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WEDNESDAY, APRIL 28, 1976
MOTOR VEHICLE INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1976 ******
THE COMPULSORY PASSENGER INSURANCE SCHEME PROPOSED UNDER THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1976 SHOULD NOT COME INTO OPERATION UNTIL JUNE 1, 1977, IF THE BILL IS PASSED INTO LAW, SAID THE SECRETARY FOR THE ENVIRONMENT, THE HON, JAMES ROBSON.
MOVING THE SECOND READING OF THE BILL IN THE LEGISLATIVE COUNCIL TODAY, MR. ROBSON SAID THE ACCIDENT INSURANCE ASSOCIATION OF HONG KONG AND THE HONG KONG AUTOMOBILE ASSOCIATION ARE AGREEABLE TO THIS PROPOSAL.
+HOWEVER, IN ORDER TO ALLOW TIME FOR THE ACCIDENT INSURANCE ASSOCIATION TO ADJUST ITS ADMINISTRATIVE MACHINERY FOR COMPULSORY PASSENGER INSURANCE, THE ASSOCIATION WILL NEED A MINIMUM OF 12 MONTHS' NOTICE FROM THE TIME THE LEGISLATION IS PASSED UNTIL THE OPERATIVE DATE,+ HE SAID.
MR. ROBSON SAID THE MAIN OBJECTIVE OF THE BILL, WITH PROVISIONS SIMILAR TO THOSE IN THE UNITED KINGDOM MOTOR VEHICLES (PASSENGERS INSURANCE) ACT, 1971, WAS TO REQUIRE THE USERS OF MOTOR VEHICLES TO BE INSURED IN RESPECT OF LIABILITY FOR DEATH OR BODILY INJURY OF PASSENGERS AND PROHIBITED ANY AGREEMENT BETWEEN THE USER OF A MOTOR VEHICLE AND A PASSENGER TO RESTRICT SUCH LIABILITY.
UNDER EXISTING LEGISLATION IN HONG KONG, A MOTORIST IS REQUIRED TO TAKE OUT THIRD PARTY INSURANCE TO COVER LIABILITY FOR DEATH OR INJURY ARISING FROM THE USE OF A MOTOR VEHICLE TO ANY PERSON, OTHER THAN THOSE CARRIED INSIDE THE VEHICLE.
THE EXISTING PASSENGER INSURANCE IS ONLY REQUIRED TO COVER THE DEATH OR BODILY INJURY OF ONLY SUCH PASSENGERS AS ARE CARRIED FOR HIRE OR REWARD, OR BY REASON OF, OR IN PURSUANCE OF A CONTRACT OF EMPLOYMENT.
MR. ROBSON SAID THE BILL ALSO SOUGHT TO INCREASE THE MAXIMUM PENALTY FOR DRIVING A MOTOR VEHICLE WITHOUT EFFECTIVE THIRD PARTY INSURANCE FROM A FINE OF $1,000 AND IMPRISONMENT FOR THREE MONTHS TO A FINE OF $10,000 AND IMPRISONMENT FOR 12 MONTHS, COUPLED WITH LIABILITY FOR DISQUALIFYING THE DRIVING LICENCE FOR A PERIOD NOT LESS THAN 12 MONTHS BUT NOT MORE THAN THREE YEARS.
IN ADDITION, THE BILL SEEKS TO ENABLE REGULATIONS TO BE MADE REQUIRING THE PRODUCTION OF A THIRD PARTY INSURANCE CERTIFICATE ON GIVING NOTICE TO THE TRANSPORT DEPARTMENT OF A CHANGE OF VEHICLE OWNERSHIP.
AT PRESENT, THIS REQUIREMENT IS ONLY MET ON INITIAL LICENSING OF A VEHICLE OR RENEWAL OF A LICENCE AND NOT ON THE TRANSFER OF OWNERSHIP OF A VEHICLE.
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