Singapore legislation
Section 46
of Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
Section 46
Occurrence of events precipitating compensation or use of PPF Life Fund and PPF General Fund
(1)
Where —
on or after 1 September 2011, an order is made by a court in Singapore or elsewhere to wind up a PPF Scheme member;
on or after 1 April 2019, a PPF Scheme member is voluntarily wound up under the Insolvency, Restructuring and Dissolution Act 2018 or under the law of a country or territory outside Singapore;
on or after 1 April 2019, an order is made, in respect of a PPF Scheme member that is a co‑operative society registered under the Co‑operative Societies Act 1979, cancelling its registration under section 89(1) of that Act;
on or after 1 September 2011, the Authority is of the opinion that a PPF Scheme member is insolvent, unable or likely to become unable to meet its obligations, or about to suspend payments; or
on or after 1 September 2011, the Authority is exercising or is likely to exercise, or has exercised, its powers under Part 4B of the Monetary Authority of Singapore Act 1970 in relation to a PPF Scheme member,the Authority may determine that the PPF Life Fund or the PPF General Fund be utilised for one or more of the purposes mentioned in subsection (2).
(2)
The purposes mentioned in subsection (1) are —
to pay compensation out of the PPF Life Fund or the PPF General Fund to any covered party in accordance with this Act;
to fund, whether in whole or in part, the transfer of the whole or part of the business of the PPF Scheme member to another insurer;
to fund the run-off of the insurance business of the PPF Scheme member without taking in any new insurance business or renewing any existing policies (other than a policy which has a provision providing for guaranteed renewability); and
to fund the termination of any insured policy issued by the PPF Scheme member.
(3)
For the purposes of subsection (2) —
the reference in paragraph (b) of that subsection to funding the transfer of the whole or part of the business of the PPF Scheme member to another insurer includes the payment of compensation out of the PPF Life Fund or the PPF General Fund to any covered party in accordance with this Act that is made following from, or in consequence of, the transfer;
the reference in paragraph (c) of that subsection to funding the run-off of the insurance business of the PPF Scheme member includes the payment of compensation out of the PPF Life Fund or the PPF General Fund to any covered party in accordance with this Act that is made following from, or in consequence of, the run‑off of the insurance business; and
the reference in paragraph (d) of that subsection to funding the termination of any insured policy issued by the PPF Scheme member includes the payment of compensation out of the PPF Life Fund or the PPF General Fund to any covered party in accordance with this Act that is made following from, or in consequence of, the termination,and similar references in other parts of this Act are also to be construed accordingly.
(4)
Where the Authority makes any determination referred to in subsection (1), the Authority must immediately give written notice to the Agency of its determination.
(5)
The written notice referred to in subsection (4) must be in such form and contain such information as may be agreed between the Authority and the Agency.
(6)
The Agency must, as soon as practicable upon receiving the notice referred to in subsection (4), publish a notification in the Gazette stating that a payment of compensation is to be made out of the PPF Life Fund or the PPF General Fund, or that the PPF Life Fund or the PPF General Fund is to be utilised to fund the transfer or run‑off of the insurance business of the failed PPF Scheme member, or to fund the termination of any insured policy issued by the failed PPF Scheme member, as the case may be.
(7)
Where the Authority has made a determination under subsection (1) that the PPF Life Fund or the PPF General Fund be utilised for the purpose mentioned in subsection (2)(c), the Authority may make a further determination that the PPF Life Fund or the PPF General Fund (as the case may be) be utilised for one or more of the purposes mentioned in subsection (2)(b) or (d).
(8)
Where the Authority makes a determination under subsection (7), the Authority must immediately give written notice of its determination to the Agency, and subsections (5) and (6) apply to that notice as if it were a notice given under subsection (4).
(9)
Upon receipt of the notice mentioned in subsection (4) or (8), the Agency must take all steps necessary to give effect to the Authority’s determination.