The Insurance Law in China was adopted in 1995 and since then many other provisions and adjustments were made, the last one taking place in February 2009. In a few words, the Insurance Law in China was created to regulate the insurance matters and activities in order to protect the public interests and the legal rights and to preserve a normal economic and social development in the country. Our Chinese lawyers can provide you with the necessary information and guidance in this matter.
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The general provisions of the Insurance Law in China
All Chinese companies are required to insure their commercial activities through an insurance contract, for a settled amount of money, in order to be compensated in cases of property loss or other possible accidents. It is good to know that the insurance companies are created according to the rules, regulations and the conditions of the Insurance Law in China. Also, the organizations that have activities in China and need insurance must settle an insurance contract in the same country.
What are the insurance contracts in China?
In simple words, the insurance contract is an arrangement that contains the rights and the condition of the insured and the insurance company, taking into consideration the principle of impartiality. For a personal insurance in China or for a property insurance, the candidate or the individual will have all the interests insured in case of different accidents, such as property damage, health problems, age or even death.
As a general rule, the insurance in China covers the insured’s property, belongings, and life, and the individual is entitled to claim the insurance payment or money in case of loss or major damage. Our lawyers in China are ready to explain every step of the process if you wish to sign an insurance contract in the country, no matter the type you choose.
What happens with the insured in the case of an accident?
First of all, the insured needs to demonstrate available materials related to the cause or degree of the accident. In about 30 days, the insurance firm needs to examine the situation, no matter if a company or an individual are implied in such unpleasant incident. In the same terms, the insurance company in China will provide the evaluation results and then will pay the established amount, according to the insurance coverage from the contract, after a previous notification.
You should know that the limitation period for the insured individual to claim the coverage or the insurance funds will be 5 years starting from the reported accident to the company.
The insurance companies in China can provide interesting insurance packages related to:
• health;
• property;
• cargo transportation ;
• traffic accidents;
• work incidents;
• household accidents;
• company assets.
An insurance company needs to respect the Insurance Law in China, to have an excellent credit and no negative background in this important domain for at least three years.
If you are interested in many other details related to the insurance law, please do not hesitate to get in touch with our Chinese law firm.