XN000022-1978-06-23 — Page 10

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FRIDAY, JUNE 23, 1978

PLEASURE CRAFT OPERATORS WILL BE REQUIRED TO TAKE

OUT INSURANCE

* * * * *

OWNERS OF PLEASURE CRAFT WILL BE REQUIRED TO TAKE OUT THIRD PARTY INSURANCE COVERING DEATH AND PERSONAL INJURY WHEN A BILL PUBLISHED IN THE GOVERNMENT GAZETTE TODAY BECOMES LAW.

THE MERCHANT SHIPPING (AMENDMENT) (NO.2) BILL 1978, WHICH IS TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL SHORTLY, WILL REQUIRE OWNERS TO TAKE OUT THIRD PARTY INSURANCE COVERING LIABILITY UP TO $600,000.

A GOVERNMENT SPOKESMAN SAID INCREASING MARINE TRAFFIC IN HONG KONG WATERS HAD GIVEN RISE TO AN INCREASING NUMBER OF ACCIDENTS INVOLVING MECHANISED LOCAL CRAFT AND IT HAD BECOME DESIRABLE THEREFORE TO REQUIRE LOCAL CRAFT TO BE COVERED BY THIRD PARTY INSURANCE.

HE SAID ATTENTION WAS AT FIRST BEING CONCENTRATED ON PLEASURE VESSELS BECAUSE STATISTICS SHOWED THEY WERE MORE LIKELY TO BECOME INVOLVED IN ACCIDENTS THAN VESSELS IN OTHER GROUPS.

+THE PROPOSAL TO INTRODUCE COMPULSORY THIRD PARTY INSURANCE FOR PLEASURE VESSELS ORIGINATED FROM A RECOMMENDATION OF THE COMMITTEE ON BOATING AND YACHTING, HE SAID.

HE SAID A VALID THIRD PARTY INSURANCE POLICY WILL HAVE TO BE PRODUCED WHEN APPLYING FOR A NEW LICENCE OR WHEN RENEWING A LICENCE. HE ADDED THAT ADEQUATE NOTICE WOULD BE GIVEN BEFORE THE REQUIREMENT COMES INTO EFFECT.

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