Changchun, the capital city of Jilin Province in northeast China, has seen several natural disasters, resulting in varying degrees of damage caused by trees, according to the local Bureau of Forestry and Landscaping. So now a public liability insurance has been designed for casualty or property loss caused by trees due to natural disasters and construction.

With the insurance, the injured have a channel to claim compensation. Also, it can alleviate the local government's responsibility and prevent public accident risks. That also gives insurance companies a new channel to increase revenue. At the same time, more cities that are incurring expenses due to this issue will enjoy a decline in their compensation costs. Local governments have an excellent solution to deal with such accidents and avoid civil disputes to some extent.

Some people are concerned that the landscaping department will relax its standards once this insurance is available. However, insurance companies will not compensate for losses caused by the government's poor performance. It means the administration will also be subject to the supervision of insurance companies.

Under the cooperative framework of administrations and insurance companies, it is hoped that public accident risks will be better controlled.

This is an edited excerpt of an article originally published in Beijing Youth Daily on November 23  

(Print Edition Title: New Branch of Insurance)