Division 2 — Miscellaneous amendments of law
[11/2013]
Insurable interest required for life insurances
146.—(1)  A life policy insuring the life of a person which is issued by a licensed insurer is void unless —
(a)the person effecting the insurance has an insurable interest in the life which is insured at the time the insurance is effected;
(b)the life which is insured is that of —
(i)the person effecting the insurance;
(ii)his or her spouse at the time the insurance is effected;
(iii)his or her child or ward under the age of 18 years at the time the insurance is effected; or
(iv)any other person on whom the person effecting the insurance is, at the time the insurance is effected, wholly or partly dependant; or
(c)the life policy is one in respect of which all of the conditions referred to in subsection (3) or (4) are satisfied.
[3/2009; 11/2013]
(2)  Where subsection (1)(a) applies, the policy moneys payable under the life policy must not exceed the amount of the insurable interest at the time the insurance is effected.
[3/2009]
(3)  Section 5 of the Civil Law Act 1909 and section 151 do not apply to a life policy, and a life policy is not void, if all of the following conditions are satisfied:
(a)the life which is insured is that of the settlor of a trust;
(b)the person effecting the insurance is the trustee of the trust;
(c)any beneficiary of the trust —
(i)has an insurable interest in the life of the settlor at the time the insurance is effected; or
(ii)is —
(A)the settlor’s spouse at the time the insurance is effected;
(B)the settlor’s child or ward under the age of 18 years at the time the insurance is effected; or
(C)any other person on whom the settlor is, at the time the insurance is effected, wholly or partly dependant;
(d)the settlor consents in writing to the effecting of the insurance before it is effected.
[3/2009]
(4)  Section 5 of the Civil Law Act 1909 and section 151 do not apply to a life policy, and a life policy is not void, if all of the following conditions are satisfied:
(a)the life which is insured is that of a beneficiary of a trust (called in this subsection the relevant beneficiary);
(b)the person effecting the insurance is the trustee of the trust;
(c)any beneficiary of the trust —
(i)has an insurable interest in the life of the relevant beneficiary at the time the insurance is effected; or
(ii)is —
(A)the relevant beneficiary’s spouse at the time the insurance is effected;
(B)the relevant beneficiary’s child or ward under the age of 18 years at the time the insurance is effected; or
(C)any other person on whom the relevant beneficiary is, at the time the insurance is effected, wholly or partly dependant;
(d)the relevant beneficiary consents in writing to the effecting of the insurance before it is effected.
[3/2009]
(5)  Subsections (1), (2), (3) and (4) apply to a life policy regardless of whether the proper law of the life policy is the law of Singapore.
[3/2009]
(6)  In this section, “insuring the life of a person” means insuring the payment of money (or the equivalent) on that person’s death or on the happening of any contingency dependent on the termination or continuance of that person’s life, and includes granting an annuity to commence on that death or at a time to be determined by reference thereto or to any such contingency.
(7)  Insofar as in the case of any life policy the policy moneys do not consist wholly of a cash payment due on the death in question, the limit under this section on the amount to be paid must be applied by reference to the value of the right to the policy moneys immediately after the death or the happening before the death of any event on which they become payable.
(8)  Subsections (1)(a) and (b), (2), (6) and (7) do not affect policies issued before 1 January 1967.
[3/2009]
(9)  Subsections (1)(c), (3), (4) and (5) do not affect policies issued before 1 March 2009.
[57
[3/2009]
Capacity of infant to insure
147.—(1)  Despite any law to the contrary, a person over the age of 10 years does not, by reason only of his or her age, lack the capacity to enter into a contract of insurance; but a person under the age of 16 years does not have the capacity to enter into such a contract except with the written consent of his or her parent or guardian.
[3/2009]
(2)  This section is deemed always to have had effect.
[58
Life policy moneys to be paid without deduction
148.—(1)  Subject to section 150, any policy moneys payable under a life policy or moneys payable on the surrender of a life policy must be paid without any deduction for sums not due under the policy or under an agreement charging them on the policy, unless the deduction is made with the consent of the person entitled to those moneys; and any provision contained in a life policy or in any agreement relating thereto is void, insofar as it entitles the insurer to make any such deduction without that consent.
