Singapore legislation
Regulation 9
of Insurance (Approved Marine, Aviation and Transit Insurers) Regulations
Regulation 9
Duty to maintain insurance deposits
Subregulation 1
Every approved MAT insurer shall make and maintain an insurance deposit of a value not less than $2 million or, where allowed by the Authority, its equivalent in foreign currency in the form of Singapore dollar fixed deposits or foreign currency fixed deposits with a bank licensed under the Banking Act (Cap. 19), in respect of the MAT insurance business for which it is to be approved.
Subregulation 2
Deposits made by an approved MAT insurer under paragraph (1) shall be in the name of the Authority.
Subregulation 3
Every approved MAT insurer shall, not later than 7 months after the end of each financial year, make and maintain with the Authority such additional deposit, if any, as is necessary to secure that the aggregate value of the deposit referred to in paragraph (1) shall be —
$2 million; (b)30% of the gross premiums written in respect of MAT insurance policies issued by the insurer under these Regulations in that financial year; or (c)30% of the gross liabilities incurred in respect of MAT insurance policies issued by the insurer under these Regulations as at the end of that financial year, whichever is the highest.
Subregulation 4
The Authority shall retain any deposit required to be made under paragraphs (1) and (3) until it is satisfied that the approved MAT insurer has ceased to provide MAT insurance to persons in Singapore under these Regulations.
Subregulation 5
If the Authority is satisfied that the approved MAT insurer has ceased to provide MAT insurance to persons in Singapore under these Regulations, the Authority shall transfer to the insurer the deposits made under paragraphs (1) and (3) less any amount that the Authority determines should be kept available for the purpose of meeting claims against the insurer in respect of MAT insurance policies issued by the insurer under these Regulations.
Subregulation 6
All income accruing in respect of the deposits made under paragraphs (1) and (3) shall be payable to the insurer making the deposit.
Subregulation 7
An approved MAT insurer which has made any deposit under this regulation may, at any time, substitute for any asset comprised in the deposit such other assets as the Authority may specify so long as the deposits are not thereby reduced to an amount below that which is required under paragraphs (1) and (3).
Subregulation 8
If the approved MAT insurer goes into liquidation or is dissolved at its place of incorporation or origin —
it shall immediately notify the Authority; and (b)the Authority shall pay the balance of the deposits made under paragraphs (1) and (3), if any, to the liquidator of the approved MAT insurer after paying any debt or meeting any claim against the insurer in respect of MAT insurance policies issued by the insurer under these Regulations.
Subregulation 9
The Authority may appoint any person to perform any of its functions under paragraphs (5) and (8)(b).
Subregulation 10
For the purposes of paragraphs (5) and (8)(b), the costs and expenses of appointing any person under paragraph (9) shall be paid in priority to any claim against the insurer, and all claims against the insurer in respect of MAT insurance policies issued by the insurer under these Regulations shall rank equally between themselves.