HONG KONG LEGISLATIVE COUNCIL -15 March 1989 香港立法局————————一九八九年三月十五日
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This Bill seeks to improve further a situation that has already been to a large degree resolved, and will therefore be most welcome. The Government is to be congratulated on this timely and useful initiative.
Sir, with these remarks, I support the motion.
FINANCIAL SECRETARY: Sir, I would like to thank Mr. CHUNG Pui-lam, members of the ad hoc group and Mr. David LI for their careful consideration of and support for the Bill.
When the Second Reading debate was moved on 25 January 1989, Members were advised that at least three months would be allowed following enactment of the Bill before it was brought into effect. I can now confirm that if the Bill is enacted today, we will bring the Ordinance into operation on 1 July 1989. This should allow adequate time for the trade to make the necessary adjustments.
Question put and agreed to.
Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
Committee stage of Bills
Council went into Committee.
INSURANCE COMPANIES (AMENDMENT) BILL 1989
Clauses 1 to 5 were agreed to.
Clause 6
FINANCIAL SECRETARY: I move that clause 6(b) of the Bill be amended as set out in the paper circulated to Members.
We recognize that certain insurers may at present fall short of the proposed new solvency margin requirements specified in clause 3 of the Bill. It is for this reason that we have proposed a grace period of up to 1 January 1991 for existing authorized insurers to comply. We firmly believe that the new solvency requirements are the minimum necessary for the adequate protection of policy