************************************************************
The Environmental Protection Department (EPD) today (October 11) clarified that the subsidy programme for the replacement of the catalytic converters and oxygen sensors on petrol and liquefied petroleum gas (LPG) taxis and light buses being implemented now only involves the replacement of existing components. It has no effect on the insurance coverage of the vehicles concerned.
Recently, a transport trade group claimed that insurance contracts would be voided if traffic accidents are caused by installing components which are not produced by the original manufacturers of the vehicles. The car owners themselves would have to bear the loss.
The Chairman of the International Insurance Consulting Association, Mr Paul Law, said that the quality of the catalytic converters and oxygen sensors under the EPD's subsidy programme has been verified by the department and the relevant party, and replacement will be carried out by qualified people. Thus, there is no question of breaching insurance terms and leading to insurance companies refusing to assume responsibilities.
According to taxi trade members, it is a common practice to use components which are not produced by the original manufacturers during repairs (such as those involving vehicle tyres and water tanks). There have been no precedent cases in which insurance companies refused to make compensation for traffic accidents merely because the vehicles involved had components not produced by the original manufacturers.
The EPD spokesman encouraged vehicle owners to join the replacement scheme. "In order to improve roadside air quality, the EPD is subsidising the replacement of the catalytic converters and oxygen sensors on petrol and LPG taxis and light buses, and will use roadside remote sensing equipment to strengthen the monitoring of emissions of petrol and LPG vehicles from April next year. Vehicles emitting excessively will be required to pass a dynamometer emissions test within a designated period. Otherwise, the vehicle's license will be cancelled," the spokesman added.
Those who have any enquiries on the programme should call the EPD hotline at 3618 7670.
Ends/Friday, October 11, 2013
Issued at HKT 19:06
NNNN
