Deposit Insurance and Policy Owners’ Protection Schemes Act 2011

• Jurisdiction: Singapore
• Coming into Force: 31 December 2021
• Record Number: Cap. 77B
• Published date: 31 December 2012
• Act Number: (Original Enactment: Act 15 of 2011)
• Year: 2011
• Enactment Date: 01 May 2011

Deposit Insurance and Policy Owners’ Protection Schemes Act

(CHAPTER 77B)

(Original Enactment: Act 15 of 2011)

REVISED EDITION 2012

(31st December 2012)

An Act to reconstitute the Deposit Insurance Scheme for the purpose of providing limited compensation to insured depositors under certain circumstances, to establish a Policy Owners’ Protection Scheme for the purpose of compensating (in part or whole) or otherwise assisting or protecting insured policy owners and beneficiaries under certain circumstances, and for matters connected therewith.

[1st May 2011]

PART I PRELIMINARY Short title 1. This Act may be cited as the Deposit Insurance and Policy Owners’ Protection Schemes Act. Interpretation 2.—(1) In this Act, unless the context otherwise requires — “accident and health policy” has the same meaning as in the First Schedule to the Insurance Act (Cap. 142); “account with the electronic service”, in relation to any person, means a computer account within the electronic service which is assigned by the Authority to that person for the storage and retrieval of electronic records relating to that person; “Agency” means the company designated by the Minister under section 56 to be the deposit insurance and policy owners’ protection fund agency; “authentication code”, in relation to any person, means an identification or identifying code, a password or any other authentication method or procedure which is assigned to that person for the purposes of identifying and authenticating the access to and use of the electronic service by that person; “Authority” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act (Cap. 186); “bank” has the same meaning as in section 2(1) of the Banking Act (Cap. 19); “beneficiary” — (a) in relation to an insured policy which is covered under the PPF Life Fund or the PPF General Fund, means any person entitled to claim benefits under the terms of that insured policy; and (b) in relation to an accidental death insurance cover provided by a PPF Scheme member before the inception of an insured policy, means any person entitled to the accidental death benefit under the terms of the cover; [Act 31 of 2018 wef 01/04/2019] “book” includes any record, register, document or other record of information, and any account or accounting record, however compiled, recorded or stored, whether in written or printed form or on microfilm or in electronic form or otherwise; “captive insurer” has the same meaning as in section 1A of the Insurance Act; “Chief Executive” means the Chief Executive of the Agency appointed under section 62 and includes any person acting in that capacity; “claim event” means the contingency upon which policy moneys are payable under an insured policy; “client account”, in relation to an insured depositor, means an account maintained by the insured depositor with a DI Scheme member for the purpose of holding moneys by the insured depositor for a client of the insured depositor, whether or not other moneys may be held in that account; “commuted value”, in relation to an insured policy which provides for the payment of an annuity, means the present value of the expected future payments to be made — (a) for a term dependant on the continuation of human life; or (b) upon the death of the life assured or surrender of the insured policy by the insured policy owner, as specified under the terms of the insured policy; “company” has the same meaning as in section 4(1) of the Companies Act (Cap. 50); “compulsory insurance policy” means any policy of insurance which complies with the requirements of — (a) the Motor Vehicles (Third-Party Risks and Compensation) Act (Cap. 189); or (b) the Work Injury Compensation Act 2019 or the Work Injury Compensation Act repealed by that Act; [Act 27 of 2019 wef 01/09/2020] “corporation” has the same meaning as in section 4(1) of the Companies Act; “coupon deposit”, in relation to any insured policy, means any sum of money, being part of the policy moneys which the insurer is obliged to pay to the insured policy owner at agreed intervals under the terms of the insured policy which the insured policy owner instructs the insurer not to pay out to him but for the sum of money to be deposited with the insurer to earn interest at an agreed rate; [Act 31 of 2018 wef 01/04/2019] “covered party” means — (a) an insured policy owner of an insured policy which is covered by the PPF Life Fund or the PPF General Fund (as the case may be); (b) the trustee of a trust of an insured policy which is covered by the PPF Life Fund or the PPF General Fund (as the case may be), in that capacity; or (c) a beneficiary in relation to — (i) an insured policy which is covered by the PPF Life Fund or the PPF General Fund (as the case may be); or (ii) an accidental death insurance cover provided by a PPF Scheme member before the inception