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Shipping firms given break from spills

By Qian Yanfeng (China Daily)
Updated: 2009-08-20 07:48

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Shipping companies could be forced to take out insurance against pollution spills under a draft law under debate in the largest city in China.

Polluters would purchase liability insurance, under the law, in the event that a spill or other environmentally damaging incident should occur. Insurance companies would then help compensate for losses.

It has not yet been decided whether companies would be forced or simply encouraged to buy insurance.

Pollution into the waterway from ship collisions is the greatest safety threat to Shanghai's primary drinking water source located at the upper reaches of the Huangpu River, according to a recent investigation. Compensation for spills usually exceeds the financial capability of shipping companies involved in a spill...

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