{"id":2952,"date":"2022-02-17T12:07:28","date_gmt":"2022-02-17T04:07:28","guid":{"rendered":"https:\/\/www.boasecohencollins.com\/?p=2952"},"modified":"2022-02-17T12:07:30","modified_gmt":"2022-02-17T04:07:30","slug":"clear-road-ahead-for-motoring-insurers","status":"publish","type":"post","link":"https:\/\/www.boasecohencollins.com\/zh-hans\/%e7%bd%91%e8%aa%8c\/clear-road-ahead-for-motoring-insurers\/","title":{"rendered":"Clear road ahead for motoring insurers"},"content":{"rendered":"\n

By Jeffrey Chan<\/strong><\/p>\n\n\n\n

Hong Kong, 17 February 2022:<\/strong> Rapid development of the Greater Bay Area is presenting new challenges and opportunities for Hong Kong insurers, particularly with regard to motoring policies.<\/p>\n\n\n\n

Cross-boundary traffic is expected to increase after the Covid-19 pandemic as authorities on both sides of the border finalise a quota-free scheme for private vehicles travelling to Guangdong via the Hong Kong-Zhuhai-Macao Bridge (HZMB). Crucially, this scheme will work alongside new regulations that will enable Hong Kong motoring insurers to extend their policies to cover liability across the border.<\/p>\n\n\n\n

Further, as my colleague Alex Liu recently explained, there is forthcoming legislation<\/a> for reciprocal recognition and enforcement of judgments (REJ) in civil and commercial matters. The new law will reduce the need for re-litigation of the same disputes in both places and offer better protection to parties\u2019 interests.<\/p>\n\n\n\n

Combined, the latest developments effectively mean Hong Kong insurers will be able to offer third-party insurance for vehicles and drivers covering both jurisdictions in the knowledge that any resulting claims and disputes can be settled more efficiently.<\/p>\n\n\n\n

Cross-boundary traffic<\/strong><\/p>\n\n\n\n

At present, about 80,000 cross-boundary vehicles from Hong Kong, Guangdong and Macao \u2013 including private and hire cars, Hong Kong Port shuttle buses, coaches and goods vehicles \u2013 are eligible to use the HZMB, which has been in use since 2018. For private cars in Hong Kong, a so-called regular quota is generally required before they can travel to Guangdong. The eligibility criteria for a regular quota are laid down by the Guangdong government, such as accumulating a certain amount of tax payment or donations.<\/p>\n\n\n\n

Under the new scheme, Hong Kong residents will be allowed to drive their cars to Guangdong via the HZMB for business, visiting families or sight-seeing on a short-term basis without a quota. Once the scheme is running smoothly, authorities on both sides will seek to expand it to a land boundary control point between Hong Kong and Shenzhen, thereby allowing private cars to travel to both eastern and western Guangdong without a quota.<\/p>\n\n\n\n

The laws of Hong Kong, Macao and the Mainland stipulate that all car owners and\/or drivers must have valid statutory motor insurance cover. Currently, however, the three jurisdictions only accept policies issued by their own insurers, there is no single policy that complies with the legal requirements of all three jurisdictions. Under present arrangements, Hong Kong drivers can secure Mainland and Macao motor insurance \u2013 that is, policies supplied by insurers in those jurisdictions \u2013 through a one-stop service provided by Hong Kong insurers.<\/p>\n\n\n\n

New insurance regime<\/strong><\/p>\n\n\n\n

This will change with the \u201cunilateral recognition\u201d arrangement between Hong Kong and the Mainland under which local insurers will be able to extend their policies to cover third-party liability in the Mainland. The level of premium will be determined by the relevant insurers on their own as in the current one-stop service.<\/p>\n\n\n\n

Other points to note about the quota-free scheme include:<\/p>\n\n\n\n