Production and Enlightenment of Hongkong auto insurance agency
                          [Author: time: 2005-9-1 10:52:40]

                  Yuan Jianhua    (Guangdong University of Finance Department of insuranceGuangdongGuangzhou510521.
                  
 Keywords: traffic accident; motor insurers Bureau of Hongkong; Hongkong automobile insurance fund; the enlightenment to our country
 Abstract: the current status of similar vehicles in China and Hongkong in 80 cases, traffic accident phenomenon arising therefrom is similar, the government of Hongkong in the 80's began to solve this problem, and obtained a good effect. This paper starts from the historical background of the insurance bureau of Hongkong, the Hongkong automobile insurance agency establishment, source of funds, the compensation of the victims, problem analysis, and explore it to the insurance industry in our country some enlightenment.
                  
 First, the background
                  
  In 1951, the Hongkong government promulgated the "Regulations" motor vehicle insurance (third party risks), requirements of motor vehicles caused third casualties insurance used on roads in Hongkong. 70 years later -80, the rapid increase of motor vehicles in Hongkong, road traffic accidents has been increasing. But, because of some motor vehicle did not buy insurance, motor vehicle or driver escapes, the policy holder or the driver to violate the insurance terms, so the insurance company does not assume liability to pay compensation, the victim can not get compensation, therefore, the victim's legitimate rights and interests are not guaranteed. This policy does not solve the problem of the victim compensation.
 In 1978, Hongkong Insurance Association to start building similar to the Commonwealth countries and regions auto insurance agency. And to make recommendations to the government, and discussed. By 1979, the relevant principles and issues have been agreed to, preliminary planning form.
 In June 27, 1980, auto insurance and Hongkong government signed the "agreement", automobile insurer agreed to establish the Hongkong Automobile Insurance Bureau within 6 months (Motor Insurer 's Bureau of Hong Kong, referred to as "M.I.B").
 In December 10, 1980, Hongkong automobile insurance agency approved by the government to set up the registration, is limited, a not-for-profit in accordance with the provisions of the law, all approved, in the auto business Hongkong insurance company and Lloyd's underwriters must become the Hongkong Car Insurance Bureau member.
 Hongkong Automobile Insurance Bureau affairs by the insurance bureau committee of Hongkong vehicle management, the committee is composed of 7-11, elected from the registered member representatives. The committee meets regularly to discuss all matters, Hongkong auto insurance agency.
 Two, Hongkong automobile insurance fund
 Hongkong automobile insurance bureau and the government signed a total of several important agreements, established the corresponding funds, the establishment of automobile insurance compensation fund to ensure the.
 1 "in February 1, 1981 the first fund agreement". The terms of the agreement, if use a car accident on the road, in a ruling within 28 days did not address the issue of compensation, by the Hongkong automobile insurance bureau is responsible for claims settlement causing bodily injury or death. The agreement also provides for the insurer insolvency, which sentenced failed to solve, do not assume responsibility Hongkong auto insurance agency.
 The first fund is through the imposition of automobile insurance premium 1% gradually built up. From 1986 to 1994, the collection ratio to 0.5%, from the beginning of 1995, back to 1%. However, in January 1, 2001, levy suspension.
 Hongkong automobile insurance bureau and approved auto insurance signed "February 1, 1981 automobile insurance internal agreement", according to the agreement, the automobile insurance people volunteered to join the Hongkong automobile insurance bureau, to pay the funds in accordance with the Hongkong automobile insurance agency requirements. Automobile insurance also agree to abide by the "insurance people care principle", namely although drivers sometimes violates the policy terms, meet physical injury or death, the automobile insurance with their own funds for compensation. At the same time, government regulations, one of the conditions for the Motors Insurance Corporation must become Hongkong automobile insurance bureau member, must be bound by the agreement.
 "The first fund agreement" was amended in June 24, 2002. The word "government" means the government of the Hongkong special administrative region. Under the agreement, Hongkong Automobile Insurance Bureau has passed its first fund planning, and began to operate.
 In November 1, 1985 2 "Insolvency Fund Agreement". In 1983 the "Regulations" before the entry into force of the insurance company, relatively speaking, Hongkong insurance regulatory function is single, the policy holder or the insured has not obtained the very good protection. Then this issue will be submitted to the government, asking the government to take action, the government through the "Insurance Companies Ordinance" in 1983, the adoption of the regulations to the insurer aggravated more responsibilities, must be in accordance with the regulations properly engaged in the insurance business. Soon, 5 auto insurer by clearing. After the liquidation process, the traffic accident victims claim can not receive compensation from the companies, the government has to provide funds to deal with these claims. When the government bankruptcy, Hongkong automobile insurance bureau insists, the victim should not suffer due to the inability of judgment pain, recommended the establishment of a bankrupt insurance payment is unable to perform the second fund. Hongkong automobile insurance bureau started to build the insolvency fund, in November 1, 1985, signed the "agreement" with the government failed funds, this Agreement shall, from the date of signing this day, Hongkong automobile insurance bureau shall be responsible for the payment of compensation issues left over from a bankrupt insurer.
 Insolvency fund by 2.5% levy car insurance gradually build up. Since the first fund planning can not pay the corresponding responsibility, for example, the insurer insolvency, unable to pay the compensation liability policy provisions. The government and the Hongkong Automobile Insurance Bureau agreed to set up second funds "no solvency fund", Hongkong auto insurance agency established by the insolvency fund scheme by assets constitute, independently of other funds. Hongkong automobile insurance bureau since the date of signing the agreement, trust fund for 80 years. Responsible for fund management by the Insurance Council of Hongkong automobile, or authorization to the investment manager investment.
 If the insurer insolvency, eventually cannot pay claims, Hongkong Automobile Insurance Bureau under the terms of the agreement, payment claim compensation from the insolvency fund. Insolvency fund project and the first independent fund plan.
