RE SINGAPORE INSURANCE CO LTD AND OTHERS

RE SINGAPORE INSURANCE CO LTD AND OTHERS

Court ruled that unliquidated third party personal injury/death claims under the Motor Vehicles Insurance (Third Party Risks) Ordinance do not give rise to provable debts during insolvency because the insurer's liability in respect of such third party claims arises by virtue of the statute and not by reason of the contract of insurance; employees' compensation claims under s.44 Cap.282 are provable because s.44 deems the claimant party to the policy and thus the right arises from the contract; rights transferred to third parties under the Third Parties (Rights Against Insurers) Ordinance (Cap.273 s.2) that are contractual are provable; interest on proved debts is provable only up to the...

Citation
RE SINGAPORE INSURANCE CO LTD AND OTHERS
Parties
Liquidator in Compulsory Winding Up: Official Receiver; Company (in Liquidation): Singapore Insurance Co. Ltd.; Company (in Liquidation): Kyoto Insurance Limited; Company (in Liquidation): Scotland Insurance Co. Ltd.; Company (in Liquidation): China Underwriters Life & Insurance Co. Ltd.; Company (in Liquidation): Bedford Insurance Co. Ltd.; Interested Party (hong Kong Government Proposals Re Tavas): Director of Social Welfare; Representative of Third Party Claimants (served But Not Represented): Director of Legal Aid; Claimants for Personal Injury and Death: Third party claimants
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 December 1985
Case Number
HCCW29/1980
Procedural Posture
Companies Winding Up (compulsory) / Directions Summons Hearing; Ruling Delivered in Open Court
Outcome
Declaratory rulings given answering the summonses: unliquidated third party motor claims not provable during insolvency; employees' compensation claims provable; certain third party contractual rights provable; interest limited to pre-petition period.
Legal Topics
Proof of Debt, Unliquidated Tort Claims, Third Party Rights Against Insurers, Employees Compensation Claims, Judgment Interest Cut Off, Statutory Construction
Source Language
EN
Company Law Insolvency Law Insurance Law Bankruptcy Law Tort Law Employment Law Proof of Debt Unliquidated Tort Claims +4 more

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Parties

Official Receiver

Liquidator in Compulsory Winding Up

Singapore Insurance Co. Ltd.

Company (in Liquidation)

Kyoto Insurance Limited

Company (in Liquidation)

Scotland Insurance Co. Ltd.

Company (in Liquidation)

China Underwriters Life & Insurance Co. Ltd.

Company (in Liquidation)

Bedford Insurance Co. Ltd.

Company (in Liquidation)

Director of Social Welfare

Interested Party (hong Kong Government Proposals Re Tavas)

Director of Legal Aid

Representative of Third Party Claimants (served But Not Represented)

Third party claimants

Claimants for Personal Injury and Death

Procedural Posture

Companies Winding Up (compulsory) / Directions Summons Hearing; Ruling Delivered in Open Court

Legal Issues

  1. 1 Whether unliquidated third party personal injury/death claims under Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap.272) are provable in the liquidation
  2. 2 Whether provisions of Cap.272 (ss.9,10) make insurer liability contractual or statutory for purposes of provability
  3. 3 Whether employees' compensation claims under Employees' Compensation Ordinance (Cap.282 s.44) are provable

Ratio Decidendi

Court ruled that unliquidated third party personal injury/death claims under the Motor Vehicles Insurance (Third Party Risks) Ordinance do not give rise to provable debts during insolvency because the insurer's liability in respect of such third party claims arises by virtue of the statute and not by reason of the contract of insurance; employees' compensation claims under s.44 Cap.282 are provable because s.44 deems the claimant party to the policy and thus the right arises from the contract; rights transferred to third parties under the Third Parties (Rights Against Insurers) Ordinance (Cap.273 s.2) that are contractual are provable; interest on proved debts is provable only up to the...

Court Disposition

Declaratory rulings given answering the summonses: unliquidated third party motor claims not provable during insolvency; employees' compensation claims provable; certain third party contractual rights provable; interest limited to pre-petition period.

Orders

  • Unliquidated personal injury/death claims under Cap.272 which were unliquidated at commencement of the winding-up are not provable in the liquidation during insolvency
  • Claims against insurers under Cap.272 (ss.9,10) are statutory liabilities for purposes of provability and do not convert unliquidated tort claims into provable contractual debts