INSURANCE COMPANIES (AMENDMENT) BILL 1988
Resumption of debate on Second Reading (27 April 1988)
Question proposed.
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Sir,
The remarks I have made on the Securities (Amendment)
Bill 1988 also apply to this Bill.
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In the course of the study of the Insurance Companies
(Amendment) Bill 1988, the éroup has also considered the question to whether there is a need to provide insurers with a chance to be heard before information affecting them is disclosed by the Insurance Authority. The Administration's view
view is that if a hearing is provided this would likely cause delay in actions
which would require to be taken by supervisory authorities concerned. Moreover, there is also the possibility that insurers
under investigation may exploit such delay to the disadvantage of policy holders. It has also been pointed out that the Insurance Authority will exercise great care before disclosing any
in any event, the disclosure, if challenged,
could still be subject to judicial review. In
In this connection, has the Group also noted that abuses by overseas authorities of
人 information given to them could be prevented as the discretion to
disclose information still lies
lies with the local authority which, according to the present Bill, will have to be satisfied that
there are adequate secrecy provisions in the jurisdiction of these overseas authorities before releasing the information in
information and
question to them.
According to
the Administration, the disclosure
have been provisions as are now proposed are generally considered by the insurance industry as being reasonable and I have been given to
(I)