The requirement for all owners' corporations to procure third-party risks insurance will begin on January 1, 2009, the Home Affairs Department says.

The Building Management (Third Party Risks Insurance) Regulation, which set out the new requirement, is published in the Gazette today and will be tabled at the Legislative Council for negative vetting on July 11.

Section 12 of the Building Management (Amendment) Ordinance 2000, which has yet to come into effect, requires all owners' corporations to procure and keep in force a policy of third-party risks insurance for their buildings' common areas. 

Under the regulation, the policy for owners' corporations must provide insurance of not less than $10 million in respect of any liability that may be incurred in the event of a third party's death, bodily injury, or both.

The third-party risks insurance policy need not cover any liability arising out of a breach of duty imposed by law in relation to unauthorised building works.