INSURANCE (AMENDMENT) BILL

Order for Second Reading read.

7.15 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Honourable Members will be aware that for some time now the Government has been considering the question of introducing an export credit insurance scheme to help our exporters compete in foreign markets. I am glad to inform the House that arrangements have been finalised for an export credit insurance scheme in Singapore to be operated by a corporation owned jointly by the Government, banks and insurance companies.

There is some doubt as to whether such a corporation is required to register as an insurer under the Insurance Act (Chapter 193). The Insurance Act does not explicitly define "insurance business", nor does it allow the Insurance Commissioner to exempt any particular type of insurance business from the provisions of the Act. The Act merely divides insurance business into life business and general business and treats as general business all insurance business which is not life business. This would imply, therefore, that export credit insurance is deemed to be general insurance for the purposes of the Insurance Act.

However, export credit insurance is strictly not insurance business as it is generally understood. The Bill therefore seeks to amend the Insurance Act to make it clear that the corporation will not be required to be registered as an insurer under the Insurance Act.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill.-[Mr Hon Sui Sen].

Bill considered in Committee; reported without amendment; read a Third time and passed.