The premium rates for the 5 plan types (Classic, Executive, Deluxe, Premier and Elite) have increased. The new premium rates will apply to all new business submission from 14 January 2010 onwards. The new premium rates have increased in the range of 10%-30%, with slightly higher % increase in younger age groups. For the inforce policies, the new premium rates will apply upon renewals on or after 1 March 2010. Those policies with renewals before 1 March 2010 will still be renewed under the old premium rates.

There will be 3 new age banding on premium for age groups 0-4, 5-14 and 15-18. Previously, age 0-18 has the same premium rate.

GST is now built-in for claims. Previously, GST on claims was not claimable.

With effect from 14 January 2010, Classic plan type will no longer be available for new business. Existing block of Classic policyholders are allowed to continue under the Classic plan. New premium rates will apply to policies with renewals on or after 1 March 2010. The following plan types continue to be available for new business: Executive, Deluxe, Premier and Elite.

The Standard plan type will be removed and will auto-upgrade the policyholders to the next tier – Classic plan type. The auto-upgrade will take effect to policies with renewals on or after 1 March 2010 and underwriting is not required. However, if the Standard policy has loading, the loading will be computed on a consistent basis on the Classic plan. Affected policyholders will be informed by 12 January 2010. The policyholders will have to inform Manulife if they do not wish to renew their plans. An opt-out slip will be provided.

Finally, commission rate for Manucare will decrease by 25%.