XN000022-1984-02-08 — Page 3

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WEDNESDAY, FEBRUARY

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+THERE ARE ALSO PLENTY OF OTHER LESS FORMAL OCCASIONS WHEN VIEWS ON VARIOUS PUBLIC ISSUES ARE EXCHANGED.

+THE SPIRIT OF SINCERITY AND CO-OPERATION HAS BEEN WELL DEMONSTRATED IN THESE DISCUSSIONS AND I HAVE NO DOUBT THAT THIS SPIRIT WILL CONTINUE IN THE YEAR AHEAD.+

MR MACPHERSON ADDED THAT THE FUTURE OF HONG KONG WOULD SURELY CONTINUE TO BE AN ISSUE OF MAJOR CONCERN TO THE KUK.

+❘ NOTE THAT THE KUK IS COLLECTING THE VIEWS OF THE NEW TERRITORIES RESIDENTS ON THIS VITAL ISSUE AND I AWAIT WITH GREAT INTEREST THE OUTCOME OF THE WORK, HE SAID.

A MILESTONE IN INSURANCE LEGISLATION

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THE YEAR 1983 MARKED A MILESTONE IN INSURANCE LEGISLATION, WITH ALL CLASSES OF THE INSURANCE BUSINESS NOW BROUGHT UNDER LEGISLATIVE COVERAGE FOR THE BETTER PROTECTION OF POLICY HOLDERS.

BEFORE THE COMMENCEMENT OF THE INSURANCE COMPANIES ORDINANCE ON JUNE 30, ONLY COMPANIES CARRYING ON LIFE, FIRE, MARINE OR MOTOR VEHICLE INSURANCE IN HONG KONG WERE SUBJECT TO REGULATION, ACCORDING TO A REPORT COMPILED BY THE INSURANCE DIVISION OF THE REGISTRAR GENERAL'S DEPARTMENT.

AND THERE HAD BEEN NO COMPREHENSIVE SYSTEM OF CONTROL UNTIL THEN, POINTED OUT THE DEPARTMENT, WHICH IS RESPONSIBLE FOR ADMINISTERING THE LEGISLATION ON INSURANCE COMPANIES IN HONG KONG.

THE ORDINANCE PRESCRIBES REQUIREMENTS FOR THE FITNESS OF DIRECTORS AND CONTROLLERS OF INSURANCE COMPANIES AND PROVIDES MORE STRINGENT FINANCIAL AND OTHER REQUIREMENTS ON INSURERS.

IT ALSO CONFERS MUCH WIDER POWERS OF INVESTIGATION AND INTERVENTION ON THE REGISTRAR GENERAL IN HIS CAPACITY AS INSURANCE AUTHORITY FOR THE BETTER PROTECTION OF POLICY HOLDERS, THE REPORT SAID.

COMPANIES ENGAGED IN THE INSURANCE BUSINESS IMMEDIATELY BEFORE THE COMMENCEMENT OF THE ORDINANCE HAD TO COMPLY WITH THE TRANSITIONAL PROVISIONS WITHIN A PERIOD OF THREE TO SIX MONTHS WHICH MAY BE EXTENDED AT THE DISCRETION OF THE INSURANCE AUTHORITY.

+AS A RESULT, THE NUMBER OF INSURANCE COMPANIES AUTHORISED TO CARRY ON THE INSURANCE BUSINESS WAS REDUCED TO 283 BY THE END OF 1983, COMPARED WITH 307 AT THE COMMENCEMENT OF THE ORDINANCE, THE REPORT SAID.

THE NUMBER TOOK ACCOUNT OF 10 NEWLY AUTHORISED COMPANIES AND 34 EXISTING COMPANIES WITH THE IR AUTHORISATION WITHDRAWN.

/THE REPORT