New riders will have a cap on the co-payment amount each year, with most insurers planning new riders with an annual cap of S$3,000.

Source: https://www.channelnewsasia.com/news/singapore/5-per-cent-co-payment-new-integrated-shield-riders-10021398

I find it very weird that the government has to step in to regulate how insurance works. We can look and choose insurance for ourselves. And if the insurance is over paying on errant claims insurance companies themselves should be looking into if the claim is justifiable. Its not the government job to get involved in it.