The Establishment Of Environmental Pollution Liability Insurance In China

The achievements of China’s economic development are remarkable. But with the rapid economic development and industrialization process, ecological damage cannot be ignored and environmental pollution accidents occurred frequently. The consequences of these accidents will normally be very serious, because the repair damage to the environment requires a very long time, and the huge costs of compensation and governance are often made bankruptcy and victims are difficult to obtain compensation in time. Ultimately the governments take on this huge expenditure and bare tremendous financial pressure. Thus, in order to promote the protection of the ecological environment, safeguard the interests of victims, we must quickly find mechanisms to alleviate financial pressure on the government and distribute environmental risk.Since the 1960’s, the environmental pollution liability insurance has been carried out in the main western developed countries such as United States, Germany, Sweden, Finland, the United Kingdom and France. And according to different national conditions, three representative models have been formed: compulsory, voluntary and compulsory combined with guarantee. After several decades of development, the system is relatively mature.In fact, this system is not new to China. Back in the nineties of last century, Dalian, Shenyang and other cities have had a brief trial of environmental pollution liability insurance. After the start of the new century, environmental issues become even more prominent. So the pilot work to establish such a system was put back on the agenda. After a series of research of China Insurance Regulatory Commission and the Environmental Protection Agency, a new pilot began since 2007. Although some achievements have been made, the planned goal hasn’t been achieved. The theory research should lead on promoting the environmental liability insurance in China. The first part is an introduction, describes the purpose and significance of the article, reviews the literature by Chinese scholars in recent years, and outlines the content of this article.The second part is the theoretical basis of the article, defined the concept of environmental pollution liability insurance and its uniqueness, and expounds the significance of establishing the system in China.The third section reviews the major experience of western developed countries, the United States, France and Germany, covering three different modes of environmental liability insurance system.Part IV introduces the first pilot in nineties of the last century:Dalian, Shenyang and other cities have had a brief trial of environmental pollution liability insurance. Then these part further details the new one in 2007.The fifth part attempts to get some reference from other similar business, including Traffic Insurance and agricultural insurance.Therefore, based on the above analysis, the focus of Part VI is to give a series of suggestions to perfect the environmental pollution liability insurance system.