Yinzhou Tested Calamity Insurance for Small and Micro Businees

With the government striving to encourage insurance participation, enterprises will have diverse choices. We really welcome the beneficial calamity insurance! complimented Zhang Weigang on April 8th, who is the deputy manager of Ningbo Rooma Electric, regarding the newly-released property insurance for small and micro businesses.

That day in the afternoon, Yinzhou District signed a contract with a representative of a coinsurance group. As a result, if any calamity like fire, rainstorm, flood, typhoon or blizzard should befall, all the small and micro businesses can receive compensation with a maximum of 0.2 million yuan. It's unprecedented nationwide for a government to purchase insurance for small and micro businesses. Totally 1500 local enterprises are benefited.

Private economy thrives in Yinzhou District where numerous small and micro businesses are located. For a long time, they have suffered from low insurance coverage, week risk resistance and other serious problems. Relative statistics show that less than 5% of them in the whole district have commercial property insurance. The reasons are twofold: first is their lack of enough awareness of potential risks; second are the high costs.

We released policy property insurance for small and micro businesses though cooperation with commercial organizations, just because we expect to remove the mismatch between the supply and demand of insurance and then explore to establish a corresponding operating system, said a chief of the district government.

According to the contract, objects insured include buildings, equipment, stocks and so on. Calamities including fire, explosion, lightning strike, rainstorm, flood, gale, typhoon, blizzard, landslide, mudslide and so forth are covered. Compensation can reach 0.1 million yuan maximally for a single accident, and 0.2 million in total. Enterprises are required an annual fee of 6,000 yuan for the insurance. And for expanding businesses and technological enterprises, the government will subsidize 90% of the fee in the first year while others will get 80%. To achieve it, the government plans to invest over 15 million yuan within 3 years.

Unlike traditional commercial property insurance, the new calamity insurance will adopt a special pattern and focus on providing value-added services for small and micro businesses.

An official in the District Financial Bureau said that with government's guidance they endeavored to encourage over 50% small and micro businesses to buy insurance voluntarily in 3 years and while enhancing their capacity to cope with disasters, they wanted to boost their development by strengthening government support and its cooperation with insurance companies.

LINK:	http://en.nbwh.gov.cn/art/2016/4/11/art_1325_82065.html...
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