Clause 28

On the completion of an investigation under section 27 of this Act, the Commissioner shall transmit to the insurer a summary of his conclusions therefrom.

If as the result of the investigation the Commissioner is satisfied that, by reason of the insolvency of the fund maintained by the insurer under this Act for either class of insurance business, it is expedient to do so in the interests of the policy owners interested in that fund, he may by notice in writing to the insurer direct that no further policies belonging to that class are to be issued by it or to be entered in its register of policies; but in the case of a company incorporated or established outside Singapore the direction shall not apply to the issue of policies in the course of its business outside Singapore.

Whether or not the Commissioner gives a direction under subsection (2) of this section, the Commissioner may give to the insurer such directions as to the conduct of the insurer’s affairs, the disposition or recovery of assets of the insurer, or the taking of any available steps for the recovery by the insurer of sums appearing to the Commissioner to have been illegally or improperly paid, as he considers appropriate having regard to his conclusions from the investigation:Provided that no direction as to the conduct of the insurer’s affairs shall continue in force for more than twelve months from the giving thereof, without prejudice however to the giving of a further direction.

If the insurer is aggrieved by a direction under this section, or disputes the validity of such a direction, the insurer may within such time as may be limited by rules of Court appeal to the High Court, but the validity of a direction shall not be questioned except on such an appeal and, in the case of a direction under subsection (2) of this section or of a direction under subsection (3) of this section as to the conduct of the insurer’s affairs, neither the bringing of the appeal nor any order made on the appeal shall affect the operation of the direction as regards any period before the determination of the appeal.

On an appeal under subsection (4) of this section, the High Court may confirm or quash the direction or may remit the matter to the Commissioner for him to vary the direction or to replace it with a different direction in accordance with the order of the Court.

For each occasion on which an insurer purports in contravention of a direction under subsection (2) of this section to issue a policy or enter a policy in a register of policies under this Act, the insurer shall be guilty of an offence and shall be liable on conviction to a fine of one thousand dollars.

If an insurer, having made default in complying with a direction under subsection (3) of this section, fails to make good the default within one month after the service on the insurer by the Commissioner of a notice requiring it to do so, the High Court may on the application of the Commissioner make such order against the insurer or any director or officer of the insurer as the High Court thinks fit with a view to making good the default.