Insurance Act
(CHAPTER 142)

(Original Enactment: Act 46 of 1966)

[1st January 1967]
14.  [Repealed by Act 16/2011 wef 01/05/2011]
14A.  [Repealed by Act 11 of 2013 wef 18/04/2013]
15.  [Repealed by Act 11 of 2013 wef 18/04/2013]
Register of policies
16.—(1)  Every licensed insurer shall establish and keep —
(a)a register of Singapore policies where it carries on business relating to Singapore policies; and
(b)a register of offshore policies where it carries on business relating to offshore policies.
[11/86]
[Act 11 of 2013 wef 18/04/2013]
(2)  Subject to this section, there shall be entered in the register of Singapore policies all Singapore policies of the insurer and in the register of offshore policies all offshore policies of the insurer, and no policy entered in any register shall be removed from it so long as the insurer is under any liability in respect of that policy.
[11/86]
(3)  Subject to this section, there may be entered in the register of Singapore policies 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.
[11/86]
(4)  Subject to subsection (5), 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 —
(a)refrain from entering the policy in the register of Singapore policies, notwithstanding that it is a Singapore policy; or
(b)remove the policy from the register of Singapore policies,
and this Act shall thereafter apply in relation to the policy as if it were not a Singapore policy.
[11/86]
(5)  Regulations may provide that subsection (3) or (4) shall apply only in such cases as may be prescribed or shall have effect subject to any prescribed exceptions or restrictions.
[11/86]
(6)  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 any register of policies established by the insurer under this Act.
[11/86]
(7)  Where a Singapore insurer has established under this Act any 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 licensed 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.
[11/86]
[Act 11 of 2013 wef 18/04/2013]
(8)  Subject to subsection (7), any 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 those policies registered or required to be registered at that time;
[11/86]
(9)  No policies referred to in subsection (8) belonging to either class of insurance business shall be entered in the register under subsection (3) 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.
[11/86]
(10)  A register of policies established and kept by an insurer under this section before 1st January 1987 shall be deemed to be a register of Singapore policies under subsection (1).
[11/86]
Establishment of insurance funds and allocation of surplus
17.—(1)  Every licensed insurer shall establish and maintain a separate insurance fund —
(a)for each class of insurance business carried on by the insurer that relates to Singapore policies; and
(b)for each class of insurance business carried on by the insurer that relates to offshore policies.
[11/86]
[Act 11 of 2013 wef 18/04/2013]
(1A)  Every direct insurer licensed to carry on life business shall establish and maintain, in addition to the insurance funds under subsection (1) and subject to such conditions or restrictions as the Authority may impose, separate insurance funds —
(a)for its investment-linked policies; and
(b)for its non-investment-linked policies.
[23/2003 wef 01/01/2004]
[Act 11 of 2013 wef 18/04/2013]
(2)  If, in the case of a direct insurer licensed to carry on life business, no part of the surplus of assets over liabilities from its non-participating policies is allocated by the insurer by way of bonus to its participating policies, the insurer shall, in addition to the funds maintained under subsections (1) and (1A) and subject to such conditions or restrictions as the Authority may impose, establish and maintain, in respect of its non-investment-linked policies, separate insurance funds —
(a)for its participating policies; and
(b)for its non-participating policies.
[23/2003 wef 01/01/2004]
[Act 11 of 2013 wef 18/04/2013]
(3)  The Authority may require any licensed insurer to establish and maintain, in addition to the insurance funds under subsections (1), (1A) and (2), such other insurance fund as the Authority may determine for different types of policies in respect of each class of insurance business.
[11/86; 32/93]
[Act 11 of 2013 wef 18/04/2013]
(4)  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.
[16/2011 wef 01/05/2011]
[11/86]
(5)  For the purposes of subsection (4), the Authority may prescribe or specify in directions what constitutes receipts, income, liabilities or expenses of the insurer which are properly attributable to the business to which an insurance fund relates and the manner in which each item is to be determined or valued.
[23/2003 wef 23/08/2004]
(6)  In the case of an insurance fund maintained by a direct insurer licensed to carry on life business which comprises wholly or partly of participating policies —
(a)there shall be a surplus account, established and maintained in such manner as the Authority may prescribe or specify in directions, as part of the insurance fund;
[Act 11 of 2013 wef 18/04/2013]
(b)no part of the fund shall be allocated by way of bonus to the participating policies except —
(i)with the approval of the directors of the insurer, upon considering a written recommendation from the actuary appointed under section 31; and
(ii)where the making of such allocation does not contravene any condition or restriction that may be prescribed or specified in directions for the purposes of this section;
(c)no part of the fund shall be allocated to the surplus account except —
(i)with the approval of the directors of the insurer, upon considering a written recommendation from the actuary appointed under section 31;
(ii)where the making of such allocation does not contravene the fund solvency requirement under section 18;
(iii)where the making of such allocation does not contravene any condition or restriction that may be prescribed or specified in directions for the purposes of this section; and
(iv)where the amount does not exceed 1/9th of the amount allocated pursuant to paragraph (b) for a particular accounting period.
