On 19/06/2013,
you requested for the version in force on 19/06/2013
incorporating all amendments published on or before 19/06/2013.
The closest version currently available is that of 29/04/2011.
52.
—(1) Upon payment out of the PPF Life Fund or the PPF General Fund of any compensation under this Act to, or for the benefit of, any insured policy owner in respect of his insured policy, or any beneficiary in the case of any insured policy which is covered under the PPF General Fund and provides third party benefits, the Agency shall be subrogated to the extent of such payment to all the rights and remedies of —
(a)
the insured policy owner;
(b)
the beneficiary; or
(c)
the person who received the compensation on behalf of the insured policy owner or beneficiary,
as the case may be, in respect of the insured policy in priority over —
(i)
the rights and remedies of the insured policy owner or the person who received the compensation on behalf of the insured policy owner, as the case may be, in relation to that insured policy;
(ii)
in the case where the insured policy is covered under the PPF General Fund and provides third party benefits, the rights and remedies of the beneficiary or the person who received the compensation on behalf of the beneficiary, as the case may be, in relation to that insured policy; and
(iii)
the rights and remedies of any person who is subrogated, whether or not before the Agency’s subrogation, to the rights and remedies of any of the persons referred to in paragraphs (a), (b) and (c) in relation to that insured life policy,
and may maintain an action in respect of those rights and remedies in the name of the person referred to in paragraph (a), (b) or (c), as the case may be, or in the name of the Agency, subject to subsection (2).
(2) Where the Agency maintains an action in respect of the rights and remedies in the name of the person referred to in subsection (1)(a), (b) or (c), as the case may be, the following provisions shall apply:
(a)
in the case where the failed PPF Scheme member is not wound up, the Agency shall be entitled to recover the full amount of compensation claimed against the failed PPF Scheme member, notwithstanding any liabilities owing by the insured policy owner to the PPF Scheme member; and
(b)
in the case where the failed PPF Scheme member is wound up, the insolvency rules relating to set-off shall not apply in relation to the rights and remedies of the insured policy owner.
(3) For the purposes of subsection (1), where the Agency is unable to effect payment to an insured policy owner, or a beneficiary in the case where the insured policy is covered under the PPF General Fund and provides third party benefits (due to incorrect or outdated addresses, in respect of accounts which are dormant or any other reasons beyond the reasonable control of the Agency), the Agency shall be deemed to have made payment out of the PPF Life Fund or the PPF General Fund, as the case may be, of compensation under this Act to, or for the benefit of —
(a)
an insured policy owner in respect of his insured policy; or
(b)
in the case where the insured policy is covered under the PPF General Fund and provides third party benefits, a beneficiary,
if the Agency makes payment of the compensation to the Public Trustee appointed under the Public Trustee Act (Cap. 260) to be held on trust for the insured policy owner or the beneficiary, as the case may be.
(4) The persons referred to in paragraphs (a), (b) and (c) of subsection (1), or any person who is subrogated, whether or not before the Agency’s subrogation, to the rights and remedies of those persons, shall not be entitled to receive any amount from, or out of, the assets of the failed PPF Scheme member until the Agency has been reimbursed in full the amount of compensation paid to those persons.
(5) Notwithstanding any provision in the Companies Act (Cap. 50), the Agency shall be entitled —
(a)
in the case where the failed PPF Scheme member is wound up, to be reimbursed out of the assets of the failed PPF Scheme member for the expenses incurred in —
(i)
the payment of any compensation to insured policy owners and beneficiaries including any interest charged on moneys borrowed by the Agency for the purpose of making payment of any compensation under the PPF Scheme; and
(ii)
the lodging of a claim with the liquidator of the failed PPF Scheme member for any compensation that has been paid out to insured policy owners and beneficiaries; or
(b)
in any other case, to be reimbursed by the failed PPF Scheme member or the provisional liquidator of the failed PPF Scheme member, as the case may be, for the expenses incurred in —
(i)
the payment of any compensation to insured policy owners and beneficiaries including any interest charged on moneys borrowed by the Agency for the purpose of making payment of any compensation under the PPF Scheme; and
(ii)
the lodging of a claim with the provisional liquidator of the failed PPF Scheme member for any compensation that has been paid out to insured policy owners and beneficiaries.
(6) The Authority may by regulations, provide for the manner, process or method by which the Agency may exercise its rights to be subrogated to the rights and remedies as set out in subsection (1).
(7) For the purposes of making payment of compensation by the Agency to the Public Trustee under subsection (3) and payment of compensation by the Public Trustee to insured policy owners and beneficiaries under this Act, the Authority, may, with the concurrence of the Public Trustee and in consultation with the Agency, make regulations for or in respect of all or any of the following matters:
(a)
the manner in which moneys paid by the Agency to the Public Trustee are to be paid to insured policy owners and beneficiaries under this Act;
(b)
the fees to be paid by the Agency to the Public Trustee and the manner of payment of such fees;
(c)
such other matters as the Authority considers necessary.
(8) The provisions in the Fifth Schedule shall apply in relation to the holding and payment of compensation by the Public Trustee to insured policy owners and beneficiaries under this Act.
(9) If the Authority wishes to amend or vary any regulations made under subsection (7), the Authority shall first conduct a joint review with the Public Trustee and such regulations shall not be amended or varied without the concurrence of the Public Trustee and consulting the Agency.