Foreign-invested enterprises shall approach to the insurance institutions established within the territory of China to buy insurance policies in accordance with the Insurance Law of the People’s Republic of China.
- Major Insurance Items
- Transportation insurance for import and export commodities (sea, land, and air transportation). This shall be covered for the duration of shipment when foreign equipment or materials are imported, or domestic products are exported. The seller o~ buyer shall cover the insurance policy according to goods value as provided for in the trade contract. In principle, imported or exported goods shall be covered by local insurance companies if possible.
- Construction and installation projects insurance, this is t (be covered for new or expansion projects of construction (e.g. factory building) or equipment installation for the duration o: construction.
- Property insurance. When the operation starts, building equipment, raw materials, finished and semi-finished product shall be covered for the duration of operation.
- Employee liability insurance. This is to be covered b3 the enterprise in the interest of employees.
In addition, the insurance company shall provide all types of international insurance services at the request of the foreign invested enterprises, such as machinery damage, profit loss personal insurance and political risks.
- Insurance procedures: specific formalities for various type of insurance shall be conducted through local branches or subsidiaries of the People’s Insurance Company of China (PICC) or other insurance companies, who shall issue insurance policies at the request of the applicant.
- Insurance policies: transportation insurance shall be covered in the amount specified in the contract; project insurance shall be covered in the amount of the total project value; property insurance policy shall be decided by the applicant according to the real value or account value of the property. III. Claims: a. When an insured loss occurs to exported goods outside of China, a claim shall be lodged with the foreign insurance agency specified in the insurance policy against the original export insurance policy.
- When an insured loss occurred to imported goods, the local insurance company should be notified to conduct on-the-spot examination. The original insurance policy, bill of lading, invoices, maritime report, loading list, tally list and other relevant documents shall be presented to the insurance company.
- In the case of project insurance, property insurance or other item, if an insured loss occurs, the local insurance company shall notify in a timely manner, and claims shall be lodged with the insurance company as provided for in the insurance policy.