"The Hong Kong Government is fully committed to the faithful implementation of the Joint Declaration," the spokesman said.
End/Friday, January 13, 1995
Bills on motorist and employer insurance coverage gazetted
The Government has proposed to amend the Motor Vehicles Insurance (Third Party Risks) Ordinance and the Employees' Compensation Ordinance to require a motorist or an employer to purchase a minimum amount of insurance cover, instead of the unlimited insurance cover currently required.
The minimum amount of insurance cover in each case would be $100 million for any one event.
A Government spokesman explained today (Friday) that, in line with worldwide trends, reinsurers in Hong Kong had decided that they could no longer provide unlimited reinsurance cover for motor vehicle third party liability and employees' compensation insurance, because such cover was not commercially viable.
"However, without unlimited reinsurance protection, insurers will not be able to provide unlimited insurance coverage to motorists or employers in Hong Kong.
"As a result, the requirements of the Motor Vehicles Insurance (Third Party Risks) Ordinance and the Employees' Compensation Ordinance, under which a motorist or an employer must take out unlimited insurance cover, cannot be met.
"It is, therefore, necessary to set a limit for such insurance cover which, however, should provide adequate protection for victims," he said.
The spokesman said the proposed limit of $100 million for any one event was appropriate, having regard to the capacity of reinsurers to meet claims upon insurers.