Published September 18, 2008

Some want to reinstate AIA policies

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(SINGAPORE) Scores of Singaporeans continued to throng the American International Assurance (AIA) office again yesterday, although this time, some were looking to reinstate their policies.

And according to speculation, jittery policy holders who had previously chosen to pull out on fears that AIA's parent company - insurance giant American International Group (AIG) - would fold may even get the opportunity to reinstate their insurance policies without being subject to a penalty.

The US Federal Reserve announced yesterday that it would throw AIG a lifeline in the form of a two-year US$85 billion emergency loan to keep it from going belly up. As part of the deal, the government will get a 79.9 per cent stake in AIG.

AIA Singapore had also said on Tuesday that it has 'more than sufficient capital and reserves above the regulatory minimum requirements to meet obligations to policyholders'.

AIA is the largest insurance company in Singapore.