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Payment of living benefits or death benefits under life policy or accident and health policy, etc.

Insurance Act 1966

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—(1) In any case where —(a)the policy owner of any life policy or accident and health policy has made a nomination under section 132(2) in respect of the policy;(b)that nomination is not revoked in accordance with section 132(7);(c)the licensed insurer of the policy has received written notice of that nomination under section 134(1)(b); and(d)any living benefits are payable under the policy,the licensed insurer may make a payment from the living benefits, and is discharged from all liability in respect of the payment, to —(e)in a case where any trustee of the policy moneys is a person other than the policy owner —(i)that trustee, for the benefit of every nominee under that nomination; or(ii)if there is more than one such trustee, any such trustee, for the benefit of every nominee under that nomination; or(f)in any other case —(i)any nominee under that nomination who has attained the age of 18 years;(ii)a parent or legal guardian, not being the policy owner, of any nominee under that nomination who is below the age of 18 years; or(iii)the personal representatives of the estate of any nominee under that nomination who is deceased,such payment not exceeding that nominee’s portion of the living benefits.(2) In any case where the policy owner of any life policy or accident and health policy dies, and death benefits are payable under the policy on his or her death —(a)if subsection (7), (8) or (9) applies in respect of the policy, the licensed insurer of the policy may make one or more payments in accordance with the applicable subsection from the death benefits under the policy, without the production of any probate or letters of administration;(b)if subsection (10) applies in respect of the policy, the licensed insurer of the policy may make one or more payments in accordance with subsections (10) and (11) from the death benefits under all such policies issued by the licensed insurer on the deceased’s life in respect of which subsection (10) applies, such payment or payments not exceeding in the aggregate the amount prescribed by the Authority for the purposes of this paragraph, without the production of any probate or letters of administration; and(c)the licensed insurer is discharged from all liability in respect of each such payment.(3) If, in any case referred to in subsection (2), estate duty is payable in Singapore on any death benefits referred to in that subsection, the licensed insurer may, despite section 43(2) of the Estate Duty Act 1929, make one or more payments in accordance with subsections (10) and (11) from the death benefits under all such policies issued by the licensed insurer (such payment or payments not exceeding in the aggregate the amount prescribed by the Authority for the purposes of this subsection) without the death benefits having been included in any schedule or certificate referred to in section 43(2) of that Act.(4) If, as a consequence of making any payment under subsection (3), the aggregate of all payments made under that subsection will exceed the amount prescribed by the Authority for the purposes of this subsection, the licensed insurer must, before making the firstmentioned payment, give written notice to the Commissioner of Estate Duties of such particulars as the Commissioner may require.(5) Subsection (3) applies in relation to death benefits under policies of which the deceased was not the policy owner at his or her death as it applies in relation to any death benefits referred to in subsection (2).(6) Where the payment or payments allowed under subsection (3) on account of any death benefits have been made, the licensed insurer may, before paying the balance of such death benefits to one or more relevant persons according to their entitlements, apply the whole or any part of the death benefits to pay any unpaid estate duty payable on the death of the insured.(7) Where —(a)the policy owner of a policy referred to in subsection (2) has made a nomination under section 132(2) in respect of the policy;(b)that nomination is not revoked in accordance with section 132(7); and(c)the licensed insurer of the policy has received written notice of that nomination under section 134(1)(b),the licensed insurer may make a payment under subsection (2)(a) to —(d)in a case where any trustee of the policy moneys is a person other than the policy owner —(i)that trustee, for the benefit of every nominee under that nomination; or(ii)if there is more than one such trustee, any such trustee, for the benefit of every nominee under that nomination; or(e)in any other case —(i)any nominee under that nomination who has attained the age of 18 years;(ii)a parent or legal guardian, not being the policy owner, of any nominee under that nomination who is below the age of 18 years; or(iii)the personal representatives of the estate of any nominee under that nomination who is deceased,such payment not exceeding that nominee’s portion of the death benefits under the policy.(8) Where —(a)the policy owner of a policy referred to in subsection (2) has made a nomination under section 133(2) in respect of the policy;(b)that nomination is not and is not deemed to be revoked; and(c)the licensed insurer of the policy has received written notice of that nomination under section 134(1)(b),the licensed insurer may make a payment under subsection (2)(a) to —(d)any nominee under that nomination who has attained the age of 18 years;(e)a parent or legal guardian, not being the policy owner, of any nominee under that nomination who is below the age of 18 years; or(f)the personal representatives of the estate of any nominee under that nomination who dies after the policy owner,such payment not exceeding that nominee’s portion of the death benefits under the policy.(9) Subject to subsection (7), where —(a)the policy owner of a policy referred to in subsection (2) has made, and has not revoked, a will in accordance with the Wills Act 1838;(b)the will —(i)provides for the disposition of all death benefits under the policy; and(ii)specifies such particulars of the policy as may be prescribed by the Authority under section 133(7)(b)(ii); and(c)the licensed insurer of the policy has received written notice, signed by the policy owner, of that will in such manner as may be prescribed by the Authority for the purposes of this subsection,the licensed insurer may make a payment under subsection (2)(a) to any executor of that will, such payment not exceeding the amount of the death benefits under the policy.(10) Subject to subsection (11), where —(a)the policy owner of a policy referred to in subsection (2) or (3) has not made —(i)any nomination under section 132(2) or 133(2) in respect of the policy; or(ii)any will which —(A)provides for the disposition of all death benefits under the policy; and(B)specifies such particulars of the policy as may be prescribed by the Authority under section 133(7)(b)(ii);(b)the licensed insurer of a policy referred to in subsection (2) or (3) has not received —(i)any written notice referred to in section 134(1)(b) of any nomination made under section 132(2) or 133(2) in respect of the policy; or(ii)any written notice referred to in subsection (9)(c) of any will providing for the disposition of all death benefits under the policy; or(c)there exist, in respect of a policy referred to in subsection (2) or (3), such other circumstances as the Authority may prescribe,the licensed insurer of the policy may make a payment under subsection (2)(b) or (3) to any proper claimant from the death benefits under the policy.(11) Where subsection (10) applies, and the licensed insurer referred to in that subsection receives 2 or more different claims for payment in accordance with that subsection —(a)each such claim must be paid in the same order of priority; and(b)the amount payable under subsection (2)(b) or (3) (as the case may be) in respect of any such claim must be calculated as follows:where Ais the amount which would have been payable in respect of that claim had it been paid in full;Bis the total amount which would have been payable in respect of all such claims had they been paid in full; andCis the amount prescribed by the Authority for the purposes of subsection (2)(b) or (3), as the case may be.(12) In this section, unless the context otherwise requires —“policy owner” includes a part owner of a policy;“proper claimant” means a person who —(a)claims to be entitled to payment under subsection (2)(b) or (3) as executor of the deceased; or(b)claims to be entitled to payment under subsection (2)(b) or (3) (whether for his or her own benefit or not) and is the widower, widow, parent, child, brother, sister, nephew or niece of the deceased;“relevant person” means the personal representative of the deceased or, where there is none, any proper claimant.(13) In deducing any relationship for the purposes of the definition of “proper claimant” in subsection (12), an illegitimate person is treated as the legitimate child of his or her actual parents.(14) For the purposes of this section, where any nomination has been or is deemed to be varied, any reference to a nominee under that nomination is to be construed as a reference to a nominee under that nomination as varied.[61

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