Deposit Insurance and Policyowners Protection Scheme

MAS held a public consultation exercise on the Deposit Insurance (DI) Scheme and Policy Owners’ Protection (PPF) Scheme late Dec 2010 through Jan 2011.

It is expected a new piece of legislation i.e. Deposit Insurance and Policy Owners’ Protection Schemes Act will streamline the existing schemes and merge in enhancements. This could take place by early 2011.

Some of the key enhancements include-

1.       The revised DI scheme will insure SGD deposits of retail and non-bank depositors and coverage limit is raised to $50,000 (from current $20,000) per insured depositor per DI Scheme member financial institution.

2.       The PPF scheme is to be pre-funded to enhance the credibility of protection for policyowners and facilitate payouts in event of insurer collapse.

3.       The PPF Life fund will cover 100% (increased from 90%) of protected liabilities for policyowners, subject to guaranteed caps on types of policies.

Additional info can be referenced here.