XN000022-1995-08-01 — Page 5

* Yau Tsim Mong District Office

* Kwun Tong District Office

* Sha Tin District Office

* Tsuen Wan District Office

For enquiries, please call 2891 1001.

End/Tuesday, August 1, 1995

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4

(The parts on the old FCs)

Minimum employees' compensation insurance required

Employers are required to purchase a minimum amount of compensation insurance for their employees instead of the unlimited insurance cover previously required.

The Employees' Compensation (Amendment) (No. 2) Ordinance 1995, which comes into effect today, specifies the minimum amount of insurance cover for different employment situations to be purchased by employers under and independently of the Employees' Compensation Ordinance.

"The minimum amount of insurance cover is $100 million per event in the case of an employer employing not more than 200 employees, and $200 million per event if the number of employees exceeds 200," Acting Senior Labour Officer (Compensation), Mrs Mary Cheng, said.

Under the Amendment Ordinance, a principal contractor in the construction industry may take out a blanket insurance policy for not less than $200 million per event in respect of his own liabilities and those of his sub-contractors.

A group of companies may also take out a blanket insurance policy for at least $200 million per event to cover the liabilities of the holding company as well as those of its subsidiary companies.