Friday, March 23, 2018

Hong Kong lawmakers to tackle policyholder protection bill

A legislative procedure providing coverage for insurance policyholders in the event that their insurance provider goes bankrupt has begun in Hong Kong.

Under the proposed legislative measure, the government wants policyholders to have protection coverage of up to HK$1 million (US$130,000) in case their insurer collapses.

However, lawmakers have questioned whether the proposal will provide enough protection for the more than 10 million policyholders in the city.

If the measure is passed, all insurers in Hong Kong will be mandated to pay 0.07% of their income from premiums for all policies to set up two compensation funds.


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