The China Insurance Regulatory Commission (CIRC) issued a decree on January 13 on regulating insurance firms, which will take effect from March 1, 2000.

There are ten chapters in the decree. These include provisions on the establishment of insurance firms, the operation of insurers, insurance policies and premium, the use of premium income and reinsurance.

According to the decree, the establishment of insurance firms and branch offices by insurance firms must be approved by the CIRC.Insurance firms must have a customer service department and lines that will look after potential complaints.

The terms and premium of major insurance policies must be fixed by the CIRC. Other policies must also be approved by the CIRC.

Foreign-fund insurance firms shall also be subject to regulations stipulated in the decree.

Since China resumed insurance business in the early 1980s, it has promulgated an insurance law and decrees on the management of insurance brokers and insurance agents.

CIRC sources said the new decree marks the latest progress made by China in improving its insurance law system.