WEDNESDAY, JUNE 11, 1980
3
INSURANCE COMPANY TOLD TO CEASE BUSINESS
*****
THE REGISTRAR GENERAL HAS INFORMED KYOTO INSURANCE LIMITED THAT ITS AUTHORISATION FOR CARRYING ON MOTOR VEHICLE INSURANCE BUSINESS IN HONG KONG IS TO BE WITHDRAWN FROM JUNE 21.
A NOTICE TO THIS EFFECT WILL BE PUBLISHED IN THE GOVERNMENT GAZETTE ON FRIDAY, JUNE 13.
THE ACTION IS TAKEN UNDER SECTION 3 OF THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) ORDINANCE, WHICH EMPOWERS THE REGISTRAR GENERAL TO REVOKE SUCH AUTHORISATION WHERE HE CEASES TO BE SATISFIED AS TO THE FINANCIAL STABILITY OF A COMPANY CARRYING ON MOTOR VEHICLE INSURANCE BUSINESS IN HONG KONG.
THE IMMEDIATE EFFECT OF THE REVOCATION WILL BE THAT ALL MOTOR VEHICLE INSURANCE POLICIES ISSUED BY KYOTO INSURANCE LIMITED WILL CEASE TO BE VALID AS AT MIDNIGHT ON JUNE 20.
+ALL MOTORISTS ARE REQUIRED BY LAW TO BE COVERED AGAINST THIRD PARTY BODILY RISK AND PASSENGER LIABILITY. IT WILL THEREFORE BE A MATTER OF THE GREATEST URGENCY FOR THOSE INSURED WITH THE COMPANY TO TAKE OUT NEW POLICIES WITH ANOTHER AUTHORISED COMPANY,+ A SPOKESMAN FOR THE REGISTRAR GENERAL'S DEPARTMENT SAID TODAY.
THE SPOKESMAN POINTED OUT THAT IF ANY MOTORIST, WHO IS AT PRESENT COVERED BY A KYOTO INSURANCE LIMITED POLICY, FAILS TO TAKE OUT A NEW POLICY BY MIDNIGHT ON JUNE 20 AND USES HIS VEHICLE ON A PUBLIC ROAD AFTER THAT, HE WILL BE COMMITTING A STATUTORY OFFENCE FOR WHICH HE COULD BE FINED $10 000, BE IMPRISONED FOR UP TO A YEAR AND LOSE HIS LICENCE FOR UP TO THREE YEARS.
+SECONDLY, AND POTENTIALLY EVEN MORE SERIOUS, IF A MOTORIST WITHOUT VALID INSURANCE COVER IS INVOLVED IN AN ACCIDENT, HE WILL BE PERSONALLY LIABLE FOR ANY DAMAGES AWARDED AGAINST HIM.
+SUCH DAMAGES NOWADAYS CAN BE VERY HEAVY INDEED AND IT COULD TAKE THE MOTORIST THE REST OF HIS LIFE TO DISCHARGE HIS LIABILITY, THE SPOKESMAN SAID.
14