Maintenance and safety of property
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I. Owners Corporations and Third Party Risks Insurance

The Building Management Ordinance (Cap. 344 of the Laws of Hong Kong) and the Building Management (Third Party Risks Insurance) Regulation (Cap. 344B of the Laws of Hong Kong) require an owners’ corporation (OC) to buy third party risks insurance in order to reduce the risk of large compensation faced by owners in case of accidents and, at the same time, offer better protection for members of the public.

Third party risks insurance provides compensation for financial loss in the case of the death of, or bodily injury to, a third party in relation to common parts and facilities (such as lifts, staircases, fire service installations, etc.) of the building. If compensation is required, it is paid by the insurance company.

  1. Duty of the OC to procure third party risks insurance
  2. Liabilities to be covered by third party risks insurance
  3. Minimum insured amount
  4. Notice to owners
  5. Report to the Land Registrar
  6. Legal liability for failure to procure third party risks insurance
  7. Protection for the OC and third parties
  8. Significance of procuring third party risks insurance