The Hong Kong Insurance Authority (IA) has issued an update on the workers’ compensation policies of Target Insurance.
The High Court ordered the winding up of Target Insurance on 26 September 2022 under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32). Derek Lai and Forrest Kam of Deloitte Touche Tohmatsu have been appointed as joint and several liquidators for the process.
According to a news release, following the winding-up petition filed on 15 July 2022, the Employees Compensation Insurer Insolvency Bureau (ECIIB) initiated an insolvency fund scheme to assume all liabilities under employees compensation (EC) policies previously issued by Target. This scheme will remain in force until 1 January 2024.
In parallel, the liquidators are working to transfer 31 active policies to the Hong Kong branch of Swiss Re International SE, subject to the approval of the IA. This transfer is not expected to affect the settlement of claims or potential claims, while the Motor Insurers’ Bureau of Hong Kong will continue to administer all third party liability claims under the motor policies issued by Target.
In light of these developments, parties with claims or accidents that may give rise to claims against the insolvency fund scheme prior to 1 January 2024 are urged to submit written notices to the ECIIB by registered mail or through Target for forwarding to the ECIIB by 30 January 2024. After this date, claims may still be submitted to Target in accordance with the terms and conditions of the relevant policy, where they will be processed by the liquidators.
Recently, the IA also issued a warning about a fraudulent website falsely claiming to be “Weifang Rural Commercial Bank Co. Ltd” and falsely claims to be involved in insurance activities.
