TNAG-1362-FCO40-1808-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 3

Question No. 3

Reply by Mr G.A. Higginson, Secretary for Economic Services,

to a question by Dr the Hon HO Kam-fai, OBE, JP

in Legislative Council on 26 June 1985

Question :

Would Government make a statement on the progress it has made towards setting up a special fund to award exgratia compensation to road accident victims deprived of legal redress following the collapse of insurance firms?

Reply:

Sir,

Since 1980, five motor vehicle insurance companies have become insolvent. The failure to be able to provide

indemnity has resulted in considerable hardship for those

members of the public who were injured in accidents involving vehicles insured with one of those five companies. Immediate financial relief for those affected was, of course, made

available through the provisions of the existing Traffic

Accident Victims Assistance Scheme, known as TAVAS. However,

though the TAVAS relief has been welcomed, many of the victims

have been unable subsequently to receive adequate compensation or relief from the insolvent insurance companies. Consideration has thus been given to see what can be done to help this

disadvantaged group of people without imposing an additional

or an unacceptable burden on the general taxpayer.

2.

Under examination at present is a proposal to make ex-gratia payments from the TAVAS Fund to third parties who

have suffered bodily injury or death in traffic accidents and who, as a result of the liquidation of the insurance company concerned, have not received payment. The proposed scheme has now reached an advanced stage of planning. I hope that it will be possible, in the near future, to seek the advice

of the Traffic Accident Victims Assistance Advisory Committee

on the merits of the proposal before submitting the matter to

the Executive Council.

/3.