PART 3C | NOMINATION OF BENEFICIARIES |
| Interpretation of this Part |
131. In this Part, unless the context otherwise requires —| “Central Provident Fund” means the Central Provident Fund established under section 6 of the Central Provident Fund Act 1953; |
| “Central Provident Fund Board” means the Central Provident Fund Board constituted under section 3 of the Central Provident Fund Act 1953; |
“relevant policy” means any life policy or accident and health policy, whether issued before, on or after 1 September 2009, which —| (a) | is issued by a licensed insurer; | | (b) | is governed by Singapore law; | | (c) | provides death benefits; | | (d) | insures the life of the policy owner; | | (e) | is not the subject of any trust created under section 73 of the Conveyancing and Law of Property Act 1886; and | | (f) | is not an annuity purchased with the retirement sum under section 15(6C) of the Central Provident Fund Act 1953; |
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| “retirement sum” has the meaning given by section 2(1) of the Central Provident Fund Act 1953; |
| “will” has the meaning given by the Wills Act 1838. [49K [3/2009; 11/2013; 26/2016] |
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132.—(1) This section does not apply to any relevant policy which is —| (a) | issued under the Dependants’ Protection Insurance Scheme established and maintained by the Central Provident Fund Board under section 41 of the Central Provident Fund Act 1953; | | (b) | an investment made by a member of the Central Provident Fund under any scheme in accordance with any regulations made under section 77(1)(n) of the Central Provident Fund Act 1953 the proceeds or benefits (or any part thereof) of which the member is obliged to repay into the Central Provident Fund; or | | (c) | prescribed by the Authority, or of a type or description prescribed by the Authority. [3/2009; 11/2013] |
(2) Where the policy owner of a relevant policy who has attained the age of 18 years —| (a) | nominates as the beneficiary or beneficiaries under the relevant policy his or her spouse, his or her children, his or her spouse and children or any of them; | | (b) | expresses in the nomination his or her intention to create a trust of the policy moneys in favour of the nominee or nominees; and | | (c) | makes the nomination, and indicates each nominee’s portion of the policy moneys, in such manner as may be prescribed by the Authority, |
| the nomination creates a trust of the policy moneys in favour of the nominee or nominees. |
[3/2009] |
| (3) No nomination under subsection (2) is valid unless it provides for the disposition of all policy moneys under the relevant policy. [3/2009] |
| (4) Subject to subsection (5), all policy moneys subject to the trust created under subsection (2) do not form part of the estate of the policy owner and are not subject to his or her debts. [3/2009] |
| (5) If it is proved that the relevant policy was effected, and the premiums for the relevant policy were paid, with intent to defraud the creditors of the policy owner, the creditors are entitled to receive out of the policy moneys a sum equal to the premiums so paid. [3/2009] |
| (6) On the death of any nominee, the nominee’s interest in the policy moneys, subject to any encumbrance created over, or any disposition of, the nominee’s interest while the nominee was alive, forms part of the nominee’s estate. [3/2009] |
(7) A policy owner may revoke a nomination under subsection (2) if, and only if, the prior written consent to the revocation has been obtained from —| (a) | in a case where any trustee of the policy moneys is a person other than the policy owner —| (i) | that trustee or, if there is more than one such trustee, any such trustee; or | | (ii) | so long as no nominee has died before the revocation —| (A) | each nominee who has attained the age of 18 years; and | | (B) | a parent or legal guardian, not being the policy owner, of each nominee who is below the age of 18 years; |
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| | (b) | in any other case, so long as no nominee has died before the revocation —| (i) | each nominee who has attained the age of 18 years; and | | (ii) | a parent or legal guardian, not being the policy owner, of each nominee who is below the age of 18 years; and |
| | (c) | such requirements for the revocation as may be prescribed by the Authority are satisfied. [3/2009] |
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(8) Where a nomination under subsection (2) has been revoked in accordance with subsection (7) —| (a) | the trust created pursuant to the nomination is deemed to be revoked; and | | (b) | the policy owner may make a new nomination under subsection (2) or section 133(2). [3/2009] |
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(9) Where a nomination under subsection (2) has been made in respect of a relevant policy, a term or condition of the relevant policy may be varied, and an instruction of the policy owner in relation to the relevant policy (being an instruction which may directly or indirectly alter the benefits payable under the relevant policy) may be executed by the licensed insurer that issued the relevant policy, if, and only if, the prior written consent to the variation of the term or condition or to the execution of the instruction (as the case may be) has been obtained from —| (a) | in a case where any trustee of the policy moneys is a person other than the policy owner —| (i) | that trustee or, if there is more than one such trustee, any such trustee; or | | (ii) | so long as no nominee has died before the variation of the term or condition or the execution of the instruction, as the case may be —| (A) | each nominee who has attained the age of 18 years; and | | (B) | a parent or legal guardian, not being the policy owner, of each nominee who is below the age of 18 years; or |
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| | (b) | in any other case, so long as no nominee has died before the variation of the term or condition or the execution of the instruction, as the case may be —| (i) | each nominee who has attained the age of 18 years; and | | (ii) | a parent or legal guardian, not being the policy owner, of each nominee who is below the age of 18 years. [3/2009; 11/2013] |