[3/2009]
(2)  Subsection (1) applies to all Singapore policies, but does not apply to any other policy issued before 1 January 1967.
(3)  In any proceedings for the recovery of policy moneys due under the life policy or of moneys payable on the surrender of a life policy, no set‑off or counterclaim is allowed except for sums due under the policy or under an agreement charging them on the policy.
[59
Life policies (surrenders, non-payment of premiums, paid-up policies)
149.—(1)  Where a life policy has been in force for 3 years or more, the policy owner may by written notice to the insurer surrender the policy, and the policy owner is then entitled to receive the surrender value thereof (if any) determined in accordance with such rules as may be prescribed (but subject to any deduction for sums due under the policy or under an agreement charging them on the policy).
[11/2013]
(2)  Where a life policy has been in force for 3 years or more, the policy does not lapse and must not be forfeited by reason of the non‑payment of premiums, but has effect subject to such modifications as to the period for which it is to be in force or the benefits receivable thereunder or both as may be determined in accordance with any system adopted by the insurer and applicable to the policy; and —
(a)in the case of a policy issued as a Singapore policy after 1 January 1967 or as an offshore policy issued after 1 January 1987, the system must be approved by the Authority, and must be that adopted and applicable at the time the policy is issued, and the policy must contain a statement in a form approved by the Authority of the effect of this subsection in relation to the policy; and
(b)in any other case, unless the system is determined by the policy, the system must be that which at the time when this section becomes applicable to the policy would apply to a like policy then issued as a Singapore policy.
(3)  Where a life policy has been in force for 3 years or more, the policy owner may by written notice to the insurer elect to exchange the policy for a paid‑up policy, which must be a non‑participating policy for an amount determined in accordance with such rules as may be prescribed, but with no other modification not required by this Act or some other written law.
(4)  A policy issued in place of an earlier policy is, for the purposes of this section (including this subsection), treated as having been in force since the earlier policy began to be in force; but this does not affect the operation in relation to a policy of subsection (2)(a) or (b).
(5)  Subsections (1) to (3) do not apply —
(a)to a policy securing the grant of an annuity for a term dependent upon human life; or
(b)to a policy under which no policy moneys are necessarily payable, not being a policy which provides for the payment of policy moneys on a death after a specified period.
(6)  As respects policies of any prescribed description, subsections (1), (2) and (3) have effect subject to such modifications as may be prescribed.
(7)  The rights conferred by this section are in addition to, and not in derogation of, any other rights available to the policy owner under the terms of the policy or otherwise; but this section is not to be taken to confer on a policy owner any rights except against the insurer as such.
(8)  This section applies to policies whenever issued; and, subject to subsection (5), extends to any Singapore policy and offshore policy.
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Payment of living benefits or death benefits under life policy or accident and health policy, etc.
150.—(1)  In any case where —
(a)the policy owner of any life policy or accident and health policy has made a nomination under section 132(2) in respect of the policy;
(b)that nomination is not revoked in accordance with section 132(7);
(c)the licensed insurer of the policy has received written notice of that nomination under section 134(1)(b); and
(d)any living benefits are payable under the policy,
the licensed insurer may make a payment from the living benefits, and is discharged from all liability in respect of the payment, to —
(e)in a case where any trustee of the policy moneys is a person other than the policy owner —
(i)that trustee, for the benefit of every nominee under that nomination; or
(ii)if there is more than one such trustee, any such trustee, for the benefit of every nominee under that nomination; or
(f)in any other case —
(i)any nominee under that nomination who has attained the age of 18 years;
(ii)a parent or legal guardian, not being the policy owner, of any nominee under that nomination who is below the age of 18 years; or
(iii)the personal representatives of the estate of any nominee under that nomination who is deceased,
such payment not exceeding that nominee’s portion of the living benefits.
