Damages Fund System Research

Melamine events leaded to enormous personal injury to the infant patients, and caused heavy loss to the dairy industry, also, caused a huge financial burden to the country. To rescue the children, dairy industry association established the medical-treatment-compensation-fund, which is commissioned by the Chinese life insurance company, guaranteeing the medical payment which is caused by the melamine before the age of 18.But, there are disadvantages of this medical treatment compensation fund. Firstly, it only guarantees the medical expenses, secondly it only guarantees the medical payment until the children get age to 18 years old. Then, whether the children can get full compensation for civil damages? How to solve the medical payment when the Children are after 18 years old? Therefore, through the melamine events, in order to save lessons and overcome the shortage of the medical treatment compensation, this lecture advocates these companies that produce the same products to establish the product damage compensation fund. The core viewpoint of this lecture is to establish the product-damage-compensation-fund. This fund is advocated by the industrial association. At the beginning of the year, the operators will pay for the fund voluntarily by the standard that the 0.1% of the whole product of the planned total production of this year multiplied the average price of the product of the last year. This fund can guarantee that consumers can obtain sufficient compensation for timely when product liability accident occurs, and the fund will pay for the victims first.There are five parts of this lecture. At the first part, it is about the definition, the feature and the significance of the fund.This fund is about that the operator group is responsible for the rights and interests of consumer groups, besides, this funds has established before the torts occur. Thus, it can guarantee the consumer gets the full compensation when the tort liability subject is over or it lacks the civil legal subject qualification temporarily.What's more, it can undertake the operators' dispersed risk; defer the operators'bad consequence by undertaking the tort liability; enhance the operators' safety management consciousness. And at last. it can alleviate national burden. Product damage compensation fund is in the purpose of fund managers and consumer groups getting win-win results. The second part of this lecture is about the justification of the fund. There are three aspects of the justification. Firstly, it can enhance the industrial common-interests. According to the theory of social-related, the operators are connected to each other and they have he industrial common interests, so they should cooperate.Secondly, it is justice to every operator. The operators occupy the same operator position, so it is justice for the operators to establish this fund.Finally, the establishment of the product damage compensation fund conforms to the risk-sharing trend. Risk sharing trend is an inevitable trend in the development of tort law. Product damage compensation fund is to spread risk, in line with the development trend.In the third part of this lecture, it is about the practical way of paying for the fund, the legal nature of the fund when it was established, as well as the preferential tax measures that the government gives.The fund can be the independent trustee corporation, or can be partnership by the operator. Two kinds of circumstances both have advantages and disadvantages. Operators may choose one of them.The fourth part of this lecture is about the operation of fund. The basic principles of the operation are value preservation and increment, open and transparent and earmarking. The modes of operation include trusteeship and self-operation.The fifth part is about the supervision of the fund. The industry association, the administrative organs and the social are entitled to the supervision for the funds.