Chapter IV Forms and Assessment of Compensation

Article 32 State compensation shall take the form of payment of damages in the main.

If the property is able to be returned or its original condition is able to be restored, the property shall be returned or its original condition restored.

Article 33 If freedom of the person of a citizen is infringed, compensatory payment for each day shall be assessed in accordance with the State average daily pay of staff and workers in the previous year.

Article 34 If a citizen's right to life and health is infringed upon, compensatory payment shall be assessed in accordance with the following provisions:

(1) In the case of bodily injury, medical expenses and nursing costs as well as compensation for loss in income due to missed working time shall be paid. Daily compensation for the loss in income shall be assessed in accordance with the State average daily pay of staff and workers in the previous year, the maximum shall be five times the State average yearly pay of staff and workers in the previous year;

(2) In the case of loss of part or the whole of working capability, medical expenses, nursing costs, costs of aiding devices for the disable and necessary expenses increased due to disability and for continuous curing including rehabilitation expenses as well as disability compensation shall be paid. The disability compensation shall be determined in accordance with the disability levels stipulated by the State according to degree of working capability lost, and the maximum amount of compensation shall be no higher than the amount twenty times the State average yearly pay of staff and workers in the previous year. For those who lose whole working capability, living expenses shall be paid to persons who have no working capability and have been supported by the disabled; or

(3) If death results, compensation for death and funeral expenses shall be paid, the total amount shall be twenty times the State average yearly pay of staff and workers in the previous year. Living expenses shall too be paid to those who have no working capability and have been supported by the deceased in his lifetime.

The standard for payment of living expenses provided in the preceding Paragraph 2 and 3 shall be handled by reference to the local minimum living standard. If the persons supported by the deceased are minors, their living expenses shall be paid until they reach the age of 18; as to the others who have no working capability, living expenses shall be paid until their death.

Article 35 In any of the circumstances stipulated in Article 3 and 17 herein, if mental injury of a victim is caused, the organ liable for compensation shall, within the scope of influence of the tortious act, eliminate the evil effects for the victim, rehabilitate his reputation, and extend an apology; if a serious result is caused, the corresponding consolation money for mental injury shall be paid.

Article 36 Infringement of property right of a citizen, a legal person, or other organizations, resulting in damage being caused, shall be dealt with in accordance with the following provisions:

(1) If fines, recovery or confiscation of property have been ordered, or property has been illegally requisitioned or expropriated, the properties shall be returned;

(2) If properties have been sealed up, distrained or frozen, the restraints shall be lifted; for properties thus damaged or missing, compensation shall be paid in accordance with the provisions of Paragraph 3 and 4 of this Article;

(3) If the property to be returned is damaged, it shall be restored to its original condition if such restoration can be done; if not, corresponding compensation shall be paid in accordance with the extent of damage;

(4) If the property to be returned is lost, corresponding compensation shall be paid;

(5) If the property has been auctioned or sold, the proceeds of the auction or sale shall be returned; if the selling price is obviously lower than the value of the property, the corresponding compensation shall be paid;

(6) If the certificate and licence have been revoked and suspension of production and business has been ordered, compensation shall be paid for necessary overhead expenses for the period of such suspension;

(7) If the fines or recovered or confiscated money are returned, or the frozen deposits or remittance are released, the bank interests on deposits at the same period shall be paid; and

(8) If other damage is done to property rights, compensation shall be paid for the direct losses.

Article 37 Compensation expenses shall be entered in the financial budget at all levels.

A claimant shall apply for payment of his compensation to the organ liable for compensation on the strength of the effective judgment, the written decision on reconsideration, the written decision on compensation or the mediation paper.

The organ liable for compensation shall, according to its jurisdiction for budget administration, apply to the relevant fiscal department for payment within seven days after receiving the application for payment of compensation. The fiscal department shall pay the compensation within fifteen days after receiving the application for payment.

The compensation budget and specific measures for payment administration shall be provided by the State Council.

Chapter V Other Provisions

Article 38 If a people's court, in violation of the law, adopts in civil or administrative proceedings compulsory measures or preservative measures in impairment of the proceedings, or wrongly executes a judgment or a ruling or other effective legal documents, thereby resulting in damage being done, the criminal compensation procedures herein shall be applicable to the procedure for making claims for compensation by the claimant.

Article 39 The limitation of action for claims for State compensation shall be two years, counted from the day the claimant knows or ought to know the exercise of the functions and powers by a State organ and its functionaries infringes upon his personal right or property right, but the period when he is detained or his freedom is restricted shall not be counted. If the claimant applies for compensation simultaneously when applying for administrative reconsideration or bringing an administrative action, the provisions of the administrative reconsideration law and the administrative procedure law on time limitation shall be applicable.

The limitation of action for claims for State compensation shall be suspended if during its last six months, the claimant is unable to exercise his rights due to force majeure or other obstacles. The limitation shall resume from the day the grounds for suspension are eliminated.

Article 40 If a foreigner, a foreign enterprise, or a foreign organization within the territory of the People's Republic of China demands compensation to be made by the People's Republic of China, this Law shall apply.

If a State to which a foreigner, a foreign enterprise, or a foreign organization belongs gives no protection to or limits the right of a citizen, a legal person, or other organizations of the People's Republic of China to claim compensation by that State, the People's Republic of China shall implement the principle of reciprocity with the State to which the foreigner, the foreign enterprise, or the foreign organization belongs.

Chapter VI Supplementary Provisions

Article 41 No organs liable for compensation or undertaking the reconsideration of a case, or the people's courts may collect any expenses from a claimant to State compensation.

No tax shall be levied as regards the compensation a claimant has obtained.

Article 42 This Law shall go into effect on January 1, 1995.

Source: www.fdi.gov.cn