20 Jan 2012
Payout is based on School’s decision to award contract to insurer, Fatal accident happened before contract was finalised.
Singapore, 20 January 2012 – NTUC Income, Singapore’s leading insurer, announced today that it will make an exceptional payout of $15,000 under its Student Protection Plan to the family of the Primary 4 student Lee Yu Heng. The nine-year old died after a car hit him while he was a few steps away from his school.
NTUC Income’s decision to pay is unusual from a legal stand as insurers do not have the liability to pay as long as there is no signed contract. In this case, the School decided to award the contract to NTUC Income but the accident occurred while the paperwork had yet to be settled. NTUC Income investigated and chose to honor the intent of the contract, and make the payout.
Under the Student Protection Plan taken by Sembawang Primary School, students are insured for death, disability and medical expenses from accidents. Under circumstances of death, the payout is $15,000. There will be an additional payout when the deceased’s hospital expenses are confirmed.
Ms Lee How Teck, Senior Vice President & General Manager of NTUC Income’s Group & Health Division said: “NTUC Income decided to examine the broader goal of the protection plan and honour the commitment to the school’s students.
“NTUC Income felt it was the right thing to do to put people above processes since people are at the heart of our decision making and in everything we do. It also reflects our philosophy of settling claims quickly, fairly and in the spirit of the purpose of insurance.”
“Our hearts go out to the family of Yu Heng. We hope the payout will help provide some relief to Yu Heng’s family in this trying time.”
NTUC Income urges all schools to embark on timely renewals of their Student Protection Plan so that their insurance cover kicks in from the start of the school year.