Nanyang has created a new system in which 10 million yuan ($1.6 million) in government funds were used to buy social insurance for local residents. It is the first city in Henan province to implement such a policy.
Under this system, a one-off indemnity of up to 100,000 yuan will be granted to people whose death is caused by heroic acts, unexpected accidents, natural disasters or traffic accidents. Also applicable are teenagers who drown, rescuers who die at the scene of an accident, and extremely impoverished people who suffer from a critical illness.
The system was designed for circumstances where there is no specific compensation obligor that can be held responsible for the unexpected misfortune.
However, only Nanyang permanent residents and migrant workers who work in the city for at least one year are eligible to apply. The insurance company will pay the applicants 10 workdays after receiving all of the claim information.