• Area of Law： Civil Litigation
• Level of Authority： Local Judicial Documents
• Date issued：02-25-2016
• Effective Date：02-25-2016
• Status： Effective
• Issuing Authority： Other Institutions of Beijing Municipality

Provisions of the No. 4 Intermediate People's Court of Beijing Municipality on Introducing the Liability Insurance Guarantee Method to Property Preservation in the Trial of Civil and Commercial Cases
(February 25, 2016)
Article 1 (Introducing the liability insurance guarantee method to property preservation) In order to regulate the work of examination on property preservation guarantee by courts, maintain the social credit order by legal means, guarantee the sound social and economic development, promote the work of case adjudication and enforcement, and effectively safeguard the lawful rights and interests of all parties, the No. 4 Intermediate People's Court of Beijing Municipality decides to introduce liability insurance guarantee to the trial of civil and commercial cases involving property preservation, so as to enrich preservation guarantee methods, provide the parties with more sufficient guarantee for procedural rights, expand channels for the parties to obtain effective right relief through judicial proceedings, and facilitate the realization and enforcement of the parties' property rights. In accordance with the Civil Procedure Law of the People's Republic of China and other relevant judicial interpretations and in light of the judicial practice, these Provisions are formulated.
Article 2 (Property preservation liability insurance) The property preservation liability insurance refers to the insurance contract concluded by the property preservation applicant, as the policy holder, and the insurer, in which the insurance rights and obligations in the property preservation liability insurance shall be stipulated. The policy holder shall pay insurance premiums as stipulated in the contract and the insurer shall assume the liability of compensation or payment of insurance proceeds according to the stipulations of the contract on property preservation liability insurance.
When an erroneous preservation occurs, the property preservation applicant shall, according to the stipulations of the property preservation liability insurance, require the insurance company to make compensation within the insurance quota, ensure that the losses to the preserved person be compensated, and afterwards realize the purpose of property preservation guarantee.
Article 3 (Principles observed by the court when introducing liability insurance guarantee) When introducing liability insurance guarantee to the work of property preservation, the court shall observe the following principles:
(1) equally protecting the lawful rights and interests of both parties;
(2) facilitating the parties' exercise of procedural rights according to the law;
(3) separating adjudication from enforcement;
(4) being conducive to promoting the work of adjudication, mediation, and enforcement;
(5) strictly combining procedural examination and substantive right guarantee; and
(6) strengthening the standardization of the liability insurance guarantee method.
Article 4 (Scope of applicants for liability insurance guarantee for property preservation, applicable cases, and application grounds) The applicant may be a natural person, legal person, or other organization. The liability insurance guarantee for property preservation shall apply to various cases involving litigation on property. Where it is difficult to enforce the judgment or other rights and interests of the party are damaged possibly due to the act of one party or other reasons; or before the interested party institutes an action or applies for arbitration, the failure of the applicant to immediately apply for preservation due to emergency will cause damage that is difficult to make up to its rights and interests, when applying for property preservation measures, the applicant may file an application with the court for permitting it to provide liability insurance guarantee.
Article 5 (Examination of liability insurance guarantee method by the court) Where the applicant files an application for property preservation and applies for the guarantee method of providing liability insurance guarantee, the court shall have the right to examine the specific case circumstances, the credit status of the insurer, the business permit, the guarantee scope, the assumption of responsibilities, and other content and determine whether or not to accept guarantee.
Article 6 (Interpretation of the introduction of liability insurance guarantee method by the court) Where the applicant files an application for taking preservation measures since it is difficult to enforce the judgment possibly due to the act of one party or other reasons, or other damage is caused to the party, and the applicant fails to provide other guarantee methods meeting the prescribed conditions, the people's court shall, for the purpose of guaranteeing the procedural rights of the party, explicitly interpret the introduction of liability insurance guarantee as the guarantee method, and the applicant shall voluntarily select the guarantee method.
Article 7 (Joint guarantee method) Under the circumstance where the applicant is capable of providing partial guarantee meeting the prescribed conditions, the court shall permit him or it to partially select liability insurance guarantee for other guarantee.
Article 8 (Handling of circumstances with insufficient liability insurance guarantee) Where, after the examination of the specific case circumstances, preservation risks, property credit status of the insurer, guarantee scope, time limit, and other content, the court holds that it is necessary for the party to provide other guarantee besides the liability insurance guarantee, the party shall provide it. Where the party fails to provide or does not provide guarantee, or the guarantee it provides fails to meet the requirements of the court, his or its application for property preservation shall be denied.
Article 9 (Provision of materials of liability insurance guarantee for property preservation) When the party files an application for property preservation and provides liability insurance guarantee, the people's court shall require the applicant to submit the following materials:
(1) the written application for property preservation;
(2) the complaint and the corresponding evidence materials;
(3) clues to the preserved property and the corresponding evidentiary materials; and
(4) materials of liability insurance guarantee.
Article 10 (Content of examination of liability insurance guarantee for property preservation) Where the party files an application for property preservation and provides liability insurance guarantee, the people's court shall examine the following:
(1) Whether the materials submitted in the preservation application are complete and whether the content of the written application for property preservation complies with the specifications, that is, whether the written application states basic information on the applicant and the respondent, the facts and grounds for the preservation application, the amount of preserved property, the subject matter of the preservation, and the property clues.
(2) Whether the grounds for the preservation application are legitimate, that is, whether there is any circumstance where it is difficult to enforce the judgment or other damage is caused to the party possibly due to the act of one party or other reasons.
(3) Where the applicant files a preservation application before the institution of an action, whether there is any circumstance where the lawful rights and interests of the applicant will be subject to damage that is difficult to make up if the applicant fails to immediately apply for property preservation due to emergency.
