XN000022-1985-12-04 — Page 27

WEDNESDAY, DECEMBER 4, 1935

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TAVA SCHEME EXTENDED FOR ACCIDENT VICTIMS

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THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) ADOPTED A MOTION APPROVING A SUPPLEMENT TO THE TRAFFIC ACCIDENT VICTIMS ASSISTANCE SCHEME TO PROVIDE FINANCIAL PROTECTION TO TRAFFIC ACCIDENT VICTIMS ADVERSELY AFFECTED BY INSURERS WHO ARE NOW INSOLVENT.

MOVING A RESOLUTION ON THE SUPPLEMENTARY SCHEME PURSUANT TO THE TRAFFIC ACCIDENT VICTIMS (ASSISTANCE FUND) ORDINANCE, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID THE PURPOSE OF THE SUPPLEMENT WAS TO USE SURPLUS FUNDS ACCUMULATED IN THE EXISTING TAVA FUND TO MAKE EX-GRATIA PAYMENTS TO PERSONS WHO HAD SUFFERED BODILY INJURY AND TO THE DEPENDENTS OF THOSE WHO DIED AS A RESULT OF TRAFFIC ACCIDENTS INVOLVING MOTOR VEHICLES INSURED WITH FIVE INSURERS WHO HAD BECOME INSOLVENT.

SIR JOHN SAID THE ACCUMULATED SURPLUS IN THE EXISTING TAVA FUND WAS ABOUT $190 MILLION.

+THIS IS FAR IN EXCESS OF THE AMOUNT REQUIRED TO MEET PAYMENTS UNDER THE EXISTING TAVA SCHEME, WHICH PROVIDES ONLY FOR IMMEDIATE PAYMENTS TO TRAFFIC ACCIDENT VICTIMS WHO SUFFER HARDSHIP IN THE AFTERMATCH OF A TRAFFIC ACCIDENT.

+THE IMPLEMENTATION OF THE SUPPLEMENTARY SCHEME WILL NOT AFFECT THE OPERATION OF THE EXISTING SCHEME, HE SAID.

SIR JOHN SAID THE FULL FINANCIAL IMPLICATIONS OF THE SUPPLEMENTARY SCHEME COULD NOT BE DETERMINED NOW BECAUSE THE TOTAL NUMBER OF CLAIMS WOULD NOT BE KNOWN UNTIL THE SCHEME HAD BEEN APPROVED AND PUBLICISED.

+ IT IS, HOWEVER, ESTIMATED THAT THE TOTAL VALUE OF ALL CLAIMS WILL BE BETWEEN $50 AND $70 MILLION.

+THE TAVA FUND CAN THEREFORE ABSORB THE COST OF IMPLEMENTING THE SUPPLEMENTARY SCHEME WITHOUT REQUIRING AN INCREASE IN THE LEVIES ON VEHICLE AND DRIVING LICENCES OR THE ANNUAL GOVERNMENT CONTRIBUTION WHICH FINANCE IT, FOR SEVERAL YEARS, HE SAID.

SIR JOHN SAID THE SUPPLEMENTARY SCHEME WAS DESIGNED TO COMPLEMENT THE AGREEMENT SIGNED BETWEEN THE GOVERNMENT AND THE MOTOR INSURERS' BUREAU ON NOVEMBER 1.

UNDER THIS AGREEMENT THE MOTOR INSURERS' BURAEU HAS UNDERTAKEN TO ESTABLISH AND OPERATE AN INSOLVENCY FUND SCHEME TO PROVIDE PROTECTION AGAINST THE INSOLVENCY OF ANY MOTOR INSURER WHICH MAY OCCUR IN THE FUTURE.

+BOTH THE INSOLVENCY FUND AND THE SUPPLEMENTARY SCHEME ALSO PROVIDE FOR THE RE IMBURSEMENT OF INSURED PERSONS WHO HAVE ALREADY PAID DAMAGES TO A TRAFFIC ACCIDENT VICTIMS AS A RESULT OF THE ENFORCEMENT OF A COURT JUDGEMENT OR AN OUT-OF-COURT SETTLEMENT+, SIR JOHN SAID.

+TAKEN TOGETHER,