CIRC Compulsory Environmental Pollution Insurance Rules – Discussion Paper

On the 9th of June 2017, the China Insurance Regulatory Commission (CIRC) published its Compulsory Environmental Pollution Insurance Rules – Discussion Paper (Paper). The Paper invites comments and submissions to CIRC prior to 10th July 2017. Key points of the Paper are:

1. Scope

The Paper defines compulsory environmental pollution insurance (CEPI) as that compulsory insurance which should be taken out by those entities the production activities of which carry a high risk of causing environmental pollution (High-Risk Entities), with consequent compensation liability being borne by those High-Risk Entities. All High-Risk Entities should take out CEPI cover, with such cover being underwritten by China commercial insurers or mutual insurers.