Part of a comprehensive analysis of the Insurance Act 1966
All Parts in This Series
Key Provisions and Their Purpose in Part 4 of the Insurance Act 1966
Part 4 of the Insurance Act 1966, titled Miscellaneous and General, encompasses a broad range of provisions that provide the administrative, enforcement, procedural, and regulatory framework necessary for the effective operation of the Act. These provisions ensure that the Insurance Authority (the Authority) can efficiently regulate the insurance industry, enforce compliance, and adapt to evolving circumstances.
"The Authority may appoint any person to exercise any of its powers or perform any of its functions or duties under this Act..." — Section 137, Insurance Act 1966
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Section 137 empowers the Authority to appoint assistants to exercise its powers or perform its functions. This delegation mechanism exists to enhance operational efficiency and ensure that the Authority can effectively manage its regulatory responsibilities, especially given the complexity and volume of insurance-related matters.
"The Authority may, by regulations, exempt any person or class of persons from all or any of the provisions of this Act..." — Section 138, Insurance Act 1966
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Section 138 grants the Authority the power to exempt certain persons or classes from provisions of the Act. This flexibility allows the Authority to tailor regulatory requirements to specific circumstances, preventing undue burden on entities that may not require full compliance, and facilitating innovation or special cases within the insurance sector.
"Regulations may provide for the collection by or on behalf of the Authority... of statistical information as to such matters relevant to insurance as may be prescribed" — Section 139, Insurance Act 1966
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Section 139 authorizes the collection and use of statistical data relevant to insurance. This provision supports evidence-based policymaking and regulatory oversight by enabling the Authority to monitor industry trends, assess risks, and ensure market stability.
"Any notice, order or document required or authorised by this Act to be given to or served on any person may be given to or served on the person..." — Section 140, Insurance Act 1966
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Sections 140 and 141 set out the methods for service of notices and documents, including electronic service. These provisions modernize communication between the Authority and regulated entities, ensuring timely and effective delivery of regulatory documents.
"Any person who signs any document lodged with the Authority... or provides the Authority with any information... must use due care to secure that the document or information is not false in any material particular..." — Section 142, Insurance Act 1966
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Section 142 imposes strict duties on persons providing information to the Authority, with penalties for false or misleading information. This provision safeguards the integrity of regulatory processes and ensures that the Authority can rely on accurate data for supervision and enforcement.
Additional provisions address penalties for corporations (Section 143), jurisdiction of courts to try offences (Section 144), extraterritorial application of the Act (Section 145), and miscellaneous amendments relating to insurable interest, capacity to insure, and payment of policy moneys (Sections 146 to 152).
"The Minister may by order in the Gazette amend, add to or vary the First or Second Schedule." — Section 153, Insurance Act 1966
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Section 153 allows for the amendment of Schedules, enabling the Act to remain current with industry developments.
"The Authority may make regulations for carrying into effect the objects of this Act..." — Section 154, Insurance Act 1966
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Section 154 empowers the Authority to make regulations, providing a flexible mechanism to implement and enforce the Act’s objectives.
"The repeal of section 34 of this Act as in force immediately before 8 January 2002 does not invalidate any existing Lloyd’s policy..." — Section 155, Insurance Act 1966
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Section 155 contains saving provisions relating to Lloyd’s policies, ensuring continuity and legal certainty for existing contracts despite legislative changes.
Definitions Relevant to Part 4 of the Insurance Act 1966
Clear definitions are essential for the consistent application of the Act. Part 4 incorporates definitions both within its sections and in the First Schedule, covering terms related to electronic service and insurance policies.
"“Account with the electronic service”, in relation to any person, means a computer account within the electronic service which is assigned by the Authority to that person for the storage and retrieval of electronic records relating to that person;" — Section 141(10), Insurance Act 1966
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"“Authentication code”, in relation to any person, means an identification or identifying code, a password or any other authentication method or procedure which is assigned to that person for the purposes of identifying and authenticating the access to and use of the electronic service by that person;" — Section 141(10), Insurance Act 1966
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"“Document” includes notice and order;" — Section 141(10), Insurance Act 1966
"“Electronic record” has the meaning given by section 2 of the Electronic Transactions Act 2010." — Section 141(10), Insurance Act 1966
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These definitions facilitate the Authority’s use of electronic communications, reflecting modern regulatory practices and enhancing efficiency.
