Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 · 2020 Revised Edition · Schedules
Schedule 3 · Protected liabilities
Feedback & supportTHIRD SCHEDULESections 2(1), 54(8), 90(1) and Fourth ScheduleProtected liabilities
1. For the purposes of computing the levies payable by PPF Scheme members under section 38, the aggregate amount of the protected liabilities of a PPF Scheme member in respect of its insured policies covered under the PPF Life Fund is the aggregate of all the following amounts:
PPF Scheme
“PPF Scheme” means the Policy Owners’ Protection Scheme established under section 30;
in the case of Category 1 insured policies, an amount equivalent to the product of the protection ratio referred to in paragraph 2(a) of the Fourth Schedule and the guaranteed policy liabilities for each of such policies;
protection ratio
“protection ratio” has the meaning given in the Fourth Schedule;
in the case of Category 2 insured policies, an amount calculated in accordance with the following formula: whereAis the protection ratio for sum assured referred to in paragraph 2(b) of the Fourth Schedule; Bis the protection ratio for surrender value referred to in paragraph 2(c) of the Fourth Schedule; and Cis the guaranteed policy liabilities for each of such Category 2 insured policies;
guaranteed policy liabilities
“guaranteed policy liabilities”, in relation to insured policies, means the policy liabilities, relating to benefits guaranteed under the insured policies only, calculated in accordance with regulations prescribed pursuant to section 17 of the Insurance Act 1966 for the valuation of assets and liabilities in an insurance fund;
in the case of Category 3 insured policies, an amount equivalent to the product of the protection ratio referred to in paragraph 2(d) of the Fourth Schedule and the guaranteed policy liabilities for each of such policies;
in the case of Category 4 insured policies —
where the insured policies are group term policies, group endowment policies or group whole life policies, an amount calculated in accordance with the following formula: whereDis the protection ratio for sum assured referred to in paragraph 2(e)(i) of the Fourth Schedule; Eis the protection ratio for surrender value referred to in paragraph 2(e)(ii) of the Fourth Schedule; and Fis the guaranteed policy liabilities for each of such group term policies, group endowment policies or group whole life policies; and
where the insured policies are group annuity policies, an amount equivalent to the product of the protection ratio for commuted value referred to in paragraph 2(e)(iii) of the Fourth Schedule and the guaranteed policy liabilities for each of such policies.
commuted value
“commuted value”, in relation to an insured policy which provides for the payment of an annuity, means the present value of the expected future payments to be made —(a)for a term dependant on the continuation of human life; or(b)upon the death of the life assured or surrender of the insured policy by the insured policy owner,as specified under the terms of the insured policy;
2. For the purposes of computing the compensation to be paid out to an insured policy owner from the PPF General Fund under section 48A, the aggregate amount of the protected liabilities in respect of the insured policy owner’s insured policy issued by a failed PPF Scheme member is calculated in the following manner:
insured policy owner
“insured policy owner” means the policy owner of an insured policy;
in the case of a compulsory insurance policy, the full amount of any liability of the failed PPF Scheme member under the insured policy, in respect of a sum payable to any person entitled to the benefit under the terms of any compulsory insurance policy, which arises from a liability of the policy owner that is subject to compulsory insurance, including the full amount of any such liability which becomes payable before, or within 30 days after, the quantification date;
compulsory insurance policy
“compulsory insurance policy” means any policy of insurance which complies with the requirements of —(a)the Motor Vehicles (Third‑Party Risks and Compensation) Act 1960; or(b)the Work Injury Compensation Act 2019 or the Work Injury Compensation Act repealed by that Act;
in all other cases, the full amount of any liability of the failed PPF Scheme member to the insured policy owner under the terms of the insured policy, including the full amount of any such liability which becomes payable before, or within 30 days after, the quantification date.
