Private-hire car drivers and bank depositors will enjoy increased insurance coverage beginning April 2019, following wide support for the initiatives of the Monetary Authority of Singapore (MAS).
After receiving positive results from its public consultation, MAS said that it will increase the insurance coverage for Singapore-dollar deposits under the Deposit Insurance Scheme to SG$75,000 per depositor, up from SG$50,000, as reported by the Business Times.
The increased coverage will require the Singapore Deposit Insurance Corp (SDIC) to enlarge its fund reserves by increasing the premium it levies from banks. MAS will extend the fund build-up period to 2028. According to MAS, over 90% of depositors will be protected by the increased coverage.
“While there is no international standard on the level of coverage, our objective is to ensure that a vast majority of depositors should be fully covered,” said Education Minister and MAS board member Ong Ye Kung.
MAS will also expand the Policy Owners’ Protection Scheme, which covers insurance policies in case the insurer becomes insolvent. Beginning April 2019, private-hire drivers and people who work from home offices will also be included in the scheme.
In order to make sure that individuals using personal properties such as cars and homes for commercial purposes are covered, the MAS defined “personal” insurance policies as those that are owned by natural persons, therefore excluding sole proprietorships and partnerships.
“This change addresses a potential protection gap today, given that more individuals are using their personal properties for commercial purposes, such as using their cars to provide private-hire transport services,” Ong said.