The First Schedule provides comprehensive definitions of insurance-related terms, such as:
"“Policy” includes any contract of insurance whether or not embodied in or evidenced by an instrument in the form of a policy..." — First Schedule, paragraph 1(1), Insurance Act 1966
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"“Singapore policy”, in relation to any insurer, means a policy issued in the course of the insurer’s business in Singapore and falling within one of the following descriptions..." — First Schedule, paragraph 2(1), Insurance Act 1966
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"“Child” means a legitimate child, an illegitimate child, a stepchild or a child adopted in accordance with any written law relating to the adopting of children." — First Schedule, paragraph 3, Insurance Act 1966
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"“Policy owner” means, where a policy has been assigned, the assignee for the time being and, where they are entitled as against the insurer to the benefit of the policy, the personal representatives of a deceased policy owner." — First Schedule, paragraph 4, Insurance Act 1966
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"“Policy moneys” includes any benefit, pecuniary or not, which is secured by a policy..." — First Schedule, paragraph 5, Insurance Act 1966
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"“Accident and health benefits” means policy moneys which are paid out in the event of an injury to, or a disability of, the insured as a result of accident or sickness..." — First Schedule, paragraph 6, Insurance Act 1966
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"“Life policy” means any policy which provides for the payment of policy moneys on the death of a person or on the happening of any contingency dependent on the termination or continuance of human life..." — First Schedule, paragraph 13(1), Insurance Act 1966
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These definitions ensure clarity and precision in the interpretation and enforcement of insurance contracts and regulatory requirements.
Penalties for Non-Compliance Under the Insurance Act 1966
Part 4 establishes a robust penalty regime to deter and address non-compliance with the Act. These penalties apply to individuals and corporations and cover offences such as providing false information, breaching statutory duties, and other violations.
"Any person who... provides the Authority with any information... must use due care to secure that the document or information is not false in any material particular; and if the person does not use due care... the person shall be guilty of an offence." — Section 142(1), Insurance Act 1966
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Section 142(1) imposes a duty of care on persons submitting documents or information to the Authority, ensuring the accuracy and reliability of regulatory data.
"Any person who is guilty of an offence under subsection (1) shall be liable on conviction— (a) in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both; or (b) in any other case, to a fine not exceeding $250,000." — Section 142(2), Insurance Act 1966
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Section 142(2) prescribes significant fines and imprisonment terms for individuals and higher fines for other persons, reflecting the seriousness of providing false information.
"Any person who is guilty of any breach of a duty imposed on the person by this Act... shall be guilty of an offence and... liable on conviction— (a) in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and... to a further fine not exceeding $5,000 for every day...; or (b) in any other case, to a fine not exceeding $100,000 and... to a further fine not exceeding $10,000 for every day..." — Section 142(3), Insurance Act 1966
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Section 142(3) addresses breaches of duties under the Act, with escalating penalties for continued non-compliance, thereby encouraging prompt rectification.
"Where an offence under this Act is committed by any corporation... any person who... is a director, manager, secretary or other similar officer... shall be guilty of the offence... unless the person proves that he or she exercised all such diligence to prevent the commission of the offence..." — Section 142(4), Insurance Act 1966
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Section 142(4) holds corporate officers personally liable unless they can demonstrate due diligence, promoting responsible corporate governance.
"Where an offence under this Act is committed by a corporation... any individual guilty of the offence... shall be liable on conviction to imprisonment for a term not exceeding 2 years in addition to or in substitution for any fine." — Section 142(5), Insurance Act 1966
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Section 142(5) further reinforces individual accountability within corporations.
"The Authority may compound any offence under this Act which is prescribed as a compoundable offence... by collecting from a person reasonably suspected of having committed the offence a sum of money not exceeding one half of the amount of the maximum fine..." — Section 142(7), Insurance Act 1966
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Section 142(7) provides the Authority with the power to compound offences, offering an alternative to prosecution and facilitating efficient resolution of minor breaches.
"Where a corporation is convicted of an offence under this Act, the penalty that the court may impose is a fine not exceeding 2 times the maximum amount that the court could... impose as a fine for that offence." — Section 143(1), Insurance Act 1966
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Section 143 doubles the maximum fine for corporations, reflecting their greater capacity to pay and the need for deterrence at the corporate level.
