MOTOR VEHICLES (THIRD-PARTY RISKS AND COMPENSATION) BILL

Order for Second Reading read.

3.04 p.m.

The Minister for Labour and Law (Mr K. M. Byrne): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

This Bill re-enacts the provisions of Part II of the Road Traffic Ordinance, with the significant modification that all payments of compensation by insurers in respect of third party risks are required to be paid to the Public Trustee as trustee for the persons entitled thereto, and that solicitation in respect of claims for such compensation is prohibited.

Clause 4 of the Bill provides that, when any payment is made by way of compensation by an approved insurer or by the owner of a motor vehicle in respect of the death of or bodily injury to any person arising from the use of a motor vehicle on a road, such payment shall be made to the Public Trustee as trustee for the persons entitled thereto. The moneys received by the Public Trustee will be distributed to the persons entitled thereto after payment of costs and fees.

Power is given to the Public Trustee to require .the approval of the court for a payment by way of settlement, where he considers the payment to be inadequate.

Clause 7 of the Bill similarly requires that where any payment is made by an insurer under a judgment of the court, such payment shall be made to the Public Trustee as trustee for the persons entitled thereto.

Clause 16 of the Bill makes it an offence for a person to solicit instructions or authority to act on behalf of any other person in respect of the making or commencement of any claim or action for damages for death or personal injury arising out of the use of a motor vehicle, or in respect of the negotiation, compromise or settlement of such claim or action. It is also made an offence for any person, other than a public officer or an advocate and solicitor, to make or cause to be made any claim on behalf of any other person for such damages. A public officer or advocate and solicitor who acts for another person in respect of such claim will only be entitled to payment of his taxed costs, and if any other sum is paid for work done or services rendered in respect of any claim or action for such damages, such sum may be recovered by the person who paid it

The aim of the Bill is to put an end to the practice which is resorted to by some lawyers of engaging touts to solicit and obtain accident claims cases and arranging to keep a substantial portion of the compensation received for themselves. In this way the unfortunate victims of road accidents have been cheated of the sums rightly due to them by these unscrupulous lawyers, and I am glad to say that the majority of the members of the Bar and the insurance companies have welcomed the move of the Government to put a stop to this racket.

Since the Bill has been introduced, a number of discussions have been held with the representatives of the Motor Insurance Association of Malaya and Borneo, and as a result of these discussions, a number of amendments have been agreed to, and I will seek to move these amendments in the Committee stage of this Bill. The most important of these amendments is to make it unnecessary for payments under $500 made by way of settlement to be paid to the Public Trustee.

The opportunity has also been taken to incorporate in the amendments to be proposed a number of provisions from the Federation of Malaya's recent Road Traffic Ordinance.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole Assembly.

Assembly immediately resolved itself into a Committee on the Bill.-[Mr Byrne].

Bill considered in Committee.

3.09 p.m.

Clause 1 -

The Chairman: There is a typographical emendation. "1959" will now read "1960".

Clause 1 ordered to stand part of the Bill

Clause 2 -

Mr Byrne: Mr Speaker, Sir, I move,

In page 2, line 7, at end, to add -.

"Provided that person shall not be guilty of an offence under this section if he proves -"

The Chairman: Order. There is one amendment before that. Is that amendment not being moved?

Mr Byrne: I apologise, Mr Speaker. Mr Speaker, Sir, I move,

In page 2, line 6, after "licence", to insert "under the Road Traffic Ordinance".

A driving licence is issued under the provisions of the Road Traffic Ordinance. This amendment is to tie up this Ordinance with the Road Traffic Ordinance.

Amendment agreed to.

Mr Byrne: Mr Speaker, Sir, I move,

In page 2, line 7, at end, to add -

"Provided that a person shall not be guilty of an offence under this section if he proves -

(i) that the motor vehicle did not belong to him and was not in his possession under a contract of hiring or loan;

(ii) that he was using such vehicle in the course of his employment; and

(iii) that he neither knew nor had reason to believe that there was not in force in relation to such user a policy of insurance or such security as complies with the provisions of this Ordinance.".

Mr Speaker, Sir, this proviso is taken from the Federation's Road Traffic Ordinance, 1958. The existing law, which makes it mandatory for the Court to disqualify the driver unless there are special reasons relating to the offence, sometimes causes hardship to a paid driver who has no knowledge that there is no policy of insurance in force or that the policy has expired. The amendment seeks to remove this hardship.

Amendment agreed to.

The Chairman: There is a note:

In page 2, line 7, to leave out the full-stop and insert a colon.

