1897/E/86
Summary Translation
(Cutting from HK Economic Journal dated 13.11.86)
Third party liability insurance for Daya
Bay plant involves complex legal issues
The question of third party liability insurance for the Daya Bay Nuclear Plant to cover Hong Kong, which is 50 km from Daya Bay and one of the most densely populated cities in the world, will involve
many complex legal issues. Should an accident occur before 1997 and
Hong Kong is affected, would Hong Kong be able to demand compensation
from China? And if the accident took place after 1997, on what standard
would China base its compensation?
According to the executive vice-president of the U.S. Continental
Insurance Corp. which is involved in the cede insurance for Daya Bay,
the People's Insurance Co. of China will draw up a comprehensive third
party liability insurance scheme details of which have yet to be
disclosed.
Insurance for the Daya Bay Nuclear Plant is wholly underwritten
by the People's Insurance Co. of China which is under contract to
provide insurance for the plant's property, generating equipment and machinery as well as third party liability during the plant's construction
and after it comes into operation.
A member of the insurance profession pointed out that there
are three kinds of third party liability insurance. For the first kind, the liability and area of protection is clearly defined in the contract. The second kind is direct public liability insurance and anyone affected
by the accident can claim damages according to the law of the country
or region concerned. The third kind is concerned with the accident itself
and anyone affected by the accident can claim damages.
/As people
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