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for antuitier upon human life, and the receipt, either directly or through an agent, of premiums or other payments for or in respect of such policies or anouities, whether such policies or annuitics are or are not issued or payable within Hong Kong and whether the insurer has or has not an office within Hong Kong:
"marine insurance business" means the issue of, or the undertaking of liability under, policies of insurance whereby the insurer undertakes to indemnify the insured, in manner and to the extent thereby agreed, against marine losses, that is to say, the losses incidental to marine adventures
"maritime perils" means the perils consequent on, or incidental to, the navigation of the sea, that is to say, perils of the seas, frc, war periis, pirates, rovers, thieves, captures, seizures, restraints, and detainment of princes and peoples, jettisons, barraury, and any other perils, either of the like kind of which may be designated by the policy: "motor velticle insurance business" means the business of effecting com
tracts of insurance against loss of. or damage to or arising out of or
in connexion with the use of motor vehicles, including third party
risks.
(2) For the purposes of this Ordinance-
(a) there is a maritime adventure where-
(0) any ship, goods or other movables are exposed to maritime peril. Such property is in this subsection referred to as insur- able property:
(i) the earning or acquisition of any freight, passage muncy, commission, profit, or other pecuniary benefit, or the security for any advances, loan or disbursements, is endangered by the exposure of insurable properly to maritime perils;
(i) any liability to a third party may be incurred by the owner of, or oiler person interested in or responsible for. insurable property, by reason of maritime perils;
(8) a person or body of persons shall be deemed to carry on fire Însurance business, life insurance business, marine insurance busi- neas or motor vehicle insurance business within Hong Kong in the following cases-
(D) if he or it opens or maintains an office or agency within Hong Kong for the purpose of any fire insurance Business, life insurance Business, marine insurance business or motor vehicle insurance business, or within Hong Kong holds out himself or itself as prepared to transact any of such businesses;
(D) if, either directly or through an agent, be or it receives within Hong Kong any application for a fire, life, marine or motor vetricle insurance policy, or receives within Hong Kong any premium or other payment in respect of any fire. life, marine or motor vehicle insurance policy, whether such policy is or is not issued or payable within Hong Kong, and whether he or it has or has not an office within Hong Kong; or
fill if he of it undertakes or offers to undertake any fire, life. marine or motor vehicle risk within Hong Kong:
Provided that no person or body of persone shall be deemed to carry on marine insurance business within Hong Kong by reason only of the fact that such person or body of perso119 acts as an agent for the purpose of settling claims under contracts of marine insurance entered into wholly outside Hong Kong in respect of goods consigned to Hong Kong,
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3 (1) Notwithstanding any other enactment and subject to section 5 no person other than a company shall commence to carry on fire, le marine or motor vehicle insurance business,
Only companies commence Bre. Ne. marine or EMOSAT Wehicle
(2) Any person who contrayears subsection (1) commits an offence maurice and is liable on conviction on indictment to a fine of $500,000 and to business, imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $50,000 for each day during which the offence continues,
4. (1) Notwithstanding any other enactment and subject to section 5 Regolemzot no company shall commence to carry on fire, life, marine or motor vehicle to ad insurance business unless the Registrar of Companies has declared in paid up in
capliat tully writing that he is satisfied that the company has an issued share capital cool. equivalent to not less than $5,000,000 which share capital has been issued for cash only and is fully paid up.
(2) Any company which contravenes subsection (1) commits an offence and is liable to a fine of $500,000 and, in the case of a continuing offence, to a further fine of $50,000 for each day during which the offence con. tinues and every director, manager, secretary or other officer or agent of the company who is knowingly a party to the contravention of subsection (1) commits an offence and is liable-
(a) on conviction on indictment, to a fine of $50,000 and to imprison.
ment for 2 years; or
(8) on summary conviction, to a fine of $10,000 and to imprisonment
for 6 months.
5. (1) Any company which, prior to the commencement of this Exemption, Ordinance, had complied with all the requirements of-
(a) the Companies Ordinance; and
(6) the Fire and Marine Insurance Companies Deposit Ordinance or the Life Insurance Companies Ordinance or the Motor Vehicles Insurance (Third Party Risks) Ordinance,
to enable it to carry on fire, life, marine or motor vehicle insurance busi- ness as the case may be, shall be exempt from section 4 notwithstanding that such company had not at the commencement of this Ordinance com- menced to carry on Gre, life, marine or mootor vehicle insurance business.
(2) Subject to subsection (4), a company or a member of Lloyds which after production to the Registrar of Companies of such evidence ay be may require, obtains from him a declaration that he is satisfied that the company or member of Lloyds is authorized to carry on in Great Britain fire, life, marine or motor vehicle insurance business under the Insurance Companies Act 1974 shall be exempt from sections 3 and 4,
(3) A company or a member of Lloyds shall cease to be exempt under subsection (2) if it ceases to be authorized to carry on in Great Britain fire, life, marine or motor vehicle insurance business under the Insurance Companies Act 1974,
(4) Subsection (2) shall not apply to a company or a member of Lloyds that has been required by the Secretary of State to restrict its business or to limit its premium income pursuant to the Insurance Com- panies Act 1974.
Passed by the Hong Kong Legislative Council this 15th day of March, 1978.
Plan
Clerk to the Legislative Council,
(Cap. 32)
(CIA 34) (Cap. 36)
(CLR 212)