filipino-American widow of Indian origin businessman Robert Chandran, who died in a helicopter crash in Indonesia this January, garment-maker Kartar Singh Thakral, Mustafa Centre owner Mustaq Ahmad and exporter Sunny George Verghese of Olam International Limited, who is also the Chairman of International Enterprise of Singapore (f.k.a. Trade Development Board).

The other non-Chinese is Victor Sassoon, of Jewish descent, who owns about 500 Coffee Bean outlets worldwide, and sells Rolex and other luxury watches in Indonesia.

More young people at risk of getting brain cancer

Looks like the relentless drive towards increasing mobile wireless communications has its dangers. Some have claimed that even the wireless internet connections give rise to high levels of radiation in the vicinity of the notebook PCs. In light of all these alarming stories, I really hesitate to set up a wireless LAN at home.

Kidney donors & insurance

The above article in My Paper 11/08/08 should provide some reassurance to potential kidney donors.

The LIA's general position, as given by the current LIA President, is that the insurability of voluntary organ transplant donors depend on their health conditions after the transplant - for kidney donors, if the remaining kidney shows normal kidney function test results and that if the donors are non-smokers, their life and health insurance premiums will be based on standard rates, without any risk-premium loading.

Great Eastern Life further stated that there is no difference in the average life expectancy between a kidney donor and non-donor, and that they will regard donors as any normal healthy persons.

According to the article, 11% of organ donors in the U.S. face difficulties in buying life, disability or health insurance.

Some Tax Changes announced in Budget 2008

Some tax changes announced in Budget 2008 that some companies may wish to take advantage of.

1. Supplementary Retirement Scheme

Employers can now contribute to their employees’ SRS accounts, subject to the current contribution limits of $11,475 per year for Singapore Citizens and Permanent Residents, and $26,775 for foreigners for each employee.

Employers will be able to claim full tax deduction for the contributions they make to their employees’ SRS accounts.

SRS members will be taxable on the contributions that their employers make to their SRS accounts. But, they can enjoy a tax relief up to the applicable contribution limit per YA for the SRS contributions which they or their employers make.

2. Encouraging portable medical benefits

With effect from YA2008, employers who provide their employees with inpatient medical insurance benefits in the form of portable medical shield plans can qualify for tax deduction at 2% of the total wage bill for medical expenses they incur for their employees.

Employers can provide such portable medical shield plans, either by paying the insurance premiums on behalf of their employees to the insurance companies directly or by reimbursing the premiums into employees’ Medisave accounts.

To qualify, the employer must provide the portable medical shield plans for at least 20% of existing local employees employed as at the first day of the basis period for the YA, and every local employee who commences his employment during the basis period for that YA.

For more details, pls visit the Ministry of Finance website www.mof.gov.sg.

I'll of course be happy to email to interested parties the related FAQs and Details of these changes, as well as advise and help on these 2 schemes.

Having said that, group medical insurance schemes however generally cost less than portable medical shield schemes, depending on age profiles.

Also, staff with some medical conditions should stay with group medical schemes as these do not underwrite on individual basis for companies with more than 10 staff; whereas, staff of standard health condition should take up portable medical shield plans so that they may have continuous medical coverage without any exclusions, even if their health deteriorates later, and they change employers.

Number of breast cancer cases increasing rapidly in Singapore

It is reported on ChannelNewsAsia 12/8/08 that the incidence of breast cancer among Singapore women in their 50s is fast increasing, driven strongly by a low fertility rate.

It seemed that Chinese have the highest breast cancer rates, followed by Malays and Indians.

Even though survival rates have seen steady improvement, more needs to be done as only half of all cases are detected early.

"The important message that we want to get across is that women who are 50 and above, especially those who have started their family late and have a small number of children should go for mammographic screening."

Prevention is just as important as early detection, as shown by a recent study on Chinese women in Singapore, which showed that eating more soy-based food products may reduce the risk of breast cancer.

The risk reduction is also more significant in post-menopausal women with higher body mass index.

Associate Professor Koh Won Puay, Occupational & Family Medicine, NUS, said: "More of the women without cancer were eating soy products, compared to those with breast cancer. We've also found that women who had most protection were women who had been eating soy foods since adolescent days."

Going forward, researchers said they would focus on better methods for early breast cancer diagnosis and encourage more women to go for screening

Just how high is the incidence rate of breast cancer?
It was reported in The Straits Times on 11 Dec 07 that breast cancer is the most common cause of cancer-related deaths in women here - with 1,100 new cases reported each year, and about five deaths each week.

Why is early detection so important?
If detected early and treated, 95 per cent of patients remain cancer-free five years later, experts say.

Myths delay early detection & treatment:

Breast surgeon, Dr Tan Su Ming, said misinformation about the disease and its causes are still keeping women from taking the right steps to reduce their risk and detect the disease early.

A study by the Breast Service at Changi General Hospital (CGH) found that four in 10 women believe that those with larger breasts have a higher risk of breast cancer; and more than four in 10 women thought that radiation from mammography could cause breast cancer.

The survey of 1,000 women, aged between 20 and 65 years, also found that about a third did not know that breast cancer can spread.

More than half surveyed believed that breast cancer lumps are painful. Most of the time they are painless,' Dr Tan said.

Almost the same number also thought mastectomy was the only treatment for breast cancer.
Mastectomy is the surgery to remove all or part of the breast and sometimes other tissue.

Dr Tan explained that there are other treatments available, such as lumpectomy, a procedure to remove just the lump and some of the tissue around it; or radiation therapy to kill cancer cells and shrink tumours.

