Insurance Bill

For the purposes of this Act, insurance business shall be divided into two classes, namely —

For the purposes of this Act, the re-insurance of liabilities under insurance policies shall be treated as insurance business of the class and type to which the policies would have belonged if they had been issued by the re-insurer.

Notwithstanding anything in subsections (1) and (2) of this section, if the Commissioner is satisfied that any part of an insurer’s business which belongs to a particular class or type of insurance business ought in the insurer’s case to be treated as belonging to another class or type, the Commissioner may direct that it shall be so treated for the purposes of this Act.

For the purposes of this Act, references to carrying on insurance business include the carrying it on through an agent, or as agent; but “insurer” shall not include an insurance agent as such nor, in the case of a person who is both insurer and insurance agent, have reference to business done as insurance agent.

For the purposes of this Act, “Singapore insurer” and “Singapore insurance agent” mean a person who is or has been carrying on insurance business in Singapore as insurer and as insurance agent respectively, and “Singapore insurance broker” means a person who is or has been carrying on business as insurance broker in Singapore; and references to carrying on insurance business, or any class of insurance business, in Singapore include but include only the receipt of proposals for, or issuing of, policies in Singapore or the collection or receipt in Singapore of premiums on Singapore policies.

The operation, otherwise than for profit, of a scheme or arrangement relating to service in particular offices or employments, and having for its object or one of its objects to make provision in respect of persons serving therein against future retirement or partial retirement, or against future termination of service through death or disability, or against similar matters, shall not be treated for the purposes of this Act as carrying on the business of insurance.

For the purposes of this Act, no society registered under the Societies Ordinance (Cap. 228) shall be deemed to be an insurer, and no agent for such a society shall as such be deemed to be an insurance agent; nor shall references in this Act to a policy or contract of insurance apply to any policy or contract whereby an insurance is effected with such a society.

The definitions set out in the First Schedule to this Act shall have effect for the construction of references in this Act to policies of insurance, policy owners and policy moneys.

Subject to the provisions of this Act, insurance business shall not be carried on in Singapore by any person as insurer except —

No such company or society, other than an existing insurer, shall carry on life business or general business in Singapore as insurer unless it is registered under this Act in respect of that class of business and has the deposit required by this Act in respect of it.

No existing insurer shall carry on life business or general business in Singapore unless it is registered under this Act in respect of that class of business and has the deposit required by this Act in respect of it:Provided that this subsection shall not apply to an existing insurer so as to require a deposit before the end of three months from the date of the coming into operation of this Act, or so as to require registration before the end of six months from the said date.

The Commissioner may, on the application of an existing insurer, direct that subsection (3) of this section shall not apply to the insurer in respect of the collection or receipt of premiums on Singapore policies belonging to either class of business, if the insurer satisfies the Commissioner before the end of three months from the date of the coming into operation of this Act —

Any person who contravenes the provisions of this section shall be guilty of an offence and shall be liable on conviction to a fine of five thousand dollars, or to imprisonment for a term of twelve months, or to both such fine and imprisonment and to a further fine of one thousand dollars for every day during which the offence is continued after conviction.

The Commissioner shall be responsible for the registration of Singapore insurers and, subject to the provisions of this section, shall on the application of any company or society qualified under subsection (1) of section 3 of this Act register the applicant in respect of life business or general business or both.

An application to be registered in respect of life business or general business may be made by an applicant already registered in respect of the other.

The Commissioner shall not be required to consider an application unless it is made in writing signed on behalf of the insurer by one of its directors and by its principal officer in Singapore, and he has been furnished with such documents and information as may be prescribed or as he may in the particular case require.

Subject to subsection (8) of this section, the Commissioner shall refuse to register an applicant if, after appropriate inquiry, he is not satisfied —

Subject to subsection (8) of this section, the Commissioner shall also refuse to register an applicant if, after appropriate inquiry, he is not satisfied that the business in respect of which the application is made will be conducted in accordance with sound insurance principles:Provided that if the application is made in respect of both classes of insurance business, and the Commissioner is satisfied as respects one of them, he shall under this subsection refuse only as respects the other.

Where the Commissioner is satisfied that an applicant has complied with all the requirements of this section he shall refer the application to the Minister; and if the Minister so directs, the Commissioner shall not register the applicant who shall be notified of the direction.

The Commissioner shall not register an applicant in respect of insurance business of either class until the Accountant-General certifies to him that the applicant has made in respect of that business the deposit required by this Act.

Where an application to be registered in respect of either class of business is made by an existing insurer, the application shall not be refused under subsection (4) or (5) of this section if —

The Commissioner shall cause notice of any registration of a Singapore insurer to be published in the Gazette.

Where the Commissioner refuses registration (other than on the direction of the Minister), either generally or in respect of a particular class of business, the applicant may require the refusal to be referred to a referee appointed by the Minister.

On any such reference —

The Minister shall consider the report of the referee and, after consultation with the Commissioner, shall confirm or quash the refusal, or confirm it as respects one class of business and quash it as respects the other.

If the refusal is quashed as respects either class of business, then (subject to subsection (7) of section 4 of this Act), the Commissioner shall register the applicant in respect of that class of business.

Where a Singapore insurer ceases to carry on in Singapore insurance business of a class in respect of which it is registered under this Act, the Commissioner may cancel its registration in respect of that class of business, and (subject to subsection (3) of this section) if the insurer applies for the registration to be cancelled, shall cancel it.

