The Insurance Authority (IA) of Hong Kong has issued an update on the employees’ compensation policies from Target Insurance.
The High Court ordered the winding up of Target Insurance on September 26, 2022, under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32). Deloitte Touche Tohmatsu’s Derek Lai and Forrest Kam were appointed as the joint and several liquidators for the process.
As per a news release, following a winding-up petition filed on July 15, 2022, the Employees Compensation Insurer Insolvency Bureau (ECIIB) initiated its insolvency fund scheme to assume all liabilities under employees’ compensation (EC) policies previously issued by Target. This scheme is set to remain in effect until January 1, 2024.
Concurrently, the liquidators are working on transferring 31 active policies to the Hong Kong Branch of Swiss Re International SE, pending approval from the IA. This transfer is not expected to impact the processing of claims or potential claims, while the Motor Insurers’ Bureau of Hong Kong will continue to manage all third-party liability claims under motor policies issued by Target.
In light of these developments, parties with claims or accidents potentially leading to claims on the insolvency fund scheme occurring before January 1, 2024 are urged to submit written notices to the ECIIB via registered post or through Target for forwarding to the ECIIB by January 30, 2024. Subsequent to this date, claims can still be directed to Target in line with the respective policy terms and conditions, where they will be processed by the liquidators.
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