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Third-party insurance policies held by owners' corporations might not meet the legal requirements of the new Third Party Risks Insurance Regulation, even if  the insured amount exceeds that required by the regulation.
That's because some insurers will not issue a required notice unless the owners' corporations take out additional insurance.
The new Building Management (Third Party Risks Insurance) Regulation, which goes into effect tomorrow, requires owners' corporations to buy third-party insurance to cover liabilities of at least HK$10 million for injury or death. 
A notice from the insurer should be displayed in a public area of the property to certify the insurance. Corporations that do not meet the requirements  may be fined HK$50,000. 
But most insurance bought by these corporations covers property liability or a mix of property and injury liabilities.
Many insurers have told clients that their current policies fall short of the new regulation's requirements and that they need to buy extra insurance to cover injury - even if their insured amount exceeds HK$10 million - in order to receive the notice.
Kwan Yick Building Phase One is one example. Its owners' corporation was told by its insurer to buy additional injury liability insurance - even though it already has  more than HK$50 million worth of third-party  insurance for both property and injury liabilities. 
'This is unfair,' Wong Chi-lap, the building's housing manager, said. 'The company was not willing to issue a notice, even  though our previous insurance already covers the liabilities specified by the regulation.' 
The insurer finally issued a notice on the existing policy after lawmaker Ip Kwok-him  intervened. 
The Home Affairs Department has raised  concerns about the situation and  contacted the Federation of Insurers. The federation said it set out guidelines on December 9. But Yeung Hok-ming, of the Democratic Alliance for the Betterment and Progress of Hong Kong, said the guidelines are ineffective.



Owners' corporations told policies fall short