in
Why is there a need to impose interest?
moh
Interest may be imposed on outstanding premiums where appropriate e.g. defaulters with premium arrears outstanding for prolonged periods. The interest may be compounded and recovered together with the outstanding premiums.
This fairly reflects the opportunity cost to the MediShield Life Fund, which would otherwise be invested in order to support future payments (e.g. MediShield Life claims) from the MediShield Life Fund. This loss translates to higher premiums for the rest of the insured if they are not recovered timely and sufficiently.
This information provided here is sourced from the MOH website.
Let other citizens know if this answer was helpful
Did this answer your question?Related Questions
Under what circumstances would I be required to pay the accumulated sum of premiums suspended from collection with compound interest?
from MOHWhy is there a need for strong premium recovery measures?
from MOHWill I still be imposed with interest and penalty if I make partial payment for my outstanding premiums?
from CPF
Will premium recovery measures for MediShield Life include chasing the next of kin?
from CPF
Can’t find what you’re looking for?