6. Payment of compensation under settlement agreements
Feedback & supportLast amended by an amending law of 2013.
This section applies to every payment (excluding any sum payable in respect of costs and interest) exceeding the relevant amount that —
relevant amount
“relevant amount” means $5,000 or, where another amount has been prescribed under section 20 by the appropriate Minister for the purposes of sections 6(1), 9(1)(a) and (b) and 18(5), the prescribed amount;
is made by way of compensation by an insurer or the owner of a motor vehicle pursuant to a settlement agreement in respect of the death or bodily injury to a person arising out of the use of a motor vehicle on a road in Singapore or in any territory specified in the Schedule; and
is not a liquidated sum specified in a policy of insurance.
Subject to subsections (3) and (4), the insurer or the owner of a motor vehicle must make the payment, together with any sum payable in respect of costs and interest under the settlement agreement, directly to —
motor vehicle
“motor vehicle” means a mechanically propelled vehicle intended or adapted for use on roads;
the Public Trustee as trustee for the person entitled to the benefit of the payment if the person is a specified person; or
in any other case, the person entitled to the benefit of the payment in accordance with the law for the time being in force and with any rules made under this Act.
Subject to subsection (5), payment under subsection (2) must not be made until —
in the case where the person entitled to the benefit of the payment is a person referred to in paragraph (a)(i) of the definition of “specified person” in section 2, the insurer or the owner of the motor vehicle obtains —
the approval of the Public Trustee of the adequacy of the payment to be made; or
where the Public Trustee considers it to be manifestly inadequate, the approval of the court of its adequacy; and
the costs payable to any public officer or any advocate and solicitor who acts or has acted in respect of the claim for compensation on behalf of the person entitled to the benefit of the payment have been determined in accordance with section 18(3).
Before making any payment under subsection (2), the insurer or the owner of a motor vehicle must deduct from it the costs referred to in subsection (3)(b) and pay the costs directly to the public officer or the advocate and solicitor entitled to it.
Nothing in subsection (2)(a), (3) or (4) prevents an insurer or the owner of a motor vehicle from making any interim payment of compensation of any amount to any person entitled to the benefit of compensation.
Every application to the Public Trustee for his or her approval under subsection (3)(a)(i) and every payment to the Public Trustee under subsection (2)(a) must be made in the manner, and together with the documents and information, that the Public Trustee may require.
Public Trustee
“Public Trustee” means the Public Trustee appointed under the provisions of the Public Trustee Act 1915 and includes a Deputy Public Trustee and an Assistant Public Trustee appointed under the provisions of that Act;
Subject to subsection (8), the Public Trustee must, after deducting any fee payable to him or her for acting as trustee, distribute the moneys received by him or her under subsection (2)(a) directly to the persons entitled to the moneys in accordance with the law for the time being in force and with any rules made under this Act.
The Public Trustee may, where he or she receives moneys under subsection (2)(a) for a specified person who is below 21 years of age, hold the moneys on trust for that person until that person attains 21 years of age.
specified person
“specified person” means —(a)for the purposes of section 6, a person who is entitled to the benefit of a payment, pursuant to a settlement agreement, mentioned in section 6(1) and who —(i)at the time the settlement agreement is made, is not represented by a public officer or an advocate and solicitor;(ii)at the time of the making of the payment under section 6(2), is isolated in a hospital or other place under section 15(1) or (2) of the Infectious Diseases Act 1976; or(iii)at the time of the making of the payment under section 6(2), is under legal custody in a place of detention; and(b)for the purposes of section 9, a person who is entitled to the benefit of a judgment referred to in section 9(1)(b) and who, at the time the judgment is given —(i)is below 21 years of age;(ii)lacks capacity within the meaning of section 4 of the Mental Capacity Act 2008;(iii)is not represented by a public officer or an advocate and solicitor;(iv)is isolated in a hospital or other place under section 15(1) or (2) of the Infectious Diseases Act 1976; or(v)is under legal custody in a place of detention;