January 2012 Issue No. 186
New Member
On behalf of the HKFI, I extend our warmest welcome to Allianz Global Corporate & Specialty AG for joining us as a General Insurance Member and Hong Kong Life Insurance Limited as a Life Insurance Member.
Disclosure of Intermediaries’ Remuneration
In view of the recent court rulings on commission disclosure, the Task Force on the above subject has been re-activated to review the need to refine the legal advice provided to Member Companies in October 2011. The Task Force will also explore the possibility of devising a simplified version of the Broker’s Declaration in the context of the Prevention and Bribery Ordinance and protect the legal position of insurers. We will keep Member Companies posted on the progress.
Employees’ Compensation Insurance (ECI) The General Insurance Council and the Employees’ Compensation Insurance Residual Scheme (ECIRS) Bureau have been actively assisting those employers in the logistic, cleaning and recycling industries who have difficulties in procuring ECI. In the past two months, we have met with 10 representative bodies from these industries and offered them advice and prompt assistance. Among other things, these industries have been encouraged to strengthen their work place safety to reduce the accident rate. With less workers’ injuries and improved claims records, they should have no difficulties finding insurance cover in the market.
Guidance Note on Gifts, Promotions and Incentives for Class A and Class C Products
Following months of consultation with the Insurance Authority, the above Guidance Note has been finalized and will come into effect on 1 April 2012 (Circular Ref: Mv003/12). To avoid distracting customers’ attention from the nature and risks associated with insurance investment products, the Guidance Note prohibits the offering of any gift (other than a discount of fees or charges) when promoting a specific insurance investment product to a policyholder or prospective policyholder. At the same time, it clarifies the position with regard to Member Companies offering incentives or inducements to insurance brokers for selling such products.
Multidisciplinary Orthopaedics Rehabilitation Empowerment (MORE) Programme The MORE Programme was first launched in September 2010 as an alternative to the existing occupational rehabilitation system to facilitate early recovery of injured workers. The General Insurance Council has decided to increase its sponsorship to expand the sample size of the Programme. Member Companies who have Employees’ Compensation claims, of which the injured workers meet the specified criteria, are encouraged to refer such cases to the Programme (Circular Ref: Mv006/12). For enquiries, please contact the Occupational Orthopaedics & Rehabilitation Program of the Chinese University of Hong Kong’s Department of Orthopaedics and Traumatology at more@ort.cuhk.edu.hk.