PART I | Short title and commencement |
| 1. This Act may be cited as the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint. |
2.—(1) In this Act, unless the context otherwise requires —| “accident and health policy” has the same meaning as in the First Schedule to the Insurance Act (Cap. 142); |
| “account with the electronic service”, in relation to any person, means a computer account within the electronic service which is assigned by the Authority to that person for the storage and retrieval of electronic records relating to that person; |
| “Agency” means the company designated by the Minister under section 56 to be the deposit insurance and policy owners’ protection fund agency; |
| “appointed day” means the date of commencement of this Act; |
| “authentication code”, in relation to any person, means an identification or identifying code, a password or any other authentication method or procedure which is assigned to that person for the purposes of identifying and authenticating the access to and use of the electronic service by that person; |
| “Authority” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act (Cap. 186); |
| “bank” has the same meaning as in section 2(1) of the Banking Act (Cap. 19); |
| “beneficiary”, in relation to an insured policy covered under the PPF General Fund which provides third party benefits, means any person entitled to claim the third party benefits under the terms of that insured policy; |
| “book” includes any record, register, document or other record of information, and any account or accounting record, however compiled, recorded or stored, whether in written or printed form or on microfilm or in electronic form or otherwise; |
| “captive insurer” has the same meaning as in section 1A of the Insurance Act (Cap. 142); |
| “Chief Executive” means the Chief Executive of the Agency appointed under section 62 and includes any person acting in that capacity; |
| “claim event” means the contingency upon which policy moneys are payable under an insured policy; |
| “client account”, in relation to an insured depositor, means an account maintained by the insured depositor with a DI Scheme member for the purpose of holding moneys by the insured depositor for a client of the insured depositor, whether or not other moneys may be held in that account; |
“commuted value”, in relation to an insured policy which provides for the payment of an annuity, means the present value of the expected future payments to be made —| (a) | for a term dependant on the continuation of human life; or | | (b) | upon the death of the life assured or surrender of the insured policy by the insured policy owner, |
| as specified under the terms of the insured policy; |
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| “company” has the same meaning as in section 4(1) of the Companies Act (Cap. 50); |
“compulsory insurance policy” means any policy of insurance which complies with the requirements of —| (a) | the Motor Vehicles (Third-Party Risks and Compensation) Act (Cap. 189); or | | (b) | the Work Injury Compensation Act (Cap. 354); |
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| “corporation” has the same meaning as in section 4(1) of the Companies Act; |
| “coupon deposit”, in relation to any insured policy, means any sum of money, being part of the policy moneys which the insurer is obliged to pay to the insured policy owner at agreed intervals under the terms of the insured policy, including any amount due at maturity, which the insured policy owner instructs the insurer not to pay out to him but for the sum of money to be deposited with the insurer to earn interest at an agreed rate; |
| “CPFIS” means the Central Provident Fund Investment Scheme introduced by the Central Provident Fund Board under the Central Provident Fund (Investment Schemes) Regulations (Cap. 36, Rg 9); |
| “CPFMS” means the Central Provident Fund Minimum Sum Scheme introduced by the Central Provident Fund Board under the Central Provident Fund (Minimum Sum Scheme) Regulations (Cap. 36, Rg 16); |
“deposit” means a sum of money paid on terms —| (a) | under which it will be repaid, with or without interest or a premium, or with any consideration in money or money’s worth, either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; and | | (b) | which are not referable to the provision of property or services; |
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| “deposit-taking business” has the same meaning as in section 4B of the Banking Act (Cap. 19); |
| “depositor” means any person who is entitled to repayment of a deposit, whether or not the deposit is made by him; |
| “DI exempt member” means a full bank or finance company which has been exempted by the Authority under section 6 from the requirement to be a DI Scheme member; |
| “DI Fund” means the Deposit Insurance Fund reconstituted under section 9; |
| “direct insurer” has the same meaning as in section 1A of the Insurance Act (Cap. 142); |
| “DI Scheme” means the Deposit Insurance Scheme reconstituted under section 4; |
| “DI Scheme member” means a member of the DI Scheme; |
| “electronic record” has the same meaning as in section 2 of the Electronic Transactions Act 2010 (Act 16 of 2010); |
| “electronic service” means the electronic service provided by the Authority under section 86; |
“excluded person” means —| (a) | any bank; | | (b) | any person who carries on business activities outside of Singapore which, if conducted in Singapore, would require the person to be licensed under the Banking Act (Cap. 19); and | | (c) | such other person or class of persons as the Authority may prescribe; |
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| “failed DI Scheme member” means a DI Scheme member in respect of which the Authority has determined that compensation shall be paid out of the DI Fund to the insured depositors of that DI Scheme member, and any reference to “failure” in relation to a DI Scheme member shall be construed accordingly; |
