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The Bill seeks to require employers to purchase a minimum amount of insurance cover of $100 million in respect of their liabilities for employees' compensation, in place of the requirement for unlimited insurance cover under the existing Employees' Compensation Ordinance. I have already explained the reasons for such an amendment when moving the second reading of the Motor Vehicles Insurance (Third Party Risks) (Amendment) Bill 1995.
The proposed limit of $100 million for any one event is also considered adequate in the case of employee compensation: the largest claims for employees' compensation insurance have so far not exceeded $30 million per event. It is also true that in the unlikely event that liabilities exceeded the limit of $100 million, any excess will be payable out of the assets of the insured in the first instance, then out of the compensation funds maintained by the Employees Compensation Assistance Fund Board.
Mr President, the Employees' Compensation (Amendment) Bill 1995 is the result of the concerted efforts of the Financial Services Branch and the Education and
Manpower Branch. I therefore speak also for my colleague the Secretary for Education and Manpower in commending this Bill to this Council.
End/Wednesday, January 25, 1995
Motor Vehicles Insurance (Third Party Risks) (Amendment) Bill 1995
Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, in moving the second reading of the Motor Vehicles Insurance (Third Party Risks) (Amendment) Bill 1995 in the Legislative Council today (Wednesday):
Mr President.
I move the second reading of the Motor Vehicles Insurance (Third Party Risks) (Amendment) Bill 1995.
The main purpose of the Bill is to require motorists to purchase a minimum amount of insurance cover in respect of their liabilities for motor vehicle third party bodily injuries, in place of the requirement for unlimited insurance cover under the existing Motor Vehicles Insurance (Third Party Risks) Ordinance (MVIO). Bearing in mind the need to ensure that the public is adequately protected, we propose that the minimum amount of insurance cover be set at $100 million for any one event.