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| (10) Any purported revocation of a nomination under subsection (2) in contravention of subsection (7), and any purported variation of any term or condition of a relevant policy in contravention of subsection (9), is void. [3/2009] |
| (11) Where a nomination under subsection (2) has been made in respect of a relevant policy, and the licensed insurer that issued the relevant policy executes an instruction of the policy owner in contravention of subsection (9), the licensed insurer is liable to each nominee for the loss suffered by the nominee (if any) as a result of the execution of the instruction. [3/2009; 11/2013] |
(12) Subject to subsection (14), the policy owner —| (a) | must, in such manner as may be prescribed by the Authority, appoint one or more trustees of the policy moneys; | | (b) | may, in such manner as may be prescribed by the Authority, from time to time, appoint one or more new trustees of the policy moneys; | | (c) | may, in such manner as may be prescribed by the Authority, revoke the appointment of any trustee appointed under paragraph (a) or (b); and | | (d) | may, in such manner as may be prescribed by the Authority, make provision for —| (i) | the appointment of one or more new trustees of the policy moneys; and | | (ii) | the revocation of the appointment of any trustee appointed under paragraph (a) or (b) or pursuant to a provision under sub-paragraph (i). [3/2009] |
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(13) Subject to subsection (14), on or after the death of the policy owner, the General Division of the High Court may appoint one or more new trustees of the policy moneys if —| (a) | there is no trustee of the policy moneys; or | | (b) | it is expedient to do so. [3/2009; 40/2019] |
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| (14) An individual must not be appointed a trustee of policy moneys under subsection (12)(a) or (b) or (13), or pursuant to a provision under subsection (12)(d)(i), unless he or she has attained the age of 18 years; and any appointment of a trustee of policy moneys in contravention of this subsection is void. [3/2009] |
(15) Where, in respect of a relevant policy issued by a licensed insurer, a trust of the policy moneys has been created pursuant to a nomination under subsection (2), the relevant policy vests, in trust for the nominees, in the trustee or trustees of the policy moneys appointed —| (a) | under subsection (12)(a) or (b) or (13); or | | (b) | pursuant to a provision under subsection (12)(d)(i), |
| when the licensed insurer has been given notice of the appointment in such manner as may be prescribed by the Authority. |
[49L [3/2009; 11/2013] |
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| 133.—(1) This section does not apply to any relevant policy in respect of which any nomination made by the policy owner under section 132(2) is not revoked in accordance with section 132(7). [3/2009] (2) Subject to subsection (3), the policy owner of a relevant policy who has attained the age of 18 years —| (a) | may nominate any person as a beneficiary of the whole or any portion of the death benefits under the relevant policy; and | | (b) | if he or she does so, must make the nomination and indicate each nominee’s portion of the death benefits in such manner as may be prescribed by the Authority. [3/2009] |
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| (3) No nomination under subsection (2) is valid unless it provides for the disposition of all death benefits under the relevant policy. [3/2009] |
| (4) A policy owner may revoke a nomination under subsection (2) at any time in such manner as may be prescribed by the Authority. [3/2009] |
(5) Where the policy owner of a relevant policy has made a nomination under subsection (2), and any nominee dies before the policy owner —| (a) | if there is no surviving nominee, the nomination is deemed to be revoked; | | (b) | if there is only one surviving nominee, the nomination is deemed to be varied by adding, to that surviving nominee’s portion of the death benefits under the policy, the deceased nominee’s portion of the death benefits under the policy; and | | (c) | if there is more than one surviving nominee, the nomination is deemed to be varied by adding, to each surviving nominee’s portion of the death benefits under the policy, a share of the deceased nominee’s portion of the death benefits under the policy, such share to be calculated as follows: | | is that surviving nominee’s original portion of the death benefits under the policy (as set out in the nomination); |
| | | is the aggregate of all the surviving nominees’ original portions of the death benefits under the policy (as set out in the nomination); and |
| | | is the deceased nominee’s portion of the death benefits under the policy. |
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[3/2009] |
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(6) For the purposes of subsection (5), where the policy owner and one or more of the nominees die in circumstances rendering it uncertain which of them survived the other or others, then in the absence of any order of the court determining otherwise —| (a) | such deaths are presumed to have occurred in order of seniority; and | | (b) | accordingly, the younger is deemed to have survived the elder. [3/2009] |
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(7) A nomination made by the policy owner of a relevant policy under subsection (2) is deemed to be revoked if —| (a) | the policy owner assigns, encumbers or otherwise deals with the relevant policy or any interest under the relevant policy; | | (b) | after the making of the nomination, the policy owner makes a will in accordance with the Wills Act 1838 which —| (i) | provides for the disposition of all death benefits under the relevant policy; and | | (ii) | specifies such particulars of the relevant policy as may be prescribed by the Authority; or |