| “failed PPF Scheme member” means a PPF Scheme member in respect of which the Authority has determined that compensation shall be paid out of the PPF Life Fund or PPF General Fund, as the case may be, or that the PPF Life Fund or PPF General Fund is to be utilised for the funding of a transfer or run-off of the insurance business of that PPF Scheme member, and any reference to “failure” in relation to a PPF Scheme member shall be construed accordingly; |
| “finance company” has the same meaning as in section 2 of the Finance Companies Act (Cap. 108); |
| “full bank” means any bank holding a licence granted by the Authority under the Banking Act which permits the bank to carry on the full range of banking business; |
| “general business” and “life business” have the same meanings as in section 2 of the Insurance Act (Cap. 142), read with section 3(1B) of that Act; |
| “group policy” means any policy of insurance in respect of which the policy owner is not an individual; |
| “guaranteed policy liabilities”, in relation to insured policies, means the policy liabilities, relating to benefits guaranteed under the insured policies only, calculated in accordance with regulations prescribed pursuant to section 18 of the Insurance Act (Cap. 142) for the valuation of assets and liabilities in an insurance fund; |
| “health policy” means any accident and health policy which is not a personal accident policy; |
| “individual policy” means a policy of insurance in respect of which the policy owner is an individual; |
| “insured deposit” has the meaning given to it in the First Schedule; |
| “insured deposit base” has the meaning given to it in section 3; |
“insured depositor” means any person who is not an excluded person and is entitled to the repayment of any insured deposit, whether or not the insured deposit is made by him, and includes —| (a) | in the case of a deposit held by a trustee under a trust, the trustee; and | | (b) | for the avoidance of doubt, in the case of a deposit held by a depositor in a client account, the depositor; |
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“insured policy” means —| (a) | any life policy; | | (b) | any accident and health policy; | | (c) | any compulsory insurance policy; or | | (d) | any specified personal line insurance policy which is a Singapore policy; |
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| “insured policy owner” means the policy owner of an insured policy; |
| “life policy” has the same meaning as in the First Schedule to the Insurance Act; |
| “liquidator” has the same meaning as in section 4(1) of the Companies Act (Cap. 50); |
“marine mutual insurance business” means the business of providing the insurance of liabilities under insurance policies on the basis of mutual insurance —| (a) | upon goods, merchandise or property of any description transported on board any vessel, including incidental transit before and after shipment; | | (b) | upon the freight of, or any other interest in or relating to, vessels; | | (c) | upon vessels, or upon machinery, tackle furniture or equipment of vessels; | | (d) | against damage arising out of or in connection with the use of vessels, including third-party risks; | | (e) | against risks incidental to the construction, repair or docking of vessels, including third-party risks; or | | (f) | against such other risks as the Authority considers to be connected with or incidental to marine adventures or any of the matters referred to in paragraphs (a) to (e); |
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| “Maximum DI Coverage” has the meaning given to it in the First Schedule; |
| “non-voluntary group insurance policy” means a group policy to insure the lives of certain individuals which is not taken out at the request or discretion of any of the life assureds; |
| “officer” has the same meaning as in section 2(1) of the Banking Act (Cap. 19); |
| “parent bank” has the same meaning as in section 2(1) of the Banking Act; |
| “parent supervisory authority” has the same meaning as in section 2(1) of the Banking Act; |
“personal accident policy” means an accident and health policy in respect of which accident and health benefits are paid out only —| (a) | in the event of an injury to, or disability of, the life assured as a result of accident; | | (b) | on the death by accident of the life assured; or | | (c) | on the occurrence of a combination of the events referred to in paragraphs (a) and (b); |
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| “policy” has the same meaning as in the First Schedule to the Insurance Act (Cap. 142); |
| “policy owner” has the same meaning as in the First Schedule to the Insurance Act (Cap. 142); |
| “PPF exempt member” means a relevant insurer which has been exempted by the Authority under section 32 from the requirement to be a PPF Scheme member; |
| “PPF General Fund” means the Policy Owners’ Protection General Fund established under section 34(1)(b); |
| “PPF Life Fund” means the Policy Owners’ Protection Life Fund established under section 34(1)(a); |
| “PPF Scheme” means the Policy Owners’ Protection Scheme established under section 30; |
| “PPF Scheme member” means a member of the PPF Scheme; |
“premium year”, in relation to the determination and payment of premium contributions and levies, means such period as may be prescribed by the Authority as a premium year —| (a) | under section 12(4), in respect of the premium contributions payable by DI Scheme members; or | | (b) | under section 37(4), in respect of the levies payable by PPF Scheme members; |
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| “prescribed product” means any product which is prescribed by the Authority as an insured deposit under the First Schedule; |
| “protected liabilities” has the meaning given to it in the Third Schedule; |
| “protection ratio” has the meaning given to it in the Fourth Schedule; |
“quantification date” means —| (a) | in relation to a DI Scheme member —| (i) | the date on which the DI Scheme member is wound up; or | | (ii) | where a DI Scheme member is not wound up, the date on which the notice of payment of compensation is published in the Gazette under section 21(4); |
