Pi­lot project to test manda­tory pol­lu­tion in­sur­ance

China Daily (Canada) - - CHINA - By ZHENG JINRAN in Shen­zhen, Guang­dong zhengjin­ran@ chi­nadaily.com.cn

China is con­sid­er­ing making en­vi­ron­men­tal li­a­bil­ity in­sur­ance manda­tory for com­pa­nies that pose high pol­lu­tion risks in a bid to cur­tail haz­ards to air, land and wa­ter, the na­tional en­vi­ron­men­tal watch­dog said.

The Min­istry of En­vi­ron­men­tal Pro­tec­tion de­vel­oped a draft plan in some pi­lot re­gions, and it is so­lic­it­ing sug­ges­tions from in­sur­ance com­pa­nies and en­vi­ron­men­tal pro­tec­tion au­thor­i­ties.

The pro­posed in­sur­ance tar­gets com­pa­nies in sec­tors that pose a high risk of dis­charg­ing pol­lu­tants into the en­vi­ron­ment, and cov­ers the costs of cleanup af­ter the con­tam­i­na­tion of air, wa­ter or land due to ac­ci­dents in­volv­ing haz­ardous sub­stances.

It was pre­sented at a sem­i­nar in Shen­zhen, Guang­dong prov­ince, onMon­day.

The cen­tral gov­ern­ment is­sued a guide­line in Septem­ber suggest­ing com­pul­sory in­sur­ance, in line with its eco­civ­i­liza­tion ob­jec­tives.

Many re­searchers and of­fi­cials at en­vi­ron­men­tal pro­tec­tion bu­reaus at­tend­ing the sem­i­nar sup­ported making in­sur­ance com­pul­sory, but also agreed it’s dif­fi­cult to im­ple­ment and ex­pand the in­sur­ance con­sid­er­ing the cur­rent slow progress and lack of en­force­ment.

China un­der­took a pi­lot project to pro­mote vol­un­tary li­a­bil­ity in­sur­ance in 2007 and ex­panded it to cover the whole coun­try in 2013.

How­ever, many com­pa­nies listed as a high-risk for pol­lut­ing the en­vi­ron­ment re­fused to buy the in­sur­ance, and the in­sured rate in some re­gions has de­creased in re­cent years, said Lai Xiaodong, deputy head of the pol­icy of­fice at the min­istry.

There is a lack of reg­u­la­tion to com­pel com­pa­nies to buy in­sur­ance, Lai said. Thus the mar­ket for such in­sur­ance has grown slowly.

“In the first three quar­ters, the to­tal in­sur­ance pre­mi­ums for li­a­bil­ity in­sur­ance was around 70 mil­lion yuan

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