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WEDNESDAY, JULY 13, 1935
MORE POWER SOUGHT FOR BUS INSURANCE CHECKS
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THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1985 WOULD GIVE GOVERNMENT GREATER FLEXIBILITY IN MONITORING THE INSURANCE ARRANGEMENTS OF THE KOWLOON MOTOR BUS COMPANY (1933) LIMITED AND THE CHINA MOTOR BUS COMPANY LIMITED, THE SECRETARY FOR TRANSPORT, THE HON IAN MACPHERSON SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MOVING THE SECOND READING OF THE BILL, MR MACPHERSON SAID THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) ORDINANCE HAD BEEN ENACTED IN NOVEMBER 1951 TO PROVIDE FOR THE PROTECTION OF THIRD PARTIES AGAINST RISKS ARISING OUT OF THE USE OF MOTOR VEHICLES.
THE PRESENT BILL HAD TWO MAIN OBJECTIVES.
+FIRST, IT INCREASES THE AMOUNT OF DEPOSIT OR SECURITY THAT MUST BE LODGED WITH THE DIRECTOR OF ACCOUNTING SERVICES BY AN OWNER OF A MOTOR VEHICLE OR A FLEET OF VEHICLES AS AN ALTERNATIVE TO OBTAINING A POLICY OF MOTOR INSURANCE AGAINST THIRD PARTY RISKS.
+SECOND. IT EMPOWERS THE GOVERNOR IN COUNCIL TO PROVIDE BY ORDER THAT SPECIFIED PERSONS SHALL NOT BE PERMITTED TO MAKE A DEPOSIT INSTEAD OF OBTAINING A POLICY OF MOTOR INSURANCE,+ MR MACPHERSON SAID.
THE TWO COMPANIES WERE THE ONLY +PERSONS+ WHO HAD MADE SUCH A DEPOSIT WITH THE DIRECTOR OF ACCOUNTING SERVICES AS AN ALTERNATIVE TO OBTAINING A POLICY OF MOTOR INSURANCE AGAINST THIRD PARTY RISKS.
CLAUSE 2 OF THE BILL AMENDED SECTION 4 OF THE PRINCIPAL ORDINANCE TO INCREASE THE DEPOSIT LIMIT FROM $400 000 TO $2 MILLION.
THE $400 000 LIMIT HAD BEEN PRESCRIBED IN 1968 AND THE INCREASE WAS TO REFLECT INFLATION OVER THE YEARS,+ MR MACPHERSON SAID.
SIMILARLY, HE SAID, THE SECURITY LIMIT AND UNDERTAKING LIMITS AS PROVIDED UNDER SECTION 7 WERE ALSO INCREASED TO TAKE INTO ACCOUNT INFLATION.
AMENDMENTS WERE ALSO MADE TO PREVENT A SPECIFIED PERSON FROM OPTING FOR A DEPOSIT IN LIEU OF OBTAINING A POLICY OF MOTOR INSURANCE AGAINST THIRD PARTY RISKS, AND TO PROVIDE FOR THE RETURN OF THE DEPOSIT TO THE OWNER OF A MOTOR VEHICLE IF HE WAS A PERSON AS SPECIFIED IN CLAUSE 2 OF THE BILL, MR MACPHERSON SAID.
DEBATE ON THE BILL WAS ADJOURNED.
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