国务院办公厅转发中国人民保险公司关于发展涉外保险业务增加外汇收入的报告的通知 CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL FOR TRANSMIT-TING THE REPORT SUBMITTED BY THE PEOPLE'S INSURANCE COMPANY OF CHINA ONDEVELO PING INSURANCE BUSINESS INVOLVING FOREIGN INTERESTS IN ORDER TOINCREASE FOREIGN EXCHANGE REVENUE
（November 30， 1985）
颁布日期：19851130 实施日期：19851130 颁布单位：国务院
The Report on Developing Insurance Business Involving Foreign Interests in Order to Increase Foreign Exchange Revenue， which was submitted by the People's Insurance Company of China， has been approved by the State Council and is hereby transmitted to you for you to act upon accordingly.
Report of the People's Insurance Company of China on Developing Insurance Business Involving Foreign Interests in Order to Increase Foreign Exchange Revenue （Excerpts） In accordance with the essence of the policies of the State on striving to increase non-trade foreign exchange revenue， we have recently made a study of the question as to how to develop insurance business involving foreign interests in order to increase foreign exchange revenue. We now submit the report on the relevant questions as follows：
With the implementation of China's policy of opening to the outside world， the insurance business involving foreign interests handled by our Insurance Company has developed rapidly in recent years. At present， there are already over 40 types of insurance coverage. The handling of the insurance business involving foreign interests so as to give financial protection against risks （including material losses and indemnity liability） involved in China's foreign trade and economic exchanges and provide services with a view to preventing losses has played a positive role in promoting China's foreign trade and economic exchanges and in enhancing the confidence of foreign businessmen coming to make investment in China.
As the income from the premiums of insurance involving foreign interests is an important item of foreign exchange revenue of invisible trade， the various countries in the world have attached great importance to and are actively developing this business. At present， China's insurance business involving foreign interests is developing at a relatively slow pace and the premiums only account for a very small proportion of the State's total non-trade foreign exchange revenue， which ill conforms with the new situation in which China is implementing the policy of opening to the outside world. Take， for example， the transportation insurance for import and export goods the handling of which has lasted for a relatively long time and the premium income of which ranks first. Only 50 percent of the export goods is insured domestically and such bulk goods as petroleum， which account for over one-third of the total export business volume of China， are rarely insured with our Company. Nearly 90 percent of the import goods in normal trade is insured domestically， but most of the equipment imported under loans China has obtained from abroad is insured by insurance companies abroad. Furthermore， only a very small proportion of the insurance related to the Chinese-foreign contractual joint ventures and foreign-capital enterprises in China and under the project contracts China has undertaken abroad or the labour service co-operative contracts with foreign countries， of the insurance taken out by foreigners or compatriots from Hong Kong and Macao coming to China's mainland for tourist purposes， of the public liability insurance that the personnel of foreign institutions in China are supposed to bear in China， and of the insurance related to Chinese institutions abroad and the trade centres， joint ventures and contractual joint ventures China has established abroad is effected by our Company. In some cases， the insurance is even not effected in China at all. All the above mentioned circumstances show that China's insurance business involving foreign interests still has great potentials and bright prospects.
With a view to further developing China's insurance business involving foreign interests， it is imperative to adopt the following measures at present：
1. It is imperative to conduct publicity drives actively， The Insurance Company shall， with the support and help by the various departments， people from all walks of life and the public opinion circles， employ varied means and actively propagate the significance of developing insurance business involving foreign interests and increasing foreign exchange revenue from non-trade sources and of the advantages of handling insurance business involving foreign interests to the expansion of international economic exchanges in order to mobilize the various forces to support the development of insurance business involving foreign interests.
2. It is imperative to perfect the clauses related to insurance in China's foreign economic laws and regulations. All clauses on insurance that need to be included in the various foreign economic laws and regulations China formulates and promulgates shall be handled in strict accordance with the provisions in Article 3 of the Interim Regulations on the Administration of Insurance Enterprises， which was promulgated by the State Council. It is imperative for China to expedite the formulation and promulgation of regulations concerning the public liability insurance that shall be effected with respect to foreign enterprises， institutions and personnel in China and the motor vehicle third-party liability insurance.
