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WEDNESDAY, OCTOBER 25, 1989
SUCH INSURANCE COVER WAS USUALLY OBTAINED FROM OVERSEAS PROTECTION AND INDEMNITY ASSOCIATIONS BECAUSE LOCAL INSURERS WERE RELUCTANT TO INSURE THE LARGER VESSELS AS THEIR PORTFOLIO OF MARINE LIABILITY INSURANCE BUSINESS WAS NORMALLY NOT LARGE ENOUGH! ΤΟ SPREAD THE RISKS INVOLVED. HE SAID.
"THE PROTECTION AND INDEMNITY ASSOCIATIONS ARE MADE UP OF SHIPOWNERS WHO SHARE EACH OTHER'S RISKS AND PAY ANNUAL SUBSCRIPTION INTO A COMMON FUND WHICH PROVIDES ALL FORMS AND LEVELS OF SPECIALIST MARINE INSURANCE COVER WORLDWIDE.
"AT PRESENT. ONLY A FEW PROTECTION AND INDEMNITY ASSOCIATIONS ARE REPRESENTED LOCALLY AND AUTHORISED UNDER THE INSURANCE COMPANIES ORDINANCE TO CONDUCT INSURANCE BUSINESS IN HONG KONG, HE SAID.
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MR LEUNG SAID TO GIVE LOCAL FERRY OPERATORS AND VESSEL OWNERS A SUFFICIENTLY LARGE POOL OF SUCH ASSOCIATIONS TO CHOOSE FROM. THE BILL PROPOSED THAT THE DIRECTOR OF MARINE SHOULD BE EMPOWERED TO APPROVE ANY SUITABLE PROTECTION AND INDEMNITY ASSOCIATION AS AN AUTHORISED INSURER FOR THE PURPOSE OF THE COMPULSORY INSURANCE SCHEME.
HE SAID THE GOVERNMENT RECOGNISED THE CLAIMS AGAINST OVERSEAS INSURERS NOT REGISTERED IN HONG KONG MIGHT INVOLVE, FOR SOME CLAIMANTS, GREATER DELAY, HIGHER EXPENSES AND MORE DIFFICULTIES.
ΤΟ MEET THESE PROBLEMS, THE BILL CONTAINED A NUMBER OF SAFEGUARDS, INCLUDING PROVISIONS EMPOWERING THE HIGH COURT TO HEAR AND DETERMINE CLAIMS IN RESPECT OF INSURANCE POLICIES ISSUED IN AN OVERSEAS COUNTRY. HE SAID.
ON THE ENFORCEMENT PROVISIONS, MR LEUNG SAID THE BILL PROVIDED A TWO-TIER PENALTY SYSTEM.
A
"OWNERS OF LARGER VESSELS WHO FAIL TO TAKE OUT THE REQUIRED THIRD PARTY INSURANCE WOULD BE SUBJECT TO HEAVIER PENALTIES. NAMELY MAXIMUM FINE OF $100,000 AND TWO YEARS' IMPRISONMENT.
"FOR SMALLER VESSELS, THE SAME OFFENCE ATTRACTS A MAXIMUM FINE OF $15,000 AND 12 MONTHS' IMPRISONMENT," HE SAID.
MR LEUNG
ADDED THAT THE BILL REQUIRED CERTIFICATES OF INSURANCE ON THEIR VESSELS INFORMATION.
OWNERS TO DISPLAY FOR PASSENGERS'
"IT PROVIDES FOR A MAXIMUM FINE OF $5,000 AGAINST GIVE INFORMATION OR PRODUCE RECORDS OF INSURANCE ON DEMAND OFFICERS. HE SAID.
FAILURE то BY PUBLIC
MR LEUNG SAID THE BILL ALSO EMPOWERED THE GOVERNOR IN COUNCIL TO MAKE NECESSARY REGULATIONS, INCLUDING THE POWER TO PRESCRIBE, FOR DIFFERENT CLASSES OF VESSELS, THE MINIMUM LEVELS OF LIABILITY ΤΟ BE COVERED BY POLICIES OF INSURANCE.
/IT DEALT