XN000022-1985-12-04 — Page 28

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WEINESDAY, DECEMBER 4, 1985

+TAKEN TOGETHER, THESE TWO SCHEMES PROVIDE A COMPREHENSIVE PACKAGE OF FINANCIAL PROTECTION AND COMPENSATION FOR THE UNFORTUNATE VICTIMS OF TRAFFIC ACCIDENTS WHO, THROUGH NO FAULT OF THEIR OWN, ARE UNABLE TO RECOVER ANY OF THE DAMAGES DUE TO THEM BECAUSE THE INSURER CONCERNED HAS BECOME INSOLVENT,+ HE ADDED.

TWO UNOFFICIALS, THE HON K.C. CHAN AND THE HON MARIA TAM, SPOKE IN SUPPORT OF THE MOTION.

MR CHAN, CONVENER OF THE LEGISLATIVE COUNCIL AD HOC GROUP ON THE ISSUE, SAID THE PAYMENTS SHOULD BE EX-GRATIA OUT OF THE TAVA FUND AND SHOULD NOT CREATE A PRECEDENT.

HE NOTED THAT THE SUPPLEMENTARY SCHEME MENTIONED BY THE FINANCIAL SECRETARY WOULD MEAN THAT WE WERE STEPPING INTO THE UNKNOWN GROUND OF INSUR ING BANKRUPTCY OF BUSINESS AND HE WONDERED WHERE THE LIST OF BUSINESS WOULD END.

THE TREND IN THE BUSINESS CIRCLES NOWADAYS, HE SAID, WAS FOR THE TRADE TO ASK ITS MEMBERS TO CONTRIBUTE TO A FUND WHICH INSURED INSOLVENT MEMBERS AND PROVIDE LIMITED ASSURANCE TO THE IK CLIENTS.

HE CITED AS EXAMPLES THE SHARE MARKET, GOLD MARKET AND TOURISM, ADDING THAT BUSINESS AS A WHOLE WAS NOW COLLECTIVELY CONTRIBUTING TO THE PROTECTION OF WAGES IN INSOLVENCY FUND.

WHY THE INSURANCE TRADE SHOULD BE AN EXCEPTION, HE ASKED.

+AS LONG AS WE LEGISLATE TO GOVERN THE COMPULSORY CONTRIBUTION, LEVY AND PROPER OPERATION OF A FUND, THEN WHETHER THE INSURANCE COMPANY CHARGES IT AS EXPENDITURE AND SHARES IT WITH THE IR CLIENTS IS ANOTHER MATTER.

+ IT WOULD ADD TO THE IMAGE THAT THE FOUNDATION OF THE INSURANCE TRADE IS ON SOLID ROCKS, HE SAID.

MR CHAN FURTHER SUGGESTED THAT THERE WERE GROUNDS FOR STREAML IN ING OR AMALGANATING INTO ONE THE VARIOUS FUNDS MOTOR -VEHICLE OWNERS OR DRIVERS WERE NOW PAYING FOR.

+THIS MAY RESULT IN SAVINGS BENEFICIAL TO THE INSURER OR INSURED,+ HE SAID.

HE ALSO FELT THAT A CEILING SHOULD BE IMPOSED ON INDIVIDUAL CLAIMS ON DEATH OR TOTAL DISABILITY AND THERE SHOULD BE A SCHEDULE SCALING DOWN THE PERCENTAGE OF CLAIM FOR INJURIES.

THERE WAS ALSO ANOTHER SCHOOL OF THOUGHT THAT COMPLETE PROTECTION OF THE GUILTY MOTORISTS BY INSURANCE MIGHT HAMPER EFFORTS TO PROMOTE GREATER ROAD SAFETY WHICH SHOULD ALSO BE TAKEN INTO CONSIDERATION.

/HE SAID