MAS Directs DC William Insurance Brokers Pte Ltd to Cease Arranging New and Renewal Business

Singapore, 23 August 2005...The Monetary Authority of Singapore (MAS) has directed DC William Insurance Brokers Pte Ltd (DCW) to cease arranging new insurance contracts and renewals of insurance contracts with effect from 22 August 2005. This is a move to protect the interest of DCW's clients and the public.

2   In written directions issued on 22 August 2005, MAS also directed DCW to:

a.  cease collecting, receiving or accepting insurance premiums from its clients with immediate effect and to forward all premiums already collected from clients to the relevant insurance companies;

b.  write to all clients and insurance companies to inform them of MAS' directions to DCW to cease handling new and renewal business;

c.  write to all clients to advise them to remit directly to the respective insurance companies any insurance premiums not yet paid to DCW; and

d.  appoint an independent person to oversee the company's implementation of the directions.

DCW has confirmed to MAS that it will cooperate fully in complying with the written directions.

3   The MAS issued the written directions as DCW has contravened the Insurance Act (IA) by its failure to:

a.  maintain its net asset value at the statutory minimum of $150,000;

b.  ensure that insurance premiums collected from clients were deposited into its insurance broking premium account (IBPA);

c.  maintain a separate IBPA for its direct  insurance broking business; and

d.  keep books and records necessary to sufficiently account for all insurance broking transactions handled and accurately reflect its financial position, and maintain such books and records in a manner that would enable them to be conveniently and properly audited.

4   Under the IA, payment of insurance premiums by policyholders to an insurance intermediary such as DCW is deemed payment to the relevant insurance companies. Hence, the status of the insurance policies of those policyholders who have made such payment to DCW will not be affected. 

5   DCW is registered as an insurance broker under the IA and conducts direct insurance broking business relating mainly to motor, fire, employee benefits and personal accident insurance. In 2004, the company accounted for less than 0.5% of total premiums handled by all direct insurance brokers in Singapore.

6   If DCW's clients have any enquiries on their insurance coverage, payment of insurance premiums or any other matters, they should check with their respective insurance companies.

7   For general enquiries, they may contact the Singapore Insurance Brokers' Association (SIBA) or the MAS.

Singapore Insurance Brokers' Association
Tel No: 62227777
Fax : 62220022
E-mail: siba@stcsamasmgt.com.sg

Monetary Authority of Singapore
Tel No : 62299081
E-mail : consumers@mas.gov.sg

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