of an insured policy; [Act 31 of 2018 wef 01/04/2019] “CPFIS” means the Central Provident Fund Investment Scheme introduced by the Central Provident Fund Board under the Central Provident Fund (Investment Schemes) Regulations (Cap. 36, Rg 9); [Deleted by Act 26 of 2016 wef 01/01/2017] “CPFRS” means any Retirement Sum Scheme established under any regulations made under section 77(1) of the Central Provident Fund Act (Cap. 36); [Act 26 of 2016 wef 01/01/2017] “deposit” means a sum of money paid on terms — (a) under which it will be repaid, with or without interest or a premium, or with any consideration in money or money’s worth, either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; and (b) which are not referable to the provision of property or services; “deposit-taking business” has the same meaning as in section 4B of the Banking Act; “depositor” means any person who is entitled to repayment of a deposit, whether or not the deposit is made by him; “DI exempt member” means a full bank or finance company which has been exempted by the Authority under section 6 from the requirement to be a DI Scheme member; “DI Fund” means the Deposit Insurance Fund reconstituted under section 9; “direct insurer” has the same meaning as in section 1A of the Insurance Act; “DI Scheme” means the Deposit Insurance Scheme reconstituted under section 4; “DI Scheme member” means a member of the DI Scheme; “electronic record” has the same meaning as in section 2 of the Electronic Transactions Act (Cap. 88); “electronic service” means the electronic service provided by the Authority under section 86; “excluded person” means — (a) any bank; (b) any person who carries on business activities outside of Singapore which, if conducted in Singapore, would require the person to be licensed under the Banking Act; and (c) such other person or class of persons as the Authority may prescribe; “failed DI Scheme member” means a DI Scheme member in respect of which the Authority has made a determination that compensation is to be paid out of the DI Fund under section 21(1), and any reference to “failure” in relation to a DI Scheme member is to be construed accordingly; [Act 31 of 2018 wef 01/04/2019] “failed PPF Scheme member” means a PPF Scheme member in respect of which the Authority has made a determination under section 46(1) that the PPF Life Fund or the PPF General Fund is to be utilised for one or more of the purposes mentioned in section 46(1A), and any reference to “failure” in relation to a PPF Scheme member is to be construed accordingly; [Act 31 of 2018 wef 01/04/2019] “finance company” has the same meaning as in section 2 of the Finance Companies Act (Cap. 108); “full bank” means any bank holding a licence granted by the Authority under the Banking Act which permits the bank to carry on the full range of banking business; “general business” and “life business” have the same meanings as in section 2 of the Insurance Act, read with section 3(1B) of that Act; “group policy” means any policy of insurance in respect of which the policy owner is not an individual; “guaranteed policy liabilities”, in relation to insured policies, means the policy liabilities, relating to benefits guaranteed under the insured policies only, calculated in accordance with regulations prescribed pursuant to section 18 of the Insurance Act for the valuation of assets and liabilities in an insurance fund; “health policy” means any accident and health policy which is not a personal accident policy; “individual policy” means a policy of insurance in respect of which the policy owner is an individual; “insured deposit” has the meaning given to it in the First Schedule; “insured deposit base” has the meaning given to it in section 3; “insured depositor” means any person who is not an excluded person and is entitled to the repayment of any insured deposit, whether or not the insured deposit is made by him, and includes — (a) in the case of a deposit held by a trustee under a trust, the trustee; and (b) for the avoidance of doubt, in the case of a deposit held by a depositor in a client account, the depositor; “insured policy” means — (a) any life policy; (b) any accident and health policy; (c) any compulsory insurance policy; or (d) any specified personal line insurance policy which is a Singapore policy; “insured policy owner” means the policy owner of an insured policy; “life policy” has the same meaning as in the First Schedule to the Insurance Act; “liquidator” has the meaning given by section 2(1) of the Insolvency, Restructuring and Dissolution Act 2018; [Act 40 of 2018 wef 30/07/2020] “marine mutual insurance business” means the business of providing the insurance of liabilities under insurance policies on the basis of mutual insurance — (a) upon goods, merchandise or property of any description transported on board any vessel, including incidental transit before and after shipment; (b) upon the freight of, or any other interest in or relating to, vessels; (c) upon vessels, or upon machinery, tackle furniture or equipment of vessels; (d) against damage arising out of or in connection with ...