Note: These treatments are covered by Shield plans under inpatient (hospitalisation & surgical charges) and outpatient (cancer treatment by chemotherapy or radiotherapy) benefits, subject to deductibles and co-insurance.

But it was not all bad news, as it was found that more than half did their self-examination regularly.

------
About breast cancer
This is the most common cancer in Singaporean women, with 200 - 300 women dying from the disease each year. Screening is with mammography.
Signs and symptoms:
- A hard fixed lump in the breast
- Bloody nipple discharge
- Itch and rash on the nipple
- Skin changes on the breast
(Extracted from an 11 Dec 2007 article in The Straits Times)

Means Testing at Restructured Hospitals

***********************************
Source: www.moh.gov.sg

Minister Khaw Boon Wan has announced the means testing framework in Parliament on 3 Mar 2008. The details are:

Patients whose income is $3,200 and below would receive full subsidy (65% for Class B2 and 80% for Class C)

Patients whose income is $5,201 and above would receive 50% subsidy for Class B2 and 65% subsidy for Class C

Patients whose income falls between $3,201 and $5,200 would receive graduated subsidies between 50-65% for Class B2 and between 65-80% for Class C.

Monthly income is defined as average monthly wage based on last available 12-month data. Patients who are economically inactive will receive full subsidy (65% for Class B2 and 80% for Class C) unless they live in property with Annual Value exceeding $11,000. The latter will receive subsidy at 50% (B2) or 65% (C)

Subsidy for Permanent Residents will be 10%-points less than citizens of equivalent income level.

The implementation date at all public hospitals would be on January 2009.

***********************************

Referring to my previous blog on Totalshield Plan benefits, the total hospital bill for the 4 days' stay came up to $2,329.17. After the government subsidy of $1,407.07 (60%), the amount payable was $922.10. There was also a charge of $80 for A&E as she arrived there in an ambulance. At 50% subsidy, the amount payable should be approx. $200 more.

But, in this case, the amount of subsidy did not matter, as the full bill was covered by her Totalshield Plan.

So, would you rather pay a known amount (insurance premium) every year, or pay an unknown amount (hospitalisation and surgical bills), should illness or injuries strike.

Career Seminar 21 Aug 08

Our next Career Seminar for suitable self-motivated candidates who would like to find out more about financial planning as a career:

Date : 21 Aug 2008 (Thursday)
Time : 6.30pm – 9.30pm
Venue: Centre for Excellence, Level 2 (Above Hans)
1 Pickering Street, Great Eastern Centre

Mr Adam Khoo, a self-made millionaire, will share on his Ultimate Business Success factors. Registration will start at 6.30pm followed with a buffet dinner.

SPECIAL BONUS: A seminar bonus of $200 will be awarded to the potential recruit who submits an application form on that day and is contracted by 21 Nov 08.

Please call me at 94560418 to register for this life-changing event, free of charge.

Sungei Kadut Factory Fire

Photo: SPH
One of the shop tenants said that no insurers wanted to insure them due to the high risk of fire inherent in the wood-working industry. In truth, I have helped write fire insurance for some clients of mine in the furniture-making business.

There are probably a couple of reasons why they could not get fire insurance for their factory:

1. Many insurers have "blacklisted" the enitire Sg Kadut area due to the many incidences of fire in the area. There are also lots of flammable materials in the area, like wood and sawdust, and the risks of fire spreading to neighbouring units are very real. In an attempt to prevent the spread of fire, firemen would even spray water on the neighbouring properties, thereby causing water damage.

2. Looking at the above photo taken by an SPH photographer, the building does not appear to be made of Class 1 construction, i.e., brick and concrete. Again, most insurers decline such risks where the buildings are not made of brick and concrete.

I have in fact helped to insure a warehouse unit (to store furniture and household effects) in Sg Kadut Loop because it is of Class 1 construction, although it is sited in this so-called high-risk area.

TotalShield Plan benefits

One of my clients was hospitalised at NUH for 4 days due to giddiness and vomitting. She was taken there by ambulance to the A&E Dept. and admitted. Her total bill came up to $1,002.10.

As she is insured under the Supremehealth Plan A Plus, a CPF Medisave-eligible "shield" plan, together with a cash supplementary plan called Totalshield Plan (Gold Plan), she did not have to pay a single cent for this hospital confinement.

Not only that, she also received $100 cash incentive for each day of hospitalisation. This $400 cash incentive was given to her, as she opted to stay in B2 ward (6-bedded, no air-con) although her Gold plan covers her for A1/A2 wards. In this way, the savings (to the insurer) in terms of a reduced hospital bill was passed back to the Insured.

This case demonstrates the benefits of the Totalshield Plan which is essentially designed to cover the deductible and co-insurance portion of the "shield" plans. Under the "shield" plan, no claim would have been payable as her total bill was $1,002.10 only, which is less than the deductible of $1500, for stay in B2 wards.

All "shield" plans are catastrophic illness policies, which, in order to be approved by CPF Board, must incorporate the 2 features of deductibles and co-insurance, meaning that only bills above the deductible are reimburseable. The small bills for a minor hospital stay have to be paid by cash or Medisave, if the Insured does not take up a supplementary plan.

In essence, the "shield" plan is good for major hospitalisation and/or surgery, but not for a few days' hospital stay, especially where no surgery is required. To have a comprehensive hospital & surgical coverage, one should have both the "shield" plan (premium payable from cash or CPF Medisave) together with a supplementary plan (premium payable from cash). Both the Supremehealth and Totalshield plans offer guaranteed lifelong coverage. :)