I received a few letters from my insurers to inform me that they have been included under the Policy Owners’ Protection Scheme (PPF Scheme). This scheme is administered by Singapore Deposit Insurance Corporation (SDIC), a company that is created by the Government of Singapore to look after small depositors and policy owners’ interests. The other scheme, Deposit Insurance Scheme, protects your bank deposits.
DEPOSIT INSURANCE SCHEME
This scheme started in 2006 and several amendments were made since 2008. It was apt to have this policy in place during the Global Financial Crisis where confidence was obviously shaken with financial institutions collapses (Lehman and Bear Sterns) or on the verge of collapse (AIG and other mortgage companies).
Not all banks are covered. Does the bank that holds your deposit covered?
- AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
- BANGKOK BANK PUBLIC COMPANY LIMITED
- BANK OF AMERICA, NATIONAL ASSOCIATION
- BANK OF CHINA LIMITED
- BANK OF EAST ASIA LTD
- BANK OF INDIA
- BANK OF TOKYO-MITSUBISHI UFJ, LTD
- BNP PARIBAS
- CIMB BANK BERHAD
- CITIBANK NA
- CITIBANK SINGAPORE LIMITED
- CREDIT AGRICOLE CORPORATE & INVESTMENT BANK
- DBS BANK LTD
- FAR EASTERN BANK LTD
- HL BANK
- HONG LEONG FINANCE LIMITED
- HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
- ICICI BANK LIMITED
- INDIAN BANK
- INDIAN OVERSEAS BANK
- JPMORGAN CHASE BANK, NA
- MALAYAN BANKING BHD
- MIZUHO CORPORATE BANK LTD
- OVERSEA-CHINESE BANKING CORPN LTD
- PT BANK NEGARA INDONESIA (PERSERO) TBK
- RHB BANK BERHAD
- SING INVESTMENTS & FINANCE LIMITED
- SINGAPORE ISLAND BANK LIMITED
- SINGAPURA FINANCE LTD
- STANDARD CHARTERED BANK
- STATE BANK OF INDIA
- SUMITOMO MITSUI BANKING CORPORATION
- UCO BANK
- UNITED OVERSEAS BANK LTD
There may be changes to the list as time goes by. Do check the website for updates: www.sdic.org.sg
What deposits are covered and what are not?
The following Singapore dollar denominated deposits placed with a DI Scheme member are covered:
- Savings account
- Fixed deposit account
- Current account
- Money in CPF Investment Scheme
- Money in CPF Minimum Sum Scheme
- Money in Supplementary Retirement Scheme
- Murabaha, as prescribed by the Authority
The following deposits are NOT covered:
- Foreign currency deposits
- Structured deposits
- Investment products such as unit trusts, shares and other securities
How much are your deposits guaranteed?
Up to S$50,000. You can claim another S$50,000 for deposits under CPF Investment and Minimum Sum Scheme.
Where does SDIC get the money to pay you?
SDIC collects premium from the members and invest in liquid assets like Singapore Government Bonds.
POLICY OWNERS’ PROTECTION SCHEME
This scheme protects both life and general insurance.
Is your insurer in this scheme?
- ACE INSURANCE LTD
- AETNA INSURANCE (SINGAPORE) PTE LTD
- AIA SINGAPORE PRIVATE LIMITED
- ALLIANZ GLOBAL CORPORATE & SPECIALTY AG, SINGAPORE BRANCH
- ALLIANZ INSURANCE COMPANY OF SINGAPORE PTE LTD
- AMERICAN INTERNATIONAL ASSURANCE COMPANY, LIMITED
- AVIVA LTD
- AXA LIFE INSURANCE SINGAPORE PRIVATE LIMITED
- CHARTIS SINGAPORE INSURANCE PTE. LTD.
- CHINA TAIPING INSURANCE (SINGAPORE) PTE. LTD.
- CIGNA EUROPE INSURANCE CO S.A.‐N.V., SPORE BRANCH
- COSMIC INSURANCE CORPORATION LTD
- DIRECT ASIA INSURANCE (SINGAPORE) PTE LTD
- ECICS LIMITED
- EQ INSURANCE COMPANY LTD
- ETIQA INSURANCE BERHAD
- FEDERAL INSURANCE COMPANY
- FIRST CAPITAL INSURANCE LTD
- FRIENDS PROVIDENT INTERNATIONAL LTD (SPORE BRANCH)
- GENERALI INTERNATIONAL LIMITED, SINGAPORE BRANCH
- HDI-GERLING INDUSTRIE VERSICHERUNG AG, S’PORE BRANCH
- HSBC INSURANCE (SINGAPORE) PTE. LIMITED
- INDIA INTERNATIONAL INSURANCE PTE LTD
- INTERGLOBAL INSURANCE COMPANY LIMITED, SG BRANCH
- INTERNATIONAL MEDICAL INSURERS PTE LTD
- LIBERTY INSURANCE PTE LTD
- LIBERTY MUTUAL INSURANCE EUROPE LIMITED
- LONPAC INSURANCE BERHAD
- MANULIFE (SINGAPORE) PTE. LTD.
