Cheating

Cheating is an act of lying, deception, fraud, trickery, imposture, or imposition. Cheating characteristically is employed to create an unfair advantage, usually in one's own interest, and often at the expense of others. Cheating implies the breaking of rules. The term "cheating" is less applicable to the breaking of laws, as illegal activities are referred to by specific legal terminology such as fraud or corruption.

Unjustified increase in premium for motor insurance

Insurance companies have increased their premium rates by about 20% this year. Dr. Money said that the increase is not justified, as these companies have made a lot of profit from their investments. Here is his article:

http://newpaper.asia1.com.sg/columnists/story/0,4136,168843,00.html

http://www.tankinlian.com/drmoney/

Invest in Foreign Currencies

Dr. Money gives some tips on how to invest in foreign currencies to get a higher return:

http://newpaper.asia1.com.sg/columnists/story/0,4136,166429,00.html

http://www.tankinlian.com/drmoney/

Complain about a poor deal

An insurance agent in Indonesia sold a large investment-linked policy to a senior government official. The annual premium was SGD 15,000 a year. The policyholder was angry when he learned that 15% of the premium was deducted as first year charge. He was not told about this deduction by the agent. He lodged a complaint with the insurance company.

The insurance company was worried that this official could give a lot of problem. They asked the agent to accept a lower commission of, so that only 5% was deducted, allowing 95% of the premium to be credited to the policyholder's investment. The agent agreed. Although this deduction was probably mentioned in the benefit illustration, the policyholder was able to get this special treatment because of his high position.

Actually the deduction of 15% was quite reasonable. In Singapore, 80% of the first year's premium is deducted, leaving only 20% to be invested. Most policyholders were probably not aware about this high deduction. When they found out, they are probably to ashamed or reluctant to lodge a complaint.