[23/2003 wef 23/08/2004]
[Act 11 of 2013 wef 18/04/2013]
(7)  Notwithstanding subsection (6)(c), an insurer may make additional allocations to the surplus account of an insurance fund which comprises wholly or partly of participating policies of an amount and in a manner as prescribed or specified in directions by the Authority.
[23/2003 wef 23/08/2004]
(8)  Where the amount allocated to the surplus account in a particular accounting period pursuant to subsection (6)(c) is less than 1/9th of the amount allocated pursuant to subsection (6)(b) for that accounting period, the insurer shall not allocate the difference between the amount actually allocated and the 1/9th amount allowed to the surplus account in any subsequent accounting period.
[23/2003 wef 23/08/2004]
(9)  An insurer may, where there is a surplus of assets over liabilities of an insurance fund, at any time withdraw from the fund an amount not exceeding the surplus over any fund solvency requirement prescribed for that fund under section 18 if and only if —
(a)there is no provision in any instrument or contract binding the insurer disallowing such a withdrawal; and
(b)the insurer ascertains from the latest statement of accounts lodged with the Authority in accordance with section 36 or such other subsequent audited statement of accounts provided to the Authority that there is in fact such a surplus at the time of the withdrawal.
[23/2003 wef 23/08/2004]
(10)  On the making of any withdrawal in accordance with subsection (9), the surplus of the fund shall, for the purposes of this section, be treated as reduced by the amount withdrawn.
[23/2003 wef 23/08/2004]
(11)  Any amount withdrawn from an insurance fund under subsection (9) 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 except that, in the case of a winding up where any other insurance fund of the insurer under this Act is in deficit, the surplus remaining after the winding up shall first be applied to make good the deficit in that fund.
[11/86; 32/93]
(12)  [Deleted by Act 16/2011 wef 01/05/2011]
(13)  Any insurance fund established by an insurer for any class of insurance 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 a register of policies for policies belonging to that class.
[11/86]
(14)  [Deleted by Act 11 of 2013 wef 18/04/2013]
(15)  [Deleted by Act 11 of 2013 wef 18/04/2013]
(16)  The assets of any insurance fund established by an insurer under this Act shall be kept separate from all other assets of the insurer.
[11/86]
Fund solvency requirements and capital adequacy requirements
18.—(1)  Every licensed insurer shall satisfy —
(a)such fund solvency requirements in respect of each insurance fund established by the insurer under this Act; and
(b)such capital adequacy requirements,
as may be prescribed or specified in directions for the purposes of this section.
[23/2003 wef 23/08/2004]
[Act 11 of 2013 wef 18/04/2013]
(2)  The Authority may prescribe or specify in directions —
(a)different fund solvency requirements or capital adequacy requirements under subsection (1) for different classes of insurance business and for different types of insurers; and
(b)in respect of any type of insurers, any exception from the requirements of subsection (1).
[11/86]
[Act 11 of 2013 wef 18/04/2013]
(3)  Without prejudice to the generality of section 64, regulations made under this Act, or directions made under subsection (1) or (2), may —
(a)provide for the determination of the value of assets and the amount of liabilities;
[Act 11 of 2013 wef 18/04/2013]
(b)provide that, for any specified purpose, assets or liabilities of any specified class or description shall be left out of account or shall be taken into account only to a specified extent; and
(c)make different provision in relation to different cases or circumstances.
[11/86]
[Act 11 of 2013 wef 18/04/2013]
(4)  The Authority may by notice in writing, if it considers it appropriate in the particular circumstances of a licensed insurer having regard to the risks arising from the activities of the insurer and such other factors as the Authority considers relevant, direct that the insurer satisfy fund solvency requirements or capital adequacy requirements other than those that the insurer is required to maintain under this section.
[23/2003 wef 23/08/2004]
[Act 11 of 2013 wef 18/04/2013]
(5)  Without prejudice to the generality of section 41, the failure of a licensed insurer to comply with subsection (1) or any direction of the Authority under subsection (4) shall be sufficient cause for the Authority to be satisfied that the affairs of the insurer are being conducted in a manner likely to be detrimental to the public interest or the interests of the policy owners and to issue such directions under section 41(1) as the Authority may consider necessary.
