Sixteen Hong Kong insurers are confirmed to be launching “Unilateral Recognition” products on July 1, allowing drivers the option to purchase a single policy that covers driving in Hong Kong and the Mainland. The news comes after the announcement of The Northbound Travel for Hong Kong scheme.
From June 1, eligible Hong Kong private cars can travel between Hong Kong and Guangdong, via the Hong Kong-Zhuhai-Macao Bridge, without the need to obtain quotas in advance. All cross-boundary vehicles must purchase statutory third-party liability motor insurance that covers Guangdong and Hong Kong, per the Motor Vehicles Insurance Ordinance (Cap 272).
The Unilateral Recognition policy facilitates those requirements. It also marks a breakthrough for the Hong Kong insurance industry by introducing its first cross-boundary insurance products.
The Insurance Authority (IA) released a statement to say it had coordinated with Hong Kong insurers to implement the Unilateral Recognition policy for cross-boundary motor insurance. The 16 insurers confirmed to offer Unilateral Recognition products are listed on the Hong Kong Federation of Insurers (HKFI) website, including Allied World, AXA, CPIC, Ping An and QBE.
While drivers need a minimum of third-party coverage, this can be extended to include Mainland Compulsory Traffic Accident Liability Insurance for Motor Vehicles and Mainland Commercial Insurance for Motor Vehicles for more comprehensive protection.
Motorists can also continue to purchase Mainland and/or Macao statutory motor insurance provided by Mainland and/or Macao insurers through Hong Kong insurers, as part of a one-stop service arrangement.
Simon Lam, Executive Director, General Business of the IA was complimentary of the new scheme and policy saying, “The Unilateral Recognition policy will further enhance the social value of insurance by bringing more diversified insurance products and services with broader coverage to the market.”
