Enhanced Medical Waste Generator Liability Insurance in Shanghai, China and Japan - Current Status in 2020

Enhanced Medical Waste Generator Liability Insurance in Shanghai, China and Japan - Current Status in 2020

The outbreak of new coronavirus infection has generated a large amount of medical waste, and its proper disposal has become a social issue. The rapid increase in infectious waste was particularly noticeable in metropolitan areas such as Wuhan and Beijing, where approximately 240 tons of medical waste per day was sent to treatment facilities in Wuhan in 2020. In Beijing, approximately 400 tons of medical waste was generated per day in the same year, creating an urgent need to expand its treatment capacity.

The main materials contained in medical waste include plastic protective gear, masks, and syringes, which must be strictly managed as highly infectious waste. If these are not disposed of properly, they increase the risk of environmental contamination and health hazards, and can also contribute to the spread of infection. A total of 260,000 tons of medical waste was generated throughout China in one year in 2020.

In response to this situation, major insurance companies such as Sompo Japan and Tokio Marine & Nichido Fire Insurance have strengthened their medical waste generator liability insurance. Specifically, GPS and RFID technologies are being used in waste tracking and management, and by 2021, more than 80% of waste treatment facilities nationwide will have these technologies in place. In addition, the insurance system has been expanded to cover the full cost of removal and cleanup when illegal dumping is discovered, with coverage reaching up to 100 million yen per case in some cases.

In the 2020s, companies are also stepping up their efforts to protect the environment. Waste disposal companies such as Nippon Kankyo Sekkei Inc. and Eco-System Corporation have introduced new incineration and waste detoxification technologies to improve their medical waste treatment capacity, increasing incineration capacity by 20% by 2022. Eco-System Co., Ltd. treats 5,000 tons of medical waste per year by detoxifying it with the detoxification equipment installed in 2021.

Furthermore, in China, Shanghai City significantly strengthened its medical waste treatment standards in 2021. New regulations have come into effect that impose fines of up to RMB 5 million (approximately ¥85 million) for failure to manage and dispose of infectious waste. The rules apply not only to waste disposal companies, but also to medical institutions, and in 2022 there were 30 cases in Shanghai that were subject to punishment.