Mdm Loh was a cleaner at Kandang Kerbau Hospital when she took up an endowment
policy with Income in 1983. She had 4 children and because her husband's income
as a labourer is not high, she decided that she needed insurance cover to protect
her young children, as well as to provide some savings for their education. Despite
the fact that her income is also very low, Mdm Loh went ahead to buy this savings
plan at a small sum assured of $2000 as she could only afford a monthly premium
of about $10.
The years went by and Mdm Loh consistently paid the monthly premiums, which
was deducted from her salary. Unfortunately in September 1995, Mdm Loh suffered
a cerebral stroke and passed away in April 1996. She had been plagued by hypertension
and diabetes for many years before.
When Mdm Loh's daughters, who are the nominees of the death proceeds, approached
Income for assistance on the claim in May 1996, the policy was already paid up
for 6 months since October 1995. Strictly speaking, only the reduced sum assured
of less than $2000 is payable.
However, in view that Mdm Loh was very ill since September 1995 and hence
was unable to work and therefore no premiums could be deducted from her salary,
Income took a compassionate stand and decided to admit the claim in full. The
claim proceeds amounting to about $3,500 were paid to the nominees immediately.
This amount may not be very big but it does show that Income has a emphathetic
and flexible approach in handling such claims matters.
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