SINGAPORE: The Government will set up an insurance fund which will be ringfenced for CareShield Life, a new disability insurance scheme to be launched in 2020, Health Minister Gan Kim Yong said on Tuesday (Jul 10).
The fund will be administered by the Central Provident Fund (CPF) Board, and be audited annually to ensure that all the monies are accounted for he added.
“All premiums collected for and any returns from investments will remain entirely within the fund and used solely for the benefit of policyholders,” he said.
He was speaking during the opening of the parliamentary debate on the Eldershield Review Committee Report.
The Government will inject S$100 million into the CareShield Life insurance fund.
This is to cover a "significant portion" of the costs of including Singaporeans in the future cohorts with preexisting disabilities, said Senior Minister of State for Health Amy Khor.
The Government will also set up an independent council to provide advice on the administration of the scheme, he said. The council will also regularly review CareShield Life and recommend premiums and payout adjustments to the Government, in accordance with an actuarially sound adjustment framework, he added.
CareShield Life will offer lifetime payouts, with potential payouts increasing for as long as premiums are being paid. These increasing potential payouts will be supported by premiums that will increase over the years.
The Government will provide premium subsidies.
CareShield Life, which will also cover future cohorts of Singaporeans with pre-existing disabilities, will be administered by the Government on a not-for-profit basis, Mr Gan added. This is a change from the administration of ElderShield, which is done by private insurance companies.