failed PPF Scheme member
“failed PPF Scheme member” means a PPF Scheme member in respect of which the Authority has made a determination under section 46(1) that the PPF Life Fund or the PPF General Fund is to be utilised for one or more of the purposes mentioned in section 46(2), and any reference to “failure” in relation to a PPF Scheme member is to be construed accordingly;
3. For the purposes of determining the amount of benefits that an insured policy owner is entitled to receive from the PPF General Fund in the event of a claim under the insured policy owner’s insured policy, which occurs after the transfer or during the run‑off of the insurance business of the failed PPF Scheme member under section 54, the protected liabilities in respect of the insured policy owner’s insured policy are —
insured policy
“insured policy” means —(a)any life policy;(b)any accident and health policy;(c)any compulsory insurance policy; or(d)any specified personal line insurance policy which is a Singapore policy;
in the case of a compulsory insurance policy, the full amount of any liability of the failed PPF Scheme member under the insured policy for a sum payable to any person entitled to the benefit under the terms of the compulsory insurance policy for a liability of the policy owner that is subject to compulsory insurance, including the full amount of any such liability of the failed PPF Scheme member which becomes payable before, or within 30 days after, the quantification date; and
policy owner
“policy owner” has the meaning given in the First Schedule to the Insurance Act 1966;
in all other cases, the full amount of any liability of the failed PPF Scheme member to the insured policy owner under the terms of the insured policy, including the full amount of any such liability of the failed PPF Scheme member which becomes payable before, or within 30 days after, the quantification date.
quantification date
“quantification date” means —(a)in the case of a DI Scheme member —(i)that is wound up by a court in Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(ii)that is wound up by a court in a country or territory outside Singapore, the date of commencement of winding up under the law of that country or territory;(iii)that is wound up by a court in Singapore and by a court in a country or territory outside Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(iv)that is wound up voluntarily in Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(v)that is wound up voluntarily in a country or territory outside Singapore, the date of commencement of winding up under the law of that country or territory;(vi)that is wound up voluntarily in Singapore and in a country or territory outside Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018; or(vii)in respect of which the Authority determines that compensation be paid out of the DI Fund under section 21(1) (whether the DI Scheme member is subsequently wound up or not), the date on which the notice of payment of compensation is published in the Gazette under section 21(4); and(b)in the case of a PPF Scheme member —(i)that is wound up by a court in Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(ii)that is wound up by a court in a country or territory outside Singapore, the date of commencement of winding up under the law of that country or territory;(iii)that is wound up by a court in Singapore and by a court in a country or territory outside Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(iv)that is wound up voluntarily in Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(v)that is wound up voluntarily in a country or territory outside Singapore, the date of commencement of winding up under the law of that country or territory;(vi)that is wound up voluntarily in Singapore and in a country or territory outside Singapore, the date of commencement of winding up under the Insolvency, Restructuring and Dissolution Act 2018;(vii)that is a co-operative society in respect of which the Registrar of Co‑operative Societies has made an order cancelling the registration of that society under section 89(1) of the Co‑operative Societies Act 1979, the date of the order; or(viii)in respect of which the Authority has made a determination under section 46(1) that the PPF Life Fund or the PPF General Fund is to be utilised for one or more of the purposes mentioned in section 46(2) (whether the PPF Scheme member is subsequently wound up or not), the date on which the notification of the Authority’s determination is published in the Gazette under section 46(6);
4. For the purposes of determining the amount of benefits that an insured policy owner is entitled to receive from the PPF General Fund in the event of termination of an insured policy issued by the failed PPF Scheme member under section 54, the protected liabilities in respect of the insured policy are —
PPF General Fund
“PPF General Fund” means the Policy Owners’ Protection General Fund established under section 34(1)(b);
in the case of a compulsory insurance policy, the full amount of any liability of the failed PPF Scheme member under the insured policy before the termination, in respect of a sum payable to any person entitled to the benefit under the terms of the compulsory insurance policy for a liability of the policy owner that is subject to compulsory insurance before the termination of the policy; and
policy
“policy” has the meaning given in the First Schedule to the Insurance Act 1966;
in all other cases, the full amount of any liability of the failed PPF Scheme member to the insured policy owner under the terms of the insured policy applicable before the termination.
