Singapore legislation
Clause 20
Clause 20
Insurance of lot subject to mortgage
(1)
Notwithstanding any existing policy of insurance effected on a subdivided building a subsidiary proprietor may effect a policy of insurance in respect of damage to his lot in a sum equal to the amount secured by a subsisting mortgage thereon and owing as at the date of the damage or loss caused to the lot.
(2)
Where any such policy of insurance is in force —
payment shall be made by the insurer under such policy to the registered mortgagees in order of their respective priorities, subject to the terms and conditions of the policy;
subject to the terms and conditions of such policy, the insurer shall be liable to pay thereunder —
the value stated in such policy; or
the amount of the damage or loss; or
the amount sufficient, at the date of the damage or loss, to discharge the mortgage charged upon the lot,whichever is the least amount;
where the amount so paid equals the amount necessary to discharge a mortgage charged upon the lot the insurer shall be entitled to a transfer of the mortgage;
where the amount so paid by the insurer is less than the amount necessary to discharge a mortgage charged upon the lot the insurer shall be entitled to a sub-mortgage of the mortgage to secure the amount so paid on terms and conditions agreed upon as provided in subsection (3) of this section, or, failing agreement, on the same terms and conditions as those contained in the mortgage.
(3)
For the purposes of paragraph (d) of subsection (2) of this section, any insurer and mortgagee may at any time, whether before or after a policy of insurance has been effected by a subsidiary proprietor, agree upon the terms and conditions of the sub‑mortgage.
(4)
Nothing in this section shall limit the right of the subsidiary proprietor to insure against risks other than damage to his lot.
(5)
The policy of insurance authorised by this section and taken out by a subsidiary proprietor in respect of damage to his lot shall not be liable to be brought into contribution with any other policy of insurance save another policy taken out under this section in respect of damage to the same lot.
(6)
The provisions of this section shall apply notwithstanding the provisions of any law relating to insurance.