Where a Singapore insurer registered under this Act in respect of either class of insurance business is not carrying on business of that class in Singapore otherwise than by the collection or receipt of premiums on Singapore policies, the Commissioner may on the application of the insurer cancel its registration in respect of that class of business, and thereafter subsection (2) of section 3 of this Act shall not apply to the insurer in respect of the collection or receipt of those premiums.

So long as an insurer remains under any liability in respect of Singapore policies belonging to either class of insurance business, the Commissioner shall not cancel the insurer’s registration in respect of that class, unless he is satisfied that reasonable provision has been or will be made for that liability and that adequate arrangements will exist for payment in Singapore of premiums and claims on those policies.

Where any registration of a Singapore insurer is cancelled, the Commissioner shall cause notice of the cancellation to be published in the Gazette.

A Singapore insurer, while registered in respect of any class of insurance business, shall at all times have in respect of that business a deposit with the Accountant-General of a value of not less than three hundred thousand dollars.

Any such deposit shall be made in cash or in securities specified in the Second Schedule to this Act or partly in one way and partly in the other; and any cash comprised in a deposit may be invested in such manner available for the investment of funds in Court as the insurer may select.

All income accruing in respect of a deposit shall be payable to the insurer making the deposit.

A deposit made under this section in respect of any class of business shall be retained by the Accountant-General until either the insurer ceases to be registered in respect of that class of insurance business or the deposit is required in the winding up of the affairs of the insurer; and if the insurer ceases to be registered as aforesaid, the deposit or part of it may be further retained for the purpose of and in accordance with any such provision for liabilities in respect of policies as is required by subsection (3) of section 6 of this Act.

If at any time a deposit under this section (other than a deposit retained after the insurer has ceased to be registered as aforesaid) comprises assets other than government securities, and the value of those assets is less than the sum of three hundred thousand dollars reduced by the value of any government securities comprised in the deposit, then the Commissioner may by notice in writing direct the insurer to add thereto within twenty-eight days of the service of the notice, cash or securities specified in the Second Schedule to this Act of a value not less than the difference.

An insurer which has made a deposit under this section may at any time substitute for any assets comprised in the deposit cash or securities specified in the Second Schedule to this Act, so long as the value of the deposit is not thereby reduced to an amount below that which is required by this Act.

In the foregoing subsections “securities” (except in the expression “government securities”) includes any form of investment, and “government securities” means securities of which the principal or interest is charged directly or by way of guarantee on the Consolidated Fund; but no deposit shall include —

Where by virtue of paragraph (c) of subsection (7) of this section any securities comprised in a deposit are declared unsuitable, the insurer shall within one calendar month of the securities being so declared, substitute therefor such other securities as are authorised by this section.

If, in the case of any insurer, a bank licensed under any written law for the time being in force relating to banking makes with the Accountant-General an agreement in a form approved by the Commissioner, whereby the bank covenants with the Government to deposit with the Accountant-General a specified sum in cash on account of the insurer’s deposit under this Act in respect of either class of insurance business, and the covenant complies with any requirements the Commissioner sees fit to impose as to the circumstances in which that sum is to be deposited, then for the purposes of this Act the insurer shall be treated as having deposited under section 7 of this Act a sum of cash equal to that so covenanted for and the sum so covenanted for shall be recoverable notwithstanding that no consideration is furnished on the agreement.

Any sum deposited by a bank in pursuance of an agreement made under subsection (1) of this section shall be dealt with under or for the purposes of this Act as if it were a sum deposited by the insurer under section 7 of this Act.

This section shall not authorise an agreement to be substituted under subsection (6) of section 7 of this Act for assets comprised in a deposit.

Every Singapore insurer registered under this Act shall establish under this Act a register of policies, and (subject to any prescribed exceptions) shall keep the register at an office in Singapore.

Subject to the provisions of this section, there shall be entered in the register of policies all Singapore policies of the insurer, and no policy entered in the register shall be removed from it so long as the insurer is under any liability in respect of the policy.

Subject to the provisions of this section, there may be entered in the register such other policies as the insurer with the consent (express or implied) of the policy owners may determine, and this Act shall apply in relation to any policy so entered as if it were a Singapore policy.

Subject to subsection (5) of this section an insurer carrying on life business outside Singapore (and not doing so only by the collection or receipt of premiums) may, at the request of the policy owner of a policy belonging to the insurer’s life business —

Regulations may provide that subsection (3) or (4) of this section shall apply only in such cases as may be prescribed or shall have effect subject to any prescribed exceptions or restrictions.

A Singapore insurer shall, at the request of any person having an interest in any policy of the insurer, inform him whether or not the policy is entered in the insurer’s register of policies under this Act.

Where a Singapore insurer has established under this Act a register of policies, the register shall cease to exist as a statutory register under this Act of policies belonging to either class of insurance business, if the insurer ceases to be registered under this Act in respect of that class of business; and any reference in this Act to policies registered under this Act shall be construed accordingly.

Subject to subsection (7) of this section, a register of policies established by a Singapore insurer shall, notwithstanding that the insurer at any time ceases to carry on in Singapore either class of insurance business, continue to be maintained by the insurer for policies belonging to that class so long as the insurer is under any liability in respect of such policies registered or required to be registered at that time; but no policies belonging to either class of business shall be entered in the register under subsection (3) of this section when the insurer is not carrying on that class of business in Singapore, or is doing so only by the collection or receipt of premiums.

The register of policies of an existing insurer shall be established as at the beginning of the initial accounting period, and that shall be taken for the purposes of this Act to be the date of the establishment of the register; but the register need not be established before the end of three months from that date or such longer period as the Commissioner may allow.

Every Singapore insurer registered under this Act shall establish and maintain in accordance with this section an insurance fund in respect of the class or each of the classes of insurance business carried on by the insurer in Singapore so far as that business relates to Singapore policies.

