Singapore legislation
Section 47
of Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
Section 47
Entitlement to compensation for life business
(1)
Subject to subsections (3) and (6) and section 49, where an insured policy owner has one or more insured policies covered under the PPF Life Fund issued by a failed PPF Scheme member which —
is or are issued to the insured policy owner; or
is or are issued to the insured policy owner jointly with one or more other persons as joint policy owners,a covered party is entitled to compensation from the PPF Life Fund of one or more of the amounts mentioned in subsection (2).
(2)
The amounts mentioned in subsection (1) are —
in the case of a Category 1 insured policy mentioned in the Second Schedule, an amount equivalent to the product of the protection ratio mentioned in paragraph 2(a) of the Fourth Schedule and the amount of policy moneys payable in respect of that insured policy;
in the case of a Category 2 insured policy mentioned in the Second Schedule, an amount equivalent to —
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 that insured policy, or (if part of the sum assured guaranteed under that insured policy had previously been paid out under the insured policy) the remaining amount of the sum assured in the event that a claim event occurs before the quantification date;
the product of the protection ratio for the surrender value mentioned in paragraph 2(c) of the Fourth Schedule and, as the case may be —
the surrender value guaranteed under that insured policy in the event that the insured policy owner, or the trustee of the trust of the insured policy, has given written notice to the failed PPF Scheme member to surrender that insured policy before the quantification date; or
the remaining amount of the surrender value guaranteed under that insured policy in the event that payment of claims had been made to a covered party before the quantification date; or
the sum of sub-paragraphs (i) and (ii), where applicable;
in the case of a Category 3 insured policy mentioned in the Second Schedule, an amount equivalent to the product of the protection ratio mentioned in paragraph 2(d) of the Fourth Schedule and the amount of policy moneys guaranteed to be payable under the annuity by the failed PPF Scheme member; and
in the case of a Category 4 insured policy mentioned in the Second Schedule, an amount equivalent to —
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 that insured policy in the event that a claim event occurs before the quantification date;
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 that insured policy in the event of a surrender before the quantification date; or
the product of the protection ratio for the commuted value mentioned in paragraph 2(e)(iii) of the Fourth Schedule and the amount of policy moneys which are guaranteed to be payable in the case of an annuity.
(3)
Subject to subsection (4), where any of the insured policies mentioned in subsection (1) is an insured policy which is covered under the PPF Life Fund —
the insured policy owner;
the trustee of a trust of the insured policy;
any beneficiary of the insured policy; or
any combination of persons mentioned in paragraph (a), (b) or (c),is or are entitled to compensation from the PPF Life Fund of the full amount of the protected liabilities in respect of the insured policy.
(4)
Where a combination of the persons mentioned in subsection (3)(d) are entitled to compensation from the PPF Life Fund, their total compensation must not exceed the full amount of the protected liabilities in respect of the insured policy.
(5)
The determination of the amount of compensation payable under an insured policy mentioned in subsection (2) must only include the accumulated values (including interest which has accrued on such values) of coupon deposits, advance premium payments and unclaimed moneys under the insured policy, insofar as they relate to an insured policy that provides fully guaranteed or partially guaranteed benefits.
(6)
Where a claim event for an insured policy has occurred, or where an insured policy has been terminated, on or before the quantification date, there must be deducted from the amount of compensation mentioned in subsection (2) —
any outstanding loan taken out against that insured policy; and
any outstanding premiums owed by the policy owner for that insured policy.