XN000022-1993-11-24 — Page 15

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WEDNESDAY, NOVEMBER 24, 1993

MR PRESIDENT, THE ADMINISTRATION HAS TAKEN A CAREFUL, MEASURED VIEW OF ITS POSITION ON CT9. OUR CONCLUSION IS THAT HAVING REGARD TO THE ECONOMIC WELL-BEING OF HONG KONG AND TO THE INTERESTS OF ALL THOSE WHO LIVE AND WORK CLOSE TO OUR CONTAINER PORT, CT9 AND ITS ATTENDANT WORKS SHOULD BE IMPLEMENTED AT TSING YI AND AT THE EARLIEST OPPORTUNITY. WE BELIEVE THAT PROCEEDING WITH CT9 WILL ALSO BE IN THE INTERESTS OF DEVELOPMENT IN SOUTH CHINA AND OF HONG KONG'S FUTURE ROLE IN THE REGION. WE HAVE CONCLUDED THAT WE CANNOT SHELVE THE PROJECT. MY SENIOR COLLEAGUES, THE OFFICIAL MEMBERS WILL, THEREFORE, VOTE TODAY IN SUPPORT OF THE AMENDING MOTION PROPOSED BY MR STEVEN POON.

THANK YOU MR PRESIDENT.

HOLDERS

A

BETTER SUPERVISION OVER INSURANCE INDUSTRY INTRODUCED

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BILL SEEKING TO GIVE BETTER PROTECTION TO INSURANCE POLICY IS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE INSURANCE COMPANIES (AMENDMENT) (NO. 3) BILL 1993, THE ACTING SECRETARY FOR FINANCIAL SERVICES, MR TAM WING-PONG, SAID THE BILL WOULD PROVIDE LEGISLATIVE SUPPORT TO THE SELF-REGULATION OF AGENTS AND BROKERS.

IT DEFINES THE ROLES OF AGENTS AND BROKERS, MAKES INSURERS RESPONSIBLE FOR THE ACTIONS OF THEIR AGENTS AND ENHANCES TRANSPARENCY OF REPRESENTATION BY AGENTS.

OF

"CONTINUED PUBLIC COMPLAINTS, INCLUDING MISREPRESENTATION, INADEQUATE EXPLANATION OF INSURANCE CONTRACTS AND MISAPPROPRIATION PREMIUMS RECEIVED, UNDERLINE THE NEED FOR SUCH SUPERVISION, SAID.

MR TAM

INSURERS OPERATING IN HONG KONG ARE SUBJECT то PRUDENTIAL REGULATION BY THE INSURANCE AUTHORITY UNDER THE INSURANCE COMPANIES ORDINANCE.

AN

THE LAW REFORM COMMISSION REPORT ISSUED IN 1986 HIGHLIGHTED ABSENCE OF PROFESSIONAL STANDARDS AMONG INSURANCE BROKERS AND AGENTS AND A CONFUSION OVER THEIR ROLES AND LIABILITIES.

"IT THEREFORE RECOMMENDED THAT THEY BE SUBJECT TO THE SAME SUPERVISION AS INSURERS, MR TAM SAID.

THE HONG KONG FEDERATION OF INSURERS, IN CONSULTATION WITH THE GOVERNMENT. INTRODUCED A NON-STATUTORY CODE OF PRACTICE FOR THE ADMINISTRATION OF AGENTS IN JANUARY THIS YEAR.

THE HONG KONG CONFEDERATION OF INSURANCE BROKERS ALSO REQUIRES ITS MEMBERS TO CONFORM WITH ITS NON-STATUTORY RULES AND REGULATIONS FOR MEMBERSHIP AND PROFESSIONAL CONDUCT.

"HOWEVER, COMPLAINTS FROM MEMBERS OF THE INSURANCE AGENTS AND BROKERS HAVE NOT ABATED DESPITE EFFORTS AT SELF-REGULATION," MR TAM SAID.

PUBLIC AGAINST THE INDUSTRY'S

/WITH THE