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S'pore Life Insurance Association to consider if critical illnesses claims should rely more on disease severity over procedures: Gan Kim Yong
In March, a woman sued Prudential after she underwent brain surgery following a stroke, but her had claim denied.
October 07, 2026, 07:26 PM
Photo from Gan Kim Yong/Facebook and Canva
In its upcoming review commencing in 2027, the Life Insurance Association, Singapore (LIA) will explore a different approach towards whether certain medical conditions and diseases are claimable under critical illness plans.
It will consider whether claimable conditions can be defined by the underlying disease and its severity, rather than by specific procedures.
In an Oct. 7 written response in parliament, Deputy Prime Minister Gan Kim Yong acknowledged that some critical illness plans use treatment procedures as "objective indicators" of disease severity and consequent financial impact.
This is because such plans are intended to help policyholders cope with the financial impact of a severe illness, rather than reimburse the cost of medical treatment, he said.
Critical illness questions
Gan was responding to a question by MP Hamid Razak, who asked if critical illness policy definitions could be moved away from being anchored to specific surgical procedures, and towards disease instead.
This is so that insurance cover is not lost solely due to differing treatment approaches, he said.
Hamid is a practising orthopaedic surgeon.
In March, a woman sued Prudential after she underwent brain surgery following a stroke, but her had claim denied.
In her critical illness insurance plan, it was stated that her stroke surgery would only be covered if she had underwent a surgical craniotomy, rather than an endovascular repair.
She argued that having suffered a stroke, she was unable to choose which surgery she would undergo, but eventually lost her suit.
Premiums may be affected
In his written reply, Gan said that any changes will require "careful consideration" as they affect the scope of coverage and claims experience.
Premiums for such policies may also be affected as they are dependent on the probability of claims materialising, he caveated.
He added that updated definitions will apply to new products sold.