There shall be paid into an insurance fund all receipts of the insurer properly attributable to the business to which the fund relates (including the income of the fund), and the assets comprised in the fund shall be applicable only to meet such part of the insurer’s liabilities and expenses as is properly so attributable.

In the case of a fund established in respect of life business, no part of the fund shall be allocated by way of bonus to participating policies, except with the approval of a qualified actuary and out of a surplus of assets over liabilities as shown on the last statutory valuation of the fund; and on the making of any such allocation that surplus shall be treated for purposes of this section as reduced by the amount allocated.

If on the last statutory valuation (in the case of a fund established in respect of life business) or in the last statutory balance-sheet (in the case of a fund established in respect of general business) there was shown a surplus of assets over liabilities of an insurance fund, there may, subject to any provision to the contrary in any instrument or contract binding the insurer, be withdrawn from the fund an amount not exceeding the surplus, and on the making of any such withdrawal that surplus shall be treated for the purposes of this section as reduced by the amount withdrawn:Provided that, in the case of a fund established in respect of life business, no withdrawal shall be made without the approval of a qualified actuary, and no part of the surplus attributable to participating policies shall be withdrawn in excess of one quarter of the amount allocated thereout by way of bonus to participating policies.

In respect of any policy belonging to the insurer’s life business which is under subsection (4) of section 9 of this Act removed from the insurer’s register of policies, there may be withdrawn from the fund established in respect of that business an amount not exceeding the prescribed amount.

Any amount withdrawn from an insurance fund under subsection (4) or (5) of this section and, in a winding up, any part of an insurance fund remaining after meeting the liabilities and expenses to which the fund is applicable may be dealt with as if it had not formed part of the fund.

In a winding up, assets comprised in the deposit made by an insurer under this Act in respect of either class of business shall be treated as assets of the insurance fund established by him in respect of business of that class, and subsections (2) and (6) of this section shall apply to those assets accordingly.

An insurance fund established by a Singapore insurer for any class of business shall, notwithstanding that the insurer at any time ceases to carry on that class of business in Singapore, continue to be maintained by the insurer so long as the insurer is required by this Act to maintain the register of policies for policies belonging to that class.

In the case of an existing insurer, any insurance fund shall be established as at the date of establishment of the insurer’s register of policies, and by reference to the policies registered or required to be registered in it as at its establishment, and by reference to the assets and liabilities of the insurer as at that date; and —

The amounts referred to in paragraph (a) of subsection (9) of this section are as follows: —

The assets of any insurance fund under this Act shall be kept separate from all other assets of the insurer, and shall not include assets comprised in a deposit under this Act except as provided by subsection (5) of this section nor any amounts on account of goodwill, the benefit of development expenditure or similar items not realisable apart from the business or part of the business of the insurer.

The assets of an insurance fund established in respect of general business shall not include any amount representing the total of outstanding premiums and agents’ balances which is in excess of twelve and a half per cent of written premiums:Provided that this subsection shall have effect with the substitution for the words “twelve and a half per cent” —

Subject to section 14 of this Act, the assets of any insurance fund shall be such that the value of items specified in the Second Schedule to this Act, with any such additions as are permitted by subsection (4) of this section, is not at any time less than fifty-five per cent of the total value of the assets of the fund.

For the purposes of subsection (3) of this section there may be added to the value of items specified in the Second Schedule to this Act the amount or value of any assets of the fund of the following descriptions: —

Notwithstanding anything in subsection (1) of this section an existing insurer may, on the first establishment of an insurance fund for either class of insurance business, allocate thereto under subsection (9) of section 10 of this Act assets then comprised in the insurer’s deposit under this Act in respect of that class of business, and the assets so allocated and the assets from time to time representing them in the deposit may form part of the insurance fund accordingly.

For the purposes of this section, the assets from time to time representing any re-insurer’s deposit held by the insurer to meet liabilities of an insurance fund shall be treated as assets of the fund.

Where an insurer has established an insurance fund under this Act, the insurer shall secure that any documents evidencing the insurer’s title to assets of the fund or assets falling within subsection (6) of section 11 of this Act, so long as the documents are held by or on behalf of the insurer, shall be kept in Singapore or, if not so kept, shall be kept in the custody of a person approved by the Commissioner, and at a place and on terms so approved.

An insurer who has established an insurance fund under this Act shall from time to time notify the Commissioner in writing —

Any such document which is for the time being held by or on behalf of the insurer shall, on the Commissioner giving not less than fourteen days’ notice in writing to the insurer or to the person having the custody of the document, be produced for inspection to the Commissioner or a person nominated by him by the person to whom the notice is given.

A person who fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine of one thousand dollars, and to a fine of fifty dollars for every day during which the offence is continued after conviction.

If a Singapore insurer makes default in complying with the provisions of sections 9 to 12 of this Act, the Commissioner may by notice in writing require the insurer to make good the default.

If the insurer does not make good the default within one month after the notice is given, the High Court may on the application of the Commissioner make such order against the insurer or any director or officer of the insurer as the High Court thinks fit with a view to making good the default and otherwise securing compliance by the insurer with sections 9 to 12 of this Act.

Nothing done under this section shall affect any person’s liability for any offence against this Act.

In the case of a life policy issued as a Singapore policy after the date of the coming into operation of this Act, to a policy owner who is a citizen of Singapore, any policy moneys or moneys payable on the surrender of the policy shall, notwithstanding anything in the policy or in any agreement relating thereto, be paid in the currency of Singapore unless at the time of payment it is otherwise agreed between the insurer and the person entitled to payment.