- MSIG INSURANCE (SINGAPORE) PTE LTD
- NIPPONKOA INSURANCE COMPANY LIMITED
- NTUC INCOME INSURANCE CO-OPERATIVE LIMITED
- PRUDENTIAL ASSURANCE CO. SINGAPORE (PTE) LTD
- QBE INSURANCE INTERNATIONAL LTD
- ROYAL & SUN ALLIANCE INSURANCE PLC, S’PORE BRANCH
- ROYAL SKANDIA LIFE ASSURANCE LTD, S’PORE BRANCH
- SHC CAPITAL LIMITED
- SHENTON INSURANCE PTE LTD
- SINGAPORE AVIATION & GENERAL INSURANCE CO PTE LTD
- SOMPO JAPAN INSURANCE (SINGAPORE) PTE. LTD.
- STARR INTERNATIONAL INSURANCE (S’PORE) PTE LTD
- SWISS LIFE (SINGAPORE) PTE. LTD.
- TENET INSURANCE COMPANY LIMITED
- THE GREAT EASTERN LIFE ASSURANCE COMPANY LIMITED
- THE OVERSEAS ASSURANCE CORPORATION LIMITED
- TOKIO MARINE INSURANCE SINGAPORE LTD
- TOKIO MARINE LIFE INSURANCE SINGAPORE LTD
- TRANSAMERICA LIFE (BERMUDA) LTD.
- UNITED OVERSEAS INSURANCE LTD
- XL INSURANCE COMPANY LIMITED SINGAPORE BRANCH
- ZURICH INSURANCE COMPANY LTD (SINGAPORE BRANCH)
- ZURICH INTERNATIONAL LIFE LIMITED (S’PORE BRANCH)
- ZURICH LIFE INSURANCE (SINGAPORE) PTE LTD
What policies are covered?
- Individual term policies
- Individual whole life policies
- Individual endowment policies
- Individual annuities
- Individual short-term or long-term accident & health (A&H) policies (e.g. Hospital cash, Medical Expense, Personal Accident, Disability Income, Long-term Care)
- Group term policies
- Group whole life policies
- Group endowment policies
- Group annuities
- Group short-term and long-term accident & health (A&H) policies
- Personal motor insurance policies
- Personal travel insurance policies
- Personal property (structure and contents) insurance policies
- Foreign domestic maid insurance policies
- Individual and group short- term A&H policies
How much are your policies guaranteed?
Depending on the type of your life insurance, the guarantee ranges from S$50,00 to S$500,000. There is no cap on the Accident and Health policies (less riders).
Where does SDIC get the money to pay you?
Likewise, SDIC collects levies members based on the size of their protected liabilities. SDIC invests in safe and liquid assets like Singapore Government Bonds.
I see this is a good approach to protect the minorities’ interests. This would also boost the confidence in our savings and insurance industry. To be sure, you should do a check on the proportion of your deposits and insurance policies that would qualify under these schemes.
Hi Alvin
Thank you very much for taking effort to share this with us!
I did receive similar letters for my insurers too. But I just couldn’t allocate time to figure them out, what are they actually all about.
With your brief explanation, it’s so much easier to understand the letters when I read them again.
Thanks again 🙂
hi alvin, thanks for your kind words.
i am fine. got a bit hitcup last year but that is understandable given we have a down market. i had started trading 2 months ago, this time going slower, can’t live without trading haha.
best to you too.
p.s. as i mentioned i really worry about current situation going forward, i suspect we going to have a long recession (depression) world wide. take good care of your investment and trading.
This deposit insurance is interesting. Do you know how the deposit insurance scheme works. Depending on how the scheme works, it may not always be a good thing. For instance, in the U.S. the FDIC guarantees deposits up to 200,000. Knowing that the government was behind them, several banks took outrageous and reckless risks. Several failed but were bailed out by the U.S. Govt. Now banks are taking even worse risks. Is there a possibility that Singapore banks could take such risks given that the Government is behind them?
Are endowment plans under prudential and great eastern covered by SDIC with no limits in coverage $ limit?
Endowments are covered between $50,000 to $500,000
Hi alvin
Does co-op deposits covered?
Tks.
I am not familiar to comment on this. Best is to ask the Co-op themselves.