HWZ Forums

Login Register FAQ Mark Forums Read

Insurance coverage on bank deposits to be raised to $75,000 from April 1, 2019

Like Tree1Likes
  • 1 Post By mrclubbie
Reply
 
LinkBack Thread Tools
Old 17-05-2018, 09:19 PM   #1
Honorary Member
 
mrclubbie's Avatar
 
Join Date: Oct 2008
Posts: 121,462
Insurance coverage on bank deposits to be raised to $75,000 from April 1, 2019

Insurance coverage on bank deposits to be raised to $75,000 from April 1, 2019

https://www.straitstimes.com/busines...e-drivers-kick



SINGAPORE - Depositors will enjoy greater insurance coverage for their savings, while private-hire car owners will be protected against a collapse of their insurers from April 1, 2019, after the Monetary Authority of Singapore (MAS) received broad support for those changes.

Following a public consultation process, MAS said that it will go ahead with a proposal to increase the insurance coverage for Singapore-dollar deposits under the Deposit Insurance Scheme to $75,000 per depositor from the current $50,000. The Deposit Insurance Scheme is administered by the Singapore Deposit Insurance Corp (SDIC).

The greater coverage limit will require the SDIC to increase the size of the fund backing the deposit insurance from the year 2020 to 2028; the MAS said that this will be done by increasing the premium rates, which are charged to banks, by between 0.5 and one basis point.

The increased coverage amount will fully insure more than 90 per cent of depositors, the MAS said.

The MAS will also extend the coverage of the Policy Owners' Protection Scheme, which covers insurance policies in the event of the insurer's failure, to private-hire drivers and people who work from home offices. To ensure that individuals using personal properties such as cars and homes for commercial purposes are covered, the MAS will define a "personal" insurance policy as one that is owned by a natural person.

The regulator clarified that a natural person will, however, not include sole proprietorships and partnerships. Motor insurance policies that cover vehicles hired from a car rental company for personal use or for hire-and-reward will also not be included as long as the motor insurance policy is purchased and owned by the car rental company.

The MAS will also proceed with its proposal to cap certain property damage claims to keep premiums under the Policy Owners' Protection Scheme affordable. For own-property damage claims under personal motor insurance policies, the cap will be set at $50,000; for property damage claims under structure and contents types of personal property insurance policies, the cap will be set at $300,000.

The MAS acknowledged that it is probable that less than 1 per cent of property damage claims will exceed the cap levels, but said that it is nevertheless prudent to limit the protection fund's exposure to high-value claims.

The changes will require parliamentary approval for relevant legislative amendments. The MAS plans to effect the changes on April 1 next year, which the regulator said will provide members under the schemes "sufficient lead time to put in place procedures" to cater to the revisions.
Maeda_Toshiie likes this.
__________________
huat huat huat huat huat huat huat huat
huat huat huat huat huat huat huat huat
mrclubbie is offline   Reply With Quote
Old 18-05-2018, 10:35 AM   #2
Supremacy Member
 
Join Date: Jun 2010
Posts: 6,255
It's nice that the deposit insurance limit is being raised.

OK, now a dose of reality: it's not nice that Singapore's deposit insurance limit is still much lower than developed country norms. Singapore ought not aspire to be mediocre or worse, yet that keeps happening time and time again. It's really disappointing.

I'm not exactly sure what "lead time" MAS thinks is necessary, or why the entire remainder of 2018 (i.e. introducing the new limit from January 1, 2019) wasn't considered enough lead time. Are they talking about merely changing marketing brochures, forms, and Web sites? If they are (or even if they aren't), then there's a permanent solution: tell the banks and consumers that the deposit insurance limit will be raised every 3 years, like clockwork, on January 1, rounded to the nearest $1,000 increment equal to $200,000 in 2019 Singapore dollars.

Come on, MAS! This ain't rocket science.
BBCWatcher is offline   Reply With Quote
Old 19-05-2018, 09:03 AM   #3
Senior Member
 
Join Date: Mar 2001
Posts: 2,068
I think there's regulation to print this on each month bank statement. Once BOC resend me thick envelope reprint few months of statement because they didn't print the 50,000 coverage
Soul77 is offline   Reply With Quote
Old 19-05-2018, 11:37 AM   #4
Arch-Supremacy Member
 
havetheveryfun's Avatar
 
Join Date: Jul 2010
Posts: 13,755
It's nice that the deposit insurance limit is being raised.

OK, now a dose of reality: it's not nice that Singapore's deposit insurance limit is still much lower than developed country norms. Singapore ought not aspire to be mediocre or worse, yet that keeps happening time and time again. It's really disappointing.

I'm not exactly sure what "lead time" MAS thinks is necessary, or why the entire remainder of 2018 (i.e. introducing the new limit from January 1, 2019) wasn't considered enough lead time. Are they talking about merely changing marketing brochures, forms, and Web sites? If they are (or even if they aren't), then there's a permanent solution: tell the banks and consumers that the deposit insurance limit will be raised every 3 years, like clockwork, on January 1, rounded to the nearest $1,000 increment equal to $200,000 in 2019 Singapore dollars.

Come on, MAS! This ain't rocket science.
its 75k per bank. considering that there are close to 10 banks in Singapore, you can get insured up to around 750k, is that not enough ?
havetheveryfun is online now   Reply With Quote
Reply
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Terms of Service for more information.


Thread Tools

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On