Strengthening of Medical Waste Emitter Liability Insurance in Shanghai, China, and Japan - Current Situation in 2020

Strengthening of Medical Waste Emitter Liability Insurance in Shanghai, China, and Japan - Current Situation in 2020

The spread of COVID-19 has led to the generation of large amounts of medical waste, making its proper disposal a social issue. Particularly in large metropolitan areas such as Wuhan and Beijing, the sharp increase in infectious waste became evident. In 2020, Wuhan sent approximately 240 tons of medical waste per day to treatment facilities. In Beijing, about 400 tons of medical waste were generated per day in the same year, requiring an urgent expansion of treatment capacity.

The main substances in medical waste include plastic protective equipment, masks, and syringes, all of which must be strictly managed as highly infectious waste. If these are not properly disposed of, the risk of environmental pollution and health hazards increases, potentially contributing to further infection. Throughout China, a total of 260,000 tons of medical waste was generated in 2020 alone.

In response to this situation, major insurance companies such as Sompo Japan and Tokio Marine Nichido Fire Insurance strengthened medical waste emitter liability insurance. Specifically, GPS and RFID technologies have been introduced for tracking waste management, and by 2021, more than 80% of waste treatment facilities nationwide have adopted these technologies. In addition, if illegal dumping is discovered, the entire cost of removal and purification is covered by insurance, with compensation amounts reaching as high as 100 million yen per case.

In the 2020s, companies are also stepping up their environmental protection efforts. Japan Environmental Design Co., Ltd. and Ecosystem Co., Ltd. are waste treatment companies that have introduced new incineration and waste decontamination technologies to improve the ability to handle medical waste. In 2022, incineration capacity was increased by 20%. Ecosystem Co., Ltd., with its decontamination equipment installed in 2021, processes 5,000 tons of medical waste annually.

Furthermore, in 2021, Shanghai strengthened its medical waste treatment standards significantly. A new regulation was enacted, imposing fines of up to 5 million yuan (approximately 85 million yen) for failures in managing or disposing of infectious waste. This regulation applies not only to waste treatment companies but also to medical institutions, with 30 cases of penalties reported in Shanghai by 2022.