Clause 3

by deleting subsections (1) and (2) and substituting the following subsections:“(1) A life policy insuring the life of a person which is issued by a registered insurer shall be void unless —

the person effecting the insurance has an insurable interest in the life which is insured at the time the insurance is effected;

the life which is insured is that of —

the person effecting the insurance;

his spouse at the time the insurance is effected;

his child or ward under the age of 18 years at the time the insurance is effected; or

any other person on whom the person effecting the insurance is, at the time the insurance is effected, wholly or partly dependant; or

the life policy is one in respect of which all of the conditions referred to in subsection (2A) or (2B) are satisfied.(2) Where subsection (1)(a) applies, the policy moneys payable under the life policy shall not exceed the amount of the insurable interest at the time the insurance is effected.(2A) Section 5 of the Civil Law Act (Cap. 43) and section 62 shall not apply to a life policy, and a life policy shall not be void, if all of the following conditions are satisfied:

the life which is insured is that of the settlor of a trust;

the person effecting the insurance is the trustee of the trust;

any beneficiary of the trust —

has an insurable interest in the life of the settlor at the time the insurance is effected; or

is —

the settlor’s spouse at the time the insurance is effected;

the settlor’s child or ward under the age of 18 years at the time the insurance is effected; or

any other person on whom the settlor is, at the time the insurance is effected, wholly or partly dependant; and

the settlor consents in writing to the effecting of the insurance before it is effected.(2B) Section 5 of the Civil Law Act and section 62 shall not apply to a life policy, and a life policy shall not be void, if all of the following conditions are satisfied:

the life which is insured is that of a beneficiary of a trust (referred to in this subsection as the relevant beneficiary);

the person effecting the insurance is the trustee of the trust;

any beneficiary of the trust —

has an insurable interest in the life of the relevant beneficiary at the time the insurance is effected; or

is —

the relevant beneficiary’s spouse at the time the insurance is effected;

the relevant beneficiary’s child or ward under the age of 18 years at the time the insurance is effected; or

any other person on whom the relevant beneficiary is, at the time the insurance is effected, wholly or partly dependant; and

the relevant beneficiary consents in writing to the effecting of the insurance before it is effected.(2C) Subsections (1), (2), (2A) and (2B) shall apply to a life policy regardless of whether the proper law of the life policy is the law of Singapore.”;

by deleting the words “This section” in subsection (5) and substituting the words “Subsections (1)(a) and (b), (2), (3) and (4)”; and

by inserting, immediately after subsection (5), the following subsection:“(6) Subsections (1)(c), (2A), (2B) and (2C) shall not affect policies issued before the date of commencement of section 3 of the Insurance (Amendment) Act 2008.”.