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Friday, March 2, 1973

"The several ordinances seek in differing degrees to establish procedures

for the submission of financial statements whereby a check can be kept on the

financial viability of the companies. Provision is made in some cases for the

appointment if inspectors, and for the methods of applying for companies to

be wound up. The circumstances in which companies may be struck off the

register are also specified in some, while others allow authorisation to

transact insurance businesss to be withdrawn by notice in the Gazette.

Penalties

for contravening the provisions of the various ordinances are laid down in the

various ordinances, but these differ as between similar infringements. In short,

therefore, there is little uniformity of approach to the requirements that should

be met for insurance business to operate on a coherent and sound footing in

Hong Kong.

"In formulating comprehensive legislation covering the field of

insurance as a whole, other countries have often found it best to deal with

life business separately from general business because of the basic difference

between the two. However, Britain has been moving in the direction of a compact,

but all embracing measure to cover all insurance and a new bill has recently been

published which seeks to do just this. In Hong Kong 'there would appear to be a

general wish for the content of insurance legislation to accord with the principles

that have been adopted in British legislation, especially between the years 1958

and 1967.

"The proposed

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