China Announces Plan for Environmental Disaster Insurance Program
The Xinhua news agency said on Monday that China plans to launch an insurance system to cover environmental disasters, aiming to ensure that the victims of major pollution incidents receive due compensation.
According to Xinhua, Mr. Pan Yue, deputy head of the State Environmental Protection Administration (SEPA, stated that the system would start out as a pilot project but would be intended to cover all industries with a high-risk of pollution incidents by 2015.
SEPA and the China Insurance Regulatory Commission (CIRC) would initially require firms dealing with high-risk chemical products to join the insurance project, along with petrochemical companies and those involved in hazardous waste disposal, Xinhua cited Pan as saying.
"Enterprises and industries having caused serious pollution accidents in recent years will be specially targeted," it quoted him as saying.
Xinhua said the programm’s goal was to prevent firms involved in big pollution incidents from going bankrupt because of clean-up and compensation costs, thereby cutting down on the need for government bailouts to pay victims.
"It, however, doesn't mean polluting companies can rest assured to pollute, as the insurance premium is in proportion to a company's pollution risks," it quoted Pan as saying.
China is fighting widespread pollution and environmental destruction, including a rash of major pollution incidents in recent years that have soiled the land, water and air.
Published on February 19, 2008
Are you a retail Agent Looking for a Quote?