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  HAD concerned about procurement of third party risks insurance by OCs

Regarding media enquiries on procurement of third party risks insurance by owners' corporations (OCs), the Home Affairs Department (HAD) today (December 30) responded as follows:

The department has immediately contacted the Hong Kong Federation of Insurers (HKFI) again to express its concerns over reports that some owners and OCs were asked to procure another third party risks insurance policy.
 
HKFI has stated in its circular that when handling cases relating to the procurement of third party risks insurance, members should provide options to consumers which meet the legislative requirements without charging additional premium if there is no increase in risk exposure.

OCs or flat owners may contact the Building Management Liaison Team of the respective District Office if they encounter difficulties in procuring third party risks insurance.

If there are difficulties in insurance procurement (irrespective of whether an OC is formed), flat owners may take the following steps: (1) They may contact the respective District Office to obtain information on insurance procurement; (2) The department will refer the case to the HKFI and provide the OC/flat owners with a list of insurance companies authorised by HKFI as insurers of third party risks insurance for buildings and a list of insurance consultant companies provided by the Professional Insurance Brokers Association to facilitate the OC's procurement of an insurance policy; and (3) For buildings requiring assistance in co-ordinating repair works, the department will arrange for building management professionals to provide one-stop-shop services to help them to secure insurance coverage within a reasonable period of time. The professionals will give advice on measures to improve the maintenance conditions of the building, help them to invite tenders, form an OC and apply for the appropriate loan and assistance schemes administered by the Government and other supporting organisations.

The HAD reiterated that procurement of third party risks insurance by buildings offers the best protection for flat owners and the public. The department will not prosecute an OC immediately upon the commencement of the legislative provisions if the OC concerned has taken the above steps and made its best endeavours to procure third party risks insurance.

Ends/Monday, December 30, 2010
Issued at HKT 18:40