[3/2009; 11/2013]
(2)  In any case where the policy owner of any life policy or accident and health policy dies, and death benefits are payable under the policy on his or her death —
(a)if subsection (7), (8) or (9) applies in respect of the policy, the licensed insurer of the policy may make one or more payments in accordance with the applicable subsection from the death benefits under the policy, without the production of any probate or letters of administration;
(b)if subsection (10) applies in respect of the policy, the licensed insurer of the policy may make one or more payments in accordance with subsections (10) and (11) from the death benefits under all such policies issued by the licensed insurer on the deceased’s life in respect of which subsection (10) applies, such payment or payments not exceeding in the aggregate the amount prescribed by the Authority for the purposes of this paragraph, without the production of any probate or letters of administration; and
(c)the licensed insurer is discharged from all liability in respect of each such payment.
[3/2009; 11/2013]
(3)  If, in any case referred to in subsection (2), estate duty is payable in Singapore on any death benefits referred to in that subsection, the licensed insurer may, despite section 43(2) of the Estate Duty Act 1929, make one or more payments in accordance with subsections (10) and (11) from the death benefits under all such policies issued by the licensed insurer (such payment or payments not exceeding in the aggregate the amount prescribed by the Authority for the purposes of this subsection) without the death benefits having been included in any schedule or certificate referred to in section 43(2) of that Act.
[3/2009; 11/2013]
(4)  If, as a consequence of making any payment under subsection (3), the aggregate of all payments made under that subsection will exceed the amount prescribed by the Authority for the purposes of this subsection, the licensed insurer must, before making the firstmentioned payment, give written notice to the Commissioner of Estate Duties of such particulars as the Commissioner may require.
[3/2009; 11/2013]
(5)  Subsection (3) applies in relation to death benefits under policies of which the deceased was not the policy owner at his or her death as it applies in relation to any death benefits referred to in subsection (2).
[3/2009]
(6)  Where the payment or payments allowed under subsection (3) on account of any death benefits have been made, the licensed insurer may, before paying the balance of such death benefits to one or more relevant persons according to their entitlements, apply the whole or any part of the death benefits to pay any unpaid estate duty payable on the death of the insured.
[3/2009; 11/2013]
(7)  Where —
(a)the policy owner of a policy referred to in subsection (2) has made a nomination under section 132(2) in respect of the policy;
(b)that nomination is not revoked in accordance with section 132(7); and
(c)the licensed insurer of the policy has received written notice of that nomination under section 134(1)(b),
the licensed insurer may make a payment under subsection (2)(a) to —
(d)in a case where any trustee of the policy moneys is a person other than the policy owner —
(i)that trustee, for the benefit of every nominee under that nomination; or
(ii)if there is more than one such trustee, any such trustee, for the benefit of every nominee under that nomination; or
(e)in any other case —
(i)any nominee under that nomination who has attained the age of 18 years;
(ii)a parent or legal guardian, not being the policy owner, of any nominee under that nomination who is below the age of 18 years; or
(iii)the personal representatives of the estate of any nominee under that nomination who is deceased,
such payment not exceeding that nominee’s portion of the death benefits under the policy.
[3/2009; 11/2013]
(8)  Where —
(a)the policy owner of a policy referred to in subsection (2) has made a nomination under section 133(2) in respect of the policy;
(b)that nomination is not and is not deemed to be revoked; and
(c)the licensed insurer of the policy has received written notice of that nomination under section 134(1)(b),
the licensed insurer may make a payment under subsection (2)(a) to —
(d)any nominee under that nomination who has attained the age of 18 years;
(e)a parent or legal guardian, not being the policy owner, of any nominee under that nomination who is below the age of 18 years; or
(f)the personal representatives of the estate of any nominee under that nomination who dies after the policy owner,
such payment not exceeding that nominee’s portion of the death benefits under the policy.
