In force2020 Revised Edition

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Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 · 2020 Revised Edition · Schedules

Schedule 4 · Protection ratio

FOURTH SCHEDULESections 2(1), 47(2), 90(1) and Third ScheduleProtection ratio

1. In this Schedule —“Maximum Annuity Sum” means the amount of $100,000;“Maximum Group Sum Assured” means the amount of $100,000;“Maximum Group Surrender Value” means the amount of $50,000;“Maximum Sum Assured” means the amount of $500,000;“Maximum Surrender Value” means the amount of $100,000.

2. For the purposes of section 47 and the Third Schedule, the protection ratio is determined in the following manner:

(a)

in the case of Category 1 insured policies, 1;

(b)

for the sum assured for Category 2 insured policies, in respect of each life assured —

(i)

the ratio of the Maximum Sum Assured to the aggregate amount or (where instalment payments have, before the quantification date, been made to a covered party) the aggregate remaining amount, of the sum assured on the life assured guaranteed under all such policies (other than riders which accelerate the payment of part or all of the sum assured stated in the policy), upon the occurrence of a claim event (including the sum assured on any rider which provides additional payout of the sum assured upon the occurrence of a claim event); or

(ii)

1,whichever is lower;

(c)

for the surrender value for Category 2 insured policies, in respect of each life assured —

(i)

the ratio of the Maximum Surrender Value to the aggregate amount of the surrender value guaranteed (in the event that the insured policy owner or trustee of a trust of the insured policy has given written notice to the failed PPF Scheme member to surrender the policy) under all such policies; or

(ii)

1,whichever is lower;

(d)

in the case of Category 3 insured policies, in respect of each life assured —

(i)

the ratio of the Maximum Annuity Sum to the aggregate amount of commuted value of benefits guaranteed under all such policies; or

(ii)

1,whichever is lower;

(e)

in the case of Category 4 insured policies, in respect of each life assured per policy —

(i)

for the sum assured under a group policy —

(A)

the ratio of the Maximum Group Sum Assured to the amount of sum assured guaranteed under each group term, endowment policy or whole life policy, as the case may be; or

(B)

1,whichever is lower;

(ii)

for the surrender value under a group policy —

(A)

the ratio of the Maximum Group Surrender Value to the amount of surrender value guaranteed for each group endowment or whole life policy, as the case may be; or

(B)

1,whichever is lower;

(iii)

for the commuted value of group annuity —

(A)

the ratio of the Maximum Annuity Sum to the amount of commuted value of guaranteed benefits for each group annuity policy; or

(B)

1,whichever is lower.[31/2018]

Terms defined in s 2

claim event
Defined · s 2
“claim event” means the contingency upon which policy moneys are payable under an insured policy;
Open s 2
commuted value
Defined · s 2
“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;
Open s 2
covered party
Defined · s 2
“covered party” means —(a)an insured policy owner of an insured policy which is covered by the PPF Life Fund or the PPF General Fund, as the case may be;(b)the trustee of a trust of an insured policy which is covered by the PPF Life Fund or the PPF General Fund (as the case may be), in that capacity; or(c)a beneficiary in relation to —(i)an insured policy which is covered by the PPF Life Fund or the PPF General Fund, as the case may be; or(ii)an accidental death insurance cover provided by a PPF Scheme member before the inception of an insured policy;
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failed PPF Scheme member
Defined · s 2
“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;
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group policy
Defined · s 2
“group policy” means any policy of insurance in respect of which the policy owner is not an individual;
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insured policy
Defined · s 2
“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;
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insured policy owner
Defined · s 2
“insured policy owner” means the policy owner of an insured policy;
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life policy
Defined · s 2
“life policy” has the meaning given in the First Schedule to the Insurance Act 1966;
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policy
Defined · s 2
“policy” has the meaning given in the First Schedule to the Insurance Act 1966;
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protection ratio
Defined · s 2
“protection ratio” has the meaning given in the Fourth Schedule;
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quantification date
Defined · s 2
“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);
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trust
Defined · s 2
“trust”, in relation to an insured policy which is covered under the PPF Life Fund or the PPF General Fund, means —(a)any trust of the policy moneys created under section 132(2) of the Insurance Act 1966;(b)any trust of the objects of the insured policy created under section 73 of the Conveyancing and Law of Property Act 1886;(c)any express trust created by the insured policy owner over the policy moneys; or(d)any resulting or constructive trust over the policy moneys;
Open s 2
trustee
Defined · s 2
“trustee”, in relation to a resolution fund, means the entity appointed under section 99(2) of the Monetary Authority of Singapore Act 1970 as the trustee of the resolution fund;
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