| | (c) | after the making of the nomination, the policy owner makes another nomination under subsection (2) or a nomination under section 132(2). [3/2009] |
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(8) Despite anything in the Wills Act 1838, the Intestate Succession Act 1967 and any rule of law relating to the distribution of estates, but subject to section 57 of the Probate and Administration Act 1934, where the policy owner of a relevant policy has made one or more nominations under subsection (2) and one or more wills in accordance with the Wills Act 1838 —| (a) | if the last nomination is not and is not deemed to be revoked, the death benefits under the relevant policy are to be distributed in accordance with the last nomination; | | (b) | if the last nomination is or is deemed to be revoked, and the last will is not revoked, the death benefits under the relevant policy are to be distributed in accordance with the last will; or | | (c) | if the last nomination is or is deemed to be revoked, and the last will is revoked, the death benefits under the relevant policy are to be distributed in accordance with the Intestate Succession Act 1967. [3/2009] |
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(9) Despite anything in the Intestate Succession Act 1967 and any rule of law relating to the distribution of estates, but subject to section 57 of the Probate and Administration Act 1934, where the policy owner of a relevant policy who has made one or more nominations under subsection (2) dies intestate —| (a) | if the last nomination is not and is not deemed to be revoked, the death benefits under the relevant policy are to be distributed in accordance with the last nomination; or | | (b) | if the last nomination is or is deemed to be revoked, the death benefits under the relevant policy are to be distributed in accordance with the Intestate Succession Act 1967. [49M [3/2009] |
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134.—(1) Every licensed insurer must maintain, in such manner as may be prescribed by the Authority and in accordance with such directions as may be issued by the Authority, a register of every person —| (a) | who has been nominated under section 132(2) or 133(2) by the policy owner of a relevant policy issued by the licensed insurer; and | | (b) | in respect of whom the licensed insurer has received written notice of the nomination in such manner as may be prescribed by the Authority for the purposes of this subsection. [3/2009; 11/2013] |
(2) Where —| (a) | any person nominated under section 132(2) has been registered by a licensed insurer under subsection (1); | | (b) | the nomination of that person has been revoked under section 132(7); and | | (c) | the licensed insurer has received written notice of the revocation of the nomination in such manner as may be prescribed by the Authority for the purposes of this subsection, |
| the licensed insurer must record the revocation of the nomination under section 132(7) in its register maintained under subsection (1). |
[3/2009; 11/2013] |
(3) Where —| (a) | any person nominated under section 133(2) has been registered by a licensed insurer under subsection (1); | | (b) | the nomination of that person has been or is deemed to be revoked; and | | (c) | the licensed insurer has received written notice of the revocation of the nomination in such manner as may be prescribed by the Authority for the purposes of this subsection, |
| the licensed insurer must record the revocation of the nomination in its register maintained under subsection (1). |
[49N [3/2009; 11/2013] |
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| Relevant policies issued by co-operative society |
135.—(1) Where the licensed insurer of any relevant policy is a co‑operative society, and the policy owner of that relevant policy —| (a) | has not, before 1 September 2009, made any nomination under section 45(1) of the Co‑operative Societies Act 1979 in relation to that relevant policy; or | | (b) | has, before that date, revoked every nomination made under section 45(1) of the Co‑operative Societies Act 1979 in relation to that relevant policy, |
| nothing in the Co‑operative Societies Act 1979, on or after that date, applies to that relevant policy or to any share or interest in any policy moneys under that relevant policy. |
[3/2009; 11/2013] (2) Where the licensed insurer of any relevant policy is a co‑operative society, and on or after 1 September 2009 the policy owner of that relevant policy —| (a) | revokes the last subsisting nomination made by the policy owner under section 45(1) of the Co‑operative Societies Act 1979 in relation to that relevant policy; or | | (b) | makes any nomination under section 132(2) or 133(2) in relation to that relevant policy, whether or not there is any subsisting nomination made by the policy owner under section 45(1) of the Co-operative Societies Act 1979 in relation to that relevant policy, |
| nothing in the Co-operative Societies Act 1979 applies, on or after the date the policy owner revokes the last subsisting nomination under section 45(1) of the Co-operative Societies Act 1979 or makes the nomination under section 132(2) or 133(2) (as the case may be) to the relevant policy or to any share or interest in any policy moneys under that relevant policy. |
[49O [3/2009; 11/2013] |
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| Regulations for purposes of this Part |
| 136.—(1) The Authority may make regulations for the purposes of this Part. [3/2009] (2) Without limiting subsection (1), such regulations may —| (a) | prescribe anything which may be prescribed by the Authority under this Part; and | | (b) | make provision for the exercise of the court’s powers under section 20 of the Mental Capacity Act 2008 in relation to —| (i) | the making, on a person’s behalf, of any nomination under section 132(2) or 133(2); and | | (ii) | where any nomination under section 132(2) or 133(2) has been made by a person or by the court on behalf of a person, the revoking, on the person’s behalf, of that nomination under section 132(7) or 133(4), as the case may be. [49P [3/2009] |
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