That will be done.

Mr Byrne: Mr Speaker, Sir, I move,

In page 2, line 8, at the beginning, to insert "(3) ".

This amendment is a drafting amendment to number that section.

Amendment agreed to.

The Chairman: Consequential amendments will be made to the subsequent sub-clauses.

Clause 2, as amended, ordered to stand part of the Bill.

Clause 3 -

The Chairman: There appears to be a typographical error:

In page 3, line 5, to leave out "person" where it secondly occurs and insert "persons".

That alteration will be made.

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 3, lines 34 and 35, to leave out "section 3 of this Ordinance" and insert "this section".

This is a drafting amendment to preserve consistency in the Bill.

Amendment agreed to.

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 5, line 32, at end, to add -

"(8) The Minister may as a condition of granting approval to any insurer under this section require the insurer -

(a) to make and keep with the Accountant-General a deposit of such value not exceeding two hundred thousand dollars as the Minister may specify;

(b) to keep such books of account and to have the same audited in such manner as the Minister may prescribe;

(c) to furnish such accounts, returns and information relating to the motor vehicle insurance business carried on by the insurer as the Minister may require;

(d) to maintain a place of business within Singapore or to appoint and maintain an agent authorized to accept service of process and any notices required to be served on the insurer; and

(e) to keep the Minister informed of any change in the address of such place of business or of such agent."

3.15 p.m.

Now, section 9 - I am sorry, Mr Speaker - the intention was that we add four new sub-clauses. I go on now to subsection (9) :

"(9) The Minister shall cause the name and address of every approved insurer and of his place of business or agent to be published in the Gazette.

(10) If the approved insurer should fail to comply with any of the conditions imposed by the Minister under subsection (8) of this section the Minister may withdraw the approval previously given by him and shall cause a notification to that effect to be published in the Gazette and thereupon the insurer shall cease to be an approved insurer for the purposes of this Ordinance in respect of any policy of insurance issued by him after the date of such notification.

(11) The Minister may by rules made under section 18 of this Ordinance" -

Mr Speaker, Sir, I think that "section 17" is the reference, as the rule-making power is in section 17.

The Chairman: We will make that alteration as a typographical emendation.

Mr Byrne: "(11) The Minister may by rules made under section 17 of this Ordinance apply Cap. 178. any of the provisions of the Life Assurance Companies Ordinance with such modifications as he may think necessary to approved insurers under this Ordinance and thereupon subject to such rules such provisions as modified shall have the same effect in all respects as if they had been enacted in this Ordinance and as if references therein to life assurance companies or life assurance business had been references to approved insurers or to the motor vehicle insurance business carried on by such approved insurers respectively.".

These new subsections, Mr Speaker, Sir, are taken from the Federation's Road Traffic Ordinance, 1958. They give the Minister the power to lay down conditions for approval and to control approved insurers.

Mr A. P. Rajah (Farrer Park): Mr Speaker, Sir, will the Minister please enlighten the House on two matters which arise out of the amendment? The proposed subsection (8) (e):

"to keep the Minister informed of any change in the address of such place of business or of such agent."; and

following on from there, to subsection (9):

"The Minister shall cause the name and address of every approved insurer and of his place of business or agent to be published in the Gazette."

At first sight, it would appear, Mr Speaker, that subsection (9) might not cover a change of address - that is my first point.

On the proposed subsection (10), the position is that if the Minister struck out an insurance company under this subsection, then its future insurances would be invalid. If an unsuspecting person went to such an insurance company and took out an insurance policy on a car, he would naturally be uninsured; and if he should meet with an accident on a policy which he thinks is valid, then he would be in serious trouble. I do not notice any provisions in the Ordinance which will penalise such an insurance company where, after it has been struck out by the Minister, it effects an insurance policy on a car.

Mr Byrne: Mr Speaker, Sir, these subsections are actually taken from the Federation's Road Traffic Ordinance, 1958. On the first point made by the Member for Farrer Park, that subsection (9) would not cover cases of a change of address of a business, I would suggest, Mr Speaker, Sir, that it would.

As to the other point made by him, I think, if there are difficulties in the operation of the subsection, the Government would always be prepared to look into them. As far as we know, there have been no such representations made to the Federation Government in respect of a similar subsection in their Ordinance.

Mr Rajah: Mr Speaker, Sir, I am satisfied with the assurance given by the Minister on subsection (10). Should anything arise, I take it the Minister will bring up the legislation to meet the case.

