Clause 34

by deleting the words “section 48” in paragraph 2 and substituting the words “section 48A”;

by deleting the words “a winding up order is made against the failed PPF Scheme member where the failed PPF Scheme member is wound up” in paragraph 2(a) and (b) and substituting in each case the words “the quantification date”;

by inserting, immediately after paragraph 2, the following paragraphs:“2A. For the purposes of determining the amount of benefits that an insured policy owner is entitled to receive from the PPF General Fund in the event of a claim under his insured policy, which occurs after the transfer or during the run‑off of the insurance business of the failed PPF Scheme member under section 54, the protected liabilities in respect of his insured policy are —

in the case of a compulsory insurance policy, the full amount of any liability of the failed PPF Scheme member under the insured policy for a sum payable to any person entitled to the benefit under the terms of the compulsory insurance policy for a liability of the policy owner that is subject to compulsory insurance, including the full amount of any such liability of the failed PPF Scheme member which becomes payable before, or within 30 days after, the quantification date; and

in all other cases, the full amount of any liability of the failed PPF Scheme member to the insured policy owner under the terms of the insured policy, including the full amount of any such liability of the failed PPF Scheme member which becomes payable before, or within 30 days after, the quantification date.2B. For the purposes of determining the amount of benefits that an insured policy owner is entitled to receive from the PPF General Fund in the event of termination of an insured policy issued by the failed PPF Scheme member under section 54, the protected liabilities in respect of the insured policy are —

in the case of a compulsory insurance policy, the full amount of any liability of the failed PPF Scheme member under the insured policy before the termination, in respect of a sum payable to any person entitled to the benefit under the terms of the compulsory insurance policy for a liability of the policy owner that is subject to compulsory insurance before the termination of the policy; and

in all other cases, the full amount of any liability of the failed PPF Scheme member to the insured policy owner under the terms of the insured policy applicable before the termination.”;

by deleting sub‑paragraph (b) of paragraph 3 and substituting the following sub‑paragraph:“(b)in the case of a Category 2 insured policy, an amount calculated in accordance with the following formula: where Ais the protection ratio for the sum assured mentioned in paragraph 2(b) of the Fourth Schedule; Bis the protection ratio for the surrender value mentioned in paragraph 2(c) of the Fourth Schedule; and Cis the guaranteed policy liabilities for each of such Category 2 insured policies;”;”(e)by deleting the words “section 17” in paragraph 3(d) and substituting the words “section 18”; and

by inserting, immediately after paragraph 3, the following paragraph:“4. For the purposes of determining the amount of benefits that an insured policy owner is entitled to receive from the PPF Life Fund in the event of termination of insured policies issued by the failed PPF Scheme member under section 54, the protected liabilities in respect of his insured policy are —

in the case of a Category 1 insured policy, the product of the protection ratio mentioned in paragraph 2(a) of the Fourth Schedule and the guaranteed policy liabilities for the policy applicable before the termination;

in the case of a Category 2 insured policy, the policy liabilities valued in accordance with regulations prescribed under section 18 of the Insurance Act (Cap. 142) for the valuation of assets and liabilities in an insurance fund before the termination of the policy using —

the adjusted guaranteed sum assured, which is 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 the policy applicable before the termination; and

the adjusted surrender value, which is the product of —

the protection ratio for the surrender value mentioned in paragraph 2(c) of the Fourth Schedule; and

the surrender value guaranteed under the policy applicable before the termination, or if there is no such surrender value, the commuted value of the amount of guaranteed benefit payments under the policy if it had been in force at the time of the commuting;

in the case of a Category 3 insured policy, the product of the protection ratio mentioned in paragraph 2(d) of the Fourth Schedule and the guaranteed policy liabilities for the policy applicable before the termination; and

in the case of a Category 4 insured policy —

where the policy is a group term policy, group endowment policy or group whole life policy, the policy liabilities valued in accordance with regulations prescribed under section 18 of the Insurance Act for the valuation of assets and liabilities in an insurance fund before the termination of the policy using —

the adjusted sum assured, which is 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 the policy applicable before the termination; and

the adjusted surrender value, which is 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 the policy applicable before the termination, or if not available, the commuted value of the amount of guaranteed benefit payments under the policy if it had been in force at the time of the commuting; and

where the policy is a group annuity policy, the product of the protection ratio for the commuted value mentioned in paragraph 2(e)(iii) of the Fourth Schedule and the guaranteed policy liabilities for the policy applicable before the termination.”.