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Contents

Long Title

Part I PRELIMINARY

Part II CONDUCT OF INSURANCE BUSINESS

Division 1 — General restriction on insurers

Division 2 — Licensed insurers

Deposits, registers of policies and insurance funds

Division 3 — Authorised reinsurers

Part IIA FOREIGN INSURER SCHEMES

Part IIB INSURANCE INTERMEDIARIES

Division 1 —  General provisions relating to insurance intermediaries

Division 2 —  Conduct of insurance broking business

Part III RETURNS, INSPECTIONS AND INVESTIGATIONS, WINDING UP AND TRANSFERS OF BUSINESS

Division 1 — Returns

Division 2 — Inspections and Investigations

Division 3 — Powers where licensed insurer or insurance intermediary is unable to meet obligations, etc.

Part IIIA ASSISTANCE TO FOREIGN REGULATORY AUTHORITIES

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

Division 1 — Voluntary 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

Division 1 — Administration and enforcement

Division 2 —  Miscellaneous amendments of law

Division 3 —  Supplementary

FIRST SCHEDULE Definition of Insurance Terms

SECOND SCHEDULE Specified Provisions

Legislative History

Comparative Table

 
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On 25/11/2014, you requested the version in force on 25/11/2014 incorporating all amendments published on or before 25/11/2014. The closest version currently available is that of 01/01/2014.
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Trust nomination
49L.
—(1)  This section shall not apply to any relevant policy which is —
(a)
issued under the Dependants’ Protection Insurance Scheme established and maintained by the Central Provident Fund Board under section 41 of the Central Provident Fund Act (Cap. 36);
[Act 11 of 2013 wef 18/04/2013]
(b)
an investment made by a member of the Central Provident Fund under any scheme in accordance with any regulations made under section 77(1)(n) of the Central Provident Fund Act the proceeds or benefits (or any part thereof) of which the member is obliged to repay into the Central Provident Fund; or
[Act 11 of 2013 wef 18/04/2013]
(c)
prescribed by the Authority, or of a type or description prescribed by the Authority.
[Act 11 of 2013 wef 18/04/2013]
(2)  Where the policy owner of a relevant policy who has attained the age of 18 years —
(a)
nominates as the beneficiary or beneficiaries under the relevant policy his spouse, his children, his spouse and children or any of them;
(b)
expresses in the nomination his intention to create a trust of the policy moneys in favour of the nominee or nominees; and
(c)
makes the nomination, and indicates each nominee’s portion of the policy moneys, in such manner as may be prescribed by the Authority,
the nomination shall create a trust of the policy moneys in favour of the nominee or nominees.
(3)  No nomination under subsection (2) shall be valid unless it provides for the disposition of all policy moneys under the relevant policy.
(4)  Subject to subsection (5), all policy moneys subject to the trust created under subsection (2) shall not form part of the estate of the policy owner or be subject to his debts.
(5)  If it is proved that the relevant policy was effected, and the premiums for the relevant policy were paid, with intent to defraud the creditors of the policy owner, the creditors shall be entitled to receive out of the policy moneys a sum equal to the premiums so paid.
(6)  On the death of any nominee, the nominee’s interest in the policy moneys shall, subject to any encumbrance created over, or any disposition of, the nominee’s interest while the nominee was alive, form part of the nominee’s estate.
(7)  A policy owner may revoke a nomination under subsection (2) if, and only if, the prior written consent to the revocation has been obtained from —
(a)
in a case where any trustee of the policy moneys is a person other than the policy owner —
(i)
that trustee or, if there is more than one such trustee, any such trustee; or
(ii)
so long as no nominee has died before the revocation —
(A)
each nominee who has attained the age of 18 years; and
(B)
a parent or legal guardian, not being the policy owner, of each nominee who is below the age of 18 years;
(b)
in any other case, so long as no nominee has died before the revocation —
(i)
each nominee who has attained the age of 18 years; and
(ii)
