Total insurance premiums for liability insurance in the first three quarters in 11 provinces ($11 million) in 11 provinces,” said Shen Xiaoyue, head of the policy office at the Policy Research Center for Environment and Economy, the ministry’s think tank.
One criticism of the insurance in the past has been that companies found it hard to draw on the insurance after accidents. For example, the compensation rate for the insurance was only 4 percent of the money claimed in Sichuan province — very low to reduce the companies’ losses, said Li Xuan, a researcher at the center.
“To improve the draft for better implementation in the future, we should solve several major problems first,” said Shen.
Such problems include which companies are considered to pose high pollution risks, the type of insurance products for companies and the enactment of laws to force companies buy insurance.