3. Departments for foreign affairs and departments for foreign economic relations and trade under the governments at various levels shall give guidance and assistance to the development of insurance business involving foreign interests. Departments for foreign economic relations and trade that are to call important meetings or hold talks with foreign businessmen on major projects shall keep the Insurance Company advised of the relevant developments and shall， if necessary， invite people from the Insurance Company to attend such meetings or talks. In examining and approving the feasibility study report and the draft contract with respect to a project involving a foreign party， the inclusion of clauses on insurance shall be one of the items for consideration. Chinese labour service units that are contracting foreign engineering projects shall try their best to effect in China the insurance with respect to the projects， provided this shall not constitute a violation of the laws of the foreign governments involved. If insurance is required for the property and personnel of Chinese embassies， consulates and other institutions abroad， it shall be effected in China， unless the laws of the countries or regions concerned stipulate that the insurance shall be effected in their localities. Chinese banking institutions based overseas shall work in close co-operation with the Chinese insurance institutions in the localities and actively engage in various types of insurance business.
When these banks are handling loans on mortgage， they shall try hard to cover the insurance with the Chinese insurance institutions there with respect to the security of the loans. The Insurance Company may， when necessary， send their personnel to， and station them in， the corporations， trade centres and other institutions established abroad by departments and organizations affiliated to the Chinese Ministry for Foreign Economic Relations and Trade to coordinate work in handling insurance business. Chinese departments for tourism shall give active assistance to the Insurance Company in providing the insurance required by tourists in China.
4. The Insurance Company shall be permitted to employ economic means to promote the development of insurance business. A considerable part of the insurance business involving foreign interests has been canvassed through efforts on the part of the business personnel of the departments for foreign economic relations and trade and other departments concerned.
Take， for example， the transportation insurance for import and export goods. Faced with the fierce competition in the international insurance market， Chinese departments for foreign economic relations and trade and other departments concerned， in order to increase foreign exchange revenue from insurance business， often have to conduct strenuous negotiations and do extra amounts of laborious work before they can succeed in obtaining some insurance business involving foreign exchange. In order to encourage the workers and staff of the departments for foreign economic relations and trade and other departments concerned who actively assist the Insurance Company in developing the insurance business involving foreign interests so as to earn more foreign exchange revenue for the State from non-trade sources， the Insurance Company may draw a certain proportion （ranging from less than one percent to less than ten percent） from the premium income as labour service fee to be paid to the aforesaid units to be paid with RMB， which shall， on top of the common bonus， reward those workers and staff members who have performed well in this regard. Such rewards may be exempted from bonus tax. The Ministry of Finance shall formulate measures in this respect and promulgate them for implementation.
5. Foreign insurance companies shall for the time being not be permitted to begin their business operations in China.
6. The Insurance Company shall strengthen its own organization setup. Since the Insurance Company itself separated from the People's Bank of China last year， although there has been a relatively big increase in its agencies and personnel， this increase still cannot meet the needs of its business development. It is an urgent task to improve the quality of the personnel engaged in insurance business involving foreign interests， who shall be required to have a better knowledge of the international economy and of China's laws and regulations governing its external economic activities and have a fairly good command of foreign languages. Therefore， in addition to intensifying our work to offer in-service training to our cadres， we hope that the departments for education will provide us every year with a certain number of university graduates who major in foreign languages， finance or insurance， and will arrange in a planned way for some institutions of higher learning to initiate the specialty of insurance so as to quicken the cultivation of cadres who will specialize in insurance business. The Insurance Company shall work hard to improve the quality of service， increase the types of insurance coverage and strengthen China's competitive position in insurance business.
If the above contains nothing inappropriate， it is requested that the report be approved and transmitted to departments concerned for implementation.