XN000022-1996-06-25 — Page 12

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During the same period, there were also fewer complaints about malfunctioning of traffic signs and aids (down from 50 to 31) and enforcement action (down from 350 to 338).

All suggestions and complaints received by TCU had been referred to the relevant authorities and government departments for investigation.

Members of the public may complain direct by dialling the Transport Complaints Unit hotline 2577 6866 or the new hotline 2889 9999 24 hours a day throughout the year.

End

Proposals to tidy up law on juvenile insurance policy

The following is issued on behalf of the Insurance Advisory Committee:

The Insurance Advisory Committee has endorsed proposals to tidy up the present legislation regarding requirement for insurable interest (that is pecuniary interest) for insurance policies, including the recognition of a parent's insurable interest in the life of his/her child.

A spokesman for the Committee said at present, a person effecting a contract of insurance must have an insurable interest in the life or event insured.

"Under the common law, a parent has no insurable interest in the life of his/her child. A juvenile policy, whereby a parent takes out insurance on the life of his/her child and naming the parent as a beneficiary, is hence illegal and void," he said.

"The illegality of juvenile policies was identified in January 1995 and was then rectified by the insurance industry through the issue of a replacement policy to the effect that the parent acts as a trustee for the child who is named as the beneficiary.

"However this is cumbersome and is also inconsistent with practices in China, Singapore and Malaysia where insurable interest is legally recognised for the parent- child relationship.

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