 In the "common law" in the UK, death or bodily injury victims can sue those who do evil, in theory, have infinite compensation requirements. For many years, Hongkong auto insurance is third party risk provides unlimited guarantee. Thanks to the reinsurance industry to the insurer provides unlimited reinsurance protection, by 1994, the reinsurer feel, infinite reinsurance can not continue, then inform the insurer, that infinite reinsurance will be discontinued in 1995. This makes the Hongkong law reform is necessary, allow the auto insurance policy is third party risk limit. Discussions between the government, the insurer and the reinsurer, finally agreed, beginning in the mid 1995, "auto insurance (third party risks) Ordinance" will be adjusted, allow the auto insurance policy for each event of third party risks provide HK $100000000 of risk protection.
 If the decision is to exceed the limit of the insurance policy, Hongkong automobile insurance bureau, in favor of the party, taking on new responsibilities as "the last supporter" of the insurer, to ensure that the victim should not suffer because of unfulfilled sentence pain, therefore, Hongkong automobile insurance bureau and the government signed the "Hongkong June 29, 1995 Automobile Insurance Bureau commitment", if the debtor is unable to pay more than the judgment without insurance part of the decision to limit policy, Hongkong Automobile Insurance Bureau will be paid.
 3To deal with terrorist acts fund. In accordance with the government's request, agreed to Hongkong Auto Insurance Bureau, from January 1, 2002 onwards, from the first fund plan, the cumulative contribution of 200000000 Hong Kong dollars money, death or bodily injury to deal with terrorists use cars on roads in Hongkong killed third people. This fund on the basis of "first come, first served" principle (notice of court) to provide security. If the terrorists used motor vehicle manufacturing terrorist incidents, resulting in the loss of the amount of third casualties of more than HK $200000000, Hongkong Automobile Insurance Bureau will not be more than part. If the acts of terror resulting in death or bodily injury, can receive compensation from insurance decision, Hongkong Automobile Insurance Bureau will give up this right, also is not responsible for any compensation funds.
 Hongkong automobile insurance bureau since 1990, announced management and compensation fund every year, making the annual financial statements, accept the supervision of the relevant departments.
 Three, the right to claim the traffic accident victims and get help
 (a) right: in accordance with the provisions of Hongkong automobile insurance bureau, the traffic accident victims have the following rights.
   1. anyone if a traffic accident on the road for the driver negligence resulting in bodily injury, have the right to claim compensation.
  2. if in the same circumstances, the victim died of their injuries, their family members have the right to claim compensation. The victim should claim compensation from the owner and driver. Usually claim the insurance company insured by examination and treatment vehicle. You may also apply for compensation directly to the car insurance company. Insurance company name usually query from the police or the Hongkong Department of transportation.
 3 the applicant has the responsibility to the owners, the driver or vehicle insurance companies try to obtain compensation.
 (two) is obtained with the help of the following: traffic accident victim can get help with Hongkong auto insurance agency.
 1. if the applicant for the vehicle insurance is not purchased, or can not find not find the vehicle, or insurance company bankrupt encounter difficulties in the claim, the Hongkong automobile insurance agency can assist the applicant to obtain compensation.
 2In the absence of insurance case, the court ruled that the owner or driver shall pay the amount of compensation will be paid for by the bureau. If the vehicle is untraceable, the bureau is right back to the applicant of the method of compensation. The Bureau will accept any insurance company bankrupt liability for claims unsettled. But the bureau does not accept liability for any claims relating to property damage.
 3. the applicant if the claim is difficult, can be written notice to the board. The applicant should submit a written notice at least seven days before the start of any may be involved in the Department's legal action.
 4. traffic accident victims in preparation for claims, or before accepting any settlement or legal aid lawyers to seek professional advice.
 5 on the basis of "automobile insurance (third party risks) Ordinance", if any use by car on the road to bodily injury or death, and by the Hongkong court first trial (if the compensation is a case on appeal, the court of appeal or the court of final judgment through compensation), and the loss or partial loss after the effective date of this judgment 28 days, for whatever reason, still failed to pay them (because the insurer insolvency caused failure except insurance), the Bureau will be in accordance with the government's agreement, the relevant legal responsibility, pay all the remaining sum to the judge or the claimant.
 6 This Agreement does not affect by the use of cars cause loss and the legal status of the parties. The Bureau in the plaintiff through legal procedures, to the success of the defendant or considered responsible for the accident of the right of recourse, and determine the compensation agreement, will assume the responsibility. Of course, the complainant may also accept the Bureau and the defendant and counsel upon mutual agreement of the parties concerned and compensation.
 Item four, the victim in the claim attention
 1Insurance is purchased. If the car has definitely according to the car insurance (third party risks) regulations required to buy insurance, so even if the insurer to the insured violated the policy terms, or insurance policy with improper method, or the insured is not given sufficient notice refuse compensation on the ground of liability accident, the victim is not need to take any action to inform the Bureau, in order to ensure itself will benefit in the implementation of the plan. To avoid misunderstanding, the Bureau stressed, we implement the plan will never affect the insurance policy holders in the insurance policy must be the responsibility of the prescribed. Although the Department implement the plan can ensure some victims of third, so they do not cause people not responsible and not get compensation, but not from the policy holder and insurer of contract liability. For example, notify the insurer in a holder of an insurance policy if it is not in accordance with the provisions of the insurance policy in the accident occurred after a specified period of time, even if the victim in this plan right is not affected, but may lead to the policy holder is responsible for its insurance.

