Nursing homes to benefit from govt provided insurance

Nursing homes will now be covered by a government assisted insurance scheme to cover the costs of any lawsuits or medical fees in case a senior resident is hurt or dies due to an accident.

Nursing home operators have so far struggled to provide insurance coverage for residents.

The government will subsidize 80 percent of the insurance premium with the nursing home paying 20 percent, according to a new policy issued by Beijing Civil Affairs Bureau (BCAB) and Beijing Municipal Bureau of Finance Wednesday, the Beijing Morning Post reported Thursday.

Yu Hanlin, vice director with the welfare department of BCAB, told the Global Times Thursday that the insurance covers the compensation for seniors' accidental injuries or death as well as any legal fees involved.

"The insurance company will also pay the bill if the seniors' families or friends suffer any accidental injuries or die during a visit to the nursing home," he said.

The policy aims to support the development of nursing homes and encourage them to buy nursing home insurance, he noted.

"After all, there is a high risk of an elderly person accidentally hurting themselves in a nursing home,'' said Yu.

The policy, which is scheduled to take effect by the end of the month, is approved of by nursing home operators.

Zhai Zhitao, head of Phoenix Affection Nursing Home in Haidian district, told the Global Times that he has waited for such insurance coverage for a long time.

"So many nursing homes are haunted by lawsuits caused by accidental injuries," he said.

"I talked to many insurance companies, but considering the high probability for a senior to be injured, these companies refused us," he said.

His nursing home has no insurance for the residents at present, said Zhai, so if there is an accident and the victims' relatives win a lawsuit, his nursing home could face large compensation payouts.

The relatives of a senior surnamed Chen took a nursing home in Shijingshan district to court this week, asking for 340,000 yuan ($53,992) in compensation, after Chen, 90, was scalded while taking a bath at the home in May 2011, the Beijing Morning Post reported.

Chen died due to the scalds, pulmonary infection and renal failure in January this year.

No verdict has been announced.