Where a Singapore insurer satisfies the Commissioner as regards any life policy registered under this Act by the insurer that the policy moneys (including any moneys payable under the policy on a surrender) may not under the policy or any agreement relating thereto be paid in the currency of Singapore, then for the purposes of subsection (3) of section 11 of this Act there shall be disregarded such part of the value of the assets of the relevant insurance fund as is equal to the value of the insurer’s liability in respect of the policy determined on a basis approved by the Commissioner.

A Singapore insurer shall not issue a life policy of any description being a Singapore policy, if the premium chargeable under the policy is not in accordance with rates fixed with the approval of a qualified actuary or, where no rates have been so fixed for policies of that description issued by the insurer, is not a premium approved for the policy by a qualified actuary.

An actuary shall not for the purposes of this section approve a premium for a policy or a rate of premium for any description of policy, unless he is satisfied that it is suitable and in accordance with sound insurance principles.

An actuary in giving his approval in respect of any description of life policy shall have regard to the maximum rate of commission proposed to be paid or allowed to any person in respect of that description of policy, and shall certify the said maximum rate.

Where in the case of any insurer a rate of premium is approved by a qualified actuary for any description of life policy, the insurer shall not, except with the approval of the Commissioner, pay or allow in respect of any policy of that description a commission at a rate greater than the maximum rate of commission certified by the actuatry.

The Commissioner may by notice in writing require any Singapore insurer to obtain and furnish him within a time specified in the notice with a report by a qualified actuary as to the suitability of the rates of premium for the time being chargeable by the insurer for any description of life policy, and if the actuary considers that the rates are not suitable or not in accordance with sound insurance principles, a report as to the rates of premium which the actuary approves for that description of policy; and for the purposes of subsection (1) of this section regard shall be had to any such report to the exclusion of any previous approval or report.

For each occasion on which an insurer issues a policy or allows a commission in contravention of this section, the insurer shall be liable on conviction to a fine of one thousand dollars.

The Commissioner may by notice in writing require a Singapore insurer to submit to him the forms of proposal and policy for the time being in use by the insurer in Singapore, and any brochure which is for the time being in use by the insurer for describing the terms or conditions of, or the benefits to be or likely to be derived from, policies; and where the whole or part of any such form or brochure is not in Malay or English there shall be submitted with it a translation in Malay or English.

A requirement under this section, unless it is otherwise provided therein, shall apply to all such forms and brochures as aforesaid coming into use after the making of the requirement and before the Commissioner notifies the insurer that the requirement is withdrawn.

If it appears to the Commissioner, after affording the insurer an opportunity to make representations orally or in writing that any such form or brochure as aforesaid contravenes or fails to comply with any provision of this Act, or is in any respect likely to mislead, he may by notice in writing direct the insurer to discontinue the use of the form or brochure in Singapore either forthwith or from a date specified in the notice.

After the end of six months from the date of the coming into operation of this Act, no Singapore insurer shall use in Singapore a form of proposal which does not have prominently displayed therein a warning that if a proposer does not fully and faithfully give the facts as he knows them or ought to know them, he may receive nothing from the policy.

For each occasion on which any insurer uses a copy of a form or brochure in contravention of subsection (3) or (4) of this section, the insurer shall be liable on conviction to a fine of one thousand dollars.

In this section “brochure” includes any leaflet, circular or similar advertising matter, whether printed or not.

In any case where, under section 36 or 310 of the Companies Ordinance (Cap. 174) it is unlawful to issue, circulate or distribute a prospectus relating to a company without a copy of it being first delivered for registration under that Ordinance, it shall also be unlawful, in the case of a company registered or intended to be registered as an insurer under this Act, to do so without the prospectus having been sanctioned by the Commissioner; and any person knowingly responsible for the issue, circulation or distribution of a prospectus in contravention of this subsection shall be guilty of an offence and shall be liable on conviction to a fine of five thousand dollars.In this subsection “prospectus” includes any document to which the expression applies in the said section 36 or 310 of the Companies Ordinance (Cap. 174).

Where a notice, advertisement or other official publication of a company registered or intended to be registered as an insurer under this Act, contains a statement of the company’s authorised share capital, and does not state therewith how much of that capital has been subscribed and how much is paid up, the company shall be guilty of an offence and shall be liable on conviction to a fine of one thousand dollars.

Subject to subsection (4) of this section, no person shall carry on insurance business in Singapore as insurance agent for an insurer not entitled under this Act to carry on the business in question in Singapore; and a person contravening this subsection shall be guilty of an offence and shall be liable on conviction to a fine of five thousand dollars, increased by one thousand dollars for each day on which he is proved to have done so, or to imprisonment for a term of twelve months, or to both such fine and imprisonment.

Subject to subsections (3) and (4) of this section, no Singapore insurance broker shall in the course of his business as such negotiate any contract of insurance with an insurer (whether directly or through an insurance agent), except with a Singapore insurer acting in the course of his business as such, nor shall any person in Singapore solicit insurance business for an insurer not entitled to carry on that business in Singapore; and a person contravening this subsection shall be guilty of an offence and shall be liable on conviction to a fine of two thousand dollars or to imprisonment for a term of six months, or to both such fine and imprisonment.

The references in subsection (2) of this section to a contract of insurance and to insurance business shall not apply to re-insurance.

If in any particular case a Singapore insurance broker satisfies the Commissioner that, by reason of the exceptional nature of the risk or other exceptional circumstances, it is not reasonably practicable to effect an insurance with a Singapore insurer acting in the course of his business as such, the Commissioner may, notwithstanding anything in section 3 of this Act or in this section, permit the broker to negotiate the insurance with such insurer as the broker sees fit and also, if in the opinion of the Commissioner the case requires it, to effect the insurance and receive the premium in Singapore on behalf of the insurer.

