China National Tourism Administration, Taking Out of Travel Agency Liability Insurance by Travel Agencies Provisions

Promulgated: May 15 2001
Effective: September 1 2001
Interpreting authority: State Administration of Tourism
Applicability: PRC domestic travel agencies shall comply with these Provisions when purchasing travel agency liability insurance to cover their liability for personal injuries to or damage to the property of tourists (Articles 3 and 4).

Main contents: The Provisions provide that travel agencies must purchase travel agency liability insurance when they engage in tourist business (Article 2). The insurance shall cover the liability that travel agencies are required by law to bear, including travel personal injuries and related medical, transportation and other expenses, property damage, and legal expenses arising from disputes over such liability (Article 5). Such insurance has a term of one year and the amount insured shall be no less than Rmb80,000 per domestic tourist and Rmb160,000 per international tourist (Article 10). Travel agency liability insurance must be purchased from domestic insurers (Article 12). Insurance premiums shall not be separately itemized in the sale price (Article 16). The Provisions also set out penalties for violations of the requirements of purchasing adequate travel agency liability insurance.
Related legislation: Administration of Travel Agencies Regulations, Oct 15 1996, CLP 1997 No.1 p10 and PRC, Insurance Law, Jun 30 1995, CLP 1995 No.8 p16
Repealed legislation: China National Tourism Administration, Arrangement of Travel Accident Insurance by Travel Agencies Tentative Provisions, May 13 1997