Singapore legislation
Clause 13
of Deposit Insurance and Policy Owners’ Protection Schemes (Amendment) Bill
Clause 13
Repeal and re-enactment of section 50 and new section 50A
Section 50 of the principal Act is repealed and the following sections substituted therefor:“Restrictions on entitlement to compensation under PPF Scheme
50. A person is not entitled to compensation under this Part in respect of an insured policy, or an accidental death insurance cover mentioned in section 48(2), if the Agency has, in respect of the insured policy or accidental death insurance cover, paid to —
the insured policy owner;
a trustee of a trust of the insured policy;
a beneficiary of the insured policy or the accidental death insurance cover;
the insured policy owner and a beneficiary of the insured policy or the accidental death insurance cover; or
a trustee of a trust of the insured policy and a beneficiary of the insured policy or the accidental death insurance cover,as the case may be, the full amount of compensation payable to the person or persons in accordance with this Act.Cessation of coverage under PPF Scheme50A.—
If a determination is made by the Authority for the utilisation of the PPF Life Fund under section 46(1), the insured policy owner of an insured policy which —
is covered by the PPF Life Fund; and
is issued by the PPF Scheme member in relation to which the determination was made,is not entitled to exercise any settlement option contained in a contract of insurance for the insured policy on or after the quantification date.(2) Where a settlement option contained in a contract of insurance for an insured policy which is covered by the PPF Life Fund has been exercised before the quantification date —
the insured policy ceases to be covered under the PPF Life Fund as at the date on which the settlement option was exercised; and
a covered party is not entitled to any compensation under this Part.(3) In this section, “settlement option” means an option that is exercisable by a covered party upon the surrender or maturity of an insured policy, or upon a claim being made under an insured policy —
to leave the policy moneys ascertained to be due and payable under the policy with the insurer which issued the policy to further accrue interest on or to invest the payments; or
to convert the otherwise lump sum payment of the policy moneys ascertained to be due and payable under the policy to instalment payments over a fixed period.(4) This section only applies in respect of a settlement option contained in a contract for an insured policy if, apart from the payment of the principal and interest or gains, or the instalment payments, as a result of exercising the option set out in subsection (3), no further policy moneys are payable under the insured policy on the happening of any contingency after the exercise of the option.”.