| | (b) | in relation to a PPF Scheme member —| (i) | the date on which the PPF Scheme member is wound up; or | | (ii) | where a PPF Scheme member is not wound up, the date on which the notice of payment of compensation from the PPF Life Fund or PPF General Fund or notice that the PPF Life Fund or PPF General Fund is to be utilised for the funding of any transfer or run-off of the business of the failed PPF Scheme member is published in the Gazette under section 46(4); |
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| “relevant insured deposits” has the meaning given to it in section 3; |
“relevant insurer” means —| (a) | a direct insurer registered to carry on life business under the Insurance Act (Cap. 142) (other than a captive insurer); or | | (b) | a direct insurer registered to carry on general business under the Insurance Act (other than a captive insurer or specialist insurer); |
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| “repealed Act” means the Deposit Insurance Act (Cap. 77A, 2006 Ed.) repealed by this Act; |
| “Rules” means any rules issued by the Agency under section 63; |
| “Singapore policy” has the same meaning as in the First Schedule to the Insurance Act; |
“specialist insurer” means —| (a) | an insurer which is registered under section 8 of the Insurance Act and which is permitted by its registration to carry on the business of issuing financial guarantee policies; | | (b) | an insurer which is registered under section 8 of the Insurance Act as a direct insurer to carry on general business and which is permitted by its registration to carry on the business of issuing trade credit and political risk policies only; or | | (c) | an insurer registered under section 8 of the Insurance Act as a direct insurer to carry on general business and which is permitted to carry on marine mutual insurance business only; |
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“specified personal line insurance policy” means —| (a) | a policy of insurance which provides personal motor cover; | | (b) | a policy of insurance which provides personal travel cover; | | (c) | a policy of insurance which provides personal property (structure and contents) cover; or | | (d) | a policy of insurance which provides cover in connection with the employment of a foreign domestic worker; |
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| “Supplementary Retirement Scheme” has the same meaning as in section 2(1) of the Income Tax Act (Cap. 134); |
| “unclaimed moneys”, in relation to an insured policy issued by a failed PPF Scheme member, means any policy moneys which, as a result of a contingency happening, have been ascertained by the failed PPF Scheme member to be due and payable under that insured policy before the quantification date but which have not been paid to or have been paid but not yet received by the person entitled to payment of the policy moneys. |
| (2) For the purposes of the definition of “deposit”, money is paid on terms which are referable to the provision of property or services if, and only if, it is paid by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided. |
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| Meanings of “insured deposit base” and “relevant insured deposits” |
3.—(1) In this Act, unless the context otherwise requires, “insured deposit base”, in relation to a DI Scheme member, means the aggregate of the amount of every relevant insured deposit of all the insured depositors of the DI Scheme member.(2) In subsection (1), “relevant insured deposits”, in relation to an insured depositor of a DI Scheme member, means —| (a) | the aggregate of the amounts, not exceeding the Maximum DI Coverage, of insured deposits placed with the DI Scheme member which —| (i) | are held by that insured depositor in its or his own right; | | (ii) | are held by that insured depositor in its or his own right jointly with one or more persons in a joint account; | | (iii) | where the insured depositor is a sole-proprietor, are held in the name of the sole-proprietorship; and | | (iv) | consist of moneys denominated in Singapore dollars placed with the failed DI Scheme member under the Supplementary Retirement Scheme; |
| | (b) | the amount, not exceeding the Maximum DI Coverage, of insured deposits held by that insured depositor as a trustee under a trust in every account opened with the DI Scheme member; | | (c) | the amount, not exceeding the Maximum DI Coverage, of insured deposits held by that insured depositor in every client account opened with the DI Scheme member; | | (d) | any moneys, denominated in Singapore dollars, placed by that insured depositor with the DI Scheme member under the CPFIS and CPFMS, not exceeding the Maximum DI Coverage; and | | (e) | the amount, not exceeding the Maximum DI Coverage, of one or more prescribed products held by that insured depositor and placed with the DI Scheme member, which the Minister has, by order published in the Gazette, determined that it or they shall not be aggregated with any of the insured deposits under paragraphs (a), (b), (c) and (d) and shall be subject to separate coverage under the DI Scheme of an amount not exceeding the Maximum DI Coverage, whether on its own or in aggregation with other prescribed products. |
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(3) For the purposes of subsection (2) —| (a) | a reference to an insured deposit includes a reference to part of the insured deposit; | | (b) | where an insured depositor holds an insured deposit in his own right jointly with one or more persons in a joint account, each of them, whether or not he is an insured depositor, shall be deemed to have an equal share in the insured deposit unless there is an express provision to the contrary in the books of the DI Scheme member; | | (c) | where there are 2 or more insured depositors holding any insured deposit in an account under a trust or a client account jointly, each of them shall be deemed to have an equal interest in the insured deposit; and | | (d) | where the Minister does not make the determination referred to in subsection (2)(e) in respect of any prescribed product, that prescribed product shall be aggregated with the insured deposits referred to in subsection (2)(a). |
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