Beginning on September 1st, China will for the first time introduce its railway accident compensation program. It will require railway departments to pay a record quota of 150,000 yuan (US$19,817) to a passenger who dies or sustains injuries during future railway accidents.

The passenger will also receive an extra 2,000 yuan, (approximately US$250) in compensation for his or her on-board luggage damage.

According to China News Service reports, the compensation program is designed in tandem with a new government policy concerning railway accidents, emergency rescues and investigations that will take effect also in September. The State Council adopted this regulation on June 27.

According to the new regulation, if a passenger would require compensation that exceeds the official set amount, a formal written contract between the railway authorities and the passenger would be needed prior to rail travel.

However, the regulation also stipulates that the railway transport departments shall not be liable for any personal injury or death not directly caused by their railway services. Such cases include death resulting from a passenger's own personal health reasons, as well as other possible injuries or deaths resulting from illegally crossing, sitting or lying on rail lines.

Moreover, the regulation also supposes that the parties involved would first resort to negotiations if and when any possible disputes may arise. Mediation between parties is encouraged before a dispute would be brought to court.

(CRI July 20, 2007)