TNAG-1364-FCO40-1810-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1986 — Page 120

4.

3

Amalgamation

(1)

(2)

(3)

(4).

Motor vehicle owners or drivers are now paying for

3rd party insurance which is the minimum insurance required before one can put his car on the road;

additional 1% of insurance premium for the First Fund

Scheme which covers death or injuries caused by

uninsured drivers or insured drivers who breach

insurance policy conditions.

Additional $40 for the TAVAS Fund which makes immediate payments to hardship cases irrespective of liability.

In future another 2 1/2% of insurance premium for the Supplementary Scheme will provide protection for traffic accident victims when the insurance company

becomes insolvent.

This may

There is certainly room for improvement for streamlining or amalgamating these funds into one. result in savings beneficial to the insurer or insured.

Ceiling on Claims

Although by the time the Supplementary Scheme is implemented, the chance of the motorist being sued into personal bankruptcy would be remote, but it would not provide ultimate and complete protection if we do not impose a ceiling on individual claim on death or total disability and a schedule scaling down the percentage of claim for injuries.

A motorist may plead mitigation that too large a claim would drive him into bankruptcy if the insurer defaults.

This

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