The Insurance Authority (IA) on Friday said managers it appointed to run the affairs of a company that provided cover for most of the SAR's taxis have brought a winding-up petition against the firm.

The managers, from the accountancy firm Deloitte, said Target Insurance is insolvent and can't continue its business.

They said winding the company up would allow access to insolvency schemes provided by the Motor Insurers' Bureau (MIB) and the Employees Compensation Insurer Insolvency Bureau (ECIIB).

Insurance policies that haven't expired will remain in place and policy holders may continue to submit their claims to Target.

The company still owns around 30,000 policies, including 5,200 for taxis.

“Based on the current circumstances, a statutory deposit of HK$250 million placed in trust with the IA for Target, together with estimated realisable assets of Target and the two insolvency funds managed by MIB and ECIIB, should be adequate to settle all valid outstanding claims and projected insurance liabilities,” said one of the managers, Derek Lai.

If policyholders request cancellation of their policies, the premium refund amount will be calculated in accordance with relevant terms and conditions. But refunds will not be made immediately, due to the winding-up petition.

The IA appointed Deloitte to take control of Target Insurance in January after the listed company informed 8,000 taxi owners that it was cancelling their policies.