Chinese regulators to promote environmental pollution liability insurance

24-Aug-07
China plans to promote environmental pollution liability insurance - to cover third party liabilities arising from accidents at a particular insured site. China's State Environmental Protection Administration (SEPA) and the China Insurance Regulatory Commission (CIRC) are preparing to establish a mechanism promoting environmental pollution liability insurance, as the country continues face the onslaught of increasing pollution related accidents. A research survey organized by the SEPA and the CIRC among enterprises in Northeast China's Jilin Province and East China's Zhejiang Province, expresses majority support for the insurance program. The research team suggested piloting the new insurance program in areas where accidents are likely, including locations where hazardous products are produced, transported, and stored. Suggested places include areas around the Taihu Lake, Huaihe River, Yellow River, Songhuajiang River, and downstream Yangtze River.
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