"Food Safety law" implementation imminent scrutiny of product liability insurance face

The Food Safety Act will be formally implemented on June 1. Facing the new legal environment, many businessmen began to prepare for a rainy day, according to the U.S.-Asia Property Insurance Co., Ltd., recently came to the company to buy "product liability insurance" The number of food manufacturers significantly increased. But whether the purchase of "product liability insurance" food companies can rest easy? What is the role of "product liability insurance" in promoting the enterprise to improve the management level and protect the interests of consumers? 　　The reporter visited Zeng Xiaoman, vice President of American and Asian insurance. As an expert in product liability insurance for nearly 20 years, Zeng Xiaoman points out that, unlike the Food Hygiene Act, which was introduced in 1995, as well as a series of previously fragmented regulations, the new Food Safety Act has markedly strengthened both in terms of regulatory scope and punishment. For food manufacturers, the following two changes in particular need to be noted: first, the introduction of punitive damages, that is, the former in the news reports often heard in Europe and the United States "sky-high claims" case, in the future may also appear in China. This can effectively protect the interests of consumers and enhance the awareness of consumer rights, while the production and operation of food producers will undoubtedly bring huge claims risk. Second, the provision of food safety standards. In the past, the safety standard of food in our country is disorderly and lags behind the development of the Times seriously. In the new Food Hygiene Act, the third chapter deals specifically with food safety standards. For food enterprises, it is necessary to ensure that products conform to the National unified safety standards.　　Therefore, the legal risks that they face are significantly enhanced. In this case, Zeng Xiaoman that "product liability insurance" role highlighted, food manufacturers in strict compliance with the law, production and operation in accordance with the law, also need to purchase product liability insurance. To purchase product liability insurance, the manufacturer can get more adequate protection at lower cost. Product liability insurance is based on sales volume as the billing standard. For example, an annual sales of 50 million yuan of food producers, assuming the rate is 0.3%, he only needs to pay 150,000 yuan per year of the premium, you can get millions of of the protection. This is no doubt more than the retention of risk to ensure the stability of the company's cash flow. Second, the purchase of product liability insurance, in addition to access to financial compensation, but also in accordance with the insurance contract agreed to obtain insurance companies directly involved in litigation, to provide the insured with professional defense services. The difference between product liability insurance and general property loss Insurance is that the loss of product liability insurance involves a third party, and the accident is uncertain, so it is more complicated to deal with. Once the deal is not in time to go to court, will be more trouble. This cost the food enterprises a lot of time and energy, seriously affecting the normal production and operation of enterprises. Many entrepreneurs also said that the claim, "not Shang, but not." "Such claims, once poorly handled, also affect corporate image and brand value, leading to lower sales and market share." The product liability insurance policy of the US-Asia insurance not only damages the amount of damages which the insured shall pay to the third party according to law, but also the insurance company may agree under the contractTo defend the insured against damages in the third direction filed by the insured. Some value-added services of product liability insurance are also helpful to improve the risk consciousness of enterprises. American and Asian insurance regularly conducts various lectures to introduce risk management knowledge to customers and share the latest developments in risk control in the industry.　　For some key customers, will also send professional engineers to the site to carry out the survey, to provide customers with a number of prevention recommendations, and strive to improve the quality of products through a variety of means. Despite the benefits, Zeng Xiaoman has made some recommendations that require special attention from companies: focus on policy coverage rather than price. Although the same as "product liability insurance", but the products of different companies, its scope of protection will be a lot of differences. For example, the product liability insurance policy can be divided into accident system and the claim system two kinds, underwriting region is only mainland China, but also expand the rest of the world, the limitation of liability and the establishment of special provisions also vary widely. The scope of these protection and the difference of underwriting conditions, directly affect the customer's interest in the claim. At present, many domestic food enterprises in the choice of insurance companies to pay attention to the rates and premiums, and ignore the scope of these protection and the difference in underwriting conditions.　　Therefore, enterprises must at the same time compare prices, combined with their own needs to choose the most suitable for their own policy, to achieve the best price ratio. The insurance industry "eat" to find business opportunities June 1, "Food Safety law" will be formally implemented.　　In the current wave of food safety crisis, the implementation of "Food safety law" will undoubtedly take the responsibility of protecting national food safety. From the outset, the Food Hygiene Act was amended to set up a food safety law, to implement food safety law, on the surface is only "health" and "safety" difference, but it reflects the supreme Legislature on food safety supervision system of deep thinking, indicating that the Government attaches great importance to people's health, but also highlights the concern for people's livelihood,　　People-oriented legislative concept. The implementation of the Food safety law has also brought great business opportunities to the insurance industry. In the future, food manufacturers face greater operational risk, two changes in particular need to pay attention to: first, the introduction of punitive damages. After June 1, the maximum amount can be fined 10 times times the value of the goods. In addition, the producer or seller may be required to pay 10 times times the price of the compensation. This will undoubtedly bring a huge claim risk to the production and operation of food producers. Second, the provision of food safety standards.　　For food enterprises, the legal risks they face are significantly enhanced. At present our country Enterprise's insurance consciousness is generally weak, the product appears the safety question or the quality accident, often seeks the private reconciliation. The implementation of "Food safety law" will bring new opportunities for the development of insurance industry.