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The Singaporean government has agreed to administer the ElderShield disability insurance scheme beginning 2021, taking over the responsibility from three major private-sector insurers – Aviva, Great Eastern, and NTUC Income.
The government will operate the scheme on a not-for-profit basis, The Straits Times reported, citing a statement from the Ministry of Health (MOH).
“In the event that the actual claims experience turns out better than expected, there will continue to be premium rebates for ElderShield policyholders,” the ministry said.
According to the MOH, the move will allow around 1.3 million ElderShield policyholders to switch to the new CareShield Life scheme in a much smoother manner. CareShield Life, a compulsory government-run scheme that seeks to replace ElderShield, will be implemented from 2020 for all Singaporeans aged between 30 and 40.
The three private insurers will transfer to the government around SG$2.9 billion in assets and liabilities associated with ElderShield, the MOH said.
The ElderShield Review Committee, which recommended in January 2018 that the government should run the disability insurance scheme, applauded the development.
“We had earlier noted in our report that there is value for all ElderShield and CareShield Life policyholders to be serviced by the same administrator to ensure consistency in policy administration,” said committee chairman Chaly Mah.
He said that even those who do not switch to CareShield Life will still benefit from the improvements, and they will still be covered by the ElderShield program.
