Singapore legislation
Clause 3
Clause 3
Requirements for carrying on business as insurer
(1)
Subject to the provisions of this Act, insurance business shall not be carried on in Singapore by any person as insurer except —
by a company as defined in the Companies Ordinance (Cap. 174) or a company incorporated outside Singapore which has an established place of business in Singapore; or
by a society registered under the Co-operative Societies Ordinance (Cap. 175); or
by an unincorporated company established in the United Kingdom before the year 1862, which has been carrying on business as insurer in Singapore since before the date of the coming into operation of this Act, and has an established place of business in Singapore.
(2)
No such company or society, other than an existing insurer, shall carry on life business or general business in Singapore as insurer unless it is registered under this Act in respect of that class of business and has the deposit required by this Act in respect of it.
(3)
No existing insurer shall carry on life business or general business in Singapore unless it is registered under this Act in respect of that class of business and has the deposit required by this Act in respect of it:Provided that this subsection shall not apply to an existing insurer so as to require a deposit before the end of three months from the date of the coming into operation of this Act, or so as to require registration before the end of six months from the said date.
(4)
The Commissioner may, on the application of an existing insurer, direct that subsection (3) of this section shall not apply to the insurer in respect of the collection or receipt of premiums on Singapore policies belonging to either class of business, if the insurer satisfies the Commissioner before the end of three months from the date of the coming into operation of this Act —
that the insurer is not carrying on nor proposing to carry on that class of business in Singapore as insurer otherwise than by the collection or receipt of premiums on those policies; and
that reasonable provision has been or will be made for the insurer’s liability in respect of those policies, and adequate arrangements will exist for payment in Singapore of premiums and claims on those policies.
(5)
Any person who contravenes the provisions of this section shall be guilty of an offence and shall be liable on conviction to a fine of five thousand dollars, or to imprisonment for a term of twelve months, or to both such fine and imprisonment and to a further fine of one thousand dollars for every day during which the offence is continued after conviction.