XN000022-1996-07-10 — Page 78

Reply:

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Mr President,

(a) The Block Insurance Policy for all Aided and Caput schools covering the period from 1 September 1995 to 31 August 1997 was taken out by the Government at a premium of over $3.5 million.

(b)

The Block Insurance Policy includes three components: public liability insurance, employees' compensation insurance and group personal accident insurance. The coverage of each component is set out below:

Public liability insurance: This covers the insured school's legal liability for damages in respect of bodily injury to students and other persons (other than employees of the insured school), and loss of or damage to property caused by an occurrence in school and/or educational activities organised by the Education Department or the insured school. The maximum insured sum is HK$7.5 million per occurrence and unlimited in aggregate during the period of insurance.

Employees' compensation insurance: This covers bodily injury by accident or disease arising out of and in the course of employment by the insured school during the period of insurance. The maximum insured sum is HK$200 million per insured school for each and every event.

Group personal accident insurance: This covers accidental death and disablement benefit to each student provided that such accident occurs while the student is participating in a school activity. The maximum sum insured is HK$20,000 each student for each and every loss.

Government is considering to increase the maximum sums insured in respect of the public liability insurance and group personal accident insurance. We hope to come to a decision soon. However, we do not see the need to review the employees' compensation insurance in respect of which the maximum sum insured is in line with the statutory requirement under the Employees' Compensation Ordinance (Cap 282).

End