Clause 34 — Deposit Insurance and Policy Owners’ Protection Schemes Bill

(1)

There shall be established under the PPF Scheme 2 funds to be called —

(a)

the Policy Owners’ Protection Life Fund to cover insured policies comprised in insurance funds established and maintained under section 17 of the Insurance Act (Cap. 142) by direct insurers registered to carry on life business; and

(b)

the Policy Owners’ Protection General Fund to cover insured policies comprised in insurance funds established and maintained under section 17 of the Insurance Act by direct insurers registered to carry on general business.

(2)

There shall be paid into the PPF Life Fund —

(a)

all levies, additional levies and late payment fees paid by PPF Scheme members under this Act in respect of the insured policies comprised in insurance funds established and maintained under section 17 of the Insurance Act by direct insurers registered to carry on life business;

(b)

all moneys borrowed by the Agency for the purpose of performing its functions under this Act in respect of the insured policies comprised in insurance funds established and maintained under section 17 of the Insurance Act by direct insurers registered to carry on life business;

(c)

all moneys recovered by the Agency from, or out of the assets of, failed PPF Scheme members under this Act in respect of the PPF Scheme for life business;

(d)

any interest, dividend and other income derived from the investment of the moneys in the PPF Life Fund; and

(e)

all other moneys lawfully paid into the PPF Life Fund.

(3)

There shall be paid into the PPF General Fund —

(a)

all levies, additional levies and late payment fees paid by PPF Scheme members under this Act in respect of the insured policies comprised in insurance funds established and maintained under section 17 of the Insurance Act by direct insurers registered to carry on general business;

(b)

all moneys borrowed by the Agency for the purpose of performing its functions under this Act in respect of the insured policies comprised in insurance funds established and maintained under section 17 of the Insurance Act by direct insurers registered to carry on general business;

(c)

all moneys recovered by the Agency from, or out of the assets of, failed PPF Scheme members under this Act in respect of the PPF Scheme for general business;

(d)

any interest, dividend and other income derived from the investment of the moneys in the PPF General Fund; and

(e)

all other moneys lawfully paid into the PPF General Fund.

(4)

The PPF Life Fund and the PPF General Fund shall be used for the objects and purposes of the PPF Scheme as provided in this Act, and shall, subject to the directions of the Minister, be controlled and administered by the Agency.

(5)

The PPF Life Fund shall be maintained by the Agency separately and apart from the PPF General Fund and the DI Fund.

(6)

The PPF General Fund shall be maintained by the Agency separately and apart from the PPF Life Fund and the DI Fund.

(7)

For the avoidance of doubt, the PPF Life Fund and the PPF General Fund shall not be funds of the Agency or the Authority.