Research On The Construction Of The Compulsory Environment Liability Insurance In China

Environmental pollution compulsory liability insurance,which is also known as compulsory environment liability insurance,is the insurance along with pollution discharge of companies.The insurance has been established in the United State and Germany,and has been experienced in nowadays.After implementing reform and opening-up policy,financial industry and capital market has been prosperous,and insurance industry,as an important part of them,continue to develop.In the 1990 s,China has implemented environment liability insurance in northeast of China,but limit to the legal institution and economic of those days,this insurance has not played an important part in right relief,environmental protecting and managing society risk.It is could be recognized that environment liability insurance which implemented in the 1990 s is unsuccessful,but it is also could be recognized that the experiment is the lessons drawn from the former mistakes.The author thought that the reason why it is unsuccessful is that the randomicity.The companies could choose to insure or not,and insurance companies could rise up the premium rate and limit the coverage for avoiding to undertake a huge sum of insurance benefit,therefore,the author think that we must make an insurance law to regulate the behavior,and to adjust the legal relation among parties,and the dissertation is based on theories of insurance laws.The author thinks that the only way to relive the right of environment pollution victims is to establish the compulsory environment insurance.The characteristics of this insurance could be summarized as the following: firstly,the mandatory of this insurance shows the management of government to the market,and this management is reasonable;secondly,this insurance is a kind of solution to protect the public rights;thirdly,when insurance company underwrite this insurance,they cannot pursue to make profit,and they should comply with the principle of “no profit no loss”.Nevertheless,we also need to make difference from other related insurance,such as public liability insurance,employment liability insurance and disaster insurance.On the on hand,the environmental liability insurance is separated from public liability insurance;on the other hand,employment liability insurance emphasized on protecting the right of employees rather than other people.After defining the basic definition of compulsory environment liability insurance,we need to argue to the basic of promoting compulsory environment liability insurance in our country from necessity and feasibility.One of the the important necessity is to protect the victims' rights,which is refer to personal right and property right.The reason why I emphasized on reliving the rights of victims is that the existing remedy lose to protect the victims.For example,lawsuit costs many of time and money.The other theory is to avoid the market failure results from adverse-selection.The adverse-selection result from the unbalanced information between the parties.The policy often hold many information related to the risk,and insurers' is less.The low-risk companies are not going to insure,and many of high-risk companies are willing to insure,and this can destroy the liability socialization,and made the insurance unuseful.Promoting compulsory environment liability insurance in our country also has the feasibility.First of all,the development of theory of liability socialization is the basis of the insurance,we need to think the elements of this insurance,such as the reasons of environment pollution,the affirmation of environmental tort and the theory of liability-socialization,which means that the risk is normal in people's daily lives,and it has strong uncertainty,so that people find several solutions to solve them,such as insurance.The risk which is assumed by companies is the basic of the compulsory environment liability insurance.Secondly,our country has made a perfect environment liability system,which includes the tort law,environment protect law,prevention and control of water pollution law,sea environment protect law,prevention and control of air pollution law,and prevention and control of solid waste pollution law.Thirdly,the insurance industry has become more and more experienced in recent years,and our country has made great progress in insurance industry,especially in liability insurance,and other countries' experience also could be the reference for us.In the part of establishment of laws,at first,we should adopt the special act,like compulsory traffic accident liability insurance for motor vehicles,and make experiments from local area to the whole country,and we also should perfect the supporting system,such as tax preference;secondly,we should affirm that the promoting scope focuses on high-risk companies,and coverage focuses on sudden environment pollution.Thirdly,in order to prevent the moral risk,we need to carry out the accumulated liability limits,and in the aspect of premium rate,we should implement the differential premium rate.At last,we need to insure legal and agreed exclusion.