Why Resale-Flat Buyer Didn't Effect New Fire Policy

Source : The Straits Times, Nov 2, 2007

I REFER to the letter by Mr Dons Joshua Goh Chun Hwee, 'Why wasn't fire coverage renewed for five years?' (ST, Oct 16).

American Home Assurance Company, Singapore (AHAC) is the appointed insurer for the HDB fire-insurance scheme. This scheme ensures prompt reinstatement of flats affected by fire and helps to ease the financial burden of HDB lessees by offering fire insurance at affordable premiums.

AHAC fire insurance insures the flat and not the owner; a new flat owner could obtain the original insurance certificate from the previous owner and continue the cover till the expiry of the policy. For the new owner who has not obtained the original certificate of insurance from the previous owner, a reprint of the certificate could be obtained at AHAC counters located at HDB Hub for a fee, depending on the flat type.

Mr Goh purchased his resale flat last December which at that time had fire insurance purchased by the previous owner and expiring only this month. The policy had more than six months' coverage to go and hence he obtained a reprint of the certificate of insurance instead of effecting a new policy. The fee collected was for the reprint and administrative charges incurred in processing the request.

AHAC is committed to delivering excellent service to our customers and it is one of our top priorities to address Mr Goh's concerns. Unfortunately, the matter was not brought to our attention prior to the publication of his letter.

Mr Goh has since contacted our company and we have resolved the matter.

Koh Hoe Shin
Vice-President
Personal Lines Department
American Home Assurance Company, Singapore