5. For the purposes of determining the amount of benefits that an insured policy owner is entitled to receive from the PPF Life Fund in the event of a claim under the insured policy owner’s insured policy, which occurs after the transfer or during the run-off of the insurance business of the failed PPF Scheme member under section 54, the protected liabilities in respect of the insured policy owner’s insured policy are computed in the following manner:
PPF Life Fund
“PPF Life Fund” means the Policy Owners’ Protection Life Fund established under section 34(1)(a);
in the case of a Category 1 insured policy, the product of the protection ratio referred to in paragraph 2(a) of the Fourth Schedule and the guaranteed policy liabilities for the policy;
in the case of a Category 2 insured policy, an amount calculated in accordance with the following formula: whereAis the protection ratio for the sum assured mentioned in paragraph 2(b) of the Fourth Schedule; Bis the protection ratio for the surrender value mentioned in paragraph 2(c) of the Fourth Schedule; and Cis the guaranteed policy liabilities for each of such Category 2 insured policies;
in the case of a Category 3 insured policy, the product of the protection ratio referred to in paragraph 2(d) of the Fourth Schedule and the guaranteed policy liabilities for the policy;
in the case of a Category 4 insured policy —
where the policy is a group term policy, group endowment policy or group whole life policy, the policy liabilities valued in accordance with regulations prescribed pursuant to section 17 of the Insurance Act 1966 for the valuation of assets and liabilities in an insurance fund using —
life policy
“life policy” has the meaning given in the First Schedule to the Insurance Act 1966;
the adjusted sum assured which is the product of the protection ratio for sum assured referred to in paragraph 2(e)(i) of the Fourth Schedule and the sum assured guaranteed under the policy; and
the adjusted surrender value which is the product of the protection ratio for surrender value referred to in paragraph 2(e)(ii) of the Fourth Schedule and the surrender value guaranteed under the policy; and
where the policy is a group annuity policy, the product of the protection ratio for commuted value referred to in paragraph 2(e)(iii) of the Fourth Schedule and the guaranteed policy liabilities for the policy.
6. For the purposes of determining the amount of benefits that an insured policy owner is entitled to receive from the PPF Life Fund in the event of termination of insured policies issued by the failed PPF Scheme member under section 54, the protected liabilities in respect of the insured policy owner’s insured policy are —
protected liabilities
“protected liabilities” has the meaning given in the Third Schedule;
in the case of a Category 1 insured policy, the product of the protection ratio mentioned in paragraph 2(a) of the Fourth Schedule and the guaranteed policy liabilities for the policy applicable before the termination;
in the case of a Category 2 insured policy, the policy liabilities valued in accordance with regulations prescribed under section 17 of the Insurance Act 1966 for the valuation of assets and liabilities in an insurance fund before the termination of the policy using —
the adjusted guaranteed sum assured, which is the product of the protection ratio for the sum assured mentioned in paragraph 2(b) of the Fourth Schedule and the sum assured guaranteed under the policy applicable before the termination; and
the adjusted surrender value, which is the product of —
the protection ratio for the surrender value mentioned in paragraph 2(c) of the Fourth Schedule; and
the surrender value guaranteed under the policy applicable before the termination, or if there is no such surrender value, the commuted value of the amount of guaranteed benefit payments under the policy if it had been in force at the time of the commuting;
in the case of a Category 3 insured policy, the product of the protection ratio mentioned in paragraph 2(d) of the Fourth Schedule and the guaranteed policy liabilities for the policy applicable before the termination; and
in the case of a Category 4 insured policy —
where the policy is a group term policy, group endowment policy or group whole life policy, the policy liabilities valued in accordance with regulations prescribed under section 17 of the Insurance Act 1966 for the valuation of assets and liabilities in an insurance fund before the termination of the policy using —
the adjusted sum assured, which is the product of the protection ratio for the sum assured mentioned in paragraph 2(e)(i) of the Fourth Schedule and the sum assured guaranteed under the policy applicable before the termination; and
the adjusted surrender value, which is the product of the protection ratio for the surrender value mentioned in paragraph 2(e)(ii) of the Fourth Schedule and the surrender value guaranteed under the policy applicable before the termination, or if not available, the commuted value of the amount of guaranteed benefit payments under the policy if it had been in force at the time of the commuting; and
where the policy is a group annuity policy, the product of the protection ratio for the commuted value mentioned in paragraph 2(e)(iii) of the Fourth Schedule and the guaranteed policy liabilities for the policy applicable before the termination.[31/2018]