Policy Owners’ Protection Scheme (PPF) | General Insurance Policy Guide
Get Double the Peace of Mind with DirectAsia - Policy Owners’ Protection (PPF) Scheme
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Getting your vehicle insured is certainly a must, especially if you own one in Singapore. The right car or motorcycle insurance can help protect you, your family members, your passengers and other drivers. If an accident happens, you want to know you have the right coverage to take care of any property or bodily injury costs that may arise. On top of that, car and motorcycle insurance is an important protection not just for your vehicle, but for your financial liability as well. If you get into an accident without insurance, you could potentially be stuck paying for thousands of dollars in damages and injuries.
However, you may be thinking of the worst that could happen – what if my insurance company shuts its doors for good? What happens to all the money I invested towards my car or motorcycle insurance coverage? This is a legitimate concern, especially in light of Covid-19 and the economy being so volatile, but don’t worry! We’re glad to inform you that you get double the protection with your insurance coverage under the Policy Owners’ Protection (PPF) Scheme.
What is the Policy Owners’ Protection Scheme (PPF)?
The Policy Owners' Protection (PPF) Scheme was set up by an act of parliament to protect insurance policyholders – such as car or motorcycle insurance – in the event the insurance company fails, as in the case of bankruptcy.
The PPF Scheme in Singapore is administered by the Singapore Deposit Insurance Corporation (SDIC). In turn, The SDIC board is accountable to the Monetary Authority of Singapore (MAS).
Do all insurers automatically fall under the PPF Scheme?
Only insurers registered by MAS are members of the Policy Owners' Protection (PPF) Scheme. You should note that DirectAsia is a member of the scheme and comes under the list of Direct General Business within SDIC’s official website.
Is my DirectAsia insurance policy protected under the scheme?
Yes, your car and motorcycle insurance policies, as well as travel insurance policies with DirectAsia are all protected under the PPF scheme.
What do I need to do to be covered under the PPF Scheme? Do I need to pay more?
Coverage under the PPF scheme is automatic when you hold a car, motorcycle or even travel insurance with DirectAsia. There is no need to fill out any application form or pay an added premium. Levies are paid by the insurer. Just remember to keep your insurance policy and personal details such as name, ID number, mobile number and address updated at all times.
How will I be compensated by the Policy Owners’ Protection Scheme?
If your insurance company collapses and the Monetary Authority of Singapore (MAS) decides to activate the scheme’s funds, compensation will be made to the main policy owner, of the unutilized amount covered by the policy, up to 30 days after the company officially folds.
Your insurance policy contract should clearly state your entitlement for a refund of the premium. In this case, the SDIC would refund policy owners the prorated premiums paid for the unutilized period of the insurance coverage.
What is my entitlement under this scheme if my insurance company fails?
In the event your car or motorcycle insurer fails, your entitlement to compensation under this scheme is as follows:
- Under the Motor Vehicles (Third Party Risks and Compensation) Act, the full amount of any liability of the failed insurer, under the relevant legislation of the policy, is payable.
- For travel insurance, the full amount of liability of the failed insurer, under the terms of the general insured policy, is payable.
Caps or limits are applicable to compensation paid out for general insured policies – such as car and motorcycle insurance – in the following instances:
- $50,000 for own property damage of motor claims, under personal motor insurance policies. But rest assured, the limits are expected to fully cover more than 99 percent of claims, based on past years performance.
How can I be sure that the compensation is activated under the scheme?
You could ask your insurer directly or check your insurance policy contract. It is clearly stated within your DirectAsia car, motorcycle or travel insurance contract.
How am I paid compensation?
Arrangements will be made by the SDIC to pay out any compensation owing to policy owners by way of cheque, cash orders or other electronic payment methods.
So, if your main worry is what will happen if your insurance company fails, now you can be assured that you not only have coverage for your car, motorcycle and when you travel, but also protection for all your insurance policies itself.
We also assure you that DirectAsia has been going strong since 2014 with over 100 years of experience in the industry. Wholly owned by global insurer Hiscox – world’s leading international specialist insurance groups listed on the London Stock Exchange – we aim to provide you with the best options and total peace of mind.
So don’t worry about this happening to us, as we intend to forge ahead despite the Covid-19 pandemic, to keep you and your family safe and secure. As a member of the PPF scheme, DirectAsia provides you all the protection you need with absolute security. If you have other questions regarding the Policy Owners’ Protection (PPF) Scheme or would like to switch your insurance to DirectAsia, you can drop us a message or call us at 6665 5555.