Gov’t to negotiate on availability of insurance for elevators, escalators

The government has affirmed to a parliamentary committee that it would negotiate to seek the availability of insurance plans that cover third-
party responsibilities related to elevators and escalators.

The First Standing Committee of the parliament discussed, with the participation of government officials, the draft law governing elevators and escalators. The discussion was presided over by lawmaker Ella Lei, president of the committee.

Lei admitted that the discussion had progressed quite slowly, as many committee members were concerned with the practicality of the proposed provision that mandates the purchase of insurance to cover possible third-party responsibilities. Related to this, committee members also considered whether such insurance plans were available and, if so, how much insurance companies will charge.

The future insurance policy would be purchased by maintenance service providers. Lei added that the government, for the time being, has no intention to require inspection service providers to purchase the insurance.

The government will clarify the minimum Sum Assured in specific Executive Regulations after the passing of the draft law in parliament.

Some committee members, Lei disclosed, support the government’s proposal in making maintenance compulsory, considering this a way to ensure public safety.

While citing government officials, Lei stressed that this draft law focuses on the separation of the maintenance and inspection functions.

Government officials admitted that conducting inspections could be a huge burden if the government is required to carry out that function. Therefore, it is more practical to allow private entities to conduct inspections at facilities.

Committee members were also concerned with extra costs to users when this mode of management begins. Government officials revealed to the committee that most annual inspections are priced at MOP3,000 per inspection. They believed it would not be a heavy burden when shared among all users.

The officials also said that it would help ensure that sufficient technicians are in the market when the law takes effect.

Service providers will also need to ensure uninterrupted service so that in the case of machine malfunction, they can provide an immediate response. AL