Fund solvency requirement
4.—(1)  A Protection and Indemnity Club shall be exempt from regulation 4 of the Insurance (Valuation and Capital) Regulations 2004.
(2)  For the purposes of section 18(1)(a) of the Act, the fund solvency requirement in respect of an insurance fund established and maintained by a Protection and Indemnity Club under the Act shall at all times be such that
(a)in the case of an insurance fund that relates to Singapore policies, the surplus of assets over liabilities of the fund, less its contingent liabilities, is not less than the highest of the following amounts:
(i)$1 million;
(ii)20% of net premiums written of the fund in the preceding financial year; or
(iii)20% of claim liabilities of the fund as at the end of the preceding financial year; and
(b)in the case of an insurance fund that relates to offshore policies, the amount of assets in the fund, less its contingent liabilities, is not less than the amount of liabilities of the fund.