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【Interpretation of the Special Equipment Safety Law】Article 17

2021-01-13View Original

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Article 17 **Insurance for safety liability of special equipment is encouraged. Interpretation of the provision: This article is a policy-guiding clause aimed at encouraging the assumption of safety responsibilities for special equipment. The operation of special equipment is extremely hazardous; its daily use involves the personal safety and property interests of the general public. In the event of an accident involving such equipment, it often results in substantial costs related to medical treatment, disability compensation, or even death benefits. Moreover, the aftermath management of such incidents is complex, with high handling costs and significant liability risks. Should the responsible entity be unable to make compensations due to insufficient cash flow or being suspended from operations, it becomes inevitable for **relevant authorities** to step in and handle the post-accident procedures at their own expense. Encouragement is given to the establishment of systems such as safety liability insurance for special equipment, as this can enhance the capacity to provide compensation following accidents, enabling victims of such accidents to receive assistance and compensation promptly ; At the same time, through the quantitative analysis of the safety risks associated with different types of special equipment and the adjustment of insurance premium rates, it is possible to encourage enterprises to improve their management of safety in such equipment, to proactively prevent safety risks, and to leverage the role of insurance mechanisms in social management. Encouraging the establishment of a liability insurance system for special equipment, and leveraging the role of insurance in preventing, responding to, and recovering from emergencies, is an important means of protecting people’s rights to life and property and maintaining social harmony and stability. It is also a crucial step in ensuring that enterprises assume their responsibilities, enhancing their awareness of risk management and their ability to cope with risks. Furthermore, it represents a useful approach to fully utilizing market mechanisms to advance innovation in the safety supervision of special equipment and related public services. From the perspective of developed countries, special equipment safety liability insurance plays an important role in protecting the lives and property of the public, promoting social harmony, and ensuring stable economic development.

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