7
WEDNESDAY, JANUARY 19, 1983
INSURANCE BILL DESCRIBED AS A SOUND FRAMEWORK' ******
SUBJECT TO THE AMENDMENTS WHICH WILL BE MADE TO THE INSURANCE COMPANIES BILL 1982, IT DOES PROVIDE A SOUND FRAMEWORK FOR THE PRUDENT SUPERVISION OF THE INSURANCE INDUSTRY, THE HON T.S. LO SAID IN THE LEGISLATIVE COUNCIL TODAY.
SPEAKING AT THE RESUMED DEBATE ON THE SECOND READING OF THE BILL, MR LO, CONVENOR OF THE GROUP OF UNOFFICIAL MEMBERS WHO RECOMMENDED THE CHANGES, SAID THE UNOFFICIALS WERE ENCOURAGED FROM THE OUTSET BY THE FACT THAT SO FAR AS THE PRIME OBJECT OF THE BILL WAS CONCERNED, THERE WAS NO DIVERGENCE OF OPINION.
+ IT WAS THE AIM OF EVERYONE THAT THE LEGISLATION SHOULD PROVIDE A SUFFICIENT SAFEGUARD TO MEMBERS OF THE PUBLIC BUYING INSURANCE. AND ESTABLISH A COMPREHENSIVE STATUTORY FRAMEWORK TO ENHANCE THE REPUTATION OF HONG KONG AS AN INTERNATIONAL
INSURANCE CENTRE.
*THE NEED TO PROTECT THE PUBLIC BY REGULATING THE INDUSTRY MUST BE BALANCED BY THE NEED TO AVOID AN OVER-KILL BY EXCESSIVE AND BURDENSOME REGULATIONS.
+ I THINK THE AMENDED BILL PROVIDES SUCH A BALANCE AND THE TIME SPENT IN GETTING THERE WAS WELL SPENT, HE SAID.
THE BILL WAS FIRST INTRODUCED INTO THE LEGISLATIVE COUNCIL IN MAY LAST YEAR BUT WAS DEFERRED, AT UMELCO'S REQUEST, TO ENABLE THE UNOFFICIALS TO STUDY THE PROVISIONS OF THE LEGISLATION IN DETAIL.
A MAJOR CRITICISM LEVELLED AT THE BILL WAS THAT THE DETAILED INFORMATION REQUIRED TO BE SUBMITTED TO THE SUPERVISORY BODY, THE INSURANCE AUTHORITY, MIGHT CREATE AN EXCESSIVE BURDEN TO INSURANCE FIRMS, ESPECIALLY THOSE FOREIGN INSURERS WHO ARE ALREADY SUBJECT TO THE SUPERVISION OF THE JURISDICTIONS OF THEIR COUNTRIES OF DOMICILE.
HOWEVER, MR LO POINTED OUT, IF ANY REPORTING REQUIREMENT PRESENTS GENUINE DIFFICULTIES TO A PARTICULAR INSURER, HE CAN REQUEST THE INSURANCE AUTHORITY TO MAKE MODIFICATIONS TO THE THIRD SCHEDULE, WHICH CONTAINS THE DETAILS OF ACCOUNTING AND OTHER INFORMATION REQUIRED BY THE AUTHORITY.
BUT THE GROUP FELT THAT ANY SUCH MODIFICATIONS SHOULD NOT BE KEPT SECRET AND AN AMENDMENT WAS THEREFORE MADE TO THE BILL TO REQUIRE THE INSURANCE AUTHORITY TO PUBLISH IN THE GAZETTE THE NAMES OF THE INSURERS TO WHOM MODIFICATIONS OF THIRD SCHEDULE REQUIREMENTS HAVE BEEN GRANTED.
ON THE DISCLOSURE OF THE EMOLUMENTS OF THE HIGHEST PAID DIRECTOR, MR LO SAID ALTHOUGH THE UNOFFICIALS ACCEPT THAT THIS
INFORMATION IS RELEVANT TO AN ASSESSMENT OF THE MANAGEMENT OF THE COMPANY, THEY SAW THIS PROVISION AS UNNECESSARILY PERSONAL.
/IT WAS