In its first edition, this handbook will be an essential resource for anyone seeking to gain a key understanding of laws governing insurance in Hong Kong. This handbook presents the text of the Insurance Ordinance (Cap 41), together with all relevant subsidiary legislation. It contains amendment notes, carefully researched case authorities, expert commentary, key definitions, and other authoritative material presented in a concise and succinct style.
On 23 September 2019, the independent Insurance Authority (“IA”) was established, which has significantly transformed the insurance industry regulatory infrastructure in Hong Kong. Financially and operationally independent, the IA is vested with licensing, supervision and disciplinary powers over insurers and insurance intermediaries, and its formation can be considered the most considerable reform initiative in the insurance industry. With these developments in mind, this Handbook reproduces the text of the Insurance Ordinance (Cap 41) and all relevant subsidiary legislation as currently in force, together with a concise and straightforward introduction to the principles and current developments of insurance law in Hong Kong. Section-by-section annotations encompass significant judicial decisions, as well as notes ranging from definitions of words and phrases to discussion on practical aspects and contentious issues. In addition, cross-references are made to subsidiary legislation and to tables and forms where necessary. This Handbook will be an essential companion for lawyers, businesspersons, in-house counsel, academics and all those who are engaged with or interested in insurance law in Hong Kong.
The new edition of the Handbook includes updated commentary across a wide variety of topics including:
- Principles stated in Swiss Reinsurance Company Limited [2019] HKCFI 2850, 17, which reiterates the legal framework governing sanction under section 24 of the Insurance Ordinance (Cap. 41)
- The historical background and various stages of legislative development leading to the enactment of the Insurance Companies (Amendment) Ordinance 2015 on 10 July 2015, and the implementation of all parts of it on 23 September 2019
- The amendments to Part X and the new Part XI of the Insurance Ordinance which took effect from 23 September 2019, which provide the legislative framework for the regulation of insurance intermediaries in Hong Kong
- The amendments to Part II to Part VII of the IO which took effect from 26 June 2017 when the Insurance Authority took over the work of the Office of the Commissioner of Insurance (OCI), including the regulation of insurance companies in Hong Kong.
- Clarification of the law of agency under Section 68 of the IO. This is to be aligned with the common law position in Thanakham Kasikorn Thai Chamakat v Akai Holdings Ltd (2010 13 HKCFAR 479), that an insurer would not have to be responsible for the acts of its appointed insurance agent if the relevant policy holder knows that the insurance agent’s acts are outside the latter’s authority
- Functions of the Insurance Authority: Under the 2015 Amendment Ordinance, the IA is expected to work with the insurance industry and promote healthy practices among practitioners, as well as educate the public on insurance products and the nature of insurance.
- Powers of the Insurance Authority: The IA is vested with appropriate powers of inspection, investigation and imposing disciplinary sanctions including reprimand, fines, suspension or revocation of licence of insurance intermediaries or authorization of insurers.