The “Measures for the Implementation of Work Safety Liability Insurance” has been implemented since March 29, 2025.
In 2017, the former State Administration of Work Safety, the former China Insurance Regulatory Commission, and the Ministry of Finance jointly issued the “Measures for the Implementation of Work Safety Liability Insurance” (An Jian Zong Ban [2017] No.140), establishing the work safety liability insurance system (hereinafter referred to as the “System”). The “Work Safety Law” revised in 2021 put forward new requirements for the System, clearly stating that “production and business operation entities in high-risk industries and fields specified by the state shall purchase work safety liability insurance.” Regarding those new reauiremtns, the Ministry of Emergency Management, jointly with six departments including the Ministry of Finance, the National Financial Regulatory Administration, the Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development, the Ministry of Transport, and the Ministry of Agriculture and Rural Affairs, revised the “Measures for the Implementation of Work Safety Liability Insurance”. (Ying Ji [2025] No.27, hereinafter referred to as “No. 27”)
The following new provisions in No. 27 deserve the attention of relevant enterprises:
- Further clarify the scope of industries and fields that should purchase such insurance
Specifically, the scope of industries and fields includes units in high-risk industries and fields such as mines, hazardous chemicals, fireworks and firecrackers, transportation, construction, civil explosive materials, metal smelting, fishery production and etc..
In addition, No. 27 clearly states the following requirements: (1) enterprises shall pay the premiums for such insurance timely and in full amount, they shall not apportion such insurance to individual employees in any way; and (2) The premiums can be truthfully included in the work safety expenses of the enterprise.
- Clarify the coverage of such insurance
It is required that the insurance coverage cover all employees of the enterprise, that is, temporary employees, dispatched workers, etc. are all included in the insured objects. The insurance amount shall implement the same standard, and there shall be no differential treatment due to employment methods, job positions, etc.
- Further clarify the scope of compensation for such insurance
No. 27 still divides the scope of compensation for such insurance into three parts: (1) Personal injuries and deaths of employees; (2) Personal injuries, deaths, and property losses of third parties; and (3) Expenses for accident rescue and relief, medical treatment, accident identification, legal litigation, etc. However, regarding the part of personal injuries and deaths of employees, No. 27 clearly defines it as “the injuries and deaths of employees for which the insured is legally liable due to work safety accidents”, rather than the personal injuries and deaths in a broad sense that occur in production enterprises.
- Clearly stipulate the upper limit of the commission ratio for such insurance
No. 27 stipulates that the commission ratio for such insurance shall not be higher than 5%, which will help guide insurance institutions to use the premiums for accident prevention and loss compensation.
- Provide the limit of liability for death and disability
No. 27 has increased the limit of liability for death and disability per person from CNY300,000 to CNY400,000, and local authorities can, on the basis of this minimum guarantee limit, determine the local minimum guarantee limit in consideration of the actual situation.
In addition, No.27 has also optimized the claim settlement service, established a rapid claim settlement mechanism and an advance payment mechanism for major or typical accidents, so as to quickly pay or make an advance payment of the determined insurance compensation in accordance with laws and agreements after an accident occurs.