Singapore Government
Link to Homepage
Home | About Us | Browse | Advanced Search | Results | My Preferences | FAQ | Help | PLUS
 
Contents  

Long Title

Part I PRELIMINARY

Part II CONDUCT OF INSURANCE BUSINESS

General restriction on insurers

Registration and authorisation of insurers

Deposits, registers of policies and insurance funds

Miscellaneous requirements as to conduct of business

Part IIA FOREIGN INSURER SCHEMES

Part IIB INSURANCE INTERMEDIARIES

General

Conduct of Insurance Broking Business

Part III RETURNS, INSPECTIONS AND INVESTIGATIONS

Returns

Inspections and Investigations

Part IIIA ASSISTANCE TO FOREIGN REGULATORY AUTHORITIES

Part IIIAA TRANSFER OF BUSINESS AND SHARES, RESTRUCTURING OF REGISTERED INSURER AND WINDING UP

Division 1 — Voluntary scheme for transfer of business

Division 2 — Compulsory transfer of business

Division 3 — Compulsory transfer of shares

Division 4 — Power to restructure capital

Division 5 — Winding up

Division 6 — Miscellaneous

Part IIIB APPEALS

Part IIIC NOMINATION OF BENEFICIARIES

Part IV MISCELLANEOUS AND GENERAL

Administration and enforcement

Miscellaneous amendments of law

Supplementary

FIRST SCHEDULE Definition of Insurance Terms

SECOND SCHEDULE Specified Provisions

Legislative History

Comparative Table

 
Slider
Left Corner
Print   Link to Viewed VersionLink to In-Force Version
 
On 22/10/2017, you requested the version in force on 12/05/2012 incorporating all amendments published on or before 12/05/2012. The closest version currently available is that of 01/05/2011.
Slider
Miscellaneous requirements as to conduct of business
Payment in Singapore currency of policy moneys under life policies
23.  In the case of a life policy issued as a Singapore policy after 1st January 1967, to a policy owner who is a citizen of Singapore, any policy moneys or moneys payable on the surrender of the policy shall, notwithstanding anything in the policy or in any agreement relating thereto, be paid in the currency of Singapore unless at the time of payment it is otherwise agreed between the insurer and the person entitled to payment.
Regulation of premiums under life policies and long-term accident and health policies
24.
—(1)  A direct insurer registered to carry on life business shall not issue a life policy or a long-term accident and health policy of any description, being a Singapore policy or an offshore policy, if the premium chargeable under the policy is not in accordance with rates fixed with the approval of the actuary appointed under section 31 or, where no rates have been so fixed for policies of that description issued by the insurer, is not a premium approved for the policy by the actuary.
(2)  The Authority may, by notice in writing, require a direct insurer registered to carry on life business to obtain and furnish it within the time specified in the notice with —
(a)
a report by the actuary appointed under section 31 as to the suitability of the rates of premium for the time being chargeable by the insurer for any description of life policy or long-term accident and health policy; and
(b)
if the actuary considers that the rates of premium are not suitable or not in accordance with sound insurance principles, a report as to the rates of premium which the actuary approves for that description of policy.
(3)  For the purpose of subsection (1), regard shall be had to any report referred to in subsection (2) to the exclusion of any previous approval or report.
(4)  For each occasion on which an insurer issues a policy in contravention of this section, the insurer shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $12,500.
[23/2003 wef 01/01/2004]
Control of form of proposals, policies and brochures
25.
—(1)  The Authority may, by notice in writing, require a Singapore insurer to submit to it —
(a)
the forms of proposal and policy for the time being in use by the insurer in Singapore; and
(b)
any brochure which is for the time being in use by the insurer for describing the terms or conditions of, or the benefits to be or likely to be derived from, policies.
[11/86]
(2)  Where the whole or part of any such form or brochure required under subsection (1) is not in English, there shall be submitted with it a translation in English.
[11/86]
(3)  Unless it is otherwise provided, a requirement under this section shall apply to all such forms and brochures coming into use after the making of the requirement and before the Authority notifies the insurer that the requirement is withdrawn.
[11/86]
(4)  If it appears to the Authority, after affording the insurer an opportunity to make representations orally or in writing, that any such form or brochure —
(a)
contravenes any of the provisions of this Act; or
(b)
is in any respect likely to mislead,
the Authority may, by notice in writing, direct the insurer to discontinue the use of the form or brochure in Singapore either immediately or from a date specified in the notice.
[11/86]
(5)  No Singapore insurer shall use, in the course of carrying on insurance business in Singapore, a form of proposal which does not have prominently displayed therein a warning that if a proposer does not fully and faithfully give the facts as he knows them or ought to know them, he may receive nothing from the policy.
[11/86]
(6)  For each occasion on which any insurer uses a copy of a form or brochure in contravention of subsection (4) or (5), the insurer shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $12,500.
[11/86; 41/2001]
(7)  In this section, “brochure” includes any leaflet, circular or similar advertising matter, whether printed or not.
Requirements as to statements of capital
26.  Where a notice, advertisement or other official publication of a company registered or intended to be registered as an insurer under this Act contains a statement of the company’s share capital, and does not state therewith how much of that capital has been subscribed and how much is paid up, the company shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
