Employees
Compensation Assistance (Amendment) Ordinance 2002
The Employees Compensation Assistance (Amendment)
Ordinance 2002 (the Amendment Ordinance) was passed by the Legislative
Council on 26 June 2002. Save for the provisions relating to insurer
insolvency, the Amendment Ordinance came into operation on 1 July
2002.
The Amendment Ordinance seeks to implement a package of measures
to reform the Employees Compensation Assistance Scheme with a view
to restoring its long term financial viability. Major amendments
are:
- To introduce a relief payment in lieu of the assistance on
common law damages;
- To empower the Employees Compensation Assistance Fund Board
(the Board) to take part in the legal proceedings to defend the
claims;
- To revise the procedures for filing applications to the Board,
such as requiring potential applicants to serve a notice of proceedings
to the Board;
- To require an employer who fails to take out employees' compensation
insurance policy to pay a surcharge to the Board; and
- To increase the overall levy rate imposed on the employees'
compensation insurance premium from 5.3% to 6.3% for the benefit
of the Board.
The Amendment Ordinance also includes amendments to repeal the
provisions relating to insurer insolvency. However, these amendments
will not come into operation until and unless a separate scheme
is set up to cater for future insolvency of insurers underwriting
employees' compensation business.
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