Legal Consideration On The Construction Of Earthquake Insurance Sstem

Japan "3.11" earthquake with its resulting tsunamis and nuclear leak have a profoundimpact on Japan and the global region. However, the Japan’s earthquake-insurance andreinsurance system which capabilities in risk diversification let us to see the power ofinsurance as a means of risk control to eliminate the loss of earthquake, in modern societyearthquake insurance is the best method of the victims to help themselves. Japan’searthquake-insurance system insures victims can resume production and operation of fundsafter the earthquake. The significant function of this system is in the concerns of manycountries and regions which are including China. Earthquake insurance system is taken ontothe stage of history again. Because of the economic well-developed, insurance market activity,and combined with earthquake disasters, for the protection of residents’ life, the Japanesegovernment early launched a study of the legal system of earthquake insurance. The law ofearthquake insurance was enacted in1966, and it was improved and revised by the experienceof several large-scale earthquakes later. The current Japan’s earthquake-insurance legalsystem has its own characteristics: the huge earthquake insurance is not a traditionalcommercial insurance, its unpredictability and loss due to earthquake risk, resulting in barriersto commercial insurance companies, therefore the Japanese government to participate inearthquake insurance. Japanese earthquake insurance has a combination of commercial and political means, overcoming underwriting earthquake risk of the obstacles with public powerintervention. In addition, the government on the operation of earthquake insurance companiesalso gives tax concessions. Because of the special geographical location of China whichsqueezed by the Eurasia plate and Pacific plate, the earthquake is also frequent. Nevertheless,science has some difficulty to master the characteristics of the earthquake risk, so Chinesegovernment takes the passive assistance, it includes government relief and socialcontributions. However, it cannot effectively compensate for the losses of earthquake. Theexperience of Japanese earthquake insurance legislation provides a reference for China todevelop the earthquake insurance legal system.This article is divided into three parts of the introduction, main body and conclusion. Themain body part is constructed by four parts: Part I, to review Japan "3.11" earthquake and itsimpact, in order to draw the legal focuses; Part II, the general principles of the legal system inearthquake insurance, to describe the earthquake insurance laws and the basic theories; PartIII, Japan’s earthquake insurance legal system, to describe the formation, development and thesuccessful experience of the legal system of the Japanese earthquake insurance; Part IV, to putforward the improvement of earthquake insurance in Chinese legal system. This article isbased on the three times attempts of the earthquake insurance in the history of China, and tryto analysis the contents which should be completed into Chinese law of earthquake insurance.