[41/2001]
Control of take-overs of insurers incorporated in Singapore
27.
—(1)  This section and sections 28 and 29 shall apply to and in relation to all natural persons whether resident in Singapore or not and whether citizens of Singapore or not, and to all bodies corporate or unincorporate, whether incorporated or carrying on business in Singapore or not.
[11/86]
(2)  No person shall, after 1st January 1987, enter into an agreement to acquire shares of a registered insurer that is incorporated in Singapore by virtue of which he would, if the agreement is carried out, obtain effective control of that insurer without first notifying the Authority of his intention to enter into the agreement and obtaining the approval of the Authority to his entering into the agreement.
(3)  Any person who contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both.
[41/2001]
(4)  For the purposes of this section —
(a)
a person shall be regarded as obtaining effective control of a registered insurer by virtue of an agreement if the person alone or acting together with any associate or associates would, if the agreement is carried out —
(i)
acquire or hold, directly or indirectly, 20% or more of the issued share capital of the insurer; or
(ii)
control, directly or indirectly, 20% or more of the voting power of the insurer;
(b)
a reference to entering into an agreement to acquire shares includes —
(i)
a reference to a person making or publishing a statement, however expressed, that expressly or impliedly invites a holder of shares to offer to dispose of his shares to that person;
(ii)
a reference to a person obtaining a right to acquire shares under an option, or to have shares transferred to himself or to his order, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not;
(c)
a reference to the voting power in a registered insurer is a reference to the total number of votes that might be cast in the general meeting of the insurer; and
(d)
the following persons are associates of a person:
(i)
the person’s spouse or parent or remoter lineal ancestor, son, daughter or remoter issue, brother or sister of the person;
(ii)
any partner of the person;
(iii)
any corporation of which the person is an officer;
(iv)
where the person is a corporation, any officer of the corporation;
(v)
any employee or employer of the person;
(vi)
any officer of any corporation of which the person is an officer;
(vii)
any employee of a natural person of whom the person is an employee;
(viii)
any corporation whose directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person or, where the person is a corporation, of the directors of the person;
(ix)
any corporation in accordance with the directions, instructions or wishes of which, or of the directors of which, the person is accustomed or under an obligation, whether formal or informal, to act;
(x)
any corporation in which the person is in a position to control not less than 20% of the voting power in the corporation; and
(xi)
where the person is a corporation, a person who is in a position to control not less than 20% of the voting power in the corporation.
[30/99]
Arrangements affecting control of insurers incorporated in Singapore
28.
—(1)  No person shall enter into any arrangement in relation to any registered insurer that is incorporated in Singapore by virtue of which he would, if the arrangement is carried out, obtain control of the insurer without first notifying the Authority of his intention to enter into the arrangement and obtaining the approval of the Authority to his entering into the arrangement.
[11/86]
(2)  Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both.
[41/2001]
(3)  For the purposes of this section —
(a)
a person shall be regarded as entering into an arrangement by virtue of which he would obtain control of a registered insurer if he alone or acting together with an associate or associates would be in a position to determine the policy of the insurer;
(b)
the reference to entering into any arrangement is a reference to any formal or informal scheme, arrangement or understanding, whether expressly or by implication and without limiting the generality of the foregoing includes a reference —
(i)
creating a trust whether express or implied; and
(ii)
entering into a transaction or agreement,
and references to an arrangement shall be construed accordingly; and
(c)
the reference to associates of a person has the same reference as under section 27.
Control of substantial shareholdings of insurers incorporated in Singapore
29.
—(1)  No person shall enter into any agreement to acquire shares of a registered insurer that is incorporated in Singapore by virtue of which he would, if the agreement is carried out, become a substantial shareholder of that insurer without first notifying the Authority of his intention to enter into the agreement and obtaining the approval of the Authority to his entering into the agreement.
[30/99]
(2)  Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both.
[41/2001]
(3)  For the purposes of this section —
(a)
[Deleted by Act 16/2011 wef 01/05/2011]
(b)
a reference to entering into an agreement to acquire shares shall be construed in the same way as under section 27; and
(c)
“voting power” shall have the same meaning as in section 27.
[16/2011 wef 01/05/2011]
[30/99]
Power of Authority to require an insurer incorporated in Singapore to obtain information as to beneficial interests in shares of insurer
30.
—(1)  The Authority may, by notice in writing, direct a registered insurer that is incorporated in Singapore to obtain from any shareholder of the insurer and to transmit to the Authority information —
(a)
as to whether that shareholder holds any voting shares in the insurer as beneficial owner or as trustee; and
(b)
if he holds them as trustee, to indicate as far as it can the person for whom he holds them (either by name or by other particulars sufficient to enable those persons to be identified) and the nature of their interests,
