TNAG-0809-FCO40-1014-Legislation-for-Crown-lands-in-Hong-Kong-1978 — Page 148

A208

Ord. No. 65/78

Certain condi-

to be of no

effect.

MERCHANT SHIPPING (AMENDMENT) (NO. 2)

(b) insures such person, persons or classes of person

as may be specified in the policy in respect of any liability which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of the pleasure vessel in the waters of the Colony:

Provided that such a policy shall not be required to cover-

(i) liability in respect of the death arising out of and in the course of his employment of a person in the employment of a person insured by the policy or of bodily injury sustained by such a person arising out of and in the course of his employment;

or

(ii) any contractual liability; or

(iii) any liability in respect of any one accident or series of accidents arising out of the same event exceeding $600,000.

(2) Notwithstanding anything in any law, an authorized insurer issuing a policy of insurance under this section shall be liable to indemnify the persons or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of those persons or classes of persons.

107E. (1) Subject to subsection (2) any condition in a tions to policies policy issued or given for the purposes of section 107C providing that no liability shall arise under the policy or that any liability so arising shall cease, in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy, shall be of no effect in connexion with such claims as are mentioned in section 107D(1)(b).

Duty of insurers

to satisfy judgments

insured in

respect of third party risks.

(2) Nothing in this section shall be taken to render void any provisions in a policy requiring the person insured to repay to the insurer any sums which the latter may have become liable to pay under the policy and which have been applied to the satisfaction of the claims of third parties.

107F. (1) If, after a policy has been effected, judgment in respect of any such liability as is required to be covered by such policy under section 107D(1)(b) (being a liability against persons covered by the terms of the policy) is obtained against any person insured by the policy, then, notwithstanding that the authorized insurer may be entitled to avoid or cancel, or may have avoided or cancelled, the policy, the authorized insurer shall, subject to this section, pay to the persons entitled to the benefit of the judgment any sum payable thereunder in respect of the liability, including any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any law relating to interest on judgments:

Provided that where the liability covered by the policy is limited as provided by paragraph (iii) of the proviso to section 107D(1)(b) the authorized insurer shall not be required to pay any sum in excess of $600,000.