On December 23, the Ministry of Environmental Protection issued a list of the nationwide insurance companies for insuring environmental pollution liability in 2015. This measure aims to improve the long-term mechanism of “joint efforts” to promote environmental risk supervision through information disclosure. This time announced nearly 4,000 companies including 17 provinces, districts and cities, involving heavy metals, petrochemicals, hazardous chemicals, hazardous waste disposal, electricity, medicine, printing and dyeing and other industries.

The environmental pollution liability insurance is based on the insurance liability of the third party due to pollution accidents caused by the company. According to Bi Tao, deputy director of the Department of Policy and Regulation of the Ministry of Environmental Protection, in 2007, the former State Environmental Protection Administration and the China Insurance Regulatory Commission jointly published the “Guidance on the Work on Environmental Pollution Liability Insurance,” and the pilot project on environmental pollution liability insurance was officially launched. In 2013, the Ministry of Environmental Protection and the China Insurance Regulatory Commission jointly issued the “Guiding Opinions on Conducting Forced Pilot Work on Environmental Pollution Liability Insurance” and launched a pilot project on compulsory liability insurance for environmental pollution in industries with high environmental risk such as heavy metals.

According to briefings, from 2007 to the third quarter of 2015, the number of enterprises that have applied for insurance coverage of the loopholes has exceeded 45,000, and the total amount of risk protection provided by insurance companies has exceeded 100 billion yuan. Responsibility for environmental protection has played an active role in preventing environmental risks, compensating victims of pollution, and promoting post-regulation of environmental protection.

Bie Tao said that at present, Central and Customs Insurance has ushered in new opportunities for development. First, the overall strengthening of the rule of law in the environment. This year is the "year of implementation" of the new "Environment Protection Law." This law establishes for the first time the "burden of damage" as the basic principle of environmental protection. Once a company suffers a pollution accident, it may face huge amounts of compensation for public welfare or civil infringement. Taking advantage of the insurance mechanism to deal with civil liability for compensation and resolving environmental risks will become an active and natural choice for many companies.

Secondly, the reform of the ecological environment damage compensation system has further established the principle of environmental price, damage and accountability, and defined the scope of the company’s ecological environmental damage compensation. The implementation of the "Pilot Program for the Reform of the Ecological Environment Damage Compensation System" will force companies to strengthen their internal motivation to prevent environmental risks, and also encourage companies to protect their normal production and operations by protecting the environment and risk through insurance and liability insurance.

Bie Tao said that in the next step, the environmental protection department will unite relevant departments to take advantage of the strengthening of the rule of law in the environment and the promotion of the reform of ecological civilization to promote the continuous deepening of the work of ring work and insurrection, and to play a greater role in preventing environmental risks and promptly relieving the victims of pollution.
Article link: China Environmental Protection Online http://

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