Duty to maintain deposits
16.—(1)  The administrator shall, on behalf of all members of Lloyd’s carrying on insurance business in Singapore under these Regulations, make and maintain a deposit with the Authority of a value of not less than $500,000.
(2)  Not later than 31st July of each year, the administrator shall, on behalf of all members of Lloyd’s carrying on insurance business in Singapore under these Regulations, make and maintain with the Authority such additional deposit, if any, as is necessary to secure that the aggregate value of the deposit referred to in paragraph (1) shall be the greater of $500,000, or 30% of the premiums in respect of Singapore policies issued by the members of Lloyd’s in the course of carrying on insurance business in Singapore under these Regulations in the preceding year.
[S 665/2010 wef 04/11/2010]
(2A)  A deposit under paragraph (2) shall be made in the form of assets of such nature as may be directed by the Authority.
[S 665/2010 wef 04/11/2010]
(3)  The Authority may apply all or any part of the deposits made under paragraphs (1) and (2) towards any valid claim in respect of a policy issued under these Regulations which remains unpaid 30 days after the issue of a notice by the Authority under paragraph (4).
[S 814/2004 wef 01/01/2005]
(4)  Before applying any part of the deposits made under paragraph (1), the Authority shall give the administrator a notice in writing of its intention to do so and identify the claim in respect of which the deposits are to be applied.
(5)  Where the Authority has applied all or any part of the deposits made under paragraphs (1) and (2) towards any valid claim under paragraph (3), the administrator shall top up any deficiency in the deposits within 30 days of the notice of the deficiency by the Authority.
[S 814/2004 wef 01/01/2005]
(6)  The Authority shall retain any deposit required to be made under paragraphs (1) and (2) until it is satisfied that all members of Lloyd’s have ceased to carry on insurance business in Singapore under these Regulations.
(7)  If the Authority is satisfied that all members of Lloyd’s have ceased to carry on insurance business in Singapore under these Regulations, the Authority shall transfer to the administrator the entire deposits less such part that the Authority determines should be kept available for purpose of meeting claims against such members in respect of policies issued by the members of Lloyd’s under these Regulations.
(8)  In this regulation, “premiums” means gross premiums less commissions and credit for reinsurance ceded, where —
(a)“commissions” means the amount shown in the column titled “Total” at row 30 of the table titled “Singapore Insurance Fund” in Form G1;
(b)“credit for reinsurance ceded” means an amount computed using the formula A × (1 – B), where —
(i)A is the amount of reinsurance business ceded to a person carrying on insurance business that is accounted for in row 7, 8 or 9 of the table on Singapore Insurance Fund in Form G1; and
(ii)B is the appropriate counterparty default risk charge set out in Table 4H of the Counterparty Default Risk Requirement in MAS Notice 133;
[S 135/2020 wef 31/03/2020]
(c)“Form G1” means the audited “Statement of Operating Results by Line of Business” for the last accounting period submitted to the Authority in accordance with regulation 13(5); and
(d)“gross premiums” means the amount shown in the column titled “Total” at row 6 of the table titled “Singapore Insurance Fund” in Form G1.
[S 839/2018 wef 01/01/2019]
(9)  In this regulation, “MAS Notice 133” means the notice commonly known as MAS Notice 133 issued by the Authority under sections 18 and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it.
[S 135/2020 wef 31/03/2020]