FUND FOR PAYMENT OF DAMAGES TO ACCIDENT VICTIMS

Mr Ch'ng Jit Koon asked the Minister for Finance, as there have been cases of accident victims who, though awarded sums of money as damages by the Courts, were unable to get the money for various reasons, for example, there was no valid insurance cover and the defendant was not able to pay the damages awarded, if he will consider setting up a fund, to be subscribed to by insurance companies, from which payments of damages can be made in such cases.

The Minister of State for Finance (Mr Tang See Chim) (for the Minister for Finance): No, Mr Speaker, Sir. I am aware that in certain countries insurance companies do operate a fund, under the aegis of a Motor Insurers' Bureau, for the purpose of compensating victims of accidents in which the motor vehicle concerned was being used without proper insurance cover. We cannot set up a similar fund without raising the rates of premium on motor insurance, which would adversely affect the motoring public. My Ministry, however, is considering whether the difficulties raised in the Member's question can be overcome without the disadvantage of higher premiums on motor insurance.