In our efforts to promote a larger role for consumer activism, attention has also been directed at enhancing dispute resolution mechanisms for consumers to seek redress. Within the insurance sector, the Insurance Mediation Bureau established in 1992 constitutes the main avenue outside the court system for resolving disputes between policyholders and their insurers. To further enhance the role of the Insurance Mediation Bureau as a dispute resolution mechanism, an expanded scope for the Bureau involving higher limits for claims falling within its purview and the inclusion of third party claims is being considered. This will provide greater access to the Bureau for a wider spectrum of the insuring public. At the same time, efforts are also underway to merge the mediation bureaus of both the banking and insurance sectors into a single new Financial Mediation Bureau that will serve as a one-stop centre for the resolution of a broad range of retail consumer issues raised against the financial institutions that are regulated by the Central Bank. With effect from 1 June this year, we have also made it a requirement for all insurers and takaful operators to establish dedicated complaints units in their respective organizations. The experience has been that most complaints can be resolved in-house by the service providers themselves, in particular those complaints that involve delays in claims settlements due to institutional procedures, which generally comprise the bulk of public complaints.
Under the programme, examinations have been made mandatory to maintain continuing education standards of agents. ·  Guidelines dealing with unfair practices in insurance business have been introduced in April 2003 to provide a more comprehensive framework for the regulation of insurance market practices. Among other things, the Guidelines provide for enhanced disclosures to consumers, requirements for insurance to be sold on equitable terms and conditions, and specific restrictions against misrepresentation and unfair discrimination. ·  The Guidelines on Claims Settlement Practices introduced in 1995 have now been revised to incorporate new measures and improved market practices in claims handling, as well as the specification of minimum fraud control and risk management practices relevant to the claims process. ·  A minimum standard on product disclosure and transparency in the sale of medical and health insurance policies was issued in May 2003. The standard requires insurers and their intermediaries to provide sufficient details of the essential features of medical and health policies so that policyholders will understand the important provisions of the policies, in particular, with respect to premiums, benefits, exclusions and limitations under the policies. ·  A survey has also been commissioned to determine the level of consumer satisfaction with financial services, including insurance. The results of the survey will provide important input for the development of a service quality index for financial services that will serve as a benchmark for financial institutions to evaluate their service levels and identify areas for improvement.