TNAG-1364-FCO40-1810-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1986 — Page 78

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that the total value of all claims will be between $50 and $70 million. The TAVA Fund can therefore absorb the cost of

implementing the Supplementary Scheme without requiring an increase in the levies on vehicle and driving licenses or

the annual Government contribution which finance it, for several years.

5.

The Supplementary Scheme is designed to complement

the Agreement signed between the Government and the Motor Insurers' Bureau on the 1st of November. Under this

Agreement the Motor Insurers' Bureau has undertaken to establish and operate an Insolvency Fund Scheme to provide protection against the insolvency of any motor insurer which may occur in the future. Under the Supplementary Scheme financial protection is available to traffic accident victims adversely affected by insurers who are now

insolvent. Both the Insolvency Fund Scheme and the Supplementary Scheme also provide for the reimbursement of insured persons who have already paid damages to a traffic

accident victim as a result of the enforcement of a Court

judgement or an out-of-Court Settlement. Taken together, these two Schemes provide a comprehensive package of financial protection and compensation for the unfortunate victims of traffic accidents who, through no fault of their

Own,

are unable to recover any of the damages due to them

because the insurer concerned has become insolvent.

6.

Sir, I beg to move.

C