Hong Kong Ordinances

EMPLOYEES' COMPENSATION ORDINANCE - SECT 43

Conditions under which liability for payment by insurer arises

(1) Subject to this section, where in relation to an employee there is in
force a policy of insurance issued for the purposes of this Part and the
employer of the employee becomes liable to pay any sum under this Ordinance or
independently of this Ordinance in respect of an injury to the employee
arising out of and in the course of his employment, such sum shall forthwith
become due and payable by the insurer, including any sum payable in respect of
interest and costs, notwithstanding anything to the contrary in the policy of
insurance. (Amended 66 of 1993 s. 13)

(2) No sum shall be payable by an insurer under this section-

   (a)  unless, in the case of compensation agreed upon between the employer
        and an employee under section 16CA, such insurer has consented to pay
        the sum agreed upon as compensation to the employee; (Amended 66 of
        1993 s. 13)

   (b)  unless, in the case of compensation or damages determined or adjudged
        by a court or tribunal to be payable to the employee or any other
        person, the insurer had sufficient notice of the institution in the
        court or tribunal of proceedings for compensation or damages, as the
        case may be, to enable such insurer to be added as a party to the
        proceedings;

   (c)  in respect of any judgment to pay compensation or damages, while
        execution thereon is stayed by the court or pending appeal; (Amended
        47 of 1995 s. 8)

   (d)  if before the happening of the accident which was the cause of the
        injury giving rise to the liability, the policy of insurance was
        cancelled by mutual consent or by virtue of any provision contained
        therein; or (Amended 47 of 1995 s. 8)

   (e)  in respect of the sum liable to be paid under subsection (1) in excess
        of the available amount covered by the policy of insurance. (Added 47
        of 1995 s. 8)

(2A)-(2B) (Repealed 36 of 1996 s. 22)

(3) If sufficient notice of the institution of proceedings for the recovery of
compensation or damages is given to an insurer to enable such insurer to apply
to be added as a party to the proceedings, the court or tribunal, as the case
may be, shall, on such application being made, add the insurer as a party and
the insurer shall have the same right to defend the proceedings as if such
insurer were the employer.

(4) Where under this Part an amount is paid by the insurer which would, but
for this section, not be payable under the policy of insurance, the employer
is liable to pay that amount to the insurer. (Replaced 66 of 1993 s. 13)