The Deposit Insurance and Policy Owner’s Protection Schemes Bill (DI-PPF Bill) and the Insurance (Amendment) bill have been moved for their initial reading in the parliament of Singapore. The bill will cover both depositor protection and policy owner protection.
Under the depositor protection provisions of the bill, covered depositors will be expanded from individuals and charities to include all non-bank depositors (such as sole proprietorships, partnerships, companies and unincorporated entities). Further, coverage limits for deposits in checking, savings, and time deposit accounts will be raised from $20,000 to $50,000 per depositor. In the event of payout, depositors will receive the gross amount of funds on deposit with the bank without first netting amounts owed to the financial institution.
Under the policy owner provisions, the current policy owner’s protection (PPF) scheme will be expanded to include accident and health (A&H) policies and more categories of general insurance policies. Coverage limits will be increased from 90% to 100% of covered liabilities in case of insurer failure.
The PPF plan will be funded by annual mandatory contributions from life insurers and general insurers. The Singapore Deposit Insurance Corporation (SDIC) will oversee both the DI and PPF plans. The SDIC will be required to collect contributions from DI and PPF plan members, pay covered losses, and inform the general public about both plans. It will also be responsible for managing the deposit insurance and PPF funds.
