Hong Kong Regulations

BUILDING MANAGEMENT (THIRD PARTY RISKS INSURANCE) REGULATION - SECT 8

Duty of insurance companies to satisfy judgments in respect of third party risks

not yet in operation

(1) This section applies if, when a policy is in effect, judgment is obtained
against the assured corporation in respect of a liability that—

   (a)  is the prescribed liability; and

   (b)  is covered by the policy, or would be covered by the policy but for
        the fact that the insurance company may avoid or cancel, or has
        avoided or cancelled, the policy.

(2) Subject to section 9, the insurance company that issued the policy shall,
despite the fact that it may avoid or cancel, or has avoided or cancelled, the
policy, pay to the person entitled to the benefit of the judgment any sum
payable under the judgment in respect of the liability, including any amount
payable in respect of costs and any sum payable in respect of interest on that
sum by virtue of any law relating to interest on judgments.

(3) If the amount which an insurance company becomes liable under this section
to pay in respect of the liability of the assured corporation exceeds the
amount for which the insurance company would, apart from this section, be
liable under the policy in respect of that liability, the insurance company is
entitled to recover the excess from the assured corporation.

(4) For the purpose of subsection (1)(b), a liability is regarded as being
covered by a policy if the liability is covered by the policy by virtue of
section 6 but would not otherwise be covered by the policy.