[3/2009; 11/2013]
(9)  Subject to subsection (7), where —
(a)the policy owner of a policy referred to in subsection (2) has made, and has not revoked, a will in accordance with the Wills Act 1838;
(b)the will —
(i)provides for the disposition of all death benefits under the policy; and
(ii)specifies such particulars of the policy as may be prescribed by the Authority under section 133(7)(b)(ii); and
(c)the licensed insurer of the policy has received written notice, signed by the policy owner, of that will in such manner as may be prescribed by the Authority for the purposes of this subsection,
the licensed insurer may make a payment under subsection (2)(a) to any executor of that will, such payment not exceeding the amount of the death benefits under the policy.
[3/2009; 11/2013]
(10)  Subject to subsection (11), where —
(a)the policy owner of a policy referred to in subsection (2) or (3) has not made —
(i)any nomination under section 132(2) or 133(2) in respect of the policy; or
(ii)any will which —
(A)provides for the disposition of all death benefits under the policy; and
(B)specifies such particulars of the policy as may be prescribed by the Authority under section 133(7)(b)(ii);
(b)the licensed insurer of a policy referred to in subsection (2) or (3) has not received —
(i)any written notice referred to in section 134(1)(b) of any nomination made under section 132(2) or 133(2) in respect of the policy; or
(ii)any written notice referred to in subsection (9)(c) of any will providing for the disposition of all death benefits under the policy; or
(c)there exist, in respect of a policy referred to in subsection (2) or (3), such other circumstances as the Authority may prescribe,
the licensed insurer of the policy may make a payment under subsection (2)(b) or (3) to any proper claimant from the death benefits under the policy.
[3/2009; 11/2013]
(11)  Where subsection (10) applies, and the licensed insurer referred to in that subsection receives 2 or more different claims for payment in accordance with that subsection —
(a)each such claim must be paid in the same order of priority; and
(b)the amount payable under subsection (2)(b) or (3) (as the case may be) in respect of any such claim must be calculated as follows:
where A
is the amount which would have been payable in respect of that claim had it been paid in full;
B
is the total amount which would have been payable in respect of all such claims had they been paid in full; and
C
is the amount prescribed by the Authority for the purposes of subsection (2)(b) or (3), as the case may be.
[3/2009; 11/2013]
(12)  In this section, unless the context otherwise requires —
“policy owner” includes a part owner of a policy;
“proper claimant” means a person who —
(a)claims to be entitled to payment under subsection (2)(b) or (3) as executor of the deceased; or
(b)claims to be entitled to payment under subsection (2)(b) or (3) (whether for his or her own benefit or not) and is the widower, widow, parent, child, brother, sister, nephew or niece of the deceased;
“relevant person” means the personal representative of the deceased or, where there is none, any proper claimant.
[3/2009]
(13)  In deducing any relationship for the purposes of the definition of “proper claimant” in subsection (12), an illegitimate person is treated as the legitimate child of his or her actual parents.
[3/2009]
(14)  For the purposes of this section, where any nomination has been or is deemed to be varied, any reference to a nominee under that nomination is to be construed as a reference to a nominee under that nomination as varied.
[61
[3/2009]
No insurance to be made unless insurer has interest and no policy without inserting names (UK Life Assurance Act 1774)
151.—(1)  An insurance must not be made by any person on any event wherein the person for whose use or benefit or on whose account the policy is made has no interest, or by way of gaming or wagering; and every assurance made contrary to this subsection is void.
(2)  It shall not be lawful to make any policy on any event without inserting in such policy the names of the persons interested therein, or for whose use or benefit or on whose account such policy was made.
(3)  In all cases where there is an interest in such event, no greater sum may be recovered or received from the insurer than the amount or value of the interest.
(4)  Nothing in this section extends to insurance made by any person on ships or goods, or to contracts of indemnity against loss by fire or loss by other events whatsoever.
[62
No action for accidental fire (UK Fire Prevention (Metropolis) Act 1774, s. 86)
152.  No action shall lie against a person in whose house or premises or on whose estate any fire accidentally began except that no contract or agreement made between landlord and tenant shall be hereby defeated or made void.
[63