Singapore legislation

Schedule 4

of Deposit Insurance and Policy Owners’ Protection Schemes Act 2011

Schedule 4

Protection ratio

FOURTH SCHEDULESections 2(1), 47(2), 90(1) and Third ScheduleProtection ratio

1. In this Schedule —“Maximum Annuity Sum” means the amount of $100,000;“Maximum Group Sum Assured” means the amount of $100,000;“Maximum Group Surrender Value” means the amount of $50,000;“Maximum Sum Assured” means the amount of $500,000;“Maximum Surrender Value” means the amount of $100,000.

2. For the purposes of section 47 and the Third Schedule, the protection ratio is determined in the following manner:

(a)

in the case of Category 1 insured policies, 1;

(b)

for the sum assured for Category 2 insured policies, in respect of each life assured —

(i)

the ratio of the Maximum Sum Assured to the aggregate amount or (where instalment payments have, before the quantification date, been made to a covered party) the aggregate remaining amount, of the sum assured on the life assured guaranteed under all such policies (other than riders which accelerate the payment of part or all of the sum assured stated in the policy), upon the occurrence of a claim event (including the sum assured on any rider which provides additional payout of the sum assured upon the occurrence of a claim event); or

(ii)

1,whichever is lower;

(c)

for the surrender value for Category 2 insured policies, in respect of each life assured —

(i)

the ratio of the Maximum Surrender Value to the aggregate amount of the surrender value guaranteed (in the event that the insured policy owner or trustee of a trust of the insured policy has given written notice to the failed PPF Scheme member to surrender the policy) under all such policies; or

(ii)

1,whichever is lower;

(d)

in the case of Category 3 insured policies, in respect of each life assured —

(i)

the ratio of the Maximum Annuity Sum to the aggregate amount of commuted value of benefits guaranteed under all such policies; or

(ii)

1,whichever is lower;

(e)

in the case of Category 4 insured policies, in respect of each life assured per policy —

(i)

for the sum assured under a group policy —

(A)

the ratio of the Maximum Group Sum Assured to the amount of sum assured guaranteed under each group term, endowment policy or whole life policy, as the case may be; or

(B)

1,whichever is lower;

(ii)

for the surrender value under a group policy —

(A)

the ratio of the Maximum Group Surrender Value to the amount of surrender value guaranteed for each group endowment or whole life policy, as the case may be; or

(B)

1,whichever is lower;

(iii)

for the commuted value of group annuity —

(A)

the ratio of the Maximum Annuity Sum to the amount of commuted value of guaranteed benefits for each group annuity policy; or

(B)

1,whichever is lower.[31/2018]

Read in full context — Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 →