China: Employer shall pay work-related injury insurance benefits even if the employee was compensated by commercial insurance.

The Employer did not make work-related injury insurance contributions for the Employee, but instead bought the personal accident insurance at the insurance company for the Employee. The Employer and the Employee agreed in the employment contract that terms of the personal accident insurance policy shall apply if the Employee suffers from work-related injuries or decease during the employment period. The Employee deceased in an accident and was later determined as work-related decease. After being compensated by the insurance company, families of the Employee filed a lawsuit against the Employer and claimed for payment of work-related injury insurance benefits. Through the litigation proceedings, the court eventually ruled that the Employer shall pay work-related injury insurance benefits to families of the Employee based on: (a) Employer’s buying of commercial insurance for Employees was only beneficial in nature; (b) Employer’s statutory obligation to pay work-related injury insurance premiums would not be exempted by buying commercial insurance for the Employee; and (c) in addition to compensation paid by the insurance company, Employee’s families’ were entitled to work related injury insurance benefits from the Employer which did not constitute as overcompensation nor violate the general principle of fairness.