XN000022-1985-12-04 — Page 22

WEDNESDAY, DECEMBER 4, 1985

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HOWEVER, HE SAID THE CHINESE NATIONALITY LAW WOULD

NOT AUTOMATICALLY PROVIDE A NATIONALITY FOR THOSE MINORITIES UNLESS THEY APPLIED FOR BN(0) STATUS BEFORE 1997. THE IR BDTC STATUS WOULD BE CHANGED TO BRITISH OVERSEAS CITIZEN (BOC) BY 1997.

IN THIS WAY THE INDIANS WERE WORRIED THAT THEY WOULD BECOME STATELESS BY THE TRANSFER DATE OF 1997, HE SAID.

+AS THE MINORITIES ARE MAKING USEFUL CONTRIBUTIONS TO THE PROSPERITY OF HONG KONG, I THINK THEIR PETITION SHOULD DESERVE SYMPATHETIC CONSIDERATION, HE ADDED.

LASTLY, MR LEE SAID HE HOPED THE VIEWS OF HONG KONG PEOPLE, BOTH ETHNIC CHINESE AND MINORITIES INCLUDED, WOULD BE CARRIED FORWARD TO BRITAIN FOR THE PARLIAMENTARY DEBATE.

EXTRA PROTECTION FOR INSURANCE POLICY HOLDERS

****

A BILL SEEK ING TO IMPROVE THE EFFECTIVENESS OF MEASURES TAKEN BY THE INSURANCE AUTHORITY TO PROTECT THE INTERESTS OF INSURANCE POLICY HOLDERS OR POTENTIAL POLICY HOLDERS WAS INTRODUCED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE INSURANCE COMPANIES (AMENDMENT) (NO. 2) BILL 1985, THE FINANCIAL SECRETARY, THE HON ŠIR JOHN BŘEMRIDGE, SAID A SECTION OF THE INSURANCE COMPANIES ORDINANCE GAVE THE INSURANCE AUTHORITY POWERS TO IMPOSE REQUIREMENTS ON AN INSURER IN ORDER TO PROTECT POLICY HOLDERS AGAINST THE RISK THAT THE INSURER MIGHT BE UNABLE TO MEET ITS LIABILITIES.

+THE USUAL ACTION TAKEN BY THE INSURANCE AUTHORITY UNDER THIS SECTION IS THE ISSUE OF A NOTICE TO AN INSURER REQUIRING THE COMPANY TO MAKE A DEPOSIT WITH A BANK IN THE NAME OF THE INSURANCE AUTHORITY ACCOUNT FOR THAT PARTICULAR COMPANY, HE SAID.

HE ADDED THAT THE COMPANY WAS REQUIRED TO KEEP THE DEPOSIT FREE OF ANY CHARGES, LIENS, ENCUMBRANCES, EQUITABLE INTERESTS, AND THIRD PARTY RIGHTS,

+ IF THIS REQUIREMENT IS BREACHED AND THE DEPOSIT BECOMES ENCUMBERED, IT CEASES TO BE EFFECTIVE FOR THE PURPOSE FOR WHICH IT WAS SET ASIDE, THAT IS AS AN INVIOLABLE FUND TO PROVIDE EXTRA PROTECTION FOR POLICY HOLDERS, SIR JOHN NOTED.

HE SAID THAT SINCE THE ENACTMENT OF THE INSURANCE COMPANIES ORDINANCE 1983, THERE HAD BEEN ONE CASE WHERE A CHARGE WAS CREATED ON A DEPOSIT WHICH HAD BEEN REQUIRED BY A NOTICE ISSUED UNDER THE ORDINANCE.

/+AS A