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Block Insurance Policy for Public Liability, Employees’ Compensation and Group Personal Accident 1999/2000, 2000/2001 and 2001/2002 School Years
Ref. : ED(SCH)I/10/88 EDUCATION DEPARTMENT
HONG KONG 25 August 1999 ADMINISTRATION CIRCULAR NO. 36/99
Block Insurance Policy for
Public Liability, Employees’ Compensation and Group Personal Accident 1999/2000, 2000/2001 and 2001/2002 School Years
[Note: This circular should be read by
-i) Supervisors/Heads of all aided schools (including special / skills opportunity / practical schools) and caput schools -- for necessary action
ii) Heads of Sections -- for information]
This is to inform you that the Ming An Insurance Co (HK) Ltd is again the successful tenderer for the Block Insurance Policy for the 1999/2000, 2000/2001 and 2001/2002 school years with effect from 1 September 1999 upon the expiry of the current contract for the 1997/98 and 1998/99 school years on the same date.
2. The 36-month Block Insurance Policy, arranged by the Education Department on your behalf with the assistance of the insurance consultant, HSBC Insurance Brokers (Asia-Pacific) Limited, will cover public liability, employees’ compensation and group personal accident risks with the following limits:
Class of Insurance Limit of Indemnity Public Liability HKD100Million any one occurrence
Employees’ Compensation HKD100Million per insured
school for each and every event
Group Personal Accident HKD100,000 each student
3. A brief description on the coverage is given in the Insurance Specifications at Appendix I (English version only). A copy of the Policy will be sent to schools once available. The Explanatory Notes on the spirit of the Block Insurance Policy are updated and supplemented with some common questions and answers at Appendix II.
4. In accordance with the policy conditions, on the happening of any occurrence likely to give rise to a claim under the policy, schools are required to notify the Insurer in writing as soon as reasonably practical. Schools shall not negotiate, pay, settle, admit or repudiate any claim without the written consent of the Insurer.
5. The correspondence address of the Insurer is as follows: The Ming An Insurance Co (HK) Ltd
14th Floor China Insurance Group Building 141 Des Voeux Road
Hong Kong
For any claims enquiry, or to obtain the claim forms, please contact the following hotlines: Nature of Enquiries Staff-in-charge Telephone No.
General Enquiry Mr Larry NG
Mr Jacky LEE
2815 1551 Ext. 316 Public Liability &
Employees’ Compensation
Mr K F CHENG 2852 7150
Group Personal Accident Mr Percy LEE 2852 7157
6. The Insurer will send you a copy each of the Notice of Insurance in respect of the employees’ compensation insurance and the Certificate of Insurance in respect of your school (the master policy will be lodged with the Education Department) before 1 September 1999. As employer, you are required by law to sign and display the Notice of Insurance at the school premises. In case you do not receive these two documents on time, please contact the Insurer direct. Otherwise, your school may be regarded as uninsured for public liability, employees’ compensation and group personal accident risks upon expiry of the present Policy. Any legal and financial consequences thus arising shall be borne by the school management committee.
7. Schools should also note that your staff whose salaries are not subvented by the Education Department are not covered by the employees’ compensation insurance of the Block Insurance Policy. Schools should arrange their own insurance to cover this type of staff, if any.
8. Schools may, on behalf of parents, arrange separate additional cover for group personal accidents of students with any insurance company, if necessary. However, parents should be given full discretion in accepting the said arrangement, if any. Besides, the group personal accident insurance under the Block Insurance Policy should not be considered as a comprehensive personal insurance coverage for students. If parents wish to have a comprehensive personal insurance coverage for their children, they may acquire it, separately from any insurance company.
9. Should you have any further enquiries, please contact your District Education Officer/Inspector (Special Schools Administration).
M Y CHENG for Director of Education
Block Insurance Policy for Aided and Caput Schools from 1 September 1999 to 31 August 2002
Insurance Specifications
(This document provides only a brief on the coverage of the block insurance policy and does not form part of the policy. It is subject to the interpretation of the original wording of the policy.)
I) INSURED:
The Government of the Hong Kong Special Administrative Region and/or Education Department and/or All Aided schools i.e. Primary schools, Secondary Schools and Special Schools in receipt of aid from the Government of the Hong Kong Special Administrative Region under the terms of the respective Code of Aid for Primary Schools, Code of Aid for Secondary Schools and Code of Aid for Special Schools; and Private Non-profit-making Schools in receipt of Government assistance under the Rules governing Per Caput Grant Schools.