a parent or legal guardian, not being the policy owner, of each nominee who is below the age of 18 years; and
(c)
such requirements for the revocation as may be prescribed by the Authority are satisfied.
(8)  Where a nomination under subsection (2) has been revoked in accordance with subsection (7) —
(a)
the trust created pursuant to the nomination shall be deemed to be revoked; and
(b)
the policy owner may make a new nomination under subsection (2) or section 49M(2).
(9)  Where a nomination under subsection (2) has been made in respect of a relevant policy, a term or condition of the relevant policy may be varied, and an instruction of the policy owner in relation to the relevant policy (being an instruction which may directly or indirectly alter the benefits payable under the relevant policy) may be executed by the licensed insurer that issued the relevant policy, if, and only if, the prior written consent to the variation of the term or condition or to the execution of the instruction, as the case may be, has been obtained from —
(a)
in a case where any trustee of the policy moneys is a person other than the policy owner —
(i)
that trustee or, if there is more than one such trustee, any such trustee; or
(ii)
so long as no nominee has died before the variation of the term or condition or the execution of the instruction, as the case may be —
(A)
each nominee who has attained the age of 18 years; and
(B)
a parent or legal guardian, not being the policy owner, of each nominee who is below the age of 18 years; or
(b)
in any other case, so long as no nominee has died before the variation of the term or condition or the execution of the instruction, as the case may be —
(i)
each nominee who has attained the age of 18 years; and
(ii)
a parent or legal guardian, not being the policy owner, of each nominee who is below the age of 18 years.
[Act 11 of 2013 wef 18/04/2013]
(10)  Any purported revocation of a nomination under subsection (2) in contravention of subsection (7), and any purported variation of any term or condition of a relevant policy in contravention of subsection (9), shall be void.
(11)  Where a nomination under subsection (2) has been made in respect of a relevant policy, and the licensed insurer that issued the relevant policy executes an instruction of the policy owner in contravention of subsection (9), the licensed insurer shall be liable to each nominee for the loss suffered by the nominee (if any) as a result of the execution of the instruction.
[Act 11 of 2013 wef 18/04/2013]
(12)  Subject to subsection (14), the policy owner —
(a)
shall, in such manner as may be prescribed by the Authority, appoint one or more trustees of the policy moneys;
(b)
may, in such manner as may be prescribed by the Authority, from time to time, appoint one or more new trustees of the policy moneys;
(c)
may, in such manner as may be prescribed by the Authority, revoke the appointment of any trustee appointed under paragraph (a) or (b); and
(d)
may, in such manner as may be prescribed by the Authority, make provision for —
(i)
the appointment of one or more new trustees of the policy moneys; and
(ii)
the revocation of the appointment of any trustee appointed under paragraph (a) or (b) or pursuant to a provision under sub-paragraph (i).
(13)  Subject to subsection (14), on or after the death of the policy owner, the High Court may appoint one or more new trustees of the policy moneys if —
(a)
there is no trustee of the policy moneys; or
(b)
it is expedient to do so.
(14)  No individual shall be appointed a trustee of policy moneys under subsection (12)(a) or (b) or (13), or pursuant to a provision under subsection (12)(d)(i), unless he has attained the age of 18 years; and any appointment of a trustee of policy moneys in contravention of this subsection shall be void.
(15)  Where, in respect of a relevant policy issued by a licensed insurer, a trust of the policy moneys has been created pursuant to a nomination under subsection (2), the relevant policy shall vest, in trust for the nominees, in the trustee or trustees of the policy moneys appointed —
(a)
under subsection (12)(a) or (b) or (13); or
(b)
pursuant to a provision under subsection (12)(d)(i),
when the licensed insurer has been given notice of the appointment in such manner as may be prescribed by the Authority.
[3/2009 wef 01/09/2009]
[Act 11 of 2013 wef 18/04/2013]