No. S 184
Insurance Act
(Chapter 142)
Insurance Act (Amendment of First Schedule) Order 2010
In exercise of the powers conferred by section 63A(1) of the Insurance Act, the Senior Minister, Prime Minister’s Office, hereby makes the following Order:
Citation and commencement
1.—(1)  This Order may be cited as the Insurance Act (Amendment of First Schedule) Order 2010 and shall, with the exception of paragraph 2(a), come into operation on 30th March 2010.
(2)  Paragraph 2(a) shall come into operation on 1st January 2011.
Amendment of First Schedule
2.  The First Schedule to the Insurance Act is amended —
(a)by deleting paragraph 2 and substituting the following paragraph:
2.—(1)  Subject to this paragraph and section 16(3) and (4) of the Act, “Singapore policy”, in relation to any insurer, means a policy issued in the course of the insurer’s business in Singapore and falling within one of the following descriptions:
(a)in relation to a life policy or accident and health policy —
(i)where the policy owner is an individual, the policy owner or insured is ordinarily resident in Singapore at the date of the proposal in respect of the policy (proposal date);
(ii)where the policy owner is not an individual, the policy owner’s address is or was an address in Singapore at the date of issue of the policy and at the date of the establishment of the insurer’s register of Singapore policies (if the policy was issued before then);
(b)in relation to direct general insurance (other than short-term accident and health policies) and facultative general reinsurance, a policy where the risk arises in Singapore or —
(i)where the insured is an individual, the insured is ordinarily resident in Singapore; or
(ii)where the insured is not an individual, the insured is a person resident in Singapore or has a permanent establishment in Singapore; and
(c)in relation to treaty general reinsurance, a policy where more than 25% of the total risks in terms of gross premiums arises in Singapore.
(2)  Notwithstanding sub-paragraph (1)(b), a policy where —
(a)the insured is an individual and the insured is ordinarily resident in Singapore; or
(b)the insured is not an individual and the insured is a person resident in Singapore or has a permanent establishment in Singapore,
shall not be regarded as a Singapore policy if it is in respect of cargo transported from a place outside Singapore to a place outside Singapore, whether or not the cargo is in transit in Singapore.
(3)  “Offshore policy”, in relation to any insurer, means any policy, other than a Singapore policy, issued in the course of the insurer’s business in Singapore.
(4)  For the purposes of this paragraph —
(a)an individual shall be treated as ordinarily resident in Singapore if the individual —
(i)is a citizen of Singapore, unless he has resided outside Singapore continuously for 5 or more years preceding the proposal date of the policy and is not currently residing in Singapore;
(ii)is a permanent resident, unless he has resided in Singapore for less than a total of 183 days in the 12 months preceding the proposal date of the policy;
(iii)has a work pass or permit required under the Employment of Foreign Manpower Act (Cap. 91A), unless he has resided in Singapore for less than a total of 183 days in the 12 months preceding the proposal date of the policy; or
(iv)has a pass or permit required under the Immigration Act (Cap. 133) that has a duration longer than 90 days and has resided in Singapore continuously for at least 90 days in the 12 months preceding the proposal date of the policy;
(b)“policy owner’s address” means the address for the time being known to the insurer as the address (or normal address) for communicating with the policy owner about the policy;
(c)“resident in Singapore” and “permanent establishment” have the same meanings as in the Income Tax Act (Cap. 134);
(d)“permanent resident” means any individual who is not subject to any restriction as to his period of residence in Singapore imposed under the provisions of any written law relating to immigration for the time being in force;
(e)where an individual is present in Singapore for any part of a day, his presence on that day shall be counted as one day.
(5)  Sub-paragraph (1)(a) shall apply to a policy of reinsurance —
(a)where the owner of the policy under which the liability reinsured ultimately arises is an individual, as if the references to the proposal date and to whether the policy owner or insured is ordinarily resident in Singapore are references to those of the policy under which the liability reinsured ultimately arises; and
(b)in any other case, as if the references to the date of issue of the policy and to the policy owner’s address are references to those of the policy under which the liability reinsured ultimately arises.”; and
(b)by deleting paragraph 6A and substituting the following paragraph:
6A.—(1)  “Participating policy” means any non-investment-linked policy conferring a right to participate in allocations by way of bonuses from policy assets of the fund established and maintained by an insurer for such a policy, and “non-participating policy” means a non-investment-linked policy not conferring such a right.
(2)  “Policy assets”, in relation to a fund established and maintained for participating policies, means the total assets of the fund as at valuation date held for the benefit of policyholders in that fund less —
(a)the balance in the surplus account established and maintained in such manner as prescribed under section 17(6) of the Act; and
(b)the amount of assets required to satisfy the liabilities described as “other liabilities” in statements of account lodged with the Authority under section 36(1) of the Act.
(3)  “Valuation date”, in relation to policy assets, means the date on which the assets and liabilities of an insurer are valued.”.

Made this 30th day of March 2010.

PETER HO
Permanent Secretary (Special Duties),
Prime Minister’s Office,
Singapore.
[ID 05.1 V. 32; AG/LLRD/SL/142/2010/3 Vol. 1]
(To be presented to Parliament under section 63A(3) of the Insurance Act).