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"We have also noted that the largest such claim so far has not exceeded $30 million for any one event," he said.
The spokesman added that the proposed amendments would not prejudice the rights of an injured person to seek compensation over and above the limit of $100 million in the unlikely event that liabilities exceeded that amount, as any excess above the limit would be payable out of the assets of the insured.
"If any excess liabilities remain unpaid thereafter, the rights of an injured party are further protected by the compensation funds maintained by the Employees Compensation Assistance Fund Board or the Motor Insurers' Bureau of Hong Kong," he said.
The Motor Vehicles Insurance (Third Party Risks) (Amendment) Bill 1995 also proposes to exempt vehicles used exclusively on construction and industrial sites from the requirement for compulsory motor vehicle insurance.
Legislation introduced in 1988 extended the requirement to vehicles used on "private roads", which include construction and industrial sites.
As such vehicles are regarded as plant and equipment, it has been the market practice to insure them by standard all risks insurance policies, not by motor vehicle (third party risk) insurance.
However, such policies exclude liabilities compulsorily insurable under any other legislation. Hence there is a risk that third party claims arising in connection with site-based vehicles will not be entertained under the standard all risks insurance policy.
"The proposed amendment will rectify this anomaly by eliminating the risk and ensuring that vehicles used exclusively on construction and industrial sites may continue to be insured under the standard all risks insurance policy," the spokeman said.
Details of the proposed amendments are contained in the Motor Vehicles Insurance (Third Party Risks) Amendment Bill 1995 and the Employees' Compensation (Amendment) Bill 1995 published in the Gazette today.
They will be introduced into the Legislative Council on January 25.
End/Friday, January 13, 1995
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