Legal System With Chinese Overseas Investment Insurance

Overseas investment insurance system is a system that capital-exporting countries is to be covered the political risk may occur within the territory of investment in the host country through insurance agencies established by the government and claims the host country for the subrogation of compensation by insurance institute in the event of the insurance accident and compensating policyholders, which is in order to encourage investors to invest abroad.Overseas investment insurance system is originated in the Untied States after World War II and practiced as the investment insurance scheme in the foreign aid programs. It is aimed at promoting domestic capital flows to Europe. The system is determined that the native overseas investment insurance approval and operations is responded by the American overseas private investment corporations through continuous reforms of the system. Following the Unite States, many countries have established their own overseas investment insurance system to promote the international flow of domestic capital. This system not only effectively avoid the confrontation between overseas investment activities of the individual and the investment of the host government but also makes the investors home country win great profits in their overseas investment activities as a kind of government guarantee. MIGA, established in December1988, is as an independent international guarantee organization and qualified overseas investors shall be insured for member states. However, it is necessary to set up our own overseas investment insurance system since it has certain limitation and can not meet the demand of domestic investors’overseas investment insurance in our country.Overseas investment in China started relatively late but has been developing rapidly. At the same time, China’s overseas investment protection of the legal system has not set up a sound, which against the development of China’s overseas investment. This paper starts from the concept of overseas investment insurance legal system and introduces the nature, characteristics, history and so on. Then it analyzes the United State’s, Japan’s, Germany’s overseas investment insurance system in legislation and practice experience. After that this paper analyzes to what China’s overseas investment based on its national conditions and targeted to solve the problem of the overseas investment insurance in our country. It put s forward some suggestions in the system mode selection, insurance institutions, scope of the insured, insurance object and coverage and subrogation rights in the hope of helping to improve the overseas investment insurance system in China.