A new rule requiring China's travel agencies to purchase liability insurance will provide tourists-Chinese and foreign-with greater protection against losses while traveling.

The China National Tourism Administration (CNTA) recently said that beginning Sept. 1, all travel agencies operating in China must purchase travel agency liability insurance.

The agencies should insure for the following liabilities:

Compensation for injury or death of tourists;

Compensation for transportation and medical costs incurred by tourists due to relevant medical care;

Compensation for the handling and returning costs for the remains of sickened tourists;

The cost of necessary rescue of tourists;

Compensation for the loss, damage and theft of tourists' luggage and belongings; and

Any litigious cost caused by disputes for which the travel agencies' are responsible.
The standard for the insurance values will be at least 80,000 yuan (US$9,676.21) per domestic tourist traveling in China and a minimum of 160,000 yuan (US$19,352.42) per Chinese tourist traveling abroad or foreign tourist visiting China.