From 1 July, Hong Kong private car owners or drivers entering Guangdong under the Northbound Travel for Hong Kong Vehicles Scheme can procure a Unilateral Recognition insurance policy from Hong Kong insurers with coverage extended to include the statutory third-party liability motor insurance for the mainland.
In other words, car owners do not have to purchase separate policies for the two places, making travel between Guangdong and Hong Kong more convenient, says the Insurance Authority (IA) in a statement. Guangdong is the Chinese province immediately across the border from Hong Kong.
To facilitate the introduction of the Scheme, the IA has been coordinating with Hong Kong insurers for the implementation of the Unilateral Recognition policy for cross-boundary motor insurance.
“The Unilateral Recognition policy does not only facilitate cross-boundary travelling of Hong Kong residents to and from Guangdong, fostering the flow of people within the Greater Bay Area, but it is also a breakthrough for the Hong Kong insurance industry in introducing cross-boundary insurance products for Guangdong and Hong Kong. It will help promote the development of the industry in the long run by bringing more diversified insurance products and services with broader coverage to the market, thereby further enhancing the social value of insurance,” said Mr Simon Lam, executive director of General Business at the IA.
Under the IA’s proactive coordination, 16 Hong Kong insurers are ready to launch Unilateral Recognition products, providing car owners with more convenient and comprehensive insurance services. Car owners or drivers may also continue to procure mainland and/or Macau statutory motor insurance provided by mainland and/or Macau insurers through Hong Kong insurers’ one-stop service arrangement.
Cross-boundary vehicular movement
To work towards the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area and strengthen connectivity between the mainland and Hong Kong, the governments of Guangdong Province and Hong Kong announced the launch of the Scheme which allows eligible Hong Kong private cars to travel between Hong Kong and Guangdong via the Hong Kong-Zhuhai-Macau Bridge (HZMB) without obtaining regular quotas in advance.
The HZMB is a cross-boundary connection between Hong Kong, the mainland and Macau. Hong Kong vehicles crossing the HZMB are required to comply with the laws of all three jurisdictions. The laws of all three places stipulate that all car owners and/or drivers are required to have valid statutory motor insurance coverage. The three jurisdictions have different requirements. In Hong Kong, the statutory amount required to cover liability arising from one event is HK$100m ($12.7m). In the mainland, the statutory amount is CNY200,000 ($29,000) per event. In Macau, the statutory amount required varies depending on the type of vehicle; for instance, the amount required for private light motor vehicles is MOP1.5m ($186,000) per event, with a maximum accumulated annual limit of MOP30m.
While the laws require all cross-boundary vehicles to procure statutory motor insurance covering Guangdong and Hong Kong, under the Unilateral Recognition policy, Hong Kong car owners or drivers only need to procure a Hong Kong statutory motor insurance policy compliant with the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap 272) and its coverage can be extended to include the Mainland Compulsory Traffic Accident Liability Insurance for Motor Vehicles. Policyholders may further extend the coverage to include the Mainland Commercial Insurance for Motor Vehicles for more comprehensive protection.
