POLICY OWNERS’ PROTECTION SCHEME
30. There shall be established a scheme to be called the Policy Owners’ Protection Scheme for the purposes of compensating (in part or whole) or otherwise assisting or protecting insured policy owners and beneficiaries in respect of the insured policies issued by PPF Scheme members and for securing the continuity of insurance for insured policy owners as far as reasonably practicable.
—(1) Every relevant insurer which is not exempted under section 32 shall be a PPF Scheme member so long as it is registered by the Authority to carry on insurance business under the Insurance Act (Cap. 142).
(2) Every relevant insurer which is registered to carry on insurance business under the Insurance Act immediately before the appointed day, shall be deemed to be a PPF Scheme member from that day.
(3) Every relevant insurer which is registered to carry on insurance business under the Insurance Act on or after the appointed day, shall be a PPF Scheme member from the date on which it is registered.
—(1) Any relevant insurer may apply in writing to the Authority to be exempted from the requirement under section 31(1) to be a PPF Scheme member.
(2) Upon application by a relevant insurer under subsection (1), the Authority may, subject to subsection (4), exempt the relevant insurer from the requirement under section 31(1), and notice of such exemption shall be published in the Gazette.
(3) The Authority may require the applicant to furnish the Authority with such information or documents as the Authority considers necessary in relation to the application.
(4) Without prejudice to the generality of subsection (2), the Authority shall, in determining whether to grant an exemption under subsection (2), have regard to —
the scope of insurance business conducted by the applicant in Singapore;
in the case of any applicant which is a direct insurer registered to carry on general business, whether or not that applicant issues any insured policy;
in the case of any applicant which is incorporated in a jurisdiction other than Singapore —
whether the policies issued by the applicant’s branches and offices located within Singapore are insured by a policy owners’ protection scheme, or any other scheme of a similar nature, established and maintained in the jurisdiction in which the applicant is incorporated (referred to in this section as the foreign scheme); and
whether the scope and level of protection available to those policies under the foreign scheme are not less than the scope and level of protection that would be available to the policies under the PPF Scheme if those policies were insured by the PPF Scheme.
(5) The Authority may, when granting any exemption under subsection (2), impose on the PPF exempt member by notice in writing such conditions or restrictions relating to the exemption as the Authority may think fit.
(6) The Authority may at any time —
by notice in writing to a PPF exempt member, add to, vary or revoke any existing condition or restriction imposed by the Authority under subsection (5); or
by notice in writing to every PPF exempt member in a particular class of such PPF exempt members impose such conditions or restrictions as the Authority may think fit on the class.
(7) Every PPF exempt member shall comply with all the conditions and restrictions imposed on it under subsections (5) and (6).
(8) Any PPF exempt member which contravenes subsection (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine of $10,000 for every day or part thereof during which the offence continues after conviction.
—(1) The Authority may withdraw the exemption granted to a PPF exempt member under section 32(2) if —
the Authority considers it necessary to do so in the public interest.
(2) Before withdrawing any exemption granted to a PPF exempt member under subsection (1), the Authority shall —
give the PPF exempt member notice in writing of its intention to do so; and
in the notice referred to in paragraph (a), call upon the PPF exempt member to show cause, within such time as may be specified in the notice, why the exemption should not be withdrawn.
(3) If the PPF exempt member to whom a notice is given under subsection (2) —
fails to show cause within the time specified in the notice or within such extended period of time as the Authority may allow in any particular case; or
fails to show sufficient cause,
the Authority shall give notice in writing to the PPF exempt member of the withdrawal of the exemption and the date on which such withdrawal of the exemption is to take effect.
(4) Where a withdrawal of exemption becomes effective, the Authority shall publish a notice of the withdrawal in the Gazette.