Singapore Deposit Insurance Corporation (SDIC) will operationalise a new legislative provision for the setting up of a Policy Owners’ Protection Scheme (PPF) on 1 September 2011. The PPF protects policy owners in the event a life or general insurer which is a PPF Scheme member fails. The PPF Scheme provides 100% protection for the guaranteed benefits of your life insurance policies, subject to caps where applicable.
For example, for individual life and voluntary group life policies, there are aggregate caps applicable, namely S$500,000 for the guaranteed sum assured and $100,000 for the guaranteed surrender value per life assured per insurer.
The PPF Scheme also provides 100% coverage for the types of general insurance policies covered under the Scheme. No caps are applicable for protection of your general insurance policies.
SDIC will be making a major announcement of their new Corporate Identity, to take into account their enlarged role of managing both the Deposit Insurance Scheme (for banks) as well as the PPF (for life and general insurers).