In forceAmended2020 Revised Edition

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Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 · 2020 Revised Edition · Part 9 · Compensation and Use of Ppf Life Fund and Ppf General Fund

48A. Entitlement to compensation for general business

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Amended

Last amended by an amending law of 2018.

(1)

Subject to subsections (2), (4), (5) and (6) and section 49, where an insured policy owner has one or more insured policies covered under the PPF General Fund issued by a failed PPF Scheme member, which —

(a)

is or are issued to the insured policy owner; or

(b)

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 General Fund of the aggregate amount of the protected liabilities in respect of the insured policy or all such insured policies.

(2)

The entitlement to compensation under subsection (1) is subject to the maximum amount of compensation that is prescribed by the Authority for the class or type of insured policy or claim event, or both.

(3)

The Authority may make regulations to prescribe the maximum amount of compensation that a covered party is entitled to under subsection (1) for each class or type of insured policy or claim event, or both.

(4)

Subject to subsection (5), where any of the insured policies mentioned in subsection (1) is an insured policy which is covered under the PPF General Fund —

(a)

the insured policy owner;

(b)

the trustee of a trust of the insured policy;

(c)

any beneficiary of the insured policy; or

(d)

any combination of persons mentioned in paragraph (a), (b) or (c),is or are entitled to compensation from the PPF General Fund of the full amount of the protected liabilities in respect of the insured policy.

(5)

Where a combination of the persons mentioned in subsection (4)(d) is entitled to compensation from the PPF General Fund, their total compensation must not exceed the full amount of the protected liabilities in respect of the insured policy.

(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, the compensation under subsection (1) is to be reduced by the amount of all outstanding premiums due under the insured policy at the time of the claim event.

Terms defined in s 2

Authority
Defined · s 2
“Authority” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act 1970;
Open 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
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;
Open s 2
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;
Open s 2
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;
Open s 2
insured policy owner
Defined · s 2
“insured policy owner” means the policy owner of an insured policy;
Open s 2
policy
Defined · s 2
“policy” has the meaning given in the First Schedule to the Insurance Act 1966;
Open s 2
PPF General Fund
Defined · s 2
“PPF General Fund” means the Policy Owners’ Protection General Fund established under section 34(1)(b);
Open s 2
protected liabilities
Defined · s 2
“protected liabilities” has the meaning given in the Third Schedule;
Open s 2
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);
Open s 2
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;
Open s 2