Insurance Law in Singapore
Insurance Law in SingaporeUpdated on Monday 18th January 2016
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All types of insurance policies available in Singapore are issued under the provisions of Insurance Act. Insurance law in Singapore offers the right to life and non-life insurance, covering a wide range of risks that may occur during a persons’ lifetime. If you are interested to know what types of insurances can be accessed in Singapore or if you are interested to open an insurance company here, our law firm can provide you with the information you need.
Types of policies in Singapore
If you want to sign an insurance policy in Singapore, you should know that you can choose from several options, such as life and non-life insurance policies, marine policies or vehicle policies; the main legal basis under which these are issued is the Insurance Act. Other insurance stipulations are found in the Policies of Assurance Act, the Marine Insurance Act or the Motor Vehicles Act.
A policy represents a contract between two parties, one providing life or non-life services, stipulated in the agreement, and the other one paying for the insurance. The policy is signed for the probability that a certain event may arise during the period for which the contract is signed. Our law firm in Singapore can offer you more details about the stipulation of a policy contract.
According to the insurance legislation in Singapore, there are three types of insurance policies:
• life insurance, in which a person can sign a contract for a certain sum of money in exchange of several financial benefits due at the end of the contract;
• non-life insurance;
• third party interest, protecting the rights of sub-contractors.
Legal entities for an insurance company in Singapore
If you are interested in opening an insurance company in Singapore, there are two legal entities available for such companies:
• company limited by shares – the liability of the shareholders is limited to the shares belonging to them. This type of business incorporation is the most popular amongst the insurance companies;
• mutual company – this type of company functions under the provisions of the Insurance Act, being owned by the policy holders.
There are three classes of insurance companies on the Singaporean market:
• licensed insurers – which are allowed to issue general insurance policies;
• foreign insurers – their activities are limited to a set of rules imposed by the Monetary Authority of Singapore;
• approved marine, aviation and transit insurers.
If you need further information on the Insurance Law and insurance policies available in Singapore, please contact our law firm for a more detailed presentation.