Hong Kong Ordinances

MERCHANT SHIPPING (LOCAL VESSELS) ORDINANCE - SECT 23F

Duty of insurers to satisfy judgment against persons insured in respect of third party risks

(1) If—

   (a)  a policy of insurance has come into operation;

   (b)  the terms of the policy cover a liability which the policy is required
        under section 23D(1)(c) to cover (being a liability covered by the
        terms of the policy); and

   (c)  judgment in respect of the liability is entered against any person
        insured by the policy, the authorized insurer shall pay to the persons
        entitled to the benefit of the judgment any sum payable under the
        judgment in respect of the liability.

(2) A sum payable under subsection (1) shall include—

   (a)  any amount payable in respect of costs; and

   (b)  any amount payable under any law relating to interest on judgments in
        respect of interest on the sum.

(3) Subject to subsection (4), an authorized insurer shall make payment under
subsection (1) notwithstanding that—

   (a)  he may be entitled to avoid or cancel the policy of insurance
        concerned; or

   (b)  he may have avoided or cancelled the policy.

(4) The amount required to be paid by an authorized insurer under subsection
(1) shall not exceed the amount specified by the Director in respect of the
policy of insurance under any regulation made under section  89 .

(5) An authorized insurer shall be entitled to recover the excess from a
person insured by a policy of insurance if the amount of the liability of the
authorized insurer under this section exceeds the amount of the liability of
the authorized insurer under the policy of insurance.

(6) The Court of First Instance has power to hear and determine a claim
against an authorized insurer in respect of his liability under subsection (1)
notwithstanding that the authorized insurer is not within the jurisdiction of
the Court.

(7) In subsection (1), “liability covered by the terms of the policy”
(保險單條款所承保的法律責任) means a liability which—

   (a)  is covered by the policy of insurance; or

   (b)  would be so covered but for the fact that the authorized  insurer is
        entitled to avoid or cancel, or has avoided or cancelled, the policy.

(8) In subsection (5)— “amount of the liability of the authorized insurer
under the policy of insurance”
(獲授權保險人根據某保險單須負的法律責任的款額) means the
amount for which the authorized insurer would, apart from this section, be
liable under the policy of insurance in respect of the liability of the person
described in that subsection; “amount of the liability of the
authorized insurer under this section” (獲授權
保險人根據本條須負的法律責任的款額) means the amount for
which the authorized insurer becomes liable under this section to pay in
respect of the liability of the person described in that subsection. (Part VA
added 24 of 2005 s. 9) “liability covered by the terms of the policy”
(保險單條款所承保的法律責任) “amount of the liability of the
authorized insurer under the policy of insurance”
(獲授權保險人根據某保險單須負的法律責任的款額) “amount
of the liability of the authorized insurer under this section” (獲授權
保險人根據本條須負的法律責任的款額)