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Do you recommend paying your insurance via GIRO (auto deduct) ?

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  • Do you recommend paying your insurance via GIRO (auto deduct) ?

    I just have this experience about giro regarding my insurance payment. I received mail that there has been an unsuccessful deduction in my insurance. I was shocked because I do not remember missing any payment.

    I called my agent and after she checked everything she informed me that the unsuccessful deduction happened on August. I checked all my bank mails but I couldn't find my August bank transactions.

    Then last night I was not able to withdraw cash in atm. It says that "the amount exceeds your account's amount" or something like that. I was so worried. Then I checked my ibanking and saw that I have negative amount. They deducted it already. I immediately fund transferred from my savings to my other account.

    Now, I'm really wondering if giro is the best way for me to pay my policy.

    What do you ladies think?

  • #2
    Giro is one of the common mode of payments as it saves the customer the hassle of writing cheques on a monthly/yearly basis . However they would have to monitor the account where the funds are being deducted to avoid having insufficient money in the account as in your case, moreover most banking accounts do levy an extra charge if the balance goes into the negative. If you are really worried that a similar incident will happen in the near future, I suggest switching mode of payment to a credit card. On top of getting rewards points/rebates, card bills arrive via monthly statements which are supposedly easier to monitor, and not forgetting waiver of any late charges for credit cards are increasingly simple.

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    • #3
      Hi Andre-! Thanks for sharing this info!

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      • #4
        Originally posted by Andre- View Post
        Giro is one of the common mode of payments as it saves the customer the hassle of writing cheques on a monthly/yearly basis . However they would have to monitor the account where the funds are being deducted to avoid having insufficient money in the account as in your case, moreover most banking accounts do levy an extra charge if the balance goes into the negative. If you are really worried that a similar incident will happen in the near future, I suggest switching mode of payment to a credit card. On top of getting rewards points/rebates, card bills arrive via monthly statements which are supposedly easier to monitor, and not forgetting waiver of any late charges for credit cards are increasingly simple.
        I've already experienced that insufficient balance when AIA deducted on a different date they've told me. I am really thinking of another payment modes because monitoring my account is hard for me. I never know that credit card can be use in GIRO payments. I never get any credit card for me to prevent overshopping but if it can be use for GIRO I think its a nice deal for me. Thanks a lot for sharing.

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        • #5
          Originally posted by Andre- View Post
          Giro is one of the common mode of payments as it saves the customer the hassle of writing cheques on a monthly/yearly basis . However they would have to monitor the account where the funds are being deducted to avoid having insufficient money in the account as in your case, moreover most banking accounts do levy an extra charge if the balance goes into the negative. If you are really worried that a similar incident will happen in the near future, I suggest switching mode of payment to a credit card. On top of getting rewards points/rebates, card bills arrive via monthly statements which are supposedly easier to monitor, and not forgetting waiver of any late charges for credit cards are increasingly simple.
          Hello girls. I had wanted to use credit card to pay for my insurance bills but GE seems to not allow credit card payment. Do you encounter similar incidents? Or are there some policies that allow while some don't?

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          • #6
            There was once they deducted twice and i didn't even notice it until my insurance agent called me and told me about it. Cause usually i don't check my account every month for the insurance deduction.

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            • #7
              Originally posted by lilstar... View Post
              Hello girls. I had wanted to use credit card to pay for my insurance bills but GE seems to not allow credit card payment. Do you encounter similar incidents? Or are there some policies that allow while some don't?
              I have my insurance on credit card, no problems with that. My guess will be that your insurance have some investment elements to it?

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              • #8
                Originally posted by what_we_want_we_get View Post
                I've already experienced that insufficient balance when AIA deducted on a different date they've told me. I am really thinking of another payment modes because monitoring my account is hard for me. I never know that credit card can be use in GIRO payments. I never get any credit card for me to prevent overshopping but if it can be use for GIRO I think its a nice deal for me. Thanks a lot for sharing.
                Understanding the fundamentals of 'How GIRO works' will solve alot of problems. Whenever you apply for GIRO for any payments, check with the company when is the giro deduction dates. Normally there will be 2 dates. When your account does not have sufficient funds and the first deduction attempt fails, the second deduction will come in on a later date(usually about 10days later)

                Tracking your GIRO pyt is easy. The company will usually still send you a bill. The difference is that instead of asking you for payment, your bill may say "This amount will be deducted from your XYZ (bank’s name) account on DD/MM/YY".
                You can also
                a) Check the bill from the company as soon as it arrives;

                b) Verify the deductions against your bank statement/ savings passbook regularly.

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                • #9
                  Originally posted by CozyFinance View Post
                  Understanding the fundamentals of 'How GIRO works' will solve alot of problems. Whenever you apply for GIRO for any payments, check with the company when is the giro deduction dates. Normally there will be 2 dates. When your account does not have sufficient funds and the first deduction attempt fails, the second deduction will come in on a later date(usually about 10days later)

                  Tracking your GIRO pyt is easy. The company will usually still send you a bill. The difference is that instead of asking you for payment, your bill may say "This amount will be deducted from your XYZ (bank’s name) account on DD/MM/YY".
                  You can also
                  a) Check the bill from the company as soon as it arrives;

                  b) Verify the deductions against your bank statement/ savings passbook regularly.
                  Thanks CozyFinance! I checked my mails and yes there are dates. One on the 15th and the other is on the 24th. I think I'll try to do Giro for now if it still doesn't work for me then I'll change payment mode.

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                  • #10
                    I would also recommend switching to credit card. I used to pay my dbs online insurance bills via giro too but during this one month i had a lot of expenses and was also very busy so i didn't monitor my account and when the deduction was made, there wasn't enough money left. So essentially i defaulted on payment. Now i just use credit card to pay for the bills, i earn points, rewards and rebates so I actually save $. Hope this helps.

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                    • #11
                      I have two bank accounts and sometimes when I tend to overspent, there will be insufficient funds inside too. But they will do another deduction again, whereby they will send you a letter to inform you,

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                      • #12
                        If you are with DBS/posb bank, i'm pretty certain that they will send you a letter to inform you that 'a giro deduction was attempted....etc, please ensure you have enough funds in your account...'

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                        • #13
                          i have some GE policies on giro and some on credit cards. According to agents, some like ILP cant be on credit cards, though i don't know the reason.

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                          • #14
                            But i thought if you use credit card, then won't it be more risky?

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