XN000022-1990-05-08 — Page 3

2

TUESDAY, MAY 8, 1990

APPLICATIONS

FOR

AS AT MARCH 31, 1990, THERE WERE TWO PENDING AUTHORISATION, BOTH OF WHICH WERE FROM OVERSEAS COMPANIES.

HIS

OCCASIONS

IN

MR GLEESON ALSO SAID THAT DURING THE YEAR HE HAD EXERCISED POWERS OF INTERVENTION AS INSURANCE AUTHORITY ON 55 RESPECT OF 21 INSURERS.

TO TAKE

HE ADDED THAT HE HAD FOUND IT NECESSARY INTERVENTIONARY ACTION AGAINST A TOTAL OF 76 INSURERS SINCE THE COMMENCEMENT OF THE INSURANCE COMPANIES ORDINANCE IN JUNE 1983.

ALSO DURING THE YEAR, THE INSURANCE AUTHORITY HAD PRESENTED TWO WINDING-UP PETITIONS UNDER SECTION 44 OF THE INSURANCE COMPANIES ORDINANCE TO THE HIGH COURT FOR THE WINDING-UP OF TWO LONG TERM BUSINESS INSURERS, ONE OF WHICH HAD ALREADY CEASED ΤΟ BE AUTHORISED SHORTLY AFTER THE INSURANCE COMPANIES ORDINANCE CAME INTO OPERATION IN 1983.

UPON THE APPLICATION OF THE INSURANCE AUTHORITY TO THE HIGH COURT, THE OFFICIAL RECEIVER WAS APPOINTED AS THEIR PROVISIONAL LIQUIDATOR ON FEBRUARY 5. AS AT MARCH 31 THIS YEAR, THE HEARING OF THE TWO WINDING-UP PETITIONS WAS STILL PENDING.

THE

THE INTERVENTIONARY ACTION HE HAD TAKEN HAD GENERALLY SERVED PURPOSE OF PROTECTING THE INTERESTS OF POLICY HOLDERS AND

POTENTIAL POLICY HOLDERS.

MR GLEESON WENT ON ΤΟ SAY THAT AMENDING LEGISLATION WAS INTRODUCED DURING THE YEAR TO AFFORD INSURANCE PROTECTION TO MEMBERS OF THE PUBLIC COMMUTING ON CERTAIN PASSENGER-CARRYING VESSELS.

THE MERCHANT SHIPPING (AMENDMENT) ORDINANCE 1989 WAS ENACTED ON NOVEMBER 16, 1989 AND THE MERCHANT SHIPPING (COMPULSORY THIRD PARTY RISKS INSURANCE) REGULATIONS 1989 WERE MADE BY THE GOVERNOR IN COUNCIL UNDER SECTION 114(1) OF THE MERCHANT SHIPPING ORDINANCE (CAP. 281) ON DECEMBER 5, 1989.

THEY WILL BOTH COME INTO OPERATION ON MAY 17 THIS YEAR, AND HAVE THE EFFECT OF AMENDING THE MERCHANT SHIPPING ORDINANCE TO REQUIRE OWNERS OF LAUNCHES AND FERRY VESSELS (BEING PASSENGER-CARRYING VESSELS) TO EFFECT INSURANCE AGAINST THIRD PARTY LIABILITIES IN RESPECT OF DEATH OR BODILY INJURY, FOR UP TO $3 MILLION, IN RESPECT OF THE USE OF SUCH VESSELS.

AS A RESULT, THE CATEGORIES OF COMPULSORY THIRD PARTY LIABILITY INSURANCE WOULD BE INCREASED TO FOUR, THAT IS VEHICLES, EMPLOYEES' COMPENSATION, PLEASURE MAY 17 THIS YEAR, LAUNCHES AND FERRY VESSELS.

MOTOR

VESSELS AND, AS

FROM

MR GLEESON SAID THE FIRST STAGE OF SELF-REGULATION INSURANCE INDUSTRY WAS COMPLETED DURING THE YEAR.

OF

THE

TERM INSURANCE

TWO STATEMENTS OF INSURANCE PRACTICE, ONE FOR LONG BUSINESS AND ONE FOR GENERAL BUSINESS, BOTH ENDORSED BY THE AUTHORITY, WERE ADOPTED BY THE INSURANCE INDUSTRY.

/MOREOVER, THE