The Monetary Authority of Macao (the "AMCM") is concerned with the latest reports from the media relating to the insurance for motor cycles. There are no provisions in the current Motor Vehicles Insurance (Third Party Risks) Ordinance which mandates insurance companies authorized to write motor insurance to accept the insurance for certain categories of motor vehicles. Car owners are free to approach any authorized non-life insurance companies to purchase motor insurance. Currently, there are a total of 12 insurance companies in Macao which are authorized to write motor insurance including motor cycles. If the insurance companies accept the applications for motor insurance, they must comply with the terms and conditions, and tariff under the Ordinance. Regarding the captioned subject, the AMCM has followed up with the related insurance company who clarified that the change in underwriting decisions would not affect the existing motor cycles already insured and their renewals. As regards new applications relating to drivers under 25 years old or less than 2 years driving experience, the insurance company promised to follow with the persons and associations affected promptly to find a viable solution for this matter. The AMCM shall continue to follow up the matter. And, according to the above mentioned regulations, if the applicant is declined by more than 3 insurers, the applicant can follow the procedures as laid down in a notice issued by the AMCM to apply for motor co-insurance. When the AMCM receives such requests, it will nominate one insurer who will be responsible to issue the policy for the applicant and handle the claims. In fact, the motor co-insurance is shared by all 12 insurers, and the terms and conditions are defined by the AMCM. The motor co-insurance regime was set up in 1995, and until now, it has handled 1,482 applications, and among them, there were only 25 applications related to motor cycles, which represented 1.7% of the total number of applications received.