 2. did not buy insurance situation. If the car did not buy insurance, or due to any other reason, have cast doubt on whether to buy insurance, victims and their representatives must notify the board on all claims. If you want to apply for compensation to the Bureau, the Bureau in the applicant must inform the subpoenas on accident responsibility person before. In fact, if not quickly confirm who is the insurer, also should notice to the bureau.

 3If it relates to claims the car is the government of the Hongkong Special Administrative Region have, or belong to the 'auto insurance (third party risks') Ordinance exempted range to be insured, in most cases, according to the government agreement, the Council shall not bear any legal responsibility. In this case, the persons concerned shall direct contact with the responsible institution or person.
 4. failed to seize driver. If the motor vehicle causes traffic accident of the owner or the driver has not pursued, although the Council will not be responsible for any damages, however, the administration has not ruled out will accept such cases may. When the bureau must seriously injured in the accident, or serious and permanent disability, or dead people are victims of negligence when driving, and the owners and drivers of vehicles and failed to find, the Bureau will exercise discretion, based on sympathy, consider accommodation to pensions to the victims. To apply for accommodation grant gratuity given to the victim's application, if once to find the owners and drivers of vehicles, will be the court in accordance with the automobile insurance (third party risks) regulations, decisions of the accident victims for compensation. The administration of the fund has been paid by the driver or owner shall bear part or all of the compensation, should recover from the driver or owner.
 Five, on China's insurance industry in China
 According to statistics, from 1994 to 2003 10 years, China's private car gross grows 6 times, in 2003 the national civil motor vehicles had about 24000000 vehicles, including private car retains measure 12000000, the total amount of 50%.
 However, due to the sharp increase in motor vehicles, traffic accidents occur frequently. According to statistics, in 2002, our country road traffic accidents occurred more than 77, resulting in 109381 deaths, 85916 of them are illegal driver killed, in addition to more than 56 people were injured, the direct economic loss of over 3300000000 yuan. In contrast, the death toll in 2002 America due to road traffic accidents caused by about 40000 people, about 10000 people in Japan, therefore, our country road traffic accident is 2.5 times America, 10 times that of japan. Many innocent people caused by road traffic accident lifelong disability, and even death, to the victims and their families caused a lifetime of pain, so difficult to maintain the livelihood of families.
 For the compensation of victims in China to solve the problem of road traffic accidents, according to the analysis of the use of Hongkong automobile insurance bureau and fund, we get the following revelation:
 1 to establish the authority of China's automobile insurance. Administration personnel should work in the insurance company for many years, has extensive experience in insurance professionals, such as claims for many years engaged in professional talents, or the fund management and investment professionals etc..
 2 the establishment of Automobile Insurance Management Bureau member system.

 3 Establishment of automobile insurance compensation fund. With the support of the government, signed by the automobile insurance management bureau and the property insurance company agreement, all property insurance company every year from pre tax insurance income according to the provisions of the agreement, payment of funds to the automobile insurance management bureau.
   4 auto compensation fund management. In order to enable the fund to maintain value, should set up a automobile insurance compensation fund management committee, the management by the committee, and the operation of the market by funds, the hedge, value-added, so there is enough money to ensure the victim's rights. The committee published annual fund financial statements, to be published on compensation, investment returns, accept the supervision of the public opinion.
 (the original "insurance" 2005-08 period)
 1. Yuan Jianhua, Liu Xiaobin, China's Fund for motor vehicle insurance mode of modern finance, [J]., 2005.5
 2 Handbook of Motor Insurer 's Bureau, HK, 2001
  Author brief introduction:
 Yuan Jianhua, male, master, associate professor at the Guangdong University of Finance Department of insurance, teaching and research mainly engaged in insurance theory and practice.