2016年CRI China launches first sale of earthquake insurance

 

Earthquake often causes huge casualties and economic loss. In China, it is usually the government who plays the main role in guaranteeing the basic livelihood¹ of the disaster area and maintain social stability after natural disasters. At the same time, government also funds for restoration and reconstruction² for the disaster area.

But, the government's aim is to provide emergency relief. It cannot fully³ compensate⁴ the reconstruction of houses, apartment buildings and businesses in the aftermath of disasters. Thus, Sun Fuliang at China Earthquake Administration emphasized that it's very important to establish catastrophe⁵ insurance system.

"The establishment of earthquake catastrophe insurance system help to shift the original single model of relief and rescue into a multi-channel multi-faceted one; will closely integrated the disaster relief and risk prevention, as well as government relief and self-help in disaster areas, so as to fully mobilize social resources, increase aid provision, improve disaster restoration and reconstruction capability⁶, and ease the financial pressure on the government in the face of catastrophe."

Homeowners can buy insurance policies with a maximum payout of 1 million yuan or 150 thousand US dollar to cover loss and damage to residential⁷ property caused by earthquakes with a magnitude of 4.7 and above.

The earthquake insurance policy is part of China's effort to establish a catastrophe insurance system aimed at using a market-driven mechanism⁸ to support disaster relief work and to reduce the fiscal⁹ burden on the government for loss compensation.

Zhu Junsheng is an economist¹⁰ from Capital University of Economics and Business in Beijing.

"Catastrophe insurance is more like a system rather than a production, concerning many departments including insurance and insurance regulatory departments, as well as financial and agricultural departments and so on. Aid from the government is just a kind of relief. It is more efficient to let the market mechanism, such as insurance companies, bear the main responsibility."

The earthquake insurance policy is sold by Chinese insurers nationwide. According to the insurance regulator, the premium¹¹ rates vary depending on factors such as the location and construction of property, as well as the probability of earthquake.

The insurance regulator is also pushing nationwide legislation on the catastrophe insurance system and it is expected to complete the legal work by next year.

Sun Fuliang from China Earthquake Administration said:

"The insurance for earthquakes and other natural disasters relates to property rights of citizens, legal persons and other organizations, with strong policy consideration. In order to ensure its orderly development in the long term, it should be established by the basic law. We suggest, in the future, legislation would be passed to clarify the responsibilities of the catastrophe insurance system; the authorities of the government, insurance companies and other parties; and standardize¹² the practice of catastrophe insurances."

1 livelihood   

n.生计，谋生之道

参考例句：

• Appropriate arrangements will be made for their work and livelihood.他们的工作和生活会得到妥善安排。
• My father gained a bare livelihood of family by his own hands.父亲靠自己的双手勉强维持家计。

2 reconstruction   

n.重建，再现，复原

参考例句：

• The country faces a huge task of national reconstruction following the war.战后，该国面临着重建家园的艰巨任务。
• In the period of reconstruction,technique decides everything.在重建时期，技术决定一切。

3 fully   

adv.完全地，全部地，彻底地；充分地

参考例句：

• The doctor asked me to breathe in,then to breathe out fully.医生让我先吸气，然后全部呼出。
• They soon became fully integrated into the local community.他们很快就完全融入了当地人的圈子。

4 compensate   

vt.补偿，赔偿；酬报 vi.弥补；补偿；抵消

参考例句：

• She used her good looks to compensate her lack of intelligence. 她利用她漂亮的外表来弥补智力的不足。
• Nothing can compensate for the loss of one's health. 一个人失去了键康是不可弥补的。

5 catastrophe   

n.大灾难，大祸

参考例句：

• I owe it to you that I survived the catastrophe.亏得你我才大难不死。
• This is a catastrophe beyond human control.这是一场人类无法控制的灾难。

6 capability   

n.能力；才能；(pl)可发展的能力或特性等

参考例句：

• She has the capability to become a very fine actress.她有潜力成为杰出演员。
• Organizing a whole department is beyond his capability.组织整个部门是他能力以外的事。

7 residential   

adj.提供住宿的；居住的；住宅的

参考例句：

• The mayor inspected the residential section of the city.市长视察了该市的住宅区。
• The residential blocks were integrated with the rest of the college.住宿区与学院其他部分结合在了一起。

8 mechanism   

n.机械装置；机构，结构

参考例句：

• The bones and muscles are parts of the mechanism of the body.骨骼和肌肉是人体的组成部件。
• The mechanism of the machine is very complicated.这台机器的结构是非常复杂的。

9 fiscal   

adj.财政的，会计的，国库的，国库岁入的

参考例句：

• The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。
• The government has two basic strategies of fiscal policy available.政府有两个可行的财政政策基本战略。

10 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

11 premium   

n.加付款；赠品；adj.高级的；售价高的

参考例句：

• You have to pay a premium for express delivery.寄快递你得付额外费用。
• Fresh water was at a premium after the reservoir was contaminated.在水库被污染之后，清水便因稀而贵了。

12 standardize   

v.使符合标准，使标准化

参考例句：

• We will extend and standardize legal services and provide effective legal aid.拓展和规范法律服务，积极开展法律援助。
• There is a drive both to standardise components and to reduce the number of models on offer.正在为实现零部件标准化和减少推出的型号数量而努力。