[Edit this paragraph] Introduction
Public liability insurance mainly covers the economic compensation liability that the insured should bear according to law when he engages in production, business or other activities within the geographical scope of his business and causes personal injury or property loss to others (third parties) due to accidents. Public liability insurance is to meet the needs of the above risks. Public liability insurance is applicable to enterprises, institutions, social organizations, individual industrial and commercial households, other economic organizations and natural persons, and can cover their factories, office buildings, hotels, houses, shops, hospitals, schools, theaters, exhibition halls and other public activities.
Public liability insurance includes catering comprehensive insurance, fire public liability insurance and property liability insurance. If consumers have an accident in some shopping malls or restaurants, the responsibility lies in the shopping malls or restaurants. The shopping malls or restaurants insured with public liability insurance can first lose money to consumers and then seek compensation from insurance companies.
The ultimate goal of this kind of insurance is to make the third-party victims get timely and effective economic compensation, so it has strong public welfare. For example, after the travel agency has insured the relevant liability insurance, passengers can get compensation from the insurance company if they suffer personal injury or material loss during the trip.
In developed countries, liability insurance accounts for more than 30% of the property insurance industry, such as 45% in the United States. At present, it is only about 4% in China. With the improvement of various legal liability systems to protect citizens' life and property rights from infringement and the increasing awareness of citizens' rights protection, China's liability insurance has the conditions for vigorous development.
A person from the China Insurance Regulatory Commission said that compulsory liability insurance was piloted in coal mining and other industries, and after gaining experience, it was gradually promoted in high-risk industries, public gathering places, domestic and foreign tourism and other fields. In other words, in the future, the state will pass legislation, and shopping malls, travel companies and entertainment places will have to buy compulsory public liability insurance. In the event of an accident, the insurance company will compensate the victim.
[Edit this paragraph] Status quo
The public in China knows little about public responsibility. According to the general insurance clauses, public liability insurance is the economic compensation responsibility that citizens or legal persons should bear because of accidents in their business activities that cause personal injury or property losses to others. In developed industrialized areas such as Europe and America, public liability insurance, as an insurance with social management function, has been widely accepted and used by the public.
Due to the low premium, dispersion and high risk of public liability insurance, insurance companies are not enthusiastic, the effective demand is low, and consumers' awareness is low, so the early development needs government support. The survey shows that the government has not forced enterprises to take out public liability insurance, which is an important reason for the slow development of the public liability insurance market at present. Secondly, enterprises, especially local enterprises, have low risk awareness. According to statistics, most enterprises that insure public liability insurance are foreign-funded and joint ventures. In addition, consumers' awareness of public liability insurance and rights protection is low.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.