Singapore: MAS to enhance the policy owners' protection scheme
Source: Asia Insurance Review | Jan 2024
The Monetary Authority of Singapore (MAS) is proposing changes to the Policy Owners’ Protection Scheme to enhance its coverage, simplify its design, and improve its operational efficacy.
These proposals are part of MAS’ regular reviews to ensure the scheme remains up to date with market developments, the central bank says in a statement.
First, to enhance the protection for consumers, MAS proposed that the scheme be extended to cover:
Mandatory third-party liability insurance under the Active Mobility Act 2017 that businesses purchase for specified mobility devices such as bicycle, personal mobility device, power-assisted bicycle, motorised wheelchair or mobility scooter. Currently, only policies that comply with the requirements of the Motor Vehicles (Third-Party Risks and Compensation) Act 1960 and the Work Injury Compensation Act 2019 are covered under the scheme.
Personal travel insurance policies issued to corporates as the policy owner (e.g. an employer, travel agency, credit card company) where payouts are due to individual travellers.
For greater clarity and transparency to consumers, MAS will specify a list of benefits that are covered as well as not covered under the scheme for the various specified personal line insurance. Direct general insurers which are members of the scheme will be required to clearly state the benefits that are not covered in their policy documents.
To ensure that all claims are paid expeditiously, MAS proposes that the scheme be extended to also cover claim events, except surrenders, that occur even after the failed insurer has been put in the hands of liquidators. This will minimise disruption to consumers as liquidators explore options to ensure continuity of the protected life insurance policies, such as looking for buyers or setting up a new company, to take over these policies. A