Sections 16 and 18 of this Act shall apply in relation to Singapore insurance agents and to Singapore insurance brokers as they apply in relation to Singapore insurers.

Section 3 of this Act shall not prevent general business being carried on in Singapore by an individual if he carries it on as a member of an association of individual underwriters established outside Singapore and for the time being approved for the purposes of this section by the Commissioner, and if the conditions of this section are complied with.

The Commissioner shall not approve an association for the purposes of this section unless it is organised on the system known as Lloyd’s, that is to say, a system whereby every underwriting member of a syndicate of the association becomes liable for a separate part of the sum secured by every policy subscribed to by that syndicate, limited or proportionate to the whole sum thereby secured.

Subsection (1) of this section shall not authorise an individual to carry on insurance business in Singapore as a member of any association, unless there are one or more persons resident in Singapore who are authorised to accept service of notices and legal process on behalf of members of the association, being persons nominated for that purpose by the association; and the association shall notify the Commissioner in writing of any such nomination and of any person ceasing to be nominated.

After the end of six months from the date of the coming into operation of this Act, subsection (1) of this section shall not authorise an individual to carry on insurance business in Singapore unless the association makes with the Accountant-General and maintains the deposit required by this section; and any such deposit shall be applied by the Accountant-General, if and in so far as the Minister directs, in meeting claims against members of the association in respect of Singapore policies.

The deposit required by this section from an association shall be such as is mentioned in the Third Schedule to this Act, and that Schedule shall have effect in relation thereto.

After the end of six months from the date of the coming into operation of this Act, this section shall not authorise a person to carry on business as a Singapore insurance agent for any individual, or in the course of a business as Singapore insurance broker to negotiate insurances with any individual, except under the authority of a licence issued by the Commissioner; and for each calendar year in which a person acts under the authority of such a licence, he shall before the end of June in the following year lodge with the Commissioner a statement in the prescribed form, signed by him or on his behalf and giving the prescribed information as to his receipts and payments in connection with business done under that authority.

Where a person fails to lodge a statement as required by subsection (6) of this section, he shall be guilty of an offence and shall be liable on conviction to a fine of five thousand dollars, and to a fine of fifty dollars for every day during which the offence is continued after conviction.

A licence under subsection (6) of this section shall be granted for a period of twelve months, beginning with the first day of such month as the applicant for it may require, but the granting or withholding of a licence shall be at the discretion of the Commissioner:Provided that if a licence is withheld, the applicant may appeal to the Minister, and the Minister before determining the appeal shall afford the applicant an opportunity to make representations orally or in writing to a person appointed by the Minister and shall consider any representations made.

In every year there shall be furnished to the Commissioner on behalf of any association of underwriters of which any members carried on business as Singapore insurers in the preceding year by virtue of this section —

An insurer registered under this Act shall prepare the statements of account and other statements required by Part I of the Fourth Schedule to this Act and lodge them with the Commissioner (together with any prescribed fee), and Part III of that Schedule, so far as relevant to those statements, shall have effect with respect to their form and contents and to the time and manner in which they are to be lodged.

An insurer registered under this Act shall have its accounts audited for each accounting period for which statements of account are prepared in accordance with subsection (1) of this section, and when those statements are lodged with the Commissioner there shall be lodged with them a certificate of the auditor as required by Part I of the Fourth Schedule to this Act.

The audit required by subsection (2) of this section shall be made by a person who —

In the case of a company incorporated or established outside Singapore, the audit required by subsection (2) of this section need not extend beyond the business for which an insurance fund is maintained under this Act.

The documents to be lodged with the Commissioner under this section for any accounting period of an insurer shall be accompanied by copies of any report submitted to the members of the insurer with respect to that period and (if it is not among the documents so lodged) by any statement of accounts so submitted with respect to that period; but references in this Act to documents lodged with the Commissioner shall not be taken to include documents required by this subsection to accompany documents so lodged.

Where any report or statement referred to in subsection (5) of this section was in a language other than Malay or English, the copy required by that subsection shall be in Malay or English and shall be certified to be a true translation of the original by the translator.

Subject to the provisions of this section, an insurer registered under this Act in respect of life business shall from time to time have an investigation made by a qualified actuary into the financial condition of its life business and a report thereon made to it by the actuary, and shall lodge with the Commissioner (together with any prescribed fee) such abstract of the actuary’s report and certificate relating thereto and such statements as to that business as are required by Part II of the Fourth Schedule to this Act; and Part III of that Schedule, so far as relevant to those documents, shall have effect with respect to their form and contents and to the time and manner in which they are to be lodged.

Investigations under subsection (1) of this section shall be made as at the end of such accounting periods as the insurer may determine, subject to the following rules: —

In the case of a company incorporated or established outside Singapore the investigation required by subsection (1) of this section need not extend beyond the business for which an insurance fund is maintained under this Act; but if such a company is required by the law relating to insurance in the country in which it is incorporated or established to furnish the authority having the administration of that law with returns as to actuarial investigations of its life business, the documents to be lodged with the Commissioner under this section shall be accompanied by certified copies of any such returns made since the company was first registered under this Act in respect of life business (or, in the case of an existing insurer, since the date of the coming into operation of this Act), other than returns of which copies have previously been furnished under this subsection.References in this Act to documents lodged with the Commissioner shall not be taken to include documents required by this subsection to accompany documents so lodged.