and the insurer shall comply with that direction within such time as is specified in the notice.
[11/86]
(2)  In this section, “voting shares” has the same meaning as in the Companies Act (Cap. 50).
Approval of directors and principal officers of insurers
31.
—(1)  No registered insurer —
(a)
shall appoint a person as principal officer of the insurer in Singapore; or
(b)
incorporated or established in Singapore shall appoint a person as director of the insurer,
unless the insurer satisfies the Authority that that person is a fit and proper person to be so appointed and has obtained the approval of the Authority.
[11/86]
(2)  A direct insurer registered to carry on life business shall appoint a person as an actuary of the insurer to perform such duties as may be prescribed.
[32/93]
(3)  The appointment of the actuary by a direct insurer under subsection (2) shall be made by the board of directors of the insurer in writing and shall be subject to the approval of the Authority.
[32/93]
(3A)  Where a registered insurer has obtained the approval of the Authority to appoint a person as its principal officer, director or actuary under subsection (1) or (2), as the case may be, the person may be re-appointed as principal officer, director or actuary, as the case may be, of the registered insurer, immediately upon the expiry of the earlier term, without the approval of the Authority.
[23/2003 wef 01/01/2004]
(4)  If at any time it appears to the Authority that a principal officer, director or an actuary of a registered insurer has failed to perform his functions or is no longer a fit and proper person to be so appointed, the Authority may, in writing, direct the registered insurer to remove the principal officer, director or actuary, as the case may be.
[41/2001]
(5)  For the purpose of determining whether to grant its approval under subsection (1) or whether the principal officer, director or actuary has failed to perform his functions under subsection (4), the Authority shall, without prejudice to any other matter it may consider relevant, have regard to such criteria as may be prescribed.
[41/2001]
(6)  Before directing the registered insurer to remove its principal officer, director or actuary under subsection (4), the Authority shall —
(a)
give the insurer notice in writing of its intention to do so; and
(b)
in the notice referred to in paragraph (a), call upon the registered insurer to show cause within such time as may be specified in the notice why the principal officer, director or actuary, as the case may be, should not be removed.
[41/2001]
(7)  If the registered insurer referred to in subsection (6) —
(a)
fails to show cause within the time given to it to do so or within such extended period of time as the Authority may allow; or
(b)
fails to show sufficient cause,
the Authority shall give notice in writing to the insurer of the date on which the direction to remove the principal officer, director or actuary, as the case may be, is to take effect.
[41/2001]
(8)  Any person who is aggrieved by a decision of the Authority under subsection (1), (3) or (4) may, within 30 days of the decision of the Authority, appeal to the Minister in writing in accordance with Part IIIB.
[41/2001]
(9)  Any registered insurer which fails to comply with any direction of the Authority under subsection (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000.
[41/2001]
(10)  Nothing in section 152 of the Companies Act (Cap. 50) shall prevent the Authority from exercising any power under subsection (4).
[41/2001]
(11)  [Deleted by Act 16/2011 wef 01/05/2011]
Restriction on granting of unsecured loans or advances to directors and employees of insurers
32.
—(1)  No registered insurer shall in respect of its business in Singapore grant, directly or indirectly, unsecured loans or advances —
(a)
to a director of the insurer which in the aggregate and outstanding at any one time exceed the sum of $5,000; or
(b)
to an employee of the insurer which in the aggregate and outstanding at any time exceed one year’s emolument of that employee.
[32/93; 30/99]
(2)  In this section, “director” includes the wife, husband, father, mother, son or daughter of a director.
General obligation to furnish information
33.
—(1)  The Authority may, by notice in writing —
(a)
require any Singapore insurer to furnish it with information about any matter related to any business carried on by the insurer in Singapore or elsewhere; or
(b)
require any authorised reinsurer to furnish it with information about any matter related to any insurance business in respect of which it is authorised,
if, in the opinion of the Authority, it requires that information for the discharge of its functions under this Act.
[16/2011 wef 01/05/2011]
(2)  A registered insurer which is or was a PPF Scheme member as defined in the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011, shall furnish to the PPF Agency, the Public Trustee appointed under the Public Trustee Act (Cap. 260) and any person authorised or appointed by the PPF Agency or the Public Trustee to perform its functions under the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011, upon request, such information, including information relating to its policy owners, as may be required by the PPF Agency, the Public Trustee or such person to carry out the objects and to perform the functions of the PPF Agency or the Public Trustee, as the case may be, under that Act.
[16/2011 wef 01/05/2011]
(3)  Subsection (2) shall apply notwithstanding the cancellation of the registration of the insurer under section 12, whether wholly or in respect of a class of business.
[16/2011 wef 01/05/2011]
Carrying on of general business by Lloyd’s underwriters
34.  [Repealed by Act 41/2001 — see section 65]
Saving for validity of policies
35.  Nothing in this Part, Part IIA or IIB shall invalidate any policy or contract of insurance.
[41/2001]