PART IIIC
NOMINATION OF BENEFICIARIES
Interpretation of this Part
49K.  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 (Cap. 36);
“Central Provident Fund Board” means the Central Provident Fund Board constituted under section 3 of the Central Provident Fund Act;
[Deleted by Act 26 of 2016 wef 01/01/2017]
“relevant policy” means any life policy or accident and health policy, whether issued before, on or after the date of commencement of section 2 of the Insurance (Amendment) Act 2009, which —
(a)is issued by a licensed insurer;
[Act 11 of 2013 wef 18/04/2013]
(b)is governed by Singapore law;
(c)provides death benefits;
(d)insures the life of the policy owner;
[Act 11 of 2013 wef 18/04/2013]
(e) is not the subject of any trust created under section 73 of the Conveyancing and Law of Property Act (Cap. 61); and
(f)is not an annuity purchased with the retirement sum under section 15(6C) of the Central Provident Fund Act;
[Act 26 of 2016 wef 01/01/2017]
“retirement sum” has the same meaning as in section 2(1) of the Central Provident Fund Act;
[Act 26 of 2016 wef 01/01/2017]
“will” has the same meaning as in the Wills Act (Cap. 352).
[3/2009 wef 01/09/2009]
Trust nomination
49L.—(1)  This section shall 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 (Cap. 36);
[Act 11 of 2013 wef 18/04/2013]
(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 the proceeds or benefits (or any part thereof) of which the member is obliged to repay into the Central Provident Fund; or
[Act 11 of 2013 wef 18/04/2013]
(c)prescribed by the Authority, or of a type or description prescribed by the Authority.
[Act 11 of 2013 wef 18/04/2013]
(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 spouse, his children, his spouse and children or any of them;
(b)expresses in the nomination his 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 shall create a trust of the policy moneys in favour of the nominee or nominees.
(3)  No nomination under subsection (2) shall be valid unless it provides for the disposition of all policy moneys under the relevant policy.
(4)  Subject to subsection (5), all policy moneys subject to the trust created under subsection (2) shall not form part of the estate of the policy owner or be subject to his debts.
(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 shall be entitled to receive out of the policy moneys a sum equal to the premiums so paid.
(6)  On the death of any nominee, the nominee’s interest in the policy moneys shall, subject to any encumbrance created over, or any disposition of, the nominee’s interest while the nominee was alive, form part of the nominee’s estate.
(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;
(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.
(8)  Where a nomination under subsection (2) has been revoked in accordance with subsection (7) —
(a)the trust created pursuant to the nomination shall be deemed to be revoked; and
(b)the policy owner may make a new nomination under subsection (2) or section 49M(2).
(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
(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.
[Act 11 of 2013 wef 18/04/2013]
(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), shall be void.
(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 shall be liable to each nominee for the loss suffered by the nominee (if any) as a result of the execution of the instruction.
[Act 11 of 2013 wef 18/04/2013]
(12)  Subject to subsection (14), the policy owner —
(a)shall, 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).
(13)  Subject to subsection (14), on or after the death of the policy owner, 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.
(14)  No individual shall 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 has attained the age of 18 years; and any appointment of a trustee of policy moneys in contravention of this subsection shall be void.
(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 shall vest, 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.
[3/2009 wef 01/09/2009]
[Act 11 of 2013 wef 18/04/2013]
Revocable nomination
49M.—(1)  This section shall not apply to any relevant policy in respect of which any nomination made by the policy owner under section 49L(2) is not revoked in accordance with section 49L(7).
(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 does so, shall make the nomination and indicate each nominee’s portion of the death benefits in such manner as may be prescribed by the Authority.
(3)  No nomination under subsection (2) shall be valid unless it provides for the disposition of all death benefits under the relevant policy.
(4)  A policy owner may revoke a nomination under subsection (2) at any time in such manner as may be prescribed by the Authority.
(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 shall be deemed to be revoked;
(b)if there is only one surviving nominee, the nomination shall be 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 shall be 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:
where A
is that surviving nominee’s original portion of the death benefits under the policy (as set out in the nomination);
B
is the aggregate of all the surviving nominees’ original portions of the death benefits under the policy (as set out in the nomination); and
C
is the deceased nominee’s portion of the death benefits under the policy.
(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 shall be presumed to have occurred in order of seniority; and
(b)accordingly, the younger shall be deemed to have survived the elder.
(7)  A nomination made by the policy owner of a relevant policy under subsection (2) shall be 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 (Cap. 352) 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 49L(2).
(8)  Notwithstanding anything in the Wills Act, the Intestate Succession Act (Cap. 146) and any rule of law relating to the distribution of estates, but subject to section 57 of the Probate and Administration Act (Cap. 251), 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 —
(a)if the last nomination is not and is not deemed to be revoked, the death benefits under the relevant policy shall 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 shall 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 shall be distributed in accordance with the Intestate Succession Act.
(9)  Notwithstanding anything in the Intestate Succession Act and any rule of law relating to the distribution of estates, but subject to section 57 of the Probate and Administration Act, 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 shall 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 shall be distributed in accordance with the Intestate Succession Act.
[3/2009 wef 01/09/2009]
Register of nominees
49N.—(1)  Every licensed insurer shall 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 49L(2) or 49M(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.
[Act 11 of 2013 wef 18/04/2013]
(2)  Where —
(a)any person nominated under section 49L(2) has been registered by a licensed insurer under subsection (1);
(b)the nomination of that person has been revoked under section 49L(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 shall record the revocation of the nomination under section 49L(7) in its register maintained under subsection (1).
[Act 11 of 2013 wef 18/04/2013]
(3)  Where —
(a)any person nominated under section 49M(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 shall record the revocation of the nomination in its register maintained under subsection (1).
[Act 11 of 2013 wef 18/04/2013]
Relevant policies issued by co-operative society
49O.—(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 the date of commencement of section 2 of the Insurance (Amendment) Act 2009, made any nomination under section 45(1) of the Co-operative Societies Act 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 in relation to that relevant policy,
nothing in the Co-operative Societies Act shall, on or after that date, apply to that relevant policy or to any share or interest in any policy moneys under that relevant policy.
[Act 11 of 2013 wef 18/04/2013]
(2)  Where the licensed insurer of any relevant policy is a co-operative society, and on or after the date of commencement of section 2 of the Insurance (Amendment) Act 2009 the policy owner of that relevant policy —
(a)revokes the last subsisting nomination made by him under section 45(1) of the Co-operative Societies Act in relation to that relevant policy; or
(b)makes any nomination under section 49L(2) or 49M(2) in relation to that relevant policy, whether or not there is any subsisting nomination made by him under section 45(1) of the Co-operative Societies Act in relation to that relevant policy,
nothing in the Co-operative Societies Act shall apply, on or after the date the policy owner revokes the last subsisting nomination under section 45(1) of the Co-operative Societies Act or makes the nomination under section 49L(2) or 49M(2), as the case may be, to the relevant policy or to any share or interest in any policy moneys under that relevant policy.
[3/2009 wef 01/09/2009]
[Act 11 of 2013 wef 18/04/2013]
Regulations for purposes of this Part
49P.—(1)  The Authority may make regulations for the purposes of this Part.
(2)  Without prejudice to the generality of 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 (Act 22 of 2008) in relation to —
(i)the making, on a person’s behalf, of any nomination under section 49L(2) or 49M(2); and
(ii)where any nomination under section 49L(2) or 49M(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 49L(7) or 49M(4), as the case may be.
[3/2009 wef 01/09/2009]