Implications Of Article 23 Of The Amended PRC Insurance Law

Originally published 23 March 2011

Keywords: PRC Insurance, Chinese insurance, insurance, benefit,

The PRC Insurance Law was substantially amended in February 2009, and such amendments became effective in October 2009. Noting that this law has been implemented and enforced for over a year, insurers have become increasingly concerned in particular with respect to restrictions imposed by the amendments and implications on the handling of claims. This update addresses Article 23 of the amended PRC Insurance Law, which concerns the requirement for insurers to a) confirm a coverage position for a validly notified claim within 30 days from receipt and b) be restricted to make a single request for documentation and information before rendering the coverage confirmation. In response to the amendments, insurers may consider adopting some of our suggestions as set out in this update.