State Environmental Protection Administration and China Insurance Regulatory Commission, Guiding Opinion on the Work of Environmental Pollution Liability Insurance
国家环境保护总局、中国保险监督管理委员会关于环境污染责任保险工作的指导意见
April 02, 2008 | BY
clpstaff &clp articles &China works to set up a green insurance system.
Issued: December 4 2007
Applicability: The term “environmental pollution liability insurance” refers to an insurance policy whose subject matter covers the liability for compensation for damage incurred by third parties that should be borne by enterprises according to law as a result of pollution accidents caused by such enterprises (Article 1).
Main Contents: Pilot environmental pollution liability insurance schemes targeting enterprises that manufacture, deal in, store, transport and use dangerous chemicals, petro-chemical enterprises that are prone to pollution accidents, dangerous waste disposal enterprises, and in particular enterprises and industries with major pollution accidents in recent years, shall be launched according to the environmental condition of the region and the characteristics of the enterprises. Also, insurance companies shall develop corresponding products.
Where the state has not issued specific audit standards for environmental pollution accidents, insurance companies may entrust an independent third party organization recognized by the state to assess the damage and determine the direct economic loss caused by the pollution in accordance with relevant prevailing laws and regulations.
Insurance companies shall, after underwriting the insurance policies, take the initiative to inspect on a regular basis the prevention work on environmental accidents of the insured enterprises, highlight the latent dangers and their inadequacies in a timely manner, issue a written rectification opinion, urge the insured enterprises to enhance their accident prevention capability, and report the relevant details to the local environmental protection department (Article 3).
Related Legislation: Decision on Strengthening Environmental Protection Through Implementing Scientific Outlook on Development, Dec 3 2005; Several Opinions Concerning the Reform and Development of the Insurance Industry, Jun 15 2006, CLP 2006 No.7 p.5; and Comprehensive Work Proposal on Energy Conservation and Reduction of Waste Discharge, May 23 2007
clp reference:1600/07.12.04promulgated:2007-12-04This premium content is reserved for
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