Motor Insurance - Third Party

In Hong Kong, it is compulsory to have Third Party Liability insurance in case we injure someone. In addition, insurers provide liability cover for third party property damage. By legislation, the total cover for personal injury is HKD100m and by practice, the maximum property damage cover is HKD2m (This property damage limit can sometimes be increased by negotiation). There is NO personal cover for you in an accident if you are the driver. There is cover for your passengers, bystanders and those in another vehicle, but there is no cover for your medical bills or rehabilitation costs, in the event that your negligence is the cause of the accident. When it comes to being given a No Claim Discount or Bonus in Hong Kong, few insurers will agree to this if you have not owned a car in the past year. If you have owned a car in the past year, or still own a car but keep it abroad to use like a rental vehicle, the insurer will likely agree to reduce your premium – IF you can provide a letter from the previous/current insurer, showing how many years in the past 5 you have been claim free. The discount rules are: 5 years claim free – 60% off 4 years claim free – 50% off 3 years claim free – 40% off 2 years claim free – 30% off 1 year  claim free – 20% off It is possible for you to transfer your 'no claim entitlement' to your spouse or your company, or vice versa. As soon as you inform an insurer of a claim or a likely claim, the market practice is to remove your No Claim Bonus entitlement and only to return this to you after there has finally been a court case to determine who was at fault. Do note: The excesses accumulate. So say you leave your car to a young restaurant attendant to park. If he/she has an accident, say hitting a post in the parking area, you will find the insurer will add:     - Young (under 25) Excess     - Inexperienced (under 2 years) Excess and     - Third Party Property Damage Excess if damage is done to the post