XN000022-1995-06-21 — Page 33

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Proposed section 40(1C) in clause 4(2) also clarifies that the amount of insurance required for policies may be inclusive of interest, costs and expenses indemnified under the policy and other costs and expenses incurred by the employer and recoverable from the insurer under the policy. If a principal contractor has taken out a blanket policy of insurance covering his liability and those of his sub- contractors, the principal contractor and the sub-contractors insured will be regarded as having complied with the compulsory insurance requirements. Similarly, if companies in a group have taken out a blanket policy of insurance covering the liabilities of the companies, bodies corporate and corporations in the group, all those in the group insured shall be regarded as having complied with such requirements.

Section 42 is amended, through clause 5, to clarify that an insurer is only liable for the amount of the liability of the employer not exceeding the available amount covered by the policy of insurance issued, notwithstanding the obligation imposed upon the employer by the Ordinance to insure for a higher amount.

Clause 9 amends the Fourth Schedule to specify the minimum insurance cover to be purchased by employers in different employment situations. It also adds a new Fifth Schedule to explain the meaning of "structure" and "works" referred to in the definition of "construction work".

Mr Chairman, I beg to move.

Mr President,

I move that new clauses 4A, 4B, 7A heading before the new clause 10 and the new clause 10 as set out in the paper circulated to Members be read the second time.

LI

Clause 4A amends the item number (f) to (g) in section 40A to require an insurer to include information on the amount of liabilities insured in a policy of insurance. Clause 4B amends section 41 to require the amount of liability insured under a policy to be shown in a notice of insurance to be put up in the workplace. An employer who provides false or misleading information in the notice commits an offence and is liable to a fine of $50,000.

Proposed section 44B is added, through new clause 7A, to provide that where a blanket insurance policy has been taken out by group companies and where the insurance limit has been exhausted, the subsidiary company concerned shall be liable for any outstanding claim in respect of any injury to an employee. If the employee is unable to recover payment of compensation from the subsidiary company concerned, the holding company shall be liable to pay the amount to the employee.