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Clause 12 of the Bill proposes to amend Section 40

of the Ordinance SO that employers' insurance liability in

limited to respect of work injuries outside Hong Kong is

statutory liability under the Ordinance and damages under

common law awarded by a Hong Kong court. This is necessary

because it would not be appropriate to

to require insurance

outside Hong Kong.

cover for damages awarded by, a court

This amendment has the support of the insurance industry.

It is proposed to have a three-month notice period

from the date of enactment before these provisions take

effect, So

to allow employers time to obtain the

necessary insurance cover.

as

The Bill also provides for a second major

our Employee Compensation System.

Clause

improvement to

4(a) extends the scope of the Certificate of Compensation

Assessment system to cover cases involving injuries

5 resulting in not more than five per cent permanent

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incapacity. This quick and effective system has already had

a dramatic effect in shortening the time needed to settle

percent 838 of

will

employee compensation cases. This amendment

per cent

increase to 98 the proportion of

of cases dealt with by this

very successful method.

Other clauses of the Bill introduce minor

amendments to the existing Ordinance.

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