China Law Online Database : novexcn.com

You are using Guest Account

Subscribe To This Law Only

Subscribe To All Law Contents

Print This Page

Back




	REPLY OF CHINA INSURANCE REGULATORY COMMISSION ON THE OVERSEAS SHIPOWNER'S MUTUAL INSURANCE INSTITUTIONS' UNDERWRITING OF OIL LIABILITY INSURANCE FOR OIL POLLUTION DAMAGE WITHIN CHINA

	(No.13 [2002] of China Insurance Regulatory Commission, February 4, 2002)


SUBJECT : OVERSEAS SHIPOWNER'S MUTUAL INSURANCE INSTITUTIONS'; UNDERWRITING OIL LIABILITY INSURANCE FOR OIL POLLUTION DAMAGE
ISSUING DEPARTMENT : CHINA INSURANCE REGULATORY COMMISSION
ISSUE DATE : 02/04/2002
IMPLEMENT DATE : 02/04/2002
LENGTH : 383 words
TEXT :

Regarding the Letter on Overseas Shipowner's Mutual Insurance Institutions' Intent to Underwriteoil liability insurance for oil pollution damage, we hereby reply as follows upon deliberation:

I. Article 10 of the Insurance Law provides that: "no insurance company or other entity may force others to conclude any insurance contract, except where the laws and administrative regulations provide that the insurance must be purchased. " Article 66 of the Laws on Ocean Environmental Protection provides that: "the system of ship oil pollution insurance and oil pollution damage compensation fund shall be established in accordance with the principle that the risk of compensation liability for ship oil pollution shall be jointly assumed by the shipowner and the consignor. The specific measures for implementation of the system of ship oil pollution insurance and oil pollution damage compensation fund shall be provided for by the State Council". That provision provides the establishment of ship oil pollution insurance, but does not expressly require the establishment of a system of compulsory insurance of the compensation liability for ship oil pollution. Therefore, if the system of compulsory insurance of the compensation liability for ship oil pollution is to be established pursuant to the provisions of the Insurance Law, the relevant administrative regulations shall be enacted by the State Council.

II. Article 5 of the Insurance Law provides that "only the insurance companies established hereunder may engage in the commercial insurance business. No other entity or individual may engage in the commercial insurance business. " In the meanwhile, Article 6 of the Insurance Law provides: "Any corporation or other organization within the People's Republic of China that needs to purchase domestic insurance shall purchase with the insurance companies within the People's Republic of China." Article 66 of the Law on Ocean Environmental Protection is a provision regarding the establishment of the ship oil pollution insurance system, which falls within the commercial insurance business, therefore, the oil pollution damage liability insurance for any ship engaged in transportation of oil product within the sea area of China shall be purchased with the domestic insurance company operating commercial insurance business.

III. No overseas shipowner mutual insurance institution may operate the business of ship oil pollution damage liability insurance within China without approval, or such operation shall be treated as illegal commercial insurance activities.