"Regulations made under this Act... may provide that a contravention of any specified provision thereof shall be an offence; and may provide... for penalties not exceeding a fine of $50,000 or imprisonment for a term not exceeding 2 years or both for each offence... or... for penalties not exceeding a fine of $100,000 for each offence..." — Section 154(3), Insurance Act 1966
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Section 154(3) allows for the creation of additional offences and penalties through regulations, ensuring the regulatory framework can adapt to emerging issues.
Cross-References to Other Legislation in Part 4 of the Insurance Act 1966
The Insurance Act 1966 integrates with other key statutes to ensure coherence and comprehensive regulation. These cross-references clarify the application of the Act in relation to other legal frameworks.
"Any person appointed by the Authority under subsection (1) is deemed to be a public servant for the purposes of the Penal Code 1871." — Section 137(3), Insurance Act 1966
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Section 137(3) deems appointed assistants as public servants under the Penal Code 1871, enabling the application of criminal law protections and obligations relevant to public officials.
"“Electronic record” has the meaning given by section 2 of the Electronic Transactions Act 2010." — Section 141(10), Insurance Act 1966
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Section 141(10) adopts the definition of electronic record from the Electronic Transactions Act 2010, ensuring consistency in electronic communications law.
"Section 5 of the Civil Law Act 1909 and section 151 do not apply to a life policy..." — Sections 146(3) and (4), Insurance Act 1966
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Sections 146(3) and (4) exclude certain Civil Law Act provisions from applying to life policies, clarifying the legal treatment of insurable interest and capacity to insure.
"If, in any case referred to in subsection (2), estate duty is payable in Singapore on any death benefits... the licensed insurer may, despite section 43(2) of the Estate Duty Act 1929, make one or more payments..." — Section 150(3), Insurance Act 1966
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Section 150(3) interacts with the Estate Duty Act 1929 to facilitate payment of death benefits while addressing estate duty obligations.
"Subject to subsection (9), where the policy owner... has made, and has not revoked, a will in accordance with the Wills Act 1838..." — Section 150(9), Insurance Act 1966
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Section 150(9) references the Wills Act 1838 to regulate nominations and payments under life policies, ensuring alignment with testamentary laws.
"An individual is treated as ordinarily resident in Singapore if the individual— (i) is a citizen of Singapore... (ii) is a permanent resident... (iii) has a work pass or permit required under the Employment of Foreign Manpower Act 1990... (iv) has a pass or permit required under the Immigration Act 1959..." — First Schedule, paragraph 2(4)(a), Insurance Act 1966
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The First Schedule incorporates definitions related to residency status, referencing the Employment of Foreign Manpower Act 1990 and Immigration Act 1959 to determine the applicability of certain insurance provisions.
"Despite any provision to the contrary in the Criminal Procedure Code 2010, a District Court and a Magistrate’s Court have jurisdiction to try any offence under this Act..." — Section 144, Insurance Act 1966
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Section 144 clarifies the jurisdiction of courts under the Criminal Procedure Code 2010 to try offences under the Insurance Act, ensuring proper legal processes are followed.
Conclusion
Part 4 of the Insurance Act 1966 serves as the backbone for the administration and enforcement of the Act. It equips the Authority with necessary powers to delegate functions, exempt persons, collect data, and communicate effectively. The detailed definitions provide clarity for regulatory and contractual interpretation. The penalty provisions establish a strong deterrent against non-compliance, while cross-references to other legislation ensure legal coherence and integration. Together, these provisions uphold the integrity, efficiency, and adaptability of Singapore’s insurance regulatory framework.
Sections Covered in This Analysis
- Section 137 – Appointment of Assistants
- Section 138 – Exemptions by the Authority
- Section 139 – Collection of Statistical Information
- Section 140 – Service of Notices and Documents
- Section 141 – Electronic Service of Documents
- Section 142 – Offences and Penalties for False Information and Breach of Duties
- Section 143 – Penalties for Corporations
- Section 144 – Jurisdiction of Courts
- Section 145 – Extraterritorial Application
- Sections 146 to 152 – Miscellaneous Amendments and Provisions
- Section 153 – Amendment of Schedules
- Section 154 – Making of Regulations
- Section 155 – Saving Provisions Relating to Lloyd’s Policies
- First Schedule – Definitions of Key Terms
Source Documents
For the authoritative text, consult SSO.