Hong Kong Regulations

BUILDING MANAGEMENT (THIRD PARTY RISKS INSURANCE) REGULATION - SECT 9

Exceptions to section 8

not yet in operation

(1) An insurance company is not required to pay any sum under section 8 in
respect of a judgment unless before, or within 7 days after, the commencement
of the proceedings in which the judgment was given, the insurance company had
notice of the bringing of the proceedings.

(2) An insurance company is not required to pay any sum under section 8 in
respect of a judgment so long as execution on the judgment is stayed pending
an appeal.

(3) An insurance company is not required to pay any sum under section 8 in
connection with any liability if, before the happening of the event that was
the cause of the death or bodily injury giving rise to the liability, the
policy was cancelled by mutual consent or by virtue of any provision contained
in it.

(4) An insurance company is not required to pay any sum under section 8 in
respect of any amount by which a sum adjudged to be payable under a judgment
exceeds—

   (a)  the amount covered by the policy; or

   (b)  if any amount is paid, or due and payable, by the insurance company
        under the policy (otherwise than by virtue of the judgment) in respect
        of the same event, the amount covered by the policy less the amount so
        paid or so due and payable.

(5) Subject to subsection (6), an insurance company is not required to pay any
sum under section 8 in respect of a judgment if, in an action commenced
before, or within 3 months after, the commencement of the proceedings in which
the judgment was given, the insurance company has obtained a declaration—

   (a)  that, apart from any provision contained in the policy, the insurance
        company is entitled to avoid the policy on the ground that the policy
        was obtained—

        (i)    by the non-disclosure of a material fact; or

        (ii)   by a representation of fact which was false in some material
               particulars; or

   (b)  if the insurance company has avoided the policy on that ground, that
        the insurance company was entitled so to do apart from any provision
        contained in the policy.

(6) An insurance company that has obtained a declaration mentioned in
subsection (5) in an action does not by reason of that become entitled to the
benefit of that subsection as respects any judgment obtained in proceedings
commenced before the commencement of that action unless before, or within 7
days after, the commencement of that action the insurance company has given
notice of the action to the plaintiff in those proceedings specifying the
non-disclosure or false representation on which the insurance company proposes
to rely. Any person to whom notice of such an action is so given is entitled,
if he thinks fit, to be made a party to it.

(7) In this section, “material” (具關鍵性) means of such a nature as
to influence the judgment of a prudent insurance company in determining
whether it will take the risk, and if so, at what premium and on what
conditions. “material” (具關鍵性)