Medishield Life and CPF Life, profit making schemes?

By: Chua Chin Leng

I have raised this point many times and if I am not mistaken, no one thinks this is important enough to be raised in Parliament.

I have read Leong Sze Hian post in TRE where he quoted the data from the media that since 2002, $90m was paid out under the Eldershield scheme. And his estimate on the premium collected was $3 billion. No need to think too hard to see the billions collected in excess. Why are the billions not returned to the contributors to reduce their premiums?

Now we also have Medishield Life and CPF Life and the sum of premiums collected is mind boggling. And how much is being paid out and how much is the excess, the equivalent of profits being kept by the govt from these schemes? Why is so much money kept as profit, making profit from the people when the two schemes are basically for protection and not meant to be profit making?

I am saying, that these are not profit making schemes as the people do not expect the govt to turn these compulsory schemes into profit making schemes. It is morally not right, ethically not right for the govt to implement compulsory insurance schemes with profit making in mind.

Would the govt want to clarify on these schemes, whether they are profit making schemes and if not, explain to the people how the excess billions are being used to benefit the people, to reduce the premiums paid, not to be used for some other things unrelated.

The MPs, forget about the PAP MPs, but the opposition MPs should ask this simple question, are the Medishield Life and CPF Life insurance schemes meant to be profit making and if yes, they must oppose this motive. Asking question and getting an answer is not the end. When the answer tells a bad story, they must demand that the moral of the story be changed to be morally and ethically right, not legally right.

How many of you think there is nothing wrong for the Medishield Life and CPF Life Schemes to be profit making schemes? Is profit making the main objective, and acceptable even if it is incidental?  How could the govt make profits from such insurance schemes?

I stand corrected if the govt clarifies that these are not profit making schemes and the excess billions collected will be returned to the people to lower the premiums paid like what similar schemes in mature countries are doing.

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