XN000022-1978-04-12 — Page 19

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WEDNESDAY, APRIL 12, 1973

RECOVERY OF HOSPITAL CARE COST FROM INSURANCE COMPANIES

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THE MAIN OBJECTIVE OF THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) AMENDMENT BILL 1978 IS TO STREAMLINE THE PROCEDURE BY WHICH THE GOVERNMENT WILL RECOVER FROM INSURANCE COMPANIES THE COST OF HOSPITAL CARE FOR VICTIMS OF TRAFFIC ACCIDENTS.

THIS WAS STATED BY THE DIRECTOR OF MEDICAL AND HEALTH SERVICES, DR. THE HON. K.L. THONG, WHEN HE PROPOSED THE AMENDMENTS AT THE LEGISLATIVE COUNCIL TODAY.

ONE OF THE AMENDMENTS SEEKS TO PROVIDE FOR THE DIRECTOR OR SUCH OTHER AGENCY AS HE MAY APPOINT TO BE RESPONSIBLE FOR COLLECTING FROM INSURANCE COMPANIES EXPENSES INCURRED IN TREATING VICTIMS OF TRAFFIC ACCIDENTS IN GOVERNMENT HOSPITALS.

IN THE GOVERNMENT SUBVENTED HOSPITALS, THE SAME PROCEDURE WILL APPLY BUT THE COLLECTION OF EXPENSES WILL BE MADE THROUGH THE IR OWN HOSPITAL MANAGEMENT.

ANOTHER AMENDMENT WILL ENABLE THE DIRECTOR TO WAIVE, AT HIS DISCRETION, THE PAYMENT OF EXPENSES WHEN THE INJURED PATIENTS ARE TREATED AS CUT-PATIENTS IN GOVERNMENT HOSPITALS.

DR. THONG EXPLAINED THAT THIS IS BECAUSE AN ORGANISATION AND METHODS STUDY HAS SHOWN THAT IT WOULD BE UNECONOMICAL TO RECOVER SUCH TREATMENT COSTS.

A THIRD AMENDMENT SEEKS TO RAISE THE MAXIMUM LIABILITY OF INSURANCE COMPANIES IN RESPECT OF HOSPITAL EXPENSES FROM A LEVEL OF $400, WHICH WAS SET IN 1951, TO $2,500.

THE ACCIDENT INSURANCE ASSOCIATION HAS AGREED TO THESE PROPOSALS WHICH, IN FACT, DO NOT INTRODUCE ANY NEW PRINCIPLES.

DR. THONG POINTED OUT THAT THE EXISTING ORDINANCE ALREADY REQUIRES INSURANCE COMPANIES TO MAKE PAYMENTS FOR THESE EXPENSES APPLICABLE AS IT IS WHEN NEGLIGENCE OF THE INSURED MOTOR IST INVOLVED IN THE ACCIDENT IS ESTABLISHED.

+CLAUSE 2 OF THE BILL THEREFORE MAKES AMENDMENT TO SECTION 3 OF THE EXISTING ORDINANCE TO ENABLE NEW ARRANGEMENTS TO BE

IMPLEMENTED, THE MAIN OBJECTIVE OF WHICH IS TO STREAMLINE THE PROCEDURE BY WHICH GOVERNMENT WILL RECOVER THE EXPENSES INCURRED IN TREATING VICTIMS OF TRAFFIC ACCIDENTS, HE SAID.

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