The Insurance Authority (IA) has recently released the claims statistics in relation to the two extreme weather events in early September, in which the amount of claims incurred for motor business has reached HK$176 million. These figures underscore the crucial role that insurance plays in easing the financial burden on policyholders, upholding social stability during natural disasters, and fulfilling its vital social function.
 
Addressing the rumors regarding motor insurance becomes invalid during typhoons or black rainstorms, the Hong Kong Federation of Insurers (HKFI) has previously clarified that such claims hold no basis. The claims data collected from members provides compelling evidence against this misconception, affirming that motor insurance remains in effect even during periods of extreme weather.
 
According to HKFI statistics, during Super Typhoon Saola and the phenomenal rainstorm in early September, the number of taxi-related claims was no less than 21, involving a claim amount of no less than HK$5.4 million, as of November.
 
While some may question about the reason for only 21 claims were reimbursed, it lies in the low adoption rate of comprehensive motor insurance within the taxi industry. Data released by the IA in 2022 shown that out of the 18,800 taxis operating in Hong Kong, merely 4,000 of them have opted for comprehensive motor insurance, approximately 22% of the total. In light of these statistics, the HKFI urges the taxi industry considering the purchase of comprehensive motor insurance to ensure full protection for their vehicles in the future.
 
Regarding the opinion that policyholders with comprehensive insurance still need to pay deductibles when making claims, the HKFI would like to further clarify:

• Deductible is a widely adopted practice in the international insurance market and is not exclusive to motor insurance in Hong Kong. It serves as a risk management measure aimed at reducing the policyholder's premium expenditure.

• Deductibles are not limited to situations involving severe weather conditions but are a standard provision in motor insurance policies across the board.

• In an effort to promote the installation of safety devices, such as dashcams with recording function and anti-collision device, etc., many taxi insurers have introduced incentives, such as reducing deductible payable by policyholder and offering premium discounts for taxis equipped with the relevant safety devices. The taxi industry can make good use of these incentives to enhance safety levels and mitigate claim costs.