II) BUSINESS:
Schooling and/or Educational activities including training, exhibitions and extra-curricular activities organized or endorsed by the Education Department or the Insured to be directly related or incidental to schooling and/or education business.
III) INSURANCE COVERAGE:
3.1 PUBLIC LIABILITY INSURANCE COVERAGE:
The Insured’s legal liability for damages in respect of
a) bodily injury including death, disease or illness, mental injury or anguish, shock, false arrest, invasion of privacy, false imprisonment or eviction to persons (other than Employees of the Insured)
b) loss of or damage to property
c) caused by an occurrence in connection with the Insured’s business LIMIT OF LIABILITY:
HKD100,000,000 any one occurrence and unlimited in aggregate per period of insurance SUPPLEMENTARY PAYMENT:
a) Claimants’ cost and expenses b) Cost of defence
c) Costs of legal representation
EXTENSIONS:
a) Insurer will indemnify the Insured against legal liability arising from loss of or damage to premises or properties hired or rented or borrowed to the Insured, provided that this liability is not assumed by the Insured under a tenancy or other agreement which would not have attached in the absence of such agreement.
EXTENSIONS (CONT’D)
b) Members of School Management Committees, employees, voluntary helpers and students will be treated as Insured whilst engaged in school activities and subrogation rights against them are waived.
c) Legal liability in respect of loss of or damage to any mechanically
propelled vehicles (including spare parts, accessories and other contents) thereon left in any garage/parking space belonging to or under the care, custody and control of the Insured.
d) Legal liability in respect of first aid and other similar treatment
rendered by the Insured but excluding any treatment rendered by the registered and/or voluntary medical practitioner.
e) Legal liability arising out of the Insured’s advertising signs,
decorations and the like.
f) Legal liability arising out of the use of water or chemical by the
Fire Services Department to extinguish a fire in the Insured’s premises.
g) Legal liability arising out of the loading and unloading of motor
vehicles including the process of delivery to and from vehicles.
h) Legal liability arising out of and caused by any animal kept by the
Insured.
i) Legal liability arising from defective food and drink, including
catering or tuck shop provided these are run by the school itself and not contracted out to contractor.
j) Legal liability arising from activities of recognized staff,
parent-teacher and student associations.
k) Legal liability arising from the use of premises of accommodation
provided to an employee and/or student in respect of boarding section by the Insured.
l) Contingent Motor Liability.
m) Contingent liability arising from maintenance / renovation / catering
n) Legal liability arising out of the use of lifts, machinery and plant.
o) Legal liability arising from radioactive materials for school
experimental activities.
p) Legal liability arising from loss of or damage to employees’ personal
effects.
q) Legal liability of premises’ owners who allow the Insured to use their
premises/facilities.
r) Legal liability in respect of products supplied and/or sold by the
Insured.
s) Legal liability in connection with exhibitions to be held within the
geographical limit. JURISDICTION: Hong Kong GEOGRAPHICAL LIMIT:
Hong Kong and extended to worldwide for temporary visits by the Insured
3.2 EMPLOYEES’ COMPENSATION INSURANCE COVERAGE:
The Insured’s legal liability under the Employees’ Compensation Ordinance and Common Law for bodily injury to employees by accident or disease arising out of and in the course of employment during the Period of Insurance.
LIMIT OF LIABILITY:
HKD100,000,000 per insured school for each and every event inclusive of :
− Claimants’ cost and expenses
− Cost of defence
EXTENSIONS:
In the event of any employee of the Insured
a) whose attendance at his place of employment is required by the Insured during extra-ordinary weather conditions being injured or killed whilst proceeding directly to his place of employment or returning therefrom directly to his home. The definition of ‘Extra-ordinary Weather Conditions’ shall include but not limited to Black/Red rainstorm warnings.
b) whilst travelling in transportation provided and/or arranged by the Insured for the Business of Insured sustained bodily injury or death.
c) whilst using the catering facilities provided by the Insured being injured or killed.
d) whilst attending the sports, social and welfare activities organised or sponsored by the Insured.
e) being infected with the disease of AIDS.