Subsection (9), Mr Speaker, Sir, is a great convenience to those people who deal with insurance companies. Sometimes it is very necessary to know the name of the agent and his address. It might be very difficult to obtain the information unless they go to the Gazette and obtain it. If the Minister could, by administrative action, cause the change of address to be gazetted, I should then be satisfied.

Mr Byrne: Mr Speaker, I think the Minister is under an obligation to have the change of address published in the Gazette.

Amendment agreed to.

Clause 3, as amended, ordered to stand part of the Bill.

Clause 4 -

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 5, line 33, after "payment", to insert "exceeding five hundred dollars other than a liquidated sum specified in a policy of insurance".

Mr Speaker, Sir, this amendment is made at the suggestion of the Motor Insurance Association of Malaya and Borneo. The purpose is to leave out small claims and payments for minor injuries from the scope of the section. There are many such claims, which are settled by insurance companies, and it is felt that to require all such settlements under $500 to be made to the Public Trustee would not be advisable from the point of view of administration.

The amendment also seeks to make it unnecessary to pay personal benefit claims, which are liquidated in a policy of insurance to the Public Trustee. In such cases the amount of the compensation and the terms of the payment are provided for under the policy itself.

Amendment agreed to.

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 5, lines 38 to 41, to leave out "and such payment shall be accompanied by a statutory declaration to be declared by the approved insurer or by or on behalf of the owner setting out the amount paid as compensation".

Mr Speaker, Sir, this amendment is made at the suggestion of the Motor Insurance Association of Malaya and Borneo, who have pointed out that such a provision is unnecessary.

Amendment agreed to.

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 5, line 43, to leave out "by way of compensation is" and insert "to him under the provisions of subsection (1) of this section is manifestly".

This amendment, Mr Speaker, Sir, is consequential to the amendment to sub-clause (1) of clause 4. It is also designed to restrict the powers of the Public Trustee to cases where the amount of compensation is manifestly inadequate. It has been suggested that, unless some such provision were made, insurance companies would not want to settle claims but would want to fight all claims in the Court.

Amendment agreed to.

Clause 4, as amended, ordered to stand part of the Bill.

Clause 5 ordered to stand part of the Bill.

Clause 6 -

Mr Byrne: Mr Speaker, Sir, can we take clauses 6 to 13? It is the same amendment in each case.

The Chairman: I think we had better deal with clause 6 to start off with.

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 6, line 23, to leave out "delivered" and insert "issued".

These amendments are necessary because the word "issued" is used in clause 3 (4).

Amendment agreed to.

Clause 6, as amended, ordered to stand part of the Bill.

Clause 7-

The Chairman: There are three similar amendments. If any Member wishes to speak on any lines which intervene between the amendments, he may do so. Otherwise, I suggest that the Minister moves the three amendments en bloc.

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 7, line 11,

In page 7, line 44, and

In page 8, line 9,

In page 11, line 19 -

The Chairman: Shall we deal with them clause by clause? Clause 7.

Mr Byrne: In page 7, line 11; in page 7, line 44, and in page 8, line 9, to leave out "delivered" and in each case insert "issued".

Amendments agreed to.

Clause 7, as amended, ordered to stand part of the Bill.

Clause 8 ordered to stand part of the Bill.

Clause 9 -

The Chairman: Will the Minister move formally?

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 11, line 19, to leave out "delivered" and insert "issued".

Amendment agreed to.

Clause 9, as amended, ordered to stand part of the Bill.

Clause 10 ordered to stand part of the Bill.

Clause 11 -

Amendment made: In page 12, line 39, to leave out "delivered" and insert "issued".-[Mr Byrne].

Clause 11, as amended, ordered to stand part of the Bill.

3.30 p.m.

Clause 12 ordered to stand part of the Bill.

Clause 13 -

Amendments made:

In page 13, line 17, to leave out "delivered" and insert "issued". -[Mr Byrne].

In page 13, lines 21 and 22, to leave out "delivered" and insert "issued".- [Mr Byrne].

Clause 13, as amended, ordered to stand part of the Bill.

Clause 14 ordered to stand part of the Bill.

Clause 15 -

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 15, line 3, to leave out "subsection (6) of".

This is to correct a mistake. The approval of the Minister is also required under subsection (1) of section 3.

Amendment agreed to.

Clause 15, as amended, ordered to stand part of the Bill.

