China to insure elderly homes

Chinese authorities published a regulation on Wednesday to encourage homes for the elderly to insure against risks in their services.

The regulation, jointly issued by the Ministry of Civil Affairs, the China Insurance Regulatory Commission and the China National Committee on Aging, pledged to promote liability insurance in the country's nursing homes and create a risk-pooling mechanism in this sector.

It will also help nursing homes strengthen their sense of responsibility and risk as well as their internal management and better protect senior citizens' rights and interests, it said.

According to the document, a floating premium rate system should be adopted to encourage the insured institutions to work hard in risk prevention.

Moreover, the regulation said, allowances for the premium fees meted out by financial authorities as well as relevant costs of government-sponsored nursing homes will be earmarked in the public budget.

Prior to the regulation, insurance projects for elderly care homes had already been launched in several Chinese regions including Beijing, Shanghai and Guangdong.