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With proper and prudential supervision of the insurance industry, we believe that the likelihood of major mishaps affecting the entire industry or of the closure of an individual insurance company having a knock-on effect on the entire industry is remote.
In the event of insolvency of an insurer, the insuring public are protected in a number of ways. For a long term business insurer, the Insurance Companies Ordinance provides that the liquidator shall, unless the court otherwise orders, carry on the business with a view to transferring it, as a going concern, to another insurer. Failing this, the Insurance Companies Ordinance specifically provides that the assets representing the life fund shall only be available for meeting the liabilities within the same fund.
For a general business insurer, although the liquidator is not mandated to carry on the business, liquidators in the past had always attempted to transfer the business to another insurer to minimise the loss to policy holders. If the attempt fails, Hong Kong policy holders are given statutory priority, after liquidation expenses, wages and crown debts, over other creditors, including overseas creditors, under section 265(1)(e) of the Companies Ordinance.
Claimants for compensation in respect of bodily injuries caused by motor vehicles or for employees' compensation are further protected by the Insolvency Fund and the Employees Compensation Assistance Fund financed by levies on the relevant insurance premium and maintained by the Motor Insurers' Bureau of Hong Kong and the Employees' Compensation Assistance Fund Board respectively. Where there are claims which remain unsettled due to the insolvency of an insurer, the claims will be met from the appropriate Fund(s).
No intention to legislate designation of no smoking areas
Following is a question by Dr the Hon John Tse and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):
Question:
Will the Government inform this Council whether it has considered introducing legislation requiring the designation of non-smoking areas in public places such as offices, restaurants and department stores; if not, what the reasons are?