Clause 16 -

Mr Byrne: Mr Speaker, Sir, I beg to move,

In page 15, line 43, at end, to add -

"(6) Where it is shown that any money other than taxed costs has been paid to any clerk employed by an advocate and solicitor for work done or to be done or services rendered or to be rendered in respect of the matters referred to in subsection (1) or subsection (2) of this section it shall be presumed in, and for the purposes of, any action against such advocate and solicitor that such money was received by the clerk on behalf of such advocate and solicitor and the money shall be recoverable from such advocate and solicitor.".

Mr Speaker, Sir, this is to provide that where money is received by a clerk, there shall be a presumption that the money is received by the clerk on behalf of the advocate and solicitor who employs him.

Mr Rajah: Mr Speaker, Sir, it is normally provided for in sections such as these where a presumption is raised that it shall be presumed until the contrary is proved. I take it that the Minister does not want this to be an irrebuttable presumption, but that by virtue of the provisions of the other laws of the State, it should be a rebuttable presumption.

Mr Byrne: Mr Speaker, Sir, we do not like conclusive presumptions. We always like rebuttable presumptions!

Mr Rajah: Mr Speaker, Sir, I am obliged to the Minister.

Amendment agreed to.

Clause 16, as amended, ordered to stand part of the Bill.

Clauses 17 to 20 inclusive ordered to stand part of the Bill.

New clause (A) -

Mr Byrne: Mr Speaker, Sir, I beg to introduce a new clause for the purpose of providing necessary definitions for the Ordinance: 'Interpretation. In this Ordinance, unless the context otherwise requires - "Deputy Commissioner of Police" includes any police officer not below the rank of Inspector authorized by him in writing by name or office to exercise the powers vested by this Ordinance in the Deputy Commissioner of Police; "motor vehicle" means a mechanically propelled vehicle intended or adapted for use on roads; Cap. 32. "Public Trustee" means the Public Trustee appointed under the provisions of the Public Trustee Ordinance and includes an Assistant Public Trustee appointed under the provisions of that Ordinance; "Registrar" means the Registrar of Vehicles or a Deputy or Assistant Registrar appointed under the Provisions of the Road Cap. 227. Traffic Ordinance. "road" means any public road and any other road to which the public has access, and includes bridges over which a road passes; "use" means use on any road.'.

Sir, it is intended that this new clause be inserted after clause 1.

Brought up, and read the First time.

Mr Byrne: Mr Speaker, Sir, I beg to move, "That the clause be read a Second time."

Mr Speaker, Sir, the purpose of this new clause is to provide an interpretation section to the Ordinance which is necessary.

Question put, and agreed to.

Clause read a Second time and added to the Bill.

New clause (B) -

Mr Byrne: Mr Speaker, Sir, I beg to introduce a new clause for the purpose of giving the Minister the power to exempt from the provisions of this Ordinance or of any rules made there under any person or class or description of persons or any vehicle or class or description of vehicles. "Power The Minister may by notification in the to Gazette from time to time and either exempt. generally or for any period stated in such notification and subject to such conditions as may in such notification be stated, exempt from any provision of this Ordinance or of any rules made thereunder any person or class or description of persons or any vehicle or class or description of vehicles.".

Sir, it is intended that this new clause be inserted after clause 19.

Brought up, and read the First time.

Mr Byrne: Mr Speaker, Sir, I beg to move, "That the clause be read a Second time."

The Chairman: The Minister, of course, is at liberty to speak on the principle of the new clause if he so wishes at this stage.

Mr Byrne: There is nothing to say except that I would like to draw attention to the fact that it is necessary to invest in the Minister the power to exempt from the provisions of the Ordinance or of any rules made thereunder.

Mr Rajah: Mr Speaker, Sir, I appreciate the necessity for this clause. In fact, it should have been in the Bill in its original state. Perhaps it was omitted through an oversight and is now being brought in.

Sir, in the Road Traffic Ordinance, this section appears as section 82. Under the Road Traffic Ordinance there was power to exempt from insuring any particular vehicle belonging to any particular person or class of persons. Now, this clause might do more than that. It could regulate payments arising out of road accidents and such like matters. By this clause, is it the intention of the Minister to exempt not only persons and classes of persons from insuring with insurance companies but also to exempt them from paying to the Public Trustee in case of liability? Or is the intention merely to exempt them from insuring?

Mr Byrne: Mr Speaker, Sir, all Government vehicles are not insured under the present Ordinance and it will be necessary to make certain exemptions in their case. It is not intended to exempt them from payments to be made to the Public Trustee.

Question put, and agreed to.

Clause read a Second time and added to the Bill.

The Chairman: Consequential amendments will be made to the numbering of clauses consequent on the addition of new clauses.

Bill reported with amendments; read the Third time and passed.