Dalian Branch of China Insurance Regulatory Commission recently released that supplementary commercial work-related injury insurance cooperatively launched by Dalian Insurance Industry and Dalian Human Resource and Social SecurityBureau has gained great success. By the end of 2013, 11,000 enterprises have participated in the supplementary commercial work-related injury insurance scheme, among which the small and micro enterprises with less than 20 employees account for 80%. Total number of the participants is 212,000 and the insurance has paid indemnity for 264 people in the total amount of RMB 8,770,000.

Dalian has implemented supplementary work-related injury insurance system from May 21, 2012. In the supplementary work-related injury insurance system,  employer purchases supplementary work-related injury insurance for its employees with designated commercial insurance companies in addition to the statutory work-related injury insurance. Employer in Dalian pays RMB 8-12 per month for each employee (specific amount to be determined by the employer’s industry, and employees are exempt from contributing premiums). After insured employee suffers work-related injury, in addition to the statutory work-related injury insurance treatment, he/she is also entitled to a lump sum payment for death or injury, disability and nursing, which are borne by the supplementary work-related injury insurance. The benefit payment for death is RMB 200,000. The benefit payment for injury and disability depends on the disability degree of the employee and the amount varies from RMB 5,000 to RMB 100,000. The benefit payment of nursing varies from RMB 60,000 to RMB 100,000, depending on whether the employees can take care of themselves.

KWM Comments: Supplementary commercial work-related injury insurance can effectively make up for the shortage of low degree of guarantee of work-related injury insurance from the social insurance, decreasing the frequency of labor disputes and easing the operation burden of enterprises (especially small and micro enterprises). KWM will pay close attention to this pilot project and provide updated information in time.