FRIDAY, JULY 18, 1986

A WATER SUPPLIES DEPARTMENT ENGINEER SAID THE TUNNEL HAD ADVANCED AT A RATE OF 87 METRES PER WEEK FROM EACH FACE, A RECORD FOR THIS TYPE OF WORK IN HONG KONG.

HE SAID WORK WILL START SOON ON THE PERMANENT LINING OF THE TUNNEL AND THIS IS EXPECTED TO BE COMPLETED IN SEPTEMBER NEXT YEAR.

THE CONTRACTOR FOR THE $57 MILLION TUNNEL WAS PAUL Y CONSTRUCTION COMPANY, WORK ON THE PROJECT STARTED IN OCTOBER 1984, AND WAS SUPERVISED ON BEHALF OF THE WATER SUPPLIES DEPARTMENT BY CONSULTING ENGINEERS BINNIE AND PARTNERS.

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BILL REPEALS INSURERS' LIABILITY FOR HOSPITAL EXPENSES

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THE GOVERNMENT IS PLANNING TO REPEAL A PROVISION IN THE EXISTING LAW WHICH ENABLES PUBLIC HOSPITALS TO RECOVER FROM INSURANCE COMPANIES EXPENSES INCURRED IN THE TREATMENT OF TRAFFIC ACCIDENT VICTIMS.

THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1986 WAS GAZETTED TODAY (FRIDAY) AND WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JULY 30.

THE BILL SEEKS TO REPEAL SECTION 8 OF THE PRINCIPAL ORDINANCE WHICH DEALS WITH THE LIABILITY OF INSURERS TO PAY HOSPITAL EXPENSES INCURRED IN RELATION TO TRAFFIC ACCIDENTS.

THE MAIN REASON FOR THE REPEAL IS THAT THERE HAVE BEEN DIFFICULTIES IN ENFORCING THE EXISTING PROVISION BECAUSE AN INSURANCE COMPANY IS NOT OBLIGED TO SETTLE A CLAIM FOR HOSPITAL EXPENSES UNLESS IT HAS MADE SOME OTHER PAYMENT UNDER THE THIRD PARTY RISKS POLICY CONCERNED.

ANOTHER PROBLEM IS THAT ACCIDENT VICTIMS ARE NOT INCLINED TO SEEK COMPENSATION FROM INSURANCE COMPANIES.

RECOVERY DIFFICULTIES HAVE RESULTED IN NO ACTION BEING TAKEN UNDER THE EXISTING LAW SINCE 1981 AS THE REVENUE PRODUCED WAS LESS THAN THE AMOUNT NEEDED TO ADMINISTER THE SCHEME.

IT IS ALSO CONSIDERED UNFAIR TO SINGLE OUT MOTOR INSURERS TO MEET HOSPITAL COSTS IN TREATING TRAFFIC ACCIDENT VICTIMS WHILE THE TREATMENT OF OTHER CATEGORIES OF ACCIDENT VICTIMS ENTAILS NO SUCH LIABILITY.

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