Insurance good for quality control of low-income housing

BEIJING -- China can introduce liability insurance for its housing projects for low-income earners to strengthen quality control, an expert said on Sept 24.

By introducing the liability insurance, the insurer will play a role in supervising the design of the project, building and workers' training, which will help eliminate quality risks during the construction process, Tan Qinglian, director of the China Civil Engineering Society (CCES), said at an award ceremony for housing innovation.

"Insurers will compensate or provide repair services for the project's quality problems upon its completion, so that owners' interests will be guaranteed," Tan said.

Tan said liability insurance for construction projects is widely adopted around the world, but rather new in China.

According to Tan, two housing projects in the southern cities of Zhuhai and Suzhou are currently on trial with insurance provided by Chang An Property & Liability Insurance Company.

Insurance premiums for the two projects only stand at 100 yuan ($15.67) per square meter, but are effective in ensuring quality, Tan said.

The central government has vowed to build 10 million government-subsidized low-income housing units this year and 36 million units over the next five years.

The government has repeatedly stressed the quality control for low-income housing projects. Local authorities are urged to formulate and implement quality monitoring mechanism, and set stringent quality requirements for the designing, construction and raw materials.