FRIDAY, JULY 5, 1985
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BETTER COMPENSATION FOR BUS ACCIDENT VICTIMS SOUGHT
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A BILL WHICH SEEKS TO ENSURE THAT THE FRANCHISED BUS COMPANIES ALWAYS CARRY ADEQUATE INSURANCE COVER FOR THE COMPENSATION OF VICTIMS IN BUS ACCIDENTS IS PUBLISHED IN THE GAZETTE TODAY (FRIDAY).
UNDER THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) ORDINANCE, AN OWNER OF A MOTOR VEHICLE OR A FLEET OF VEHICLES CAN OPT TO MAKE A DEPOSIT WITH THE DIRECTOR OF ACCOUNTING SERVICES INSTEAD OF OBTAINING A MOTOR INSURANCE POLICY AGAINST THIRD PARTY RISKS.
AT PRESENT, ONLY THE CHINA MOTOR BUS COMPANY LIMITED AND THE KOWLOON MOTOR BÚS COMPANY LIMITED HAVE TAKEN UP THIS OPTION BY LODGING A DEPOSIT OF $400 000.
+THIS DEPOSIT LIMIT, SET IN 1968, WILL BE RAISED UNDER THE BILL TO $2 MILLION TO TAKE INTO ACCOUNT INFLATION OVER THE YEARS,+ A GOVERNMENT SPOKESMAN SAID.
HE POINTED OUT THAT THE TWO BUS COMPANIES HAVE OTHER FINANCIAL PROVISION TO MEET CLAIMS FOR COMPENSATION BY VICTIMS OF BUS ACCIDENTS, INCLUDING AN ACCIDENT RESERVE FUND AND AN EXCESS OF LOSS INSURANCE POLICY,
THE BILL ALSO SEEKS TO EMPOWER THE GOVERNOR IN COUNCIL TO DISALLOW SPECIFIED PERSONS TO MAKE A DEPOSIT INSTEAD OF OBTAINING A MOTOR INSURANCE POLICY. THIS PROVISION IS WRITTEN INTO THE BILL TO PROVIDE THE GOVERNMENT WITH AN EFFECTIVE MEANS TO MONITOR THE INSURANCE ARRANGEMENTS OF THE BUS COMPANIES.
THE SPOKESMAN STRESSED THAT THE BILL BORE NO REFLECTION ON THE SAFETY STANDARDS OF THE TWO COMPANIES, BUT WAS INTRODUCED TO ENSURE THAT IN ALL EVENTUALITY, THE INTERESTS OF THE PUBLIC WOULD BE SAFEGUARDED.
IF THE BILL IS ACCEPTED BY THE LEGISLATIVE COUNCIL, CONSEQUENTIAL AMENDMENTS WILL BE MADE TO THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) REGULATIONS. IT IS EXPECTED THAT THE NEW LEGISLATION WILL COME INTO OPERATION ON DECEMBER 1 THIS YEAR,
THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1985 WILL RECEIVE ITS FIRST READING ON JULY 10. PUBLIC COMMENTS MAY BE SENT TO UMELCO AT 12TH FLOOR, SWIRE HOUSE, CHATER ROAD, OR TO THE SECRETARY FOR TRANSPORT AT ST JOHN'S BUILDING, GARDEN ROAD, HONG KONG.
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