Press Release
FSC announces draft amendments to Articles 3, 7, and 13 of the “Implementation Regulations for the Risk Spreading Mechanism of Residential Earthquake Insurance”
2025-05-15
Taiwan’s residential earthquake insurance scheme (hereinafter “the scheme”) was born in the wake of the major earthquake of September 21, 1999, and has been in place since 2002. The scheme provides compensation only in cases of total loss, defined as structural collapse or where a structure has been deemed uninhabitable. It includes funding to cover temporary housing.
Today, more than two decades later, seismic design codes and standards have been made significantly stronger. During more recent earthquakes, including that of April 3, 2024, that struck Hualien County, and that of January 21, 2025, that affected Chiayi County, many damaged buildings declared unsafe and marked as such by the authorities did not meet the criteria to qualify as a total loss. As a result, policyholders were ineligible to file claims to cover temporary housing expenses.
The Financial Supervisory Commission (FSC) is proposing amendments that would update the scheme to protect the rights and interests of the insured. Following an extensive review, the FSC intends to amend the regulations and create broader eligibility for temporary housing expenses while maintaining premium rates and overall risk exposure.
The key points of the amendments are as follows:
1. Article 3 will be amended to explicitly state that coverage for temporary housing expenses under the expanded definition is to be included as part of losses.
2. Article 7 will be amended to state that that following an earthquake, where an insured property is assessed and marked as being potentially hazardous by the county/city/special municipality government using Ministry of the Interior guidelines, insurers are to pay NT$100,000 per insured property to the policyholder for temporary housing expenses. Claims for covered temporary housing expenses during the policy period are capped at NT$200,000.
The FSC stated that the draft amendments would be published in the Executive Yuan Gazette and on the FSC website in line with the Administrative Procedure Act along with a general explanation and a comparison table of the amended articles, which are to take effect from July 1, 2025.
A 30-day comment period is open through June 16, 2025. Please visit the FSC Laws and Regulations Retrieving System to submit comments.
Contact Unit: Division of Non-Life Insurance Supervision, Insurance Bureau
Contact Number: (02)89680782
For inquiries, please email the FSC's Public Opinion Mailbox.
Today, more than two decades later, seismic design codes and standards have been made significantly stronger. During more recent earthquakes, including that of April 3, 2024, that struck Hualien County, and that of January 21, 2025, that affected Chiayi County, many damaged buildings declared unsafe and marked as such by the authorities did not meet the criteria to qualify as a total loss. As a result, policyholders were ineligible to file claims to cover temporary housing expenses.
The Financial Supervisory Commission (FSC) is proposing amendments that would update the scheme to protect the rights and interests of the insured. Following an extensive review, the FSC intends to amend the regulations and create broader eligibility for temporary housing expenses while maintaining premium rates and overall risk exposure.
The key points of the amendments are as follows:
1. Article 3 will be amended to explicitly state that coverage for temporary housing expenses under the expanded definition is to be included as part of losses.
2. Article 7 will be amended to state that that following an earthquake, where an insured property is assessed and marked as being potentially hazardous by the county/city/special municipality government using Ministry of the Interior guidelines, insurers are to pay NT$100,000 per insured property to the policyholder for temporary housing expenses. Claims for covered temporary housing expenses during the policy period are capped at NT$200,000.
The FSC stated that the draft amendments would be published in the Executive Yuan Gazette and on the FSC website in line with the Administrative Procedure Act along with a general explanation and a comparison table of the amended articles, which are to take effect from July 1, 2025.
A 30-day comment period is open through June 16, 2025. Please visit the FSC Laws and Regulations Retrieving System to submit comments.
Contact Unit: Division of Non-Life Insurance Supervision, Insurance Bureau
Contact Number: (02)89680782
For inquiries, please email the FSC's Public Opinion Mailbox.
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