AMERICAN International Assurance (AIA) came up with more damage-control measures yesterday, after policyholders continued to form queues at its Finlayson Green service centre yesterday.
Those who surrendered their policies this week can reinstate them without being charged the usual penalties, AIA Singapore said.
They are also not required to submit evidence of insurability, such as health reports.
AIA took out full-page ads in local newspapers yesterday, reassuring its clients it has enough capital and reserves to meet all policyholder obligations.
The ads stressed that funds in Singapore are segregated from its parent firm American International Group (AIG)'s.
"These policies will be reinstated in full as if they had never been surrendered. No interest will be charged on back premium and/or cash value returned to AIA," said the insurer.
"Any dividends will be redeposited into the policyholder's account and interest will continue to be accrued from the date of reinstatement."
Written requests for reinstatement must be received by AIA within 14 days of the date of surrender.
Welcoming AIA's move, the Monetary Authority of Singapore reiterated that the insurer has sufficient assets in its insurance funds to meet its liabilities. It also urged policyholders not to rush to terminate policies.
AIA said yesterday that less than 0.1 per cent of total policies in force were surrendered.
Last night, it also announced that its executive vice-president and general manager Mark O'Dell has resigned. It said that his decision to leave is a personal decision and "is in no way related to the recent developments at AIG".
Mr Kenneth Juneau, executive vice-president and senior regional life executive of AIA's regional office, will take over from today.
