In forceAmended2020 Revised Edition

Contents

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

55. Powers of liquidator in respect of claims against insured policy owner

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Amended

Last amended by an amending law of 2018.

(1)

Subject to subsection (3), despite any written law or rule of law, where —

(a)

the Agency has paid compensation out of the PPF Life Fund or the PPF General Fund in accordance with this Act to —

(i)

any insured policy owner;

(ii)

any trustee of a trust of an insured policy;

(iii)

any beneficiary of an accidental death insurance cover; or

(iv)

any combination of persons mentioned in sub‑paragraphs (i), (ii) and (iii);

(b)

such compensation is, or will be, accorded priority in the event of the winding up of the failed PPF Scheme member under section 123 of the Insurance Act 1966; and

(c)

the failed PPF Scheme member has one or more existing claims against the insured policy owner,the liquidator may bring legal proceedings with respect to those claims in the name, and on behalf, of the failed PPF Scheme member against the insured policy owner or any person who received compensation on behalf of the insured policy owner, to recover such moneys as may be necessary to put the failed PPF Scheme member into the position it would have been as against the insured policy owner with respect to those claims, if —

(d)

the Agency had not paid out any compensation or been accorded priority under section 123 of the Insurance Act 1966 in respect of the compensation paid to the insured policy owner; and

(e)

the liquidator had applied the same rules with regard to the respective rights of debts provable and the valuation of future and contingent liabilities as are in force for the time being under the law relating to bankruptcy in relation to the estates of persons adjudged bankrupt, as if the failed PPF Scheme member were a person so adjudged.

(2)

Such moneys are recoverable as a debt due to the failed PPF Scheme member by the insured policy owner or any person who received compensation on behalf of the insured policy owner.

(3)

This section does not apply to any moneys held by the Public Trustee pursuant to any payment of compensation by the Agency under section 52(3).

(4)

In this section, a reference to the insured policy owner includes, where compensation has been paid by the Agency under section 48(2) to a person entitled to accidental death benefit under the terms of an accidental death insurance cover provided by a PPF Scheme member to a customer before the inception of an insured policy, the customer of the PPF Scheme member.

Terms defined in s 2

Agency
Defined · s 2
“Agency” means the company designated by the Minister under section 56 to be the deposit insurance and policy owners’ protection fund agency;
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
liquidator
Defined · s 2
“liquidator” has the meaning given by section 2(1) of the Insolvency, Restructuring and Dissolution Act 2018;
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
PPF Life Fund
Defined · s 2
“PPF Life Fund” means the Policy Owners’ Protection Life Fund established under section 34(1)(a);
Open s 2
PPF Scheme member
Defined · s 2
“PPF Scheme member” means a member of the PPF Scheme;
Open s 2
Rules
Defined · s 2
“Rules” means any rules issued by the Agency under section 63;
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