(4) Whether the property right applied for preservation is specific and the amount thereof is appropriate, that is, whether property under the preservation application is owned by the respondent or is in disputes between both parties. The amount of property under the preservation application may not exceed the amount in the claim.
(5) Whether the guarantee formalities for the preservation application are effective, that is, whether the guarantee forms are legitimate. Where the applicant provides property guarantee, whether the amount of guarantee property is equivalent to the amount of property requested to be preserved; and if the applicant provides liability insurance guarantee, whether the insurer has the corresponding guarantee qualification and the official document of the China Insurance Regulatory Commission (“CIRC”).
(6) The content, time limit, and manners for the assumption of guarantee liabilities of the guarantee letter issued by the insurer.
Article 11 (Examination of the letter of liability insurance guarantee) Where the insurance agency provides liability insurance guarantee for property preservation, it shall submit to the people's court a written guarantee (letter), which specifies such items as the title of the guarantor, the title of the guarantee, the case involving guarantee, the guarantee methods, the guarantee scope, the guarantee time limit, and the official seal.
Article 12 (Examination of the insurer's qualification) Where the insurer provides liability insurance guarantee for the property preservation applicant, besides the written guarantee (letter) it issues, it shall submit the following materials:
(1) the duplicate of the business license, the business certificate, and the certificate of registered capital;
(2) the identity certificate of the legal representative or the person in charge;
(3) the written guarantee that the insurer has no record of illegal acts and crimes and it has no record of refusing to assume the guarantee obligations for the property preservation applicant; and
(4) the official documents of the CIRC (insurance clauses and recordation form for premium rates of property insurance companies under the CIRC, affixed with the special seal for the management of premium rates).
Article 13 (Procedure for the applicant to apply for insurance) Before filing an application for liability insurance guarantee with the court, the applicant shall, as a policy holder, first raise a request for buying insurance to a qualified insurer, provide materials as required by the insurer, and perform corresponding obligations of notification and payment of premiums.
Article 14 (Review of insurance procedure by the insurer) For the application for liability insurance guarantee filed by the applicant, the insurer shall have the right to conduct the evaluation of preservation risks and litigation risks and the corresponding review on the basis of case circumstances. Where the insurer agrees to underwrite the insurance, the insurance contract shall be formed. The insurer shall issue the insurance policy and other insurance certificate to the policy holder and start to assume insurance liabilities according to the agreed time.
Article 15 (Procedure for accepting liability insurance guarantee for property preservation before filing the action) Where the applicant files an application for property preservation before filing the action and provides the liability insurance guarantee, the case acceptance tribunal shall be responsible for examining and handling the application and the enforcement bureau shall be responsible for implementing the property preservation measures.
Article 16 (Procedure for accepting liability insurance guarantee for property preservation after the action is filed but before the judgment is rendered) Where the applicant files an application for property preservation after the action is filed but before the judgment is rendered and provides the liability insurance guarantee, the trial tribunal shall be responsible for examining and handling the application and the enforcement bureau shall be responsible for implementing the property preservation measures.
Article 17 (Procedure for accepting liability insurance guarantee for property preservation under simultaneous applications for case filing and property preservation) Where the applicant files an application for property preservation while the case is placed on file, and both the case acceptance tribunal and the trial tribunal accept the application in a timely manner, the tribunal at the place where the case is handled or the tribunal which is the most convenient to examine the application shall be responsible for handling the case and the enforcement bureau shall be responsible for implementing the property preservation measures.
Article 18 (Safeguarding the applicant's right to select an insurer for buying insurance) As the policy holder, the applicant shall have the right to select any qualified insurer to conclude a liability insurance contract on property preservation. In the conclusion of the liability insurance contract on property preservation between the applicant and the insurer, the rights and obligations in the insurance contract shall be determined on the basis of free will, equality, and mutual consultation.
Article 19 (Circumstances where the court refuses the insurer's provision of liability insurance guarantee) When identifying that the insurer falls under any of the following circumstances, the court shall have the right to refuse the insurer's provision of liability insurance guarantee:
(1) The business operations of the insurer deteriorate seriously and there are circumstances where the insurer has lost or is likely to loss the capabilities of performing and assuming insurance liabilities.
(2) The company's solvency is seriously inadequate.
(3) The insurer violates the legal provisions and impairs the social and public interests, which is likely to severely endanger or has seriously endangered the company's solvency.
(4) The insurer commits an act of refusing to assume the liability insurance guarantee liabilities, but fails to prove the legality of such act.
(5) The insurer commits such acts as malicious collusion and harming the interests of the state, collectives, or any third parties.
(6) The insurer fails to issue the written guarantee (letter) and corresponding evidentiary materials as required by the court.
(7) The insurer commits other act that is sufficient to affect the assumption of insurance liabilities as determined by the court.
Article 20 (Institutional guarantee of the court's linkage among case acceptance, trial, and enforcement) The court shall establish a joint meeting system which is formed by the case acceptance tribunal, the trial tribunal, and the enforcement bureau, study issues concerning the linkage among the acceptance, trial, and enforcement of cases regarding liability insurance guarantee on a regular basis, guarantee the separation of trial and enforcement, standardize acts of liability insurance guarantee, ensure that the parties fully exercise their procedural rights, and constantly enrich approaches for obtaining effective right relief through judicial proceedings. As for issues concerning liability insurance guarantee of various cases, the courts shall conduct studies in a timely manner, initiate the resolution thereof according to the law, perform their duties, conduct collaboration and work division, and take legitimate, convenient, timely, and efficient property preservation measures in strict accordance with the law and procedure.