Abolition of compulsory insurance for railways

The Chinese government has abolished accident insurance for railways, a scheme that has been compulsory so far. This decision will come into force as of January 1, 2013. A 2% reduction in train tickets will ensue since the insurance premium used to be charged to the passengers was suppressed. This decree, which was imposed in 1951 and amended in 1992, limited the compensations granted to passengers to 3 180 USD. Analysts believe that travelers may henceforth require more substantial damages.