Shanghai took another step toward establishing a comprehensive
social security system with the release Wednesday of a regulation
to provide workers with compensation insurance in event of a
Together with existing programs such as pensions, medical
insurance, childbirth insurance and unemployment insurance; the new
workers compensation regulation will help create a more reliable
working environment and better protect individuals' interests.
comprehensive social security system will play an important role in
bolstering Shanghai's economic development, maintaining social
stability and protecting workers' rights," said Jiao Yang,
spokeswoman for the city government.
Set to go into effect on July 1, the occupational injury insurance
will cover all local establishments that are part of the city's
employee social security system, ranging from state-owned
enterprises and government organizations to public institutions and
private businesses, said Jiao.
Employers will be expected to pay workers compensation insurance
fees and tell their employees about the policy.
The insurance will cover various types of injuries, including those
suffered during business trips, vehicle accident injuries incurred
while en route to and from work and injuries sustained during
emergency rescues undertaken to protect State or public
The insurance will cover medical treatment and economic
compensation for injured workers while helping to strengthen injury
prevention mechanisms, Jiao said.
Migrant workers could be among the biggest beneficiaries, experts
On-the-job injuries are the second largest cause of casualties in
Shanghai, second only to traffic accidents.
Official statistics put the number of migrant workers now in
Shanghai at more than 3 million, many of whom still work in poor
environments lacking sufficient protection.
About 4.6 million workers were covered by the city's pension
insurance system at the end of last year. More than 6.9 million
employees, plus 231,100 owners of private businesses and
self-employed people, joined the local medical insurance system.
More than 4.4 million people in the city are beneficiaries of the
local unemployment insurance.
Jiao also announced that the city will soon launch a comprehensive
insurance scheme for 300,000 household service workers.
a non-compulsory form of commercial insurance provided by Ping'an
Insurance Property and Pacific Insurance Property, the policies are
expected to help minimize risk of injury to domestic employees.
While employers are expected to pay 30 yuan (US$3.6) as an annual
premium for each household worker, the injured could get up to
100,000 yuan (US$12,000) in compensation, said Jiao.
(China Daily June 24, 2004)