Such death or injury shall deem to have arisen out of and in the course of the employees’ employment for the purpose of this Policy.
JURISDICTION: Hong Kong
GEOGRAPHICAL LIMIT:
3.3 GROUP PERSONAL ACCIDENT COVERAGE:
Accidental Death and Disablement benefit to each Student (subject to scale of compensation) provided that such accident occurs whilst the student is participating in any school activities of the Insured within or outside school premises during school-time or non-school time.
LIMIT OF LIABILITY: HKD100,000 each student GEOGRAPHICAL LIMIT:
Hong Kong and extended to worldwide for temporary visits by the Insured
IV) SPECIAL CONDITIONS
4.1 ERRORS AND OMISSION CLAUSE
This insurance shall not be prejudiced by any unintentional or inadvertent errors and omissions provided notice is given to the Insurer as soon as practicable upon discovery of any such error or omission.
V) EXCLUSIONS
Appendix II Explanatory Notes on Block Insurance Policy
(1999/2000, 2000/2001 and 2001/2002 School Years)
(This document provides only a brief on the spirit of the block insurance policy and does not form any part of the policy. It is subject to the interpretation of the original wording of the policy.)
The block insurance policy (BIP) is an insurance policy arranged by the Education Department for aided and caput schools. It comprises 3 sections: (1) the public liability insurance; (2) the employees’ compensation insurance; and (3) the group personal accident insurance.
2. Sections (1) & (2) are a kind of liability insurance to protect the schools against financial losses arising out of their actions which result in bodily injury to others; and/or damage to third parties’ property. Section (3) is a nominal benefit provided to students. Further explanations of each section are provided below.
3. Public Liability Insurance
3.1 The public liability insurance offers indemnity in respect of legal liability (not moral liability) of the school for bodily injury to any person, or loss of or damage to material property.
3.2 “Any Person” means any “Third Party” which excludes the school employees as this is the subject under the Employees’ Compensation Insurance. The “Third Party” can be of students, parents, visitors, or the public who are injured or suffer loss due to school’s negligence. 3.3 When the “Third Party” which includes students, suffers injury as a result of a school’s action,
he may, under the common law process, claims compensation from the school. As required by law, he has to prove that the school is negligent in causing the injury or damage. It is the court to rule whether a compensation is warranted and its amount.
3.4 If the court holds that the school is legally liable, the school has to pay the compensation regardless of whether the school has taken out a liability insurance policy or not.
3.5 By the coverage of the policy, the insurance company will: i) provide services of defense;
ii)pay the legal costs; and
iii)pay the compensation as awarded by the Court to the victims up to the policy limit. 3.6 The current policy limit is HKD100Million per accident and unlimited for the period of
insurance.
3.7 There may be out-of-court settlement in which case the insurance company may negotiate with the victim on the amount of damages.
Appendix II
4. Employees’ Compensation Insurance
4.1 Under the Employees’ Compensation Ordinance, it is compulsory for an employer to maintain an “Employees’ Compensation Insurance Policy” with an authorised insurer to cover his full liabilities both under the Ordinance and Common Law.
4.2 The policy covers the legal liability of an employer which relates to bodily injury or disease sustained by an employee and which arises out of and in the course of employment.
4.3 Amount of Compensation (to be ruled by Labour Department) 4.3.1 Where death results from the injury
− varies with the employee’s age at the time of the accident
− the upper limit is 84 months’ earnings subject to a maximum of HKD1,764,000.
4.3.2 Where permanent total incapacity results from the injury
− varies with the employer’s age at the time of the accident
− the upper limit is 96 months’ earnings subject to a maximum of HKD2,016,000.
The above compensation is under statute and the victim does not need any proof of employer’s negligence.
4.4 When an injury to an employee is caused by the negligence or other wrongful act of an employer, the employee may also sue for damages under Common Law. But he has to establish evidence to prove negligence on the part of the employer (school). The amount of compensation is decided by the Court.
4.5 The current policy limit of indemnity for each school in respect of claims relating to any one or more of the employees arising out of any one event is HKD100Million inclusive of all costs and expenses.
4.6 The employees’ compensation insurance of the BIP covers employees: i) whose salaries are subvented by the Education Department; and
ii)who are in the employment of the school under a contract of service or apprenticeship or as defined in the Employees’ Compensation Ordinance.
