According to the amended Section 28 of the Building Management Ordinance (Cap. 344), starting from 1st January 2011, all owners’ corporations must procure and keep in force a policy of third party risks insurance in relation to the common parts of the building and the property of the corporation. The minimum insured amount of each policy is HK$10 million for third party bodily injury or death per event. 

Customers who have already procured third party risks insurance should make sure that they are fully compliant with the Ordinance and adequately insured. By doing so, it helps to alleviate the financial burden on the owners’ corporations and individual apartment landlords because if someone is injured or dies in an accident in the common areas of the building, the compensation can be huge.

However, although it is a statutory provision, similar to other insurance, any liability arising from illegal parts of the building or unauthorised building work is excluded from the insurance: 

“(d) any liability arising out of a breach of any duty imposed by law in relation to:

1. any building within the meaning of the Buildings Ordinance (Cap. 123) erected in contravention of that ordinance; or
2. any building work or street work carried out in contravention of the Buildings Ordinance (Cap.123).

except in respect of all “designated exempted work” (as prescribed in the Building (Minor Works) Regulation) that has fulfilled the requirements of Section 39C(2), (3) and (4) of the Buildings Ordinance (Cap. 123).....”

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