XN000022-1976-05-12 — Page 4

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WEDNESDAY, MAY 12, 1976

MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL

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DR. THE HON. CHUNG SZE-YUEN TODAY EXPRESSED SURPRISE AND DISAPPOINTMENT THAT THE ACCIDENT INSURANCE ASSOCIATION WOULD NEED AT LEAST A YEAR BEFORE IT COULD PROVIDE COMPULSORY THIRD PARTY

INSURANCE FOR PASSENGERS IN MOTOR VEHICLES.

SPEAKING AT THE RESUMED DEBATE ON THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1976 AT THE LEGISLATIVE COUNCIL, HE NOTED THAT AFTER ALL, RATES AND ENDORSEMENT FOR PASSENGER INSURANCE WERE AT PRESENT ALREADY AVAİLABLE.

HE QUESTIONED WHETHER THE GOVERNMENT WOULD ASK THE ASSOCIATION TO EXPLAIN WHY IT WAS NECESSARY TO TAKE SO LONG TO IMPLEMENT THE SCHEME.

DR. CHUNG ALSO SOUGHT CLARIFICATION FROM THE SECRETARY FOR THE ENVIRONMENT ON WHETHER PASSENGERS IN +PAK PÄIS+, THOUGH ILLEGAL, WOULD BE COVERED BY THIS AMENDING BILL.

ON THE QUESTION OF ENSURING THAT NO VEHICLES WILL BE LICENSED WITHOUT A VALID THIRD PARTY INSURANCE, HE POINTED OUT THAT THERE COULD STILL BE MOTOR CARS WITHOUT EFFECTIVE INSURANCE,

+THIS IS POSSIBLE BECAUSE AT THE TIME OF INITIAL LICENSING OR SUBSEQUENT RENEWAL OF TRANSFER, THE REQUIREMENT IS FOR THE OWNER TO PRODUCE AN INSURANCE CERTIFICATE VALID AT THAT TIME. THERE IS NO REQUIREMENT FOR THE VALIDITY PERIOD OF THE INSURANCE POLICY TO RUN IN PARALLEL WITH THAT OF THE VEHICLE LICENCE.+

HE FELT THAT CONSIDERATION SHOULD BE GIVEN TO FURTHER IMPROVE THE PROTECTION OFFERED TO THE THIRD PARTY BY IMPOSING THE REQUIRE- MENT THAT THE PERIOD OF VALIDITY FOR BOTH THIRD PARTY INSURANCE AND VEHICLE LICENCE SHOULD COINCIDE WITH EACH OTHER,

IN REPLY, THE SECRETARY FOR THE ENVIRONMENT, THE HON. JAMES ROBSON SAID THE ACCIDENT INSURANCE ASSOCIATION HAD EARLIER ON INDICATED THAT IT WOULD REQUIRE A MINIMUM OF 12 MONTHS IN ORDER TO ADJUST PREMIUM RATINGS, WORDING OF POLICIES AND THE LIKE.

BUT ANOTHER MORE IMPORTANT POINT WAS THAT FROM THE DATE OF ENACTMENT OF THE NEW LEGISLATION, A STEADY STREAM OF THIRD PARTY INSURANCE RENEWAL NOTICES WOULD BE ISSUED, REFLECTING THE NEW LEGAL REQUIREMENT FOR PASSENGER INSURANCE AND IT IS ONLY WHEN THE ADDITIONAL PREMIA ARE PAID THAT THE ADDITIONAL INSURANCE WILL BE EFFECTIVE,+

HE SAID IT WOULD, OF COURSE BE POSSIBLE FOR INSURANCE COMPANIES TO ISSUE ENDORSEMENTS IMMEDIATELY AFTER ENACTMENT TO ALL POLICY-HOLDERS AT ONE FELL SWOOP.

/ON THE