Singapore legislation
Section 53
of Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
Section 53
Recovery of compensation paid in excess or in error under PPF Scheme
(1)
If —
any compensation paid to, or for the benefit of, any covered party is in excess of what ought to have been paid to the covered party under this Act; or
any compensation is paid in error to any person,the Agency may recover the amount paid in error or excess from the person who received the compensation, in such manner and within such period as may be specified by the Agency to that person.
(2)
Without affecting any other remedy, any amount paid in error or excess to any person is recoverable as a debt due to the Agency by that person.
(3)
Despite any provision in the Limitation Act 1959, an action to recover any amount paid in error or excess to any person recoverable by virtue of this section must not be brought after the expiry of the period during which the action may be brought against the person under the Limitation Act 1959 or the date of completion of the winding up of the failed PPF Scheme member, whichever is later.
(4)
Upon the recovery of any amount paid in error or excess from any person under this section (called in this section the recovered amount), the Agency must do the following:
in the case where the failed PPF Scheme member is not wound up or where the winding up of the failed PPF Scheme member has not completed and the Agency has not recovered or has not recovered in full from the failed PPF Scheme member or its liquidator (as the case may be) the compensation which it paid out to the covered party, the Agency must deduct from the recovered amount the shortfall in compensation and pay such deducted amount to the PPF Life Fund or the PPF General Fund (as the case may be) and pay the amount remaining from the recovered amount after the deduction (if any) to the failed PPF Scheme member or its liquidator, as the case may be;
in the case where the failed PPF Scheme member is not wound up or where the winding up of the failed PPF Scheme member has not completed and the Agency has recovered from the failed PPF Scheme member or its liquidator (as the case may be) in full the compensation which it paid out to the covered party, the Agency must pay the recovered amount to the failed PPF Scheme member or its liquidator, as the case may be;
in the case where the winding up of the failed PPF Scheme member has completed and the Agency has not recovered or has not recovered in full from the liquidator the compensation which it paid out to the covered party, the Agency must deduct from the recovered amount the shortfall in compensation and pay such deducted amount to the PPF Life Fund or the PPF General Fund (as the case may be) and pay the amount remaining from the recovered amount after the deduction (if any) to the Official Receiver to be placed to the credit of the Companies Liquidation Account;
in the case where the winding up of the failed PPF Scheme member has completed and the Agency has recovered from the liquidator in full the compensation which it paid out to the covered party, the Agency must pay the recovered amount to the Official Receiver to be placed to the credit of the Companies Liquidation Account.
(5)
Section 197(4), (7), (8), (9) and (10) of the Insolvency, Restructuring and Dissolution Act 2018 applies, with the necessary modifications, to the money paid to the Official Receiver under subsection (4)(c) and (d).