[23/2003 wef 23/08/2004]
[Act 11 of 2013 wef 18/04/2013]
(6)  Any licensed insurer which contravenes subsection (1) or fails to comply with a direction of the Authority under subsection (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.
[Act 11 of 2013 wef 18/04/2013]
Form, investment and situation of assets
19.  The Authority may prescribe or specify in directions, either generally or in such circumstances and to such extent as may be prescribed or specified —
(a)the manner in which the assets of any insurance fund of a licensed insurer are to be invested and the places in which such assets are to be maintained; and
(b)the nature of the assets that is appropriate in relation to the currency in which the liabilities of the insurer are or may be required to be met.
[Act 11 of 2013 wef 18/04/2013]
Requirements as to documents evidencing title to assets of insurance funds
20.—(1)  Where an insurer has established an insurance fund under this Act, the insurer shall secure that any document evidencing the insurer’s title to assets of the fund, so long as the document is 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 in accordance with such directions as may be issued by the Authority.
[11/86; 41/2001]
(2)  An insurer who has established an insurance fund under this Act shall from time to time notify the Authority in writing —
(a)the person having the custody of any such document on behalf of the insurer, and the fact of any person ceasing to do so; and
(b)the reason why any such document is not held by or on behalf of the insurer, and the identity of the document in question.
[11/86]
(3)  Any such document which is, for the time being, held by or on behalf of the insurer shall, on the Authority giving not less than 14 days notice in writing to the insurer or to the person having the custody of the document, be produced for inspection to the Authority or a person nominated by it by the person to whom the notice is given.
[11/86]
(4)  Any person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $12,500 and, in the case of a continuing offence, to a further fine not exceeding $1,250 for every day or part thereof during which the offence continues after conviction.
[Act 11 of 2013 wef 18/04/2013]
Maintenance of assets by licensed insurers
21.—(1)  The Authority may, from time to time, by notice in writing to any licensed insurer, or any class of licensed insurers, direct the insurer or class of insurers, as the case may be, each to maintain and hold such minimum amount or amounts of assets in Singapore as may be specified in the notice for the purpose of meeting its liabilities.
(2)  Without prejudice to the generality of subsection (1), the Authority may, in a notice issued under that subsection, specify —
(a)the types of liabilities in respect of which assets are to be maintained and held in Singapore;
(b)the types of assets that are to be treated as assets maintained and held in Singapore, and the minimum amount or amounts in respect of each asset for the purpose of any requirement of the Authority under that subsection; and
(c)the method for the valuation of assets maintained and held in Singapore, including any deduction to be made in respect of the assets.
(3)  Where the Authority issues a notice under subsection (1) to a class of licensed insurers, the Authority may direct different insurers within the class of insurers to maintain and hold different minimum amounts of assets in Singapore, having regard to the financial soundness of each insurer, the risk profile of each insurer and such other factors as the Authority may consider relevant.
(4)  Any licensed insurer which fails to comply with any direction of the Authority under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.
[Act 11 of 2013 wef 18/04/2013]
Custody of assets of licensed insurers
22.—(1)  The Authority may, in the case of a licensed insurer on which a requirement has been imposed under section 21, impose an additional requirement that the whole or a specified proportion of the assets to which the requirement under that section applies shall be held by a person approved by the Authority for the purposes of the requirement under this section as trustee for the insurer.
[11/86]
[Act 11 of 2013 wef 18/04/2013]
(2)  [Deleted by Act 11 of 2013 wef 18/04/2013]
(3)  Assets of a licensed insurer held by a person as trustee for the insurer shall be taken to be held by him in compliance with a requirement imposed under this section if, and only if —
(a)they are assets which the insurer has given him notice are to be held by him in compliance with such a requirement; or
[Act 11 of 2013 wef 18/04/2013]
(b)they are assets into which assets which the insurer has given him such written notice have, by any transaction or series of transactions, been transposed by him on the instructions of the insurer.
[11/86]
[Act 11 of 2013 wef 18/04/2013]
[Act 11 of 2013 wef 18/04/2013]
(4)  No assets held by a person as trustee for a licensed insurer in compliance with a requirement imposed under this section shall, so long as the requirement is in force, be released except with the written consent of the Authority.
[11/86]
[Act 11 of 2013 wef 18/04/2013]
(5)  If a mortgage or charge is created by a licensed insurer at a time when there is in force a requirement imposed on the insurer by virtue of this section, being a mortgage or charge conferring a security on any assets which are held by a person as trustee for the insurer in compliance with the requirement, the mortgage or charge shall, to the extent that it confers such a security, be void against the liquidator and any creditor of the insurer.
[11/86]
[Act 11 of 2013 wef 18/04/2013]