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Chapter: | 548
 | Title: | MERCHANT SHIPPING (LOCAL VESSELS) ORDINANCE | Gazette Number: | 24 of 2005; L.N. 282 of 2006 |
| Section: | 23F | Heading: | Duty of insurers to satisfy judgment against persons insured in respect of third party risks | Version Date: | 02/01/2007 |
(1) If—
- (a) a policy of insurance has come into operation;
(b) the terms of the policy cover a liability which the policy is required under section 23D(1)(c) to cover (being a liability covered by the terms of the policy); and
(c) judgment in respect of the liability is entered against any person insured by the policy,
(2) A sum payable under subsection (1) shall include—
- (a) any amount payable in respect of costs; and
(b) any amount payable under any law relating to interest on judgments in respect of interest on the sum.
- (a) he may be entitled to avoid or cancel the policy of insurance concerned; or
(b) he may have avoided or cancelled the policy.
(5) An authorized insurer shall be entitled to recover the excess from a person insured by a policy of insurance if the amount of the liability of the authorized insurer under this section exceeds the amount of the liability of the authorized insurer under the policy of insurance.
(6) The Court of First Instance has power to hear and determine a claim against an authorized insurer in respect of his liability under subsection (1) notwithstanding that the authorized insurer is not within the jurisdiction of the Court.
(7) In subsection (1), “liability covered by the terms of the policy” (保險單條款所承保的法律責任) means a liability which—
- (a) is covered by the policy of insurance; or
(b) would be so covered but for the fact that the authorized insurer is entitled to avoid or cancel, or has avoided or cancelled, the policy.
“amount of the liability of the authorized insurer under the policy of insurance” (獲授權保險人根據某保險單須負的法律責任的款額) means the amount for which the authorized insurer would, apart from this section, be liable under the policy of insurance in respect of the liability of the person described in that subsection;
“amount of the liability of the authorized insurer under this section” (獲授權保險人根據本條須負的法律責任的款額) means the amount for which the authorized insurer becomes liable under this section to pay in respect of the liability of the person described in that subsection.
(Added 24 of 2005 s. 9)