Legislation

Insurance (Amendment) Bill 2003 (B20/2003)

The Insurance (Amendment) Bill 2003 seeks to amend the Insurance Act (Cap 142) to facilitate the establishment of three new regulatory frameworks, namely:

(a) a health insurance framework;
(b) a risk-based capital framework; and
(c) a framework for the authorisation of reinsurers.

The proposed changes to the Act are expected to take effect on 1 January 2004.

Computer Misuse (Amendment) Bill 2003 (B22/2003)

The Computer Misuse Act (Cap 50A) will be amended for various purposes including:

• to insert a new s 12A empowering the Commissioner of Police or any person authorised by him to compound offences under the Act that are prescribed as compoundable offences; and
• to insert a new s 15A to allow necessary measures to be taken to prevent or counter any threat to a computer or computer service. Such measures may be taken by an authorised person or organisation if the Minister of Law certifies that he is satisfied that such measures are necessary for the purposes of preventing or countering any threat to the national security, essential services, defence or foreign relations of Singapore. If an offence is disclosed in the course of or pursuant to the exercise of the powers authorised by the Minister under the new s 15A, the first information report for that offence cannot be disclosed in court or to the defence counsel. The particulars of the informer of the offence are also protected from disclosure or discovery.

Maritime Offences Bill 2003 (B23/2003)

When passed as law, the Maritime Offence Bill 2003 will give effect to the Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation (‘Rome Convention’). Consequential amendments will be made to the Hijacking of Aircraft and Protection of Aircraft and International Airports Act (Cap 124) and the Supreme Court of Judicature Act (Cap 322).

The Maritime Offence Bill 2003 establishes the following offences:

1. hijacking a ship;
2. intentionally destroying or damaging a ship, or committing on board a ship an act of violence which is likely to endanger its safe navigation;
3. intentionally destroying or damaging, or seriously interfering with, the operation of any property used for providing maritime navigation facilities;
4. giving false information which endangers the safe navigation of a ship; and
5. issuing a threat to carry out an act referred to in cl 4(1) or 5(1), which might endanger the safe navigation of a ship.

The offences under (b) to (e) above may be established irrespective of the nationality of the offender, the state of registration of the ship and the place of commission of the offence.

Consumer Protection (Fair Trading) Bill 2003 (B24/2003)

The object of the Consumer Protection (Fair Trading) Bill 2003 is to protect consumers from unfair practices by giving to a consumer who has entered into a consumer transaction involving an unfair practice the right to bring an action in a court to obtain relief, and allowing a consumer to cancel certain contracts within a cancellation period.

Additionally, a specified body appointed under the Bill will have power to enter into a voluntary compliance agreement with suppliers and, with the endorsement of the Injunction Proposals Review Panel (to be established under the Act), to apply for a declaration or an injunction against suppliers.

This Bill also abolishes the parol evidence rule and reiterates the contra proferentum rule in relation to consumer transactions.

The following are highlights of some provisions of the Bill.

Definitions

‘Consumer’ means an individual who, otherwise than exclusively in the course of business:

1. receives or has the right to receive goods or services from a supplier; or
2. has a legal obligation to pay a supplier for goods or services that have been or are to be supplied to another individual.

‘Consumer transaction’ means:

1. the supply of goods or services by a supplier to a consumer as a result of a purchase, lease, gift, contest or other arrangement; or
2. an agreement between a supplier and a consumer, as a result of a purchase, lease, gift, contest or other arrangement, in which the supplier is to supply goods or services to the consumer or to another consumer specified in the agreement;

but does not include the following transactions;

1. acquisition of an estate or interest in any immovable property (but not including any lease of residential property granted in consideration of rent or any time share contract);
2. services provided under a contract of employment; or
3. any transaction or activity that is regulated under the following Acts:

• Banking Act (Cap 19);
• Commodity Trading Act (Cap 48A);
• Finance Companies Act (Cap 108);
• Financial Advisers Act (Cap 110);
• Insurance Act (Cap 142);
• s 28 of the Monetary Authority of Singapore Act (Cap 186);
• Money-changing and Remittance Businesses Act (Cap 187);
• Moneylenders Act (Cap 188);
• Pawnbrokers Act (Cap 222); and
• Securities and Futures Act (Cap 289).

Application (Section 3)

The Bill only applies if (a) the supplier or consumer is resident in Singapore, or (b) the offer or acceptance relating to the consumer transaction is made in or is sent from Singapore.

Meaning of unfair practice (Section 4)

It is an unfair practice for a supplier, in relation to a consumer transaction:

1. to do or say anything, or omit to do or say anything, if as a result a consumer might reasonably be deceived or misled;
2. to make a false claim;
3. to take advantage of a consumer if the supplier knows or ought reasonably to know that the consumer (i) is not in a position to protect his own interests, or (ii) is not reasonably able to understand the character, nature, language or effect of the transaction or any matter related to the transaction; or
4. to do anything specified in the Second Schedule, eg representing that goods or services have sponsorship, approval, performance characteristics, qualities, uses or benefits that they do not have.

Consumer’s right to sue for unfair practice (Section 6)

A consumer who has entered a consumer transaction involving an unfair practice may commence an action in a court of competent jurisdiction against the supplier provided the amount of the claim does not exceed $20,000. There will be no right to commence an action if there is no claim for money, and the remedy or relief sought in the action is in respect of a subject matter the value of which exceeds $20,000.

Limitation period (Section 12)

There is a limitation period of one year for actions under the Consumer Protection (Fair Trading) Bill 2003.

No contracting out (Section 13)

The provisions of the Consumer Protection (Fair Trading) Bill 2003 will prevail notwithstanding any agreement to the contrary. A term contained in a contract is void, if and to the extent that it is inconsistent with the provisions of the Bill.

Parol evidence rule abolished (Section 17)

Notwithstanding ss 93 and 94 of the Evidence Act (Cap 97), parol or extrinsic evidence establishing the existence of an express warranty is admissible in any action relating to a consumer transaction between a consumer and a supplier even though it adds to, varies or contradicts a written contract.

Interpretation of documents (Section 18)

If a consumer and a supplier enter into a consumer transaction and (a) all or any part of the transaction or contract is evidenced by a document provided by the supplier, and (b) a provision of the document is ambiguous, the provision must be interpreted against the supplier.

Regulation of Imports and Exports (Amendment) Bill 2003 (B25/2003)

Proposed amendments to the Regulation of Imports and Exports Act (Cap 272A) include the following:

• section 3(2) will be amended to enable the making of regulations to prohibit the exportation of certain goods except in compliance with conditions imposed in regulations made under the Regulation of Imports and Exports Act for the purpose of complying with any preferential tariff arrangement or agreement between Singapore and a country or territory outside Singapore;
• a new s 28A will be inserted to make it an offence for any person who imports, exports or tranships goods to apply an incorrect trade description to those goods, or to have in his possession any goods to which an incorrect trade description has been applied; and
• section 31 will be amended to provide for the disclosure of information received under the Act for the purpose of complying with any provision requiring such disclosure in a prescribed agreement between Singapore and a foreign country, subject to certain conditions.

Urban Redevelopment Authority (Amendment) Bill 2003 (B26/ 2003)

The Urban Redevelopment Authority Act (Cap 340) will be amended mainly to expand the functions and duties of the Urban Redevelopment Authority (‘URA’) to reflect its roles in respect of land planning and the development of land in Singapore and as the agent of the Government and other statutory authorities in the disposal of land and other property.

Elizabeth Wong
Allen and Gledhill