Classification of insurance business and construction of references to matters connected with insurance
—(1) For the purposes of this Act, insurance business shall be divided into 2 classes —
life business, which means all insurance business concerned with life policies, long-term accident and health policies, or both; and
[23/2003 wef 01/01/2004]
general business, that is to say, all insurance business which is not life business, and shall include the effecting and carrying out by any person, not being a person licensed, approved, designated or otherwise regulated under the Monetary Authority of Singapore Act (Cap. 186), Banking Act (Cap. 19), Finance Companies Act (Cap. 108) or Securities and Futures Act (Cap. 289); of contracts for fidelity bonds, performance bonds, administration bonds, bail bonds or customs bonds or similar contracts of guarantee, being contracts effected by way of business (and not merely incidental to some other business carried on by the person effecting them) in return for the payment of one or more premiums.
(2) For the purposes of this Act, the reinsurance of liabilities under insurance policies by a licensed insurer or an authorised reinsurer shall be treated as insurance business of the class and type to which the nature of the risk assumed or liabilities undertaken by that licensed insurer or authorised reinsurer relates.
(3) Notwithstanding anything in subsections (1) and (2), if the Authority is satisfied that any part of an insurer’s business which belongs to a particular class or type of insurance business ought in the insurer’s case to be treated as belonging to another class or type, the Authority may direct that it shall be so treated for the purposes of this Act.
(4) For the purposes of this Act, references to carrying on insurance business include the carrying it on through an agent.
(5) For the purposes of this Act and subject to subsection (5A), “Singapore insurer” means a person who is or has been carrying on insurance business in Singapore.
(5A) A person shall not be treated as carrying on insurance business, or any class of insurance business, in Singapore if, apart from the collection or receipt of premiums in Singapore, he —
carries out all activities in relation to his reinsurance business outside Singapore; and
does not have any commercial or physical presence in Singapore for the purpose of carrying on such reinsurance business.
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(6) The operation, otherwise than for profit, of a scheme or arrangement relating to service in particular offices or employments, and having for its object or one of its objects to make provision in respect of persons serving therein against future retirement or partial retirement, or against future termination of service through death or disability, or against similar matters, shall not be treated for the purposes of this Act as carrying on the business of insurance.
(7) For the purposes of this Act, no society registered under the Societies Act (Cap. 311) or organisation registered under the Mutual Benefit Organisations Act (Cap. 191) shall be deemed to be an insurer, and no agent for such a society or organisation shall as such be deemed to be an insurance agent; nor shall references in this Act to a policy or contract of insurance apply to any policy or contract whereby an insurance is effected with such a society or organisation.
(8) For the purposes of this Act —
any reference to the last statutory balance-sheet or to the last statutory valuation shall be construed as referring to that last prepared or made and not superseded by the arrival of the date as at which another is to be prepared or made; and
any reference to there being shown in a statutory balance-sheet or on a statutory valuation a surplus of assets over liabilities of an insurance fund shall be construed accordingly by reference to the form of balance-sheet or valuation balance-sheet as the Authority may prescribe or specify in directions, and to the rules to be followed under this Act and any such directions in preparing it.
(9) The definitions set out in the First Schedule shall have effect for the construction of references in this Act to policies of insurance, policy owners and policy moneys.