XN000022-1984-03-11 — Page 4

SUNDAY, MARCH 11, 1984

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EMPLOYERS REMINDED ABOUT COMPULSORY INSURANCE

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EMPLOYERS WERE REMINDED BY THE LABOUR DEPARTMENT TODAY (SUNDAY) THAT THE LEGISLATION ON COMPULSORY INSURANCE FOR EMPLOYEES HAS BEEN IN FORCE SINCE JANUARY THIS YEAR.

THIS MEANS THAT AN EMPLOYER MUST TAKE OUT AN INSURANCE POLICY IN RESPECT OF ALL HIS EMPLOYEES FOR THE FULL AMOUNT OF HIS LIABILITIES FOR BOTH COMPENSATION UNDER THE EMPLOYEES' COMPENSATION ORDINANCE AND COMMON LAW DAMAGES FOR INJURIES AND DEATH AS A RESULT OF AN ACCIDENT AT WORK.

A SPOKESMAN FOR THE DEPARTMENT WARNED THAT ANY EMPLOYER WHO FAILS TO TAKE OUT AN INSURANCE POLICY IN ACCORDANCE WITH THE PROVISIONS OF THE ORDINANCE COMMITS AN OFFENCE AND IS LIABLE TO A FINE OF $50 000 AND IMPRISONMENT FOR TWO YEARS.

UNDER THE ORDINANCE, THE INSURANCE POLICY MUST BE ISSUED BY AN INSURER AUTHORISED BY THE INSURANCE AUTHORITY TO CARRY ON ACCIDENT INSURANCE BUSINESS IN HONG KONG, HE SAID.

+THIS IS TO ENSURE THAT THE INJURED EMPLOYEE CAN RECOVER IN HIS OWN NAME DIRECTLY FROM THE INSURERS ANY AMOUNT OF COMPENSATION WHICH HE SHOULD HAVE BEEN ENTITLED TO CLAIM AGAINST HIS EMPLOYER, + HE SAID.

EMPLOYERS WHO HAVE TAKEN OUT INSURANCE POLICIES FOR THE IR EMPLOYEES MUST ALSO DISPLAY THEIR NOTICES OF INSURANCE AT A CONSPICUOUS PLACE IN THEIR WORK PREMISES. THE PENALTY FOR FAILING TO PUT UP THE NOTICE IS $10 000.

THE SPOKESMAN SAID AUTHORISED OFFICERS OF THE LABOUR DEPARTMENT MAY ENTER AND INSPECT PREMISES, OTHER THAN DOMESTIC PREMISES, TO ENSURE THAT EMPLOYERS HAVE TAKEN OUT THE INSURANCE POLICIES AND THAT THE NOTICES ARE DISPLAYED.

HE URGED EMPLOYERS WHO HAVE ANY ENQUIRIES TO CONTACT THE EMPLOYEES' COMPENSATION UNIT OF THE LABOUR DEPARTMENT ON 5-7955927, 3-688466, OR 0-467776.

EMPLOYERS MAY ALSO SEEK ADVICE FROM THE INSURANCE AUTHORITY OF THE REGISTRAR GENERAL'S DEPARTMENT IF THEY WISH.

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