Cap. 104 Art. 14Duty to surrender certificate on cancellation of policy. XXX. 2002.11.

Where a certificate of insurance has been issued under article 4(4) to the person by whom a policy has been effected and the policy is cancelled by mutual consent or by virtue of any provision in the policy, the person to whom the certificate was issued shall, within seven days from the taking effect of the cancellation, surrender the certificate to the authorized insurer or, if it has been lost or destroyed, make and deliver to the authorized insurer a sworn declaration to that effect, and if he fails so to do he shall be guilty of an offence. two weeks, or where the event did not occur in his presence, within two weeks after the occurrence of the event first came to his knowledge, give to the authorized insurer by whom the policy was issued, notice in writing of the occurrence of the event together with such particulars of the event as are in his knowledge or may be procured by him, and are reasonably required by the insurer.

(2) Where an event occurs in relation to a motor vehicle in consequence of which an authorized insurer may become liable to indemnify an injured party, the person who was actually using the motor vehicle when the aforementioned event occurred shall:

(a) unless he is himself the insured under the policy, give to such insured person as soon as practicable after the occurrence of the event, and in any case within two weeks, notice of the occurrence of the event together with full particulars of the event; and

(b) give to the authorised insurer by whom the policy was issued, as soon as practicable after the occurrence of the event, and in any case within two weeks, notice in writing of the occurrence of the event together with such particulars of the event as are in his knowledge or may be procured by him, and are reasonably required by the insurer.

(3) Where an authorized insurer has reasonable grounds to believe that an event has occurred in relation to a motor vehicle in consequence of which the insurer may become liable to indemnify an injured party, then, notwithstanding that the person who is required to give notice to him of such event under subarticles (1) or

(2) fails to do so, he shall handle such event as a claim made by the insured under the policy of insurance.

(4) Where a claim is made against an authorized insurer in respect of any liability as is required to be covered by a policy of insurance in respect of the use of a motor vehicle under this Ordinance, it shall be presumed that the insured has agreed to the payment of the claim, if:

(a) the authorized insurer has given written notice, by registered mail or judicial letter, to the insured or the person acting on his behalf of his intention to pay the claim to the injured party, and the amount of such payment; and

(b) the insured has not, within ten days of receipt of such notice, given written notice to the authorized insurer of his objection to such payment.

(5) The authorized insurer shall be entitled to recover the legal and judicial costs and interest from the insured person, if:

(a) the insurer has provided the insured person with written information in an intelligible form about the Provided that the authorized insurer shall only be entitled to recover the said costs and interest incurred in the proceedings leading to the final judgment and in proportion to the insured person’s liability as established by the final judgment.