XN000022-1985-06-26 — Page 35

WEDNESDAY, JUNE 26, 1985

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ASSISTANCE SCHEME AT ADVANCED PLANNING STAGE

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A PROPOSED SCHEME TO MAKE EX-GRATIA PAYMENTS FROM THE TRAFFIC ACCIDENT VICTIMS ASSISTANCE SCHEME TAVAS - TO ROAD ACCIDENT VICTIMS DEPRIVED OF LEGAL REDRESS FOLLOWING THE COLLAPSE OF INSURANCE FIRMS HAD REACHED AN ADVANCED STAGE OF PLANNING, THE SECRETARY FOR ECONOMIC SERVICES, THE HON GERRY HIGGINSON, SAID TODAY (WEDNESDAY).

REPLYING TO A QUESTION BY DR THE HON HO KAM-FAI CONCERNING THE PROGRESS OF THE SCHEME, MR HIGGINSON SAID THAT THE ADVICE OF THE TRAFFIC ACCIDENT VICTIMS ASSISTANCE ADVISORY COMMITTEE WOULD BE SOUGHT IN THE NEAR FUTURE ON THE MERITS OF THE PROPOSAL BEFORE THE MATTER WAS SUBMITTED TO THE EXECUTIVE COUNCIL.

MR HIGGINSON SAID THAT SINCE 1980 FIVE MOTOR VEHICLE INSURANCE COMPANIES HAD BECOME INSOLVENT AND THE FAILURE TO PROVIDE INDEMNITY CAUSED CONSIDERABLE HARDSHIP FOR PEOPLE INJURED IN ACCIDENTS INVOLVING VEHICLES INSURED WITH THESE COMPANIES.

+ IMMEDIATE FINANCIAL RELIEF FOR THOSE AFFECTED WAS, OF COURSE, MADE AVAILABLE THROUGH THE PROVISIONS OF THE EXISTING TRAFFIC ACCIDENT VICTIMS ASSISTANCE SCHEME, KNOWN AS TAVAS,

HE SAID.

AS MANY OF THE VICTIMS WERE UNABLE TO RECEIVE ADEQUATE COMPENSATION FROM THE INSOLVENT COMPANIES, CONSIDERATION HAD BEEN GIVEN TO SEE WHAT COULD BE DONE TO HELP THEM WITHOUT IMPOSING AN ADDITIONAL OR AN UNACCEPTABLE BURDEN ON THE GENERAL TAXPAYER, HE ADDED.

MR HIGGINSON EMPHASISED THAT THE PROPOSAL BEING WORKED UP WAS LIMITED TO THOSE WHO HAVE BEEN ADVERSELY AFFECTED BY THE INSOLVENCY OF THE FIVE INSURANCE COMPANIES.

ON ANY POSSIBLE FUTURE INSOLVENCIES, HE SAID, GOVERNMENT HAS ENTERED INTO A PROVISIONAL AGREEMENT WITH THE MOTOR INSURERS' BUREAU OF HONG KONG TO PROVIDE FOR THE BUREAU TO OPERATE AN INSOLVENCY FUND SCHEME TO COVER THIRD PARTY DEATH OR BODILY INJURY CLAIMS AGAINST INSOLVENT INSURERS.

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