A: The PPF Scheme protects policy owners in the event a life or general insurer which is a PPF Scheme member fails. The PPF Scheme provides protection for the guaranteed benefits of your life insurance policies, subject to caps where applicable. The PPF Scheme also provides coverage for the specified types of general insurance policies covered under the Scheme. No caps are applicable for protection of your general insurance policies (except for the limits specified under the law for compulsory insurance policies and for own property damage motor claims under personal motor insurance policies and property damage claims under personal property (structure and contents) insurance policies).

A: The preferred course of action is to transfer the insurance business of the failed insurer to another insurer, especially in the event of the failure of a life insurer, as there is less disruption for policy owners. However, if a buyer cannot be found or if costs are excessive to facilitate a transfer, MAS may decide on termination if the impact on policy owners is not significant, for example if policy owners can easily find alternative coverage. On the other hand, if the impact on policy owners is significant, MAS may decide on a run-off. SDIC will then take over the business of the failed insurer. Policy owners will then continue to be covered until such time their policy matures or expires. A combination of options may be adopted for the entire business of the failed insurer.

A: From 20 July 2011, you can request for a register of the types of insured policies from any life or general insurer which are PPF Scheme members to find out which insurance policies are covered. Also, from 1 January 2012, the policy documents and product summaries will display the PPF disclosure statement if the product is insured under the PPF Scheme.

A: All life insurance policies (including riders) are covered. This would include policies issued to non-Singapore residents (offshore policies), but not policies issued by overseas branches of a registered direct life insurer incorporated in Singapore. Examples of life insurance policies include the following:

· Individual and group term life policies

· Individual and group whole life policies

· Individual and group endowment policies

· Individual and group annuities

· Individual and group long-term accident and health (A&H) policies

A: The PPF Scheme protects all compulsory insurance policies under the Motor Vehicles (Third Party Risks and Compensation) Act and Work Injury Compensation Act and short- term accident and health (A&H) policies, issued by PPF Scheme members. The PPF Scheme also covers policies of specified personal lines where the risks arise in Singapore or the policy owner is resident in Singapore, issued to individuals by licensed PPF Scheme members. The types of specified personal lines covered are:

· Personal motor insurance policies

· Personal travel insurance policies

· Personal property (structure and contents) insurance policies

· Foreign domestic maid insurance policies

A: General insurance policies that are not compulsory by law or within the specified personal lines are not covered under the PPF Scheme. General insurance policies (except for motor insurance policies) which are specified personal lines but issued to non-individuals will also not be covered. For motor insurance policies issued to non-individuals, only the compulsory insurance portion under Motor Vehicles (Third-Party Risks and Compensation) Act 1960 will be covered. For example, personal travel policies or property (structure and contents) insurance policies issued to non-individuals and tuition fee protection policies issued to individuals are not covered. If you want to know more on the types of policies covered under the PPF Scheme, please refer to Scope of Coverage.

A: Each joint policy owner is assumed to have an equal share of the joint policy, unless the PPF Scheme member has records that show otherwise. If you want to know about the calculation for joint policies, please refer to PPF Entitlement.

A: Any policy loans taken against an insured life policy will be set off against the compensation payable under that policy. If you want to know about the calculation of compensation where there are policy loans, please refer to PPF Entitlement.

A: Yes, individual and group accident and health (A&H) policies and riders are covered and are not subject to caps. The A&H policies covered include the following:

· Personal Accident

· Medical Expenses Plan

· Long-term Care (e.g. Eldershield)

· Disability Income

A:Yes, individual annuities and voluntary group annuities, whether deferred or immediate, are covered. If you have been receiving the annuities before the insurer failed, your annuities are subject to an aggregate cap of S$100,000 on the total commuted value of the annuities, on a per life assured per insurer basis. Non-voluntary group annuities are also covered and subject to a separate cap of S$100,000 on the commuted value per policy per insurer. Only the guaranteed benefits of annuities are covered. In determining commuted value, all the future guaranteed benefit payments (be it annuity payments, death or surrender benefits) are converted into a single lump-sum present value. If the failed insurer’s business is transferred, run-off or the policies issued by the insurer are terminated, the guaranteed policy liabilities would have to be considered in determining the amount covered under the PPF Scheme.

A: Guaranteed benefits refer to the benefits that have been guaranteed in the policy contract by the insurer either at the outset or during the course of the policy. For non-participating policies, all the benefits will be considered as guaranteed. For participating policies, guaranteed benefits will include bonuses that have been declared and vested in the policies as these would have been payable to the policy holder if there was a claim, surrender or maturity at that point in time. In the case of investment-linked policies, any form of guarantees in the benefits such as capital guarantees or guaranteed death benefits provided by the insurer will be classified as guaranteed benefits.

A: MAS may decide that a PPF payout should be made if:

· A court order has been made to wind up a PPF Scheme member;

· A PPF Scheme member is voluntarily wound up or where the scheme member is a co-operative society, has its registration cancelled;

· MAS has determined that a PPF Scheme member is insolvent, unable or likely to become unable to meet its obligations, or about to suspend payments; or

· MAS is exercising, is likely to exercise, or has exercised on a PPF Scheme member, its powers under Part IVB of the Monetary Authority of Singapore Act.