MR CHAN KIN-POR (in Cantonese): The ever-rising insurance premiums for taxis are surely bothering the taxi sector. In reality, however, the insurance industry is being harassed. Even though the insurance premiums have been increasing, the taxi insurance market is in fact incurring losses year after year. As mentioned by the Secretary just now, the market incurred a loss of over $110 million last year, which is not a small figure in business. In regard to the causes leading to this situation, which have also been mentioned in the main reply, from 2017 to 2019, the number of traffic accidents involving taxis indeed increased every year, but this is not the most significant cause. In fact, behind the compensation for personal injuries after the accidents have happened, there are a large number of claims for exaggerated degree of injuries and acts of champerty, both of which form the genuine main reason. Hence, although TD is related, it is not of utmost importance. What really matter are the legal aid and litigation procedures. May I ask the Secretary whether the Government has on the whole any means to assist the transport and insurance industries in focusing the efforts on tackling this problem? The Secretary may only play the role of taking the lead, while the most important task is to liaise with other government departments.
SECRETARY FOR TRANSPORT AND HOUSING (in Cantonese): I thank Mr CHAN for sharing his view taken from another perspective. We have also taken note of the number of insurance-related fraud cases in the Police’s records and the respective monetary loss between 2015 and the first quarter of 2020. From 2015 to 2019, for example, there were on average over 50 such cases with an annual loss of $6 million to $7 million. Depending on the circumstances, such cases may involve theft, fraud, or obtaining property by deception under the Theft Ordinance (Cap. 210), with maximum penalties of 10 to 14 years of imprisonment. However, as insurance-related fraud is not itself a specified offence, we cannot provide the breakdown of prosecution, conviction and penalty figures.
Nonetheless, the Police have been conducting professional investigations into insurance fraud, including the establishment of a task force under the Commercial Crime Bureau to monitor emerging trends of organized fraud cases, and conducting targeted investigation and analysis. The Police have also maintained close contacts with other government departments, regulators (including the Insurance Authority), and the stakeholders concerned, while at the same time enhanced intelligence gathering for intelligence-led operations. On publicity and education, the Police disseminate information on the latest modus operandi of various common fraud cases and anti-deception messages via different media platforms, including online platforms, Police Report, and traditional media. We will make our best endeavours in the crackdown on, prevention of and prosecution against champerty related activities.
Most importantly, the authorities hope that those involved in champerty can be aware of the gravity of the offence, which comes with rather heavy penalty. We will continue liaising with the related enforcement units and the industries. Through mutual exchange of advice, we hope that the risk in this aspect can be minimized so that the taxi sector and the insurance industry can have a commonly acceptable room of operation.