Comment on the subsidiary, Cathay Century Co., Ltd`s penalty of NT$600,000 from insurance law violation

2006-07-06

1.Parties to the legal matter, name of the court, disposing agency, and reference/case numbers of relevant documents:Parties to the legal matter: Cathay Century Insurance Co., Ltd, Disposing agency:Financial Supervisory Commission 2.Date of occurrence of the event:2006/07/05 3.Background and circumstances of the matter (including the property/subject matter under dispute):In year 2004 Financial Examination Bureau of Financial Supervisory Commission found the Accidental Pollution Liability Clause of Public Liability Insurance policy was not reported to Insurance Bureau which was coinsured by Cathay Century Insurance Co., Ltd, Fubon Insurance Co., Ltd. and South China Insurance Co., Ltd.. 4.Course and progression of handling of the matter:(1)Financial Supervisory Commission’s general examination report was received on 2005/05/31, and the reply statement was sent on 2005/6/15.(2)Cathay Century Insurance Co., Ltd would fully follow the punishment after receiving the formal document. 5.Effect on company finances and business and estimated monetary amount of the effect:NT$600,000 6.Countermeasures and status of amelioration:In order to avoid similar situation, Cathay Century Insurance Co., Ltd. has reported the Accidental Pollution Liability Clause of Public Liability Insurance to insurance Bureau on 2005/06/06, and on 2005/06/20 was reported by Financial Supervisory Commission Gin Kuan Pao 2 No.09402066080. 7.Any other matters that need to be specified:N/A