Schools should arrange their own insurance for other employees, if any, not being covered by the BIP.
Appendix II
5. Group Personal Accident Insurance (for Students)
5.1 Taking into consideration that there are accidents in which the school is not negligent and/or student-victims may have to go through complicated and long common law suit to prove negligence, if any, on the part of the school, the BIP includes a personal accident insurance for students, providing some financial consolation to students who suffer from Accidental Death or Permanent Disablement whilst participating in any school activities. The maximum benefit is HKD100,000 per student according to scale.
5.2 This is a nominal benefit to students on top of any common law compensation students may obtain and regardless of any proof of any parties’ negligence. It should not be seen as a comprehensive personal insurance coverage.
5.3 If parents wish to have a comprehensive personal insurance coverage for their children, they may acquire it separately from any insurance company.
6. Some common questions and answers to illustrate the coverage of the BIP are at the Annex.
Education Department September 1999
Annex
Common Questions and Answers on Block Insurance Policy
The answers provided below, based on simple assumptions, are intended to provide a general idea for reference only. The extent of cover will depend on the actual circumstances and is subject to the limit, terms, conditions and exclusions of the policy.
Q1: My school holds a number of school activities during school holidays, some outside the school premises, some outside Hong Kong. Would these activities be covered by the Block Insurance Policy (BIP)?
Yes, provided that the activities are organised/endorsed by the school/Education Department. The policy’s geographical limit is extended to world-wide in respect of temporary visit.
Q2: My school arranges school bus service (operated by outsider) for students travelling between school and home. Last Monday, a group of students suffered injury on the way to school in a car accident. Is the accident covered by BIP?
The group personal accident insurance section will cover the accidental death or permanent disablement of the students. The amount of compensation follows the scale as set in the policy.
If the school is legally liable in the accident, the public liability insurance section would respond to the claim for compensation subject to the limit and conditions of the policy.
Q3: My school’s Parent-Teacher Association and Students’ Union organize a number of activities. Are they covered by the BIP?
Yes, provided that such activities are directly related to the schooling and/or educational business of the school and are organized/endorsed by the school.
Q4: My school has hired some part-time instructors to lead the interest groups. Are they covered by the BIP?
Part-time instructors are not covered by the employees compensation insurance section of the BIP as employees for their salaries are not subvented by the Education Department. However, if there exists an employer/employee relationship, the school is required to pay employees’ compensation by law. The school should arrange separate employees’ compensation insurance to cover them.
Annex
In respect of public liability insurance, if there exists an employer/employee relationship, they will be covered under the public liability insurance section as Insured. Otherwise, no cover will be provided, but the public liability insurance section will cover the school’s legal liability to them as the third party.
Annex
Q5: My school has arranged some volunteers to lead the interest groups. Are they covered by the BIP?
Volunteers will not be covered under the employees’ compensation insurance section as they are not employees of the school. The public liability insurance section is extended to cover volunteers as Insured. Moreover, this section will also cover the school’s legal liability to them as the third party.
Q6: My school has arranged with the Hong Kong Institute of Education and the universities for some student teachers for teaching practice. Are they covered by the BIP?
Student teachers will not be covered under the employees’ compensation insurance section as they are not employees of the school. They are also not covered under the public liability insurance section as Insured but this section will cover the school’s legal liability to them as the third party.
Q7: Will my teachers be eligible for employees’ compensation if they were injured when travelling to school to work or back home from school?
No, unless they are using the transport means provided by the school.
Q8: Will my teachers be eligible for employees’ compensation if they were required to be on duty and were injured when travelling to school to work or back home from school during black rainstorm warnings?
Yes, provided that they are travelling directly between school and home.
Q9: A student was injured in school. His parent produced a receipt to claim medical expenses. Is this covered by the BIP?
No. The group personal accident insurance section does not cover medical expenses.
Q10: When and what accidents should the school report to the insurance company?
Any kind of accident which would cause a ‘reasonable person’ to assume that a loss covered by the policy has been, or will be incurred, even though the exact amount or details of loss may not then be known, should be reported and as soon as possible. Schools should not negotiate, pay, settle, admit or repudiate any claim without the written consent of the Insurer.
Annex
Education Department September 1999
