TNAG-0955-FCO40-1174-Legislation-for-traffic-on-roads-in-Hong-Kong-1980 — Page 197

G.S. 166

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For information.

ANNEX A TO XCC(80)51

XCCI(79)8

Copy No Page 1

NOTE FOR EXECUTIVE COUNCIL

MOTOR INSURERS' BUREAU

of 40

On 9th January 1979, Honourable Members considered note XCCI(79)2 which reported the progress which had been made towards establishing a Motor Insurers' Bureau similar to that in operation in the United Kingdom. Honourable Members noted that if it was not possible to seek their advice on substantive proposals in four months' time a further progress report would be put forward. In the latter event, they asked that the Registrar General should attend before Council. The purpose of this note is to apprise Honourable Members of the current position with regard to the number of issues still outstanding.

Scope of the MIB

2

As reported in note XCCI(79)2, the Accident Insurance Association of Hong Kong had agreed that the MIB should assume responsibility in respect of accidents caused by uninsured drivers (that is drivers who were not insured or whose policies were invalid), and the Registrar General had agreed that the MIB should not be responsible for meeting claims on insurance companies which had become insolvent. As regards accidents caused by unidentified or un- traced drivers, the Association intended that the MIB should meet claims on ar ex-gratia basis while the Registrar General and the Director of Legal Aid would have preferred a formal agreement. issues have been the subject of further discussions as reported in the following paragraphs.

These

Uninsured drivers

3

The Registrar General and the Association have reached a large measure of agreement in respect of the MIB's liabilities in respect of uninsured drivers. But the Association has made it clear that it will be able to agree to the establishment of a MIB only if the law relating to illegal taxis (pak pais) is adequately enforced. The Association's point is that, as with taxis, the risk of accidents involving pak pais is high because they are almost continually on the road. So taxis attract a higher premium than do private cars, a higher premium which illegal taxis by definition avoid. If a MIB is established on the basis of a proportion of premium, then the pak pais will also contribute inadequately to the Bureau.

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