MOTOR VEHICLES (THIRD-PARTY RISKS AND COMPENSATION) (AMENDMENT) BILL

4.02 p.m.

Order for Second Reading read.

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

Under section 8 of the Motor Vehicles (Third-party Risks and Compensation) Ordinance, 1960, it is provided that Where judgment is obtained in respect of any liability which is required to be covered by third party insurance, insurers shall, subject to the provisions of the section, pay the Public Trustee, as trustee for the persons entitled thereto, any sum payable in respect of such liability. Where the insurer admits the liability, there is no problem, as then the money is paid to the Public Trustee who will administer it for the benefit of the persons entitled thereto. Whenever, however, the insurer does not admit liability, it is necessary to sue the insurer. Under the present provisions, the proper person to sue is the Public Trustee, but the Public Trustee is unwilling to run the risk of losing the action and therefore having to pay the cost. The persons entitled to the benefit of the award would naturally want to bring action against the insurer but they have to do so in the name of the Public Trustee. The Public Trustee has, however, to ask for indemnity for costs and it may not always be possible for the parties to give this undertaking and it is doubtful whether the solicitors for the parties can give such an undertaking. It is therefore proposed to amend the Ordinance to provide that notwithstanding the provisions of subsection (1) of section 8 of the Ordinance, the right of action under the judgment shall vest with the persons entitled to the benefit of the judgment. This will enable the persons entitled to take action without joining the Public Trustee in the action. The Bill has been referred to the Singapore Bar Committee which supports the proposed amendment.

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; reported without amendment; read a Third time and passed.