Where an insurer registered under this Act in respect of life business —

An existing insurer shall, on establishing under this Act its insurance fund for life business, lodge with the Commissioner such summary and valuation of policies belonging to that business and certificate relating thereto as are required by Part II of the Fourth Schedule to this Act; and Part III of that Schedule, so far as relevant to those documents, shall have effect with respect to their form and contents and to the time and manner in which they are to be lodged.

If it appears to the Commissioner that any document lodged in accordance with section 22 or 23 of this Act is in any particular unsatisfactory, incomplete, inaccurate or misleading or that it does not comply with the requirements of this Act, the Commissioner may by notice in writing require such explanations as he considers necessary to be made by or on behalf of the insurer within such time (not less than fourteen days) as is specified in the notice.

The Commissioner may, after considering the explanations referred to in subsection (1) of this section, or if such explanations have not been given by or on behalf of the insurer within the time specified in that subsection, reject the document or give such directions as he thinks necessary for its variation within such time (not less than one month) as is specified in the directions.

Directions given under subsection (2) of this section with respect to any document may require such consequential variations of any other document lodged by the insurer under section 22 or 23 of this Act as may be specified in the directions.

Where directions are given under subsection (2) of this section, any document to which they relate shall be deemed not to have been lodged until it is re-submitted with the variations required by the directions, but the insurer shall be deemed to have submitted the document within the time limited by the Fourth Schedule to this Act if it is re-submitted as aforesaid within the time limited by the directions.

Any member or policy owner of an insurer shall have a right, on applying to the insurer, to be sent by the insurer at an address supplied by him copies of documents lodged by the insurer to comply with section 22 or 23 of this Act, and to have the copies despatched not later than fourteen days after the insurer receives the application:Provided that the right shall not extend to any document excepted from this provision by Part I of the Fourth Schedule to this Act, or to a document of any other description except the last lodged of that description.

Any person shall have the right, on payment of the prescribed fee, at any time during working hours of the office of the Commissioner, to inspect at that office any document lodged by an insurer to comply with section 22 or 23 of this Act and any document required by subsection (5) of section 22 and subsection (3) of section 23 of this Act to accompany the document so lodged and make a copy of the whole or any part of it:Provided that the right shall not extend to any document excepted from this provision by Part I of the Fourth Schedule to this Act, or to documents of any other description lodged more than ten years previously.

In any proceedings a certificate signed by the Commissioner that a document is one lodged by an insurer to comply with section 22 or 23 of this Act, or one that accompanied documents so lodged, shall be admissible as evidence of the facts certified.

Where an insurer fails to comply with section 22 or 23 of this Act, the insurer shall be guilty of an offence and shall be liable on conviction to a fine of five thousand dollars and to a fine of fifty dollars for every day during which the offence is continued after conviction.

Subject to subsection (3) of this section, where an insurer is registered under this Act in respect of either class of insurance business, the insurer shall from time to time, until the insurer ceases to be so registered, notify the Commissioner in writing of any change affecting the insurer’s registration particulars, and shall do so within three months of the change taking place.

Where the change consists in the amendment of any document, or the replacement of any document by a new document, the insurer shall furnish the Commissioner with a copy of the document showing the amendments or, as the case may be, with a copy of the new document.

This section shall have effect subject to any prescribed exceptions, and the Commissioner may in any particular case dispense (either unconditionally or subject to any conditions) with the furnishing of information under this section about any matter.

In this section “registration particulars” means the documents and information furnished by the insurer to comply with subsection (3) of section 4 of this Act when applying to be registered in respect of the class of business in question, or furnished by the insurer to comply with this section in respect thereof.

Subject to subsection (2) of this section, the Commissioner may institute an investigation into the whole or any part of the business carried on in Singapore by an insurer registered under this Act, if it appears to the Commissioner —

Before instituting an investigation under this section, the Commissioner shall serve on the insurer a notice in writing specifying the grounds for instituting an investigation and calling upon the insurer within such period, not less than fourteen days from the service of the notice, as may be specified in the notice, to show cause why an investigation should not be instituted on those grounds.

If the insurer fails within the period specified in the notice to show cause to the satisfaction of the Commissioner, the Commissioner may himself make the investigation or may appoint an inspector to make it and report the results of it to him.

In making an investigation under this section, the Commissioner or inspector may, by notice in writing, require —

In making an investigation under this section, the Commissioner or inspector may require any such individual as is specified in subsection (4) of this section to attend before him and be examined on oath with respect to the insurer’s business, and for the purposes of this subsection may administer oaths.

If any person refuses or fails, when required to do so under subsection (4) or (5) of this section, to produce any document in his custody or power or to attend for or submit to examination by the Commissioner or inspector, or to answer any question put to him on such examination, the Commissioner or inspector may certify the refusal under his hand to the High Court; and the High Court may thereupon enquire into the case, and after hearing any witnesses who may be produced against or on behalf of the alleged offender and after hearing any statement which may be offered in defence, punish the offender in like manner as if he had been guilty of contempt of the High Court.

On the completion of an investigation under section 27 of this Act, the Commissioner shall transmit to the insurer a summary of his conclusions therefrom.

If as the result of the investigation the Commissioner is satisfied that, by reason of the insolvency of the fund maintained by the insurer under this Act for either class of insurance business, it is expedient to do so in the interests of the policy owners interested in that fund, he may by notice in writing to the insurer direct that no further policies belonging to that class are to be issued by it or to be entered in its register of policies; but in the case of a company incorporated or established outside Singapore the direction shall not apply to the issue of policies in the course of its business outside Singapore.

