According to the Motor Vehicles Insurance (Third Party Risks) Ordinance, subject to the provisions of this Ordinance it shall not be lawful for any person to use, or to cause or permit any other person to use, a motor vehicle on a road unless there is in force in relation to the user of the vehicle by that person or that other person, as the case may be, such a policy of insurance or such a security in respect of third party risks as complies with the requirements of this Ordinance. This is third party car insurance.
Before you buy
Most motor insurance policies have an excess, which is the initial amount of a claim that you must pay yourself. The amount of the excess may vary depending on the type of vehicle, the age and experience of the drivers, etc. In normal situations, a young (under 25 years old) and inexperienced driver (having a driving licence for less than two years, such as those having a probationary driving license) has to pay for the excess according to the policy terms.
Depreciation affect claim payment
Vehicles are insured based on their market value, which is affected by the car type and age. However, motor policies exclude liability in respect of depreciation, and wear and tear. Claims are approved only after consideration of the age, depreciation and market value of the vehicle.
(Sources: HKIA)
