2 insurance agencies close down

PUBLISHED : Tuesday, 28 March, 2006, 12:00am
UPDATED : Tuesday, 28 March, 2006, 12:00am

Two general insurance agencies, which were middlemen for home and maids' insurance, have ceased operation, according to the Hong Kong Federation of Insurers.

The federation said Aegis Underwriters and Hong Kong Professional Insurance Services Company were reported to have stopped operation and affected policy holders would be notified.

'Insurers have pledged to honour all contracts duly paid and issued and will communicate with individual policyholders as appropriate,' it said in a statement.

A spokeswoman for the federation said the two agencies acted only as middlemen between policyholders and insurers.

'No policyholder will suffer any loss as all insurers pledged to take out the affected insurance policies,' she said.

She did not reveal the number and amount of policies involved but stressed: 'The money involved is very small and the polices involved were only insurances on homes and maids.

'Each case only involves a few hundreds dollars and all policyholders concerned will be contacted over the incident.'

The situation has been reported to police for investigation of potential fraud.

In the meantime, the two companies have been taken off the register of insurance agents, the federation noted.

The closures have been brought to the attention of the Insurance Authority.