Whether or not the Commissioner gives a direction under subsection (2) of this section, the Commissioner may give to the insurer such directions as to the conduct of the insurer’s affairs, the disposition or recovery of assets of the insurer, or the taking of any available steps for the recovery by the insurer of sums appearing to the Commissioner to have been illegally or improperly paid, as he considers appropriate having regard to his conclusions from the investigation:Provided that no direction as to the conduct of the insurer’s affairs shall continue in force for more than twelve months from the giving thereof, without prejudice however to the giving of a further direction.

If the insurer is aggrieved by a direction under this section, or disputes the validity of such a direction, the insurer may within such time as may be limited by rules of Court appeal to the High Court, but the validity of a direction shall not be questioned except on such an appeal and, in the case of a direction under subsection (2) of this section or of a direction under subsection (3) of this section as to the conduct of the insurer’s affairs, neither the bringing of the appeal nor any order made on the appeal shall affect the operation of the direction as regards any period before the determination of the appeal.

On an appeal under subsection (4) of this section, the High Court may confirm or quash the direction or may remit the matter to the Commissioner for him to vary the direction or to replace it with a different direction in accordance with the order of the Court.

For each occasion on which an insurer purports in contravention of a direction under subsection (2) of this section to issue a policy or enter a policy in a register of policies under this Act, the insurer shall be guilty of an offence and shall be liable on conviction to a fine of one thousand dollars.

If an insurer, having made default in complying with a direction under subsection (3) of this section, fails to make good the default within one month after the service on the insurer by the Commissioner of a notice requiring it to do so, the High Court may on the application of the Commissioner make such order against the insurer or any director or officer of the insurer as the High Court thinks fit with a view to making good the default.

The persons who may petition under the Companies Ordinance (Cap. 174) for the winding up of the affairs of an insurer registered under this Act, or for the continuance of the winding up of the affairs of such an insurer subject to the supervision of the Court, shall include the Commissioner.

The Commissioner shall be a party to any proceedings under the Companies Ordinance relating to the winding up of the affairs of such an insurer, and the liquidator in such a winding up shall give him such information as he may from time to time require about the affairs of the insurer.

For the purposes of any proceedings under the Companies Ordinance for the winding up of the affairs of such an insurer by the Court, the contingent and prospective liabilities of the insurer in respect of policies shall, in determining whether it is unable to pay its debts, be estimated in accordance with such rules as may be prescribed; and evidence that the insurer was insolvent at the close of the last accounting period for which statements of account have been lodged with the Commissioner under section 22 of this Act shall be evidence that the insurer continues unable to pay its debts.

If the Minister submits to the Rules Committee established under any written law relating to the courts, proposals for making special provision under section 328 of the Companies Ordinance in relation to insurers registered under this Act or any description of such insurers, the Committee may by rules made under that section give effect to the proposals, either as submitted or subject to such modifications as the Committee thinks fit.

Proposals under subsection (4) of this section, and rules made by virtue thereof, may provide for modifying or excluding, in relation to insurers so registered, provisions of Part VI of the Companies Ordinance requiring the holding of meetings or otherwise relating to the procedure in a winding up.

In the winding up of the affairs of an insurer registered under this Act, section 254 of the Companies Ordinance (which applies bankruptcy rules in the winding up of insolvent companies), shall not apply to the valuation of liabilities in respect of policies; but in any such winding up, whether the insurer is insolvent or not, those liabilities shall be estimated in accordance with any prescribed rules and, as regards matters not fixed by the rules, on a basis approved by the Court:Provided that in a member’s voluntary winding up the basis to be adopted as regards matters not fixed by the rules may be approved by the Commissioner instead of by the Court.

References in this section to an insurer registered under this Act shall extend also to a Singapore insurer which has ceased to be so registered but remains under any liability in respect of Singapore policies; and where the winding up of a Singapore insurer has commenced but has not been completed before the date of the coming into operation of this Act, subsections (4) and (5) of this section shall have effect for the purposes of that winding up as they have effect in the case of an insurer registered under this Act.

Where the Commissioner gives an insurer a direction under subsection (2) of section 28 of this Act, the affairs of the insurer may be wound up by the Court under the Companies Ordinance as if it had suspended its business for a whole year or, in the case of a winding up under Part IX of that Ordinance, as if it had ceased to carry on business.

Where the Commissioner gives an insurer a direction as aforesaid but, on a petition for the affairs of the insurer to be wound up by the Court, the Court is satisfied that the insurer will be able to pay its debts in full within twelve months or such longer period as the Court thinks reasonable, the Court may (if it thinks fit) order the affairs of the insurer to be wound up only as regards the insurance fund maintained for the class of business to which the direction relates.

An order made under subsection (2) of this section for a limited winding up shall be of the same effect as an order for the affairs of the insurer to be wound up generally, except in so far as this section otherwise provides.

Where such an order is made, the powers of the liquidator shall be exercisable only for the purpose of applying the assets of the relevant insurance fund (including the deposit under this Act) in discharging the liabilities to which they are applicable, together with the costs, charges and expenses incurred in the winding up; but the insurer shall from time to time, as the Court may direct, make such additions to those assets as are required to secure that they are sufficient for the purpose or shall, if the Court so directs, discharge any of those liabilities out of other assets.

In the winding up of the affairs of an insurer under such an order, the Companies Ordinance (Cap. 174) shall have effect subject to the following modifications: —

Where such an order is made, the Court may at any time, on the application of the liquidator or of any person who might petition for the affairs of the insurer to be wound up, substitute an order for the affairs of the insurer to be wound up generally, and give such directions as the Court thinks fit as to matters in progress under the previous order; and, subject to any such directions, the winding up shall for all purposes connected with the substituted order be deemed to have commenced at the time of the application for that order.

