6.—(1) Where any payment exceeding the relevant amount, other than a liquidated sum specified in a policy of insurance, is made by way of compensation by an approved insurer or the owner of a motor vehicle in respect of the death or bodily injury to any person arising out of the use of a motor vehicle on a road in Singapore or in any territory specified in the Schedule, that payment, together with any sum payable in respect of costs, shall be made to the Public Trustee as trustee for the persons entitled to the benefit thereof.
[26/94; 23/98; 28/2000]
(2) The Public Trustee may where he considers that any payment made to him under subsection (1) is manifestly inadequate require the parties to obtain the approval of the court before accepting payment.
(3) The moneys received by the Public Trustee under subsection (1) shall be distributed by him after payment of all costs and fees directly to the persons entitled thereto in accordance with the law for the time being in force and with any rules made under this Act.
Informal Consolidation | Amended Act 22 of 2013
Payment of compensation under settlement agreements
6.—(1) This section applies to every payment (excluding any sum payable in respect of costs and interest) exceeding the relevant amount that —
(a)
is made by way of compensation by an insurer or the owner of a motor vehicle pursuant to a settlement agreement in respect of the death or bodily injury to a person arising out of the use of a motor vehicle on a road in Singapore or in any territory specified in the Schedule; and
(b)
is not a liquidated sum specified in a policy of insurance.
(2) Subject to subsections (3) and (4), the insurer or the owner of a motor vehicle shall make the payment, together with any sum payable in respect of costs and interest under the settlement agreement, directly to —
(a)
the Public Trustee as trustee for the person entitled to the benefit of the payment if the person is a specified person; or
(b)
in any other case, the person entitled to the benefit of the payment in accordance with the law for the time being in force and with any rules made under this Act.
(3) Subject to subsection (5), no payment under subsection (2) shall be made until —
(a)
in the case where the person entitled to the benefit of the payment is a person referred to in paragraph (a)(i) of the definition of “specified person” in section 2, the insurer or the owner of the motor vehicle obtains —
(i)
the approval of the Public Trustee of the adequacy of the payment to be made; or
(ii)
where the Public Trustee considers it to be manifestly inadequate, the approval of the court of its adequacy; and
(b)
the costs payable to any public officer or any advocate and solicitor who acts or has acted in respect of the claim for compensation on behalf of the person entitled to the benefit of the payment have been determined in accordance with section 18(3).
(4) Before making any payment under subsection (2), the insurer or the owner of a motor vehicle shall deduct from it the costs referred to in subsection (3)(b) and pay the costs directly to the public officer or the advocate and solicitor entitled to it.
(5) Nothing in subsection (2)(a), (3) or (4) shall prevent an insurer or the owner of a motor vehicle from making any interim payment of compensation of any amount to any person entitled to the benefit thereof.
(6) Every application to the Public Trustee for his approval under subsection (3)(a)(i) and every payment to the Public Trustee under subsection (2)(a) shall be made in such manner, and together with such documents and information, as the Public Trustee may require.
(7) Subject to subsection (8), the Public Trustee shall, after deducting any fee payable to him for acting as trustee, distribute the moneys received by him under subsection (2)(a) directly to the persons entitled thereto in accordance with the law for the time being in force and with any rules made under this Act.
(8) The Public Trustee may, where he receives moneys under subsection (2)(a) for a specified person who is below the age of 21 years, hold the moneys on trust for that person until that person attains the age of 21 years.