Singapore legislation
Clause 31
Clause 31
Designation by Commissioner
(1)
The Commissioner may designate any licensed insurer, within the meaning of the Insurance Act, that satisfies the prescribed requirements to be a designated insurer.
(2)
The Commissioner may, from time to time, impose conditions on any designated insurer, including a condition requiring the designated insurer to comply with specified standards of performance relating to the processing of claims under this Act.
(3)
The Commissioner may, from time to time, modify or add to the conditions imposed on a designated insurer.
(4)
The Commissioner must, before modifying or adding to any conditions imposed on a designated insurer, give notice to the designated insurer concerned —
stating the modification or addition that the Commissioner intends to make; and
specifying the time within which the designated insurer may make written representations to the Commissioner with respect to the proposed modification or addition.
(5)
Where a designated insurer makes any representations under subsection (4)(b), the Commissioner must consider the representations and notify the designated insurer of the Commissioner’s decision.
(6)
Unless earlier cancelled under subsection (8)(a) or section 34, a person’s designation as a designated insurer expires at the end of the period (if any) specified by the Commissioner in the designation.
(7)
A designated insurer may apply, in the form and manner required by the Commissioner, for cancellation of the designation.
(8)
Where a designated insurer applies under subsection (7), the Commissioner may do one or more of the following:
cancel the designation with effect from a date specified by the Commissioner; (b)suspend the designation of the designated insurer for a period before the cancellation takes effect as specified by the Commissioner;
give a direction to the designated insurer not to enter into, renew or extend any approved policy; (d)require the designated insurer to take such action as the Commissioner requires to ensure that reasonable provision has been or will be made for any liability in respect of any approved policy before cancelling the designation.
(9)
When deciding any matter under subsection (8), the Commissioner must consider whether proper arrangements have been made to ensure that the designated insurer’s obligation to comply with every condition, direction and requirement mentioned in section 32(1) in respect of the following are met: (a)every approved policy and every insurance policy issued by that insurer that purports to insure an employer’s liability to pay compensation under this Act; (b)any payment insured, or purportedly insured, under such an insurance policy.
(10)
The following persons may, within the prescribed time, appeal to the Minister whose decision is final:
any licensed insurer that the Commissioner has refused to designate as a designated insurer;
any designated insurer that is aggrieved by any modification or addition of conditions imposed by the Commissioner;
any designated insurer that is aggrieved by the Commissioner’s decision on any matter under subsection (8).
(11)
A decision of the Commissioner under subsection (5) or (8) takes effect despite any pending appeal to the Minister against the decision.