HONG KONG, January 31 , 2005 - American International Assurance Company (Bermuda) Limited (AIA) today announced a new medical insurance plan, “Premium Refund - Hospital Income” which provides daily hospital income and offers full premium refund at the end of the coverage period.

“Premium Refund – Hospital Income” offers 5 choices of daily benefit coverage, ranging from HK$300 to HK$1500, with a maximum benefit period of 1,000 days per injury or illness. When the policy is matured after 10 years of coverage, the full premium paid will be refunded. In case the policy is surrendered, the amount to be refunded will be equal to the refund percentage times the premium paid. During the coverage period of the policy, even if claims have been honored, policyholders can still receive the refund of premium, meaning that the coverage is free to the insured.

Mr. Jacky Chan, Vice President and Assistant General Manager of AIA said, “In the event of a serious illness or accident, people not only face the financial distress of loss of income, there will be other financial impacts on the potentially high costs of expensive medical treatment, the longer-term implications of respite after-care and the consequences of permanent disability.”

“For example, at a private hospital, surgical treatment of breast cancer would typically cost about HK$200,000. On-going medical care expenses in the subsequent two years would further cost approximately HK$50,000. The surgical treatment costs of heart disease, such as angina, in a private hospital would cost approximately HK$140,000. Looking at some hospital fees, the daily room and board charges for private hospital range from several hundred to several thousand Hong Kong dollars. In view of the huge medical expenses, there is a need for people in Hong Kong for a better insurance plan,” Mr. Chan said.

“In the past, customers may think that all their premium paid will become expenses once the policy has come to the end of the coverage period. The daily hospital income provided by this plan can help reduce the financial burden of the insured. The feature premium refund serves as a vehicle for cash savings. In the low interest rates environment, customers can better utilize their funds for a medical protection.” Mr. Chan said.

AIA’s Premium Refund – Hospital Income Plan also provides Worldwide Assistance Services. In case the insured suffers serious injury or illness or in the event of death while travelling outside Hong Kong and Macau, they can contact American International Assistance Services (AIAS) for emergency medical evacuation and repatriation of remains. The insured is covered for up to HK$500,000.

If the confinement is due to an accident that occurs when the insureds are riding as a fare-paying passenger on public land transportation over an established route such as a bus, tram or train, the amount of hospital income daily benefit will be doubled. In addition, to provide customers with greater financial flexibility, policyowner can apply policy loan while the policy is still in force.

AIA is Southeast Asia’s largest life insurer, with branch offices and affiliated companies located in countries and jurisdictions including China, Hong Kong, Macau, Malaysia, Thailand, Singapore, Brunei, Guam, Indonesia, Vietnam, India, Taiwan, the Philippines, Japan, Korea, Australia and New Zealand. The Company has been assigned ‘AAA’ insurer financial strength rating by global credit rating service Standard & Poor’s. In Hong Kong, AIA has also been assigned ‘Aaa’ the highest rating, by premier financial rating agency Moody’s. AIA is a wholly-owned subsidiary of American International Group, Inc. (AIG), the world’s leading international insurance and financial services organization.

Five Benefit Choices

Refund of Premium Table

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