WEDNESDAY, JUNE 24, 1987
25
COMPULSORY INSURANCE PROPOSED FOR ALL CONSULTING FIRMS
CONSIDERATION IS BRING GIVEN TO INTRODUCING A COMPULSORY INSURANCE REQUIREMENT FOR ALL CONSULTING FIRMS ENGAGED ON PUBLIC PROJECTS, IRRESPECTIVE OF CORPORATE STATUS.
THIS STATEMENT WAS MADE BY E SECRETARY FOR LANDS AND WORKS, THE HON GRAHAM BARNES, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) IN ANSWER TO A QUESTION FROM THE HON CHENG HON-KWAN.
MR BARNES SAID ENGINEERING CONSULTING FIRMS WHICH WERE LIMITED LIABILITY COMPANIES WERE REQUIRED BY THE GOVERNMENT то CARRY PROFESSIONAL LIABILITY INSURANCE COVER WHILST ENGAGED ON PUBLIC PROJECTS.
FIRMS WHICH DID NOT HAVE LIMITED LIABILITY STATUS WERK HOT REQUIRED TO CARRY PROFESSIONAL LIABILITY INSURANCE, ALTHOUGH UNDBR THE TERMS OF ENGAGEMENT LIABILITY WAS IMPLICIT.
COMMISSIONS AWARDED BY THE ARCHITECTURAL AND ASSOCIATED CONSULTANTS SELECTION BOARD WERE NOT AT PRESENT REQUIRED ΤΟ CARRY SUCH INSURANCE, BUT THE SITUATION WAS UNDER REVIEW, MR BARNES SAID.
HE SAID WHERE INSURANCE COVER WAS PRESENTLY REQUIRED IT WAS USUALLY FOR THE FULL LIMITATION PERIOD AS DEFINED IN THE LIMITATION ORDINANCE.
THIS PERIOD VARIED DEPENDING ON CIRCUMSTANCES.
FOR ACTIONS BASED ON SIMPLE CONTRACT OR TORT, AN ACTION MUST BE BROUGHT WITHIN SIX YEARS OF THE DATE ON WHICH THE CAUSE OF AN ACTION AROSE.
FOR ACTIONS BASED ON CONTRACT UNDER SEAL THE PERIOD WAS 12 YEARS FROM THE DATE ON WHICH THE CAUSE OF AN ACTION AROSE.
FOR CLAIMS FOR DAMAGES IN RESPECT OF PERSONAL INJURY THE PERIOD WAS THREE YEARS.
"GOVERNMENT'S VIEW HAS BEEN THAT INSURANCE COVER SHOULD CONTINUE FOR THE DURATION OF EACH COMMISSION LIMITATION PERIOD WHICH IS NORMALLY 12 YEARS,
+4
MR BARNES SAID.
**HOWEVER, BECAUSE OF A CONTINUING TREND FOR PROFESSIONAL INDEMNITY INSURANCE COSTS TO ESCALATE, AND DIFFICULTIES IN OBTAINING COVER FOR 12 YEARS, CONSIDERATION IS NOW BEING GIVEN TO LIMITING THE PERIOD OF COVER TO SIX YEARS.
"THIS IS CONSISTENT WITH PRACTICE IN SOME UNITED KINGDOM GOVERNMENT DEPARTMENTS," MR BARNES SAID.
/26