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With the forthcoming opening of the Hong Kong-Shenzhen Western Corridor on Sunday (July 1), the Government has entered into a market agreement with all 60 insurers carrying on motor and employees' compensation business. The agreement extends their existing insurance policies in respect of motor and employees' compensation to cover the Shenzhen Bay Port Hong Kong Port Area (HKPA).
The market agreement was signed by the Commissioner of Insurance, Mr Clement Cheung, and the insurers. It seeks to expand the geographical limit under the existing motor and employees' compensation insurance policies to cover HKPA at no extra cost to policyholders.
Mr Cheung said today (June 25) that the signing of the agreement was a pragmatic response to public concerns over the validity of existing motor and employees' compensation insurance policies in HKPA when it comes into existence, thus minimising administrative burden and public confusion.
"The HKPA will come into being when the Shenzhen Bay Port Hong Kong Port Area Ordinance begins operation. The coverage of existing insurance policies will not be extended correspondingly.
"Motor and employees' compensation insurance are particularly affected given their mandatory nature; therefore, consideration has to be given to extending the coverage of the policies concerned to include the HKPA.
"Throughout our deliberations on how to tackle this market-wide issue, the insurance industry has demonstrated a collaborative and enterprising spirit, shouldering its responsibility as a good corporate citizen without hesitation or reservation," Mr Cheung said.
Details of the market agreement and a list of signatories can be obtained from the websites of the Office of the Commissioner of Insurance at www.oci.gov.hk and the Hong Kong Federation of Insurers at www.hkfi.org.hk.
Ends/Monday, June 25, 2007
Issued at HKT 17:23
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