Where a society registered under the Co-operative Societies Ordinance (Cap. 175) is an insurer registered under this Act, no proceedings for the dissolution or winding up of the society shall be taken under Part VII of that Ordinance except with the consent of the Commissioner and in accordance with such conditions, if any, as he sees fit to attach to that consent.

Notwithstanding section 57 of the Co-operative Societies Ordinance or paragraph (3) of section 294 of the Companies Ordinance any such society which is an insurer registered under this Act shall be deemed to be an unregistered company within the meaning of Part IX of the Companies Ordinance and may be wound up by the Court accordingly under that Ordinance:Provided that in any such winding up —

Where a society has ceased to be an insurer registered under this Act, but remains under any liability in respect of Singapore policies, this section shall apply as if the society were an insurer so registered.

The whole or part of the insurance business of an insurer registered under this Act may be transferred to another insurer registered in respect of the class or classes of business to be transferred, if the transfer is effected by a scheme under this section, but shall not be transferred except by such a scheme:Provided that —

Any insurer registered under this Act, not being a company incorporated or established outside Singapore, shall by virtue of this section have power to make such a transfer by a scheme under this section, and the directors shall have authority on behalf of the insurer to arrange for and do all things necessary to give effect to such a transfer; and this subsection shall apply notwithstanding the absence of that power or authority under the constitution of the insurer or any limitation imposed by its constitution on its powers or on the authority of its directors.

A scheme under this section may provide for the business in question to be transferred to a body not registered as an insurer under this Act in respect of the relevant class of business (including a body not yet in existence), if the scheme is so framed as to operate only in the event of the body becoming so registered.

A scheme under this section for the transfer of any insurance business may extend to the transfer with it of any other business, not being insurance business, where the other business is carried on by the insurer as ancillary only to the insurance business transferred.

A scheme under this section may include provision for matters incidental to the transfer thereby effected, and provision for giving effect to that transfer, and in particular —

A scheme under this section shall be of no effect unless confirmed by the High Court, but may be prepared and submitted for confirmation to the High Court by any of the insurers concerned; and if so confirmed, the scheme shall have effect according to its tenor notwithstanding anything in the foregoing sections of this Act and be binding on any person thereby affected.

Before an application is made to the High Court for confirmation of a scheme under section 32 of this Act —

The Commissioner may cause a report on the scheme to be made by a qualified actuary independent of the parties to the scheme and, if he does so, shall cause a copy of the report to be sent to each of the insurers concerned.

Copies of the scheme and any such report as is mentioned in paragraph (a) of subsection (1) or in subsection (2) of this section, or summaries approved by the Commissioner of the scheme and any such report, shall, except in so far as the High Court upon application made in that behalf otherwise directs, be transmitted by the insurers concerned, at least fifteen days before application is made for confirmation of the scheme, to every policy owner affected by the scheme.

An application to the Court with respect to any matter connected with the scheme may, at any time before confirmation by the Court, be made by the Commissioner or by any person who in the opinion of the Court is likely to be affected by the scheme.

The Court may confirm the scheme without modification or subject to modifications agreed to by the insurers concerned, or may refuse to confirm the scheme.

The insurers concerned shall be jointly and severally liable to reimburse to the Commissioner any expenses incurred by him under this section in connection with any scheme or proposed scheme (subject to any order of the Court as to costs); and a scheme shall include provision as to how that liability is, as between the insurers, to be borne.

Where by a scheme under section 32 of this Act insurance business of an insurer is transferred to another, the transferee shall within one month after the scheme takes effect, lodge with the Commissioner —

On the confirmation of a scheme under section 32 of this Act each of the insurers concerned shall (unless it is an unincorporated company) file a copy of the scheme with the Registrar of Companies or, in the case of societies registered under the Co-operative Societies Ordinance (Cap. 17) with the Registrar under that Ordinance.

There shall be an officer, to be known as the Insurance Commissioner, who shall be charged with the general administration of this Act and the exercise of the functions conferred by this Act on the Commissioner; and references in this Act to the Commissioner are references to that officer.

Appointments to the office of Insurance Commissioner shall be made by the Minister.

In the exercise of his functions the Commissioner shall act in accordance with any general directions of the Minister.

If the Commissioner (or the acting Commissioner for the time being during a vacancy or during the absence or incapacity of the Commissioner) is not a qualified actuary, the Minister shall arrange for the services of a qualified actuary to be available at all times for the purpose of advising in relation to matters arising under this Act.

Not later than the end of April in any calendar year the Commissioner shall prepare and submit to the Minister a report on the working of this Act during the preceding calendar year.

The Commissioner shall include in his report under this section for any year copies or summaries of documents lodged with him in that year under sections 22 and 23 of this Act, other than documents excepted from subsections (1) and (2) of section 25 of this Act, and may include copies or summaries of documents accompanying those lodged as aforesaid; and he may also include in the report such notes on any such documents or summaries as he thinks fit, and copies of any correspondence between him and an insurer about any such documents lodged by or received from the insurer.

On receiving a report under this section, the Minister shall present a copy of it to Parliament.

Regulations may provide for the collection by or on behalf of the Commissioner, at such intervals or on such occasions as may be prescribed, of statistical information as to such matters relevant to insurance as may be prescribed, and may provide for the collection and use of such information for any purpose, whether or not connected with insurance.

Such regulations may make provision for requiring Singapore insurers and insurance agents to furnish to the Commissioner, in the prescribed form, such information as may be prescribed.