Singapore legislation
Section 52
of Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
Section 52
Subrogation
(1)
Upon payment out of the PPF Life Fund or the PPF General Fund of any compensation under this Act to, or for the benefit of, any covered party, the Agency is subrogated to the extent of such payment to all the rights and remedies of —
the insured policy owner;
the beneficiary; (c)the trustee of a trust of an insured policy; or
the person who received compensation on behalf of the insured policy owner, the trustee of a trust of an insured policy or the beneficiary,as the case may be, in respect of the insured policy in priority over —
the rights and remedies of the insured policy owner or the person who received the compensation on behalf of the insured policy owner (as the case may be) in relation to that insured policy;
in the case where the insured policy is covered under the PPF Life Fund or the PPF General Fund and provides third party benefits, the rights and remedies of the beneficiary or the person who received the compensation on behalf of the beneficiary (as the case may be) in relation to that insured policy; and
the rights and remedies of any person who is subrogated, whether or not before the Agency’s subrogation, to the rights and remedies of any of the persons referred to in paragraphs (a), (b), (c) and (d) in relation to that insured life policy,and may maintain an action in respect of those rights and remedies in the name of the person referred to in paragraph (a), (b), (c) or (d) (as the case may be) or in the name of the Agency, subject to subsection (2).
(2)
Where the Agency maintains an action in respect of the rights and remedies in the name of the person referred to in subsection (1)(a), (b), (c) or (d) (as the case may be) the following provisions apply:
in the case where the failed PPF Scheme member is not wound up, the Agency is entitled to recover the full amount of compensation claimed against the failed PPF Scheme member, despite any liabilities owing by the insured policy owner to the PPF Scheme member;
in the case where the failed PPF Scheme member is wound up, the insolvency rules relating to set-off do not apply in relation to the rights and remedies of the insured policy owner.
(3)
For the purposes of subsection (1), where the Agency is unable to effect payment to any covered party (whether due to an incorrect or outdated address, a dormant account or any other reason beyond the reasonable control of the Agency), the Agency is treated as having made payment out of the PPF Life Fund or the PPF General Fund (as the case may be) of compensation under this Act to, or for the benefit of, the covered party, if the Agency makes payment of the compensation to the Public Trustee appointed under the Public Trustee Act 1915 to be held on trust for the covered party.
(4)
The persons referred to in paragraphs (a), (b), (c) and (d) of subsection (1), or any person who is subrogated, whether or not before the Agency’s subrogation, to the rights and remedies of those persons, is not entitled to receive any amount from, or out of, the assets of the failed PPF Scheme member until the Agency has been reimbursed in full the amount of compensation paid to those persons.
(5)
Despite any provision in the Insolvency, Restructuring and Dissolution Act 2018 or the Co‑operative Societies Act 1979, the Agency is entitled —
in the case where a failed PPF Scheme member is wound up or dissolved, to be reimbursed out of the assets of the failed PPF Scheme member for the expenses incurred for or in respect of —
the payment of any compensation to any covered party, including any interest charged on moneys borrowed by the Agency for the purpose of making payment of any compensation under the PPF Scheme;
the lodging of any claim with the liquidator of the failed PPF Scheme member for any compensation that has been paid out to any covered party under the PPF Scheme;
any communication with any covered party and the public on, or relating to, the payment of any compensation to any covered party under the PPF Scheme; and
such other matters as may be prescribed by the Authority; or
in any other case, to be reimbursed by the failed PPF Scheme member or the provisional liquidator of the failed PPF Scheme member (as the case may be) for the expenses incurred for or in respect of —
the payment of any compensation to any covered party, including any interest charged on moneys borrowed by the Agency for the purpose of making payment of any compensation under the PPF Scheme;
the lodging of any claim with the provisional liquidator of the failed PPF Scheme member for any compensation that has been paid out to any covered party under the PPF Scheme;
any communication with any covered party and the public on, or relating to, the payment of any compensation to any covered party under the PPF Scheme; and
such other matters as may be prescribed by the Authority.
(6)
The Authority may by regulations —
provide for the manner, process or method by which the Agency may exercise its rights to be subrogated to the rights and remedies as set out in subsection (1); and
prescribe the matters mentioned in subsection (5)(a)(iv) and (b)(iv).
(7)
For the purposes of making payment of compensation by the Agency to the Public Trustee under subsection (3) and payment of compensation by the Public Trustee to any covered party under this Act, the Authority may, with the Public Trustee’s concurrence and in consultation with the Agency, make regulations for or in respect of all or any of the following matters:
the manner in which moneys paid by the Agency to the Public Trustee are to be paid to any covered party under this Act;
the fees to be paid by the Agency to the Public Trustee and the manner of payment of such fees;
such other matters as the Authority considers necessary.
(8)
The provisions in the Fifth Schedule apply in relation to the holding and payment of compensation by the Public Trustee to insured policy owners and beneficiaries under this Act.
(9)
If the Authority wishes to amend or vary any regulations made under subsection (7), the Authority must first conduct a joint review with the Public Trustee and such regulations must not be amended or varied without the Public Trustee’s concurrence and consulting the Agency.