Update on employees’ compensation policies issued by the Target Insurance Company Limited

15 December 2023

The Target Insurance Company Limited (Target) was ordered on 26 September 2022 by the High Court to be wound up under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32), with Mr Derek Lai and Mr Forrest Kam of Deloitte Touche Tohmatsu appointed as Joint and Several Liquidators (Liquidators).

Since the filing of a winding-up petition on 15 July 2022, the insolvency fund scheme of the Employees Compensation Insurer Insolvency Bureau (ECIIB) has been activated to take over all liabilities under employees’ compensation (EC) policies issued by Target¹. This arrangement will cease on 1 January 2024. The Liquidators are in the process of transferring 31 in-force policies² to the Hong Kong Branch of Swiss Re International SE, subject to the approval of the Insurance Authority (IA). The introduction of this transfer will not affect how claims or potential claims are processed, while all third party liability claims under motor policies issued by Target will continue to be handled by the Motor Insurers’ Bureau of Hong Kong.

As a result, written notice of any claims or accidents that may give rise to a potential claim on the insolvency fund scheme occurring before 1 January 2024 must be sent to the ECIIB by registered post or to Target for onward transmission to the ECIIB on or before 30 January 2024. After this date, claims may still be sent to Target in accordance with the relevant policy terms and conditions for handling by the Liquidators.

The IA would like to express appreciation to the ECIIB for its unwavering support and valuable assistance. Further information could be obtained from the channels below:

Ends

Notes:

¹According to the Insolvency Fund Agreement ratified between the Government and the ECIIB on 21 February 2003.

²The transfer includes 27 EC and 4 contractor-all-risks policies.