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DECISION OF THE STATE COUNCIL ON REVISING THE "INTERIM PROVISIONS CONCERNING COMPENSATION FOR BODILY INJURY OF PASSENGERS IN DOMESTIC AIR TRANSPORT"

    The "Interim Provisions Concerning Compensation for Bodily Injury of
Passengers in Domestic Air Transport" are revised accordingly pursuant to the
present decision and repromulgated.
INTERIM PROVISIONS CONCERNING COMPENSATION FOR BODILY INJURY OF PASSENGERS
IN DOMESTIC AIR TRANSPORT

    (Adopted by the State Council at its Thirty-First Executive Meeting on
January 3, 1989, promulgated in Decree No.28 by the State Council on February
20, 1989 and revised pursuant to the "Decision of the State Council on
Revising the 'Interim Provisions Concerning Compensation for Bodily Injury of
Passengers in Domestic Air Transport'" of November 29, 1993)

    Article 1  These Provisions are formulated for the purpose of determining
civil liability of the carrier for the bodily injury of a passenger sustained
in domestic air transport.

    Article 2  These Provisions shall be applicable to the compensation for
bodily injury of a passenger sustained in domestic air passenger transport.

    "Domestic air passenger transport" referred to in the preceding paragraph
means any air passenger transport in which, according to the contract of
carriage, the place of departure, the agreed stopping places and the place of
destination are all within the territory of the People's Republic of China.

    Article 3  The carrier shall be liable for compensation in the event of
death or injury sustained by a passenger on board an aircraft or in the course
of embarkation or disembarkation.

    Article 4  The carrier shall not be liable for compensation if he proves
that the death or injury of a passenger is caused by force majeure or by the
state of health of the passenger.

    Article 5  If the carrier proves that the death or injury of a passenger
is caused by negligence or wilful misconduct of the passenger, the carrier
shall be wholly or partly exonerated from his liability.

    Article 6  The maximum amount of compensation for each passenger, for
which the carrier is liable under these Provisions, shall be Renminbi seventy
thousand (70,000) yuan.

    Article 7  Passengers may insure against accidental bodily injury in air
transport with an insurance company. The compensation made by the insurance
company shall in no way exonerate the carrier wholly or partly from his
liability.

    Article 8  The compensation due to aliens, overseas Chinese or compatriots
from Hongkong, Macao and Taiwan may be made in the currencies of their
respective countries or regions. The exchange rates shall be those published
by the foreign exchange control agency of the People's Republic of China on
the date of payment.

    Article 9  A passenger or his (her) heir and the carrier may bring an
action before the People's Court in case of dispute between them concerning a
claim for compensation.

    Article 10  The responsibility to interpret these Provisions shall be
vested in the Civil Aviation Administration of China.

    Article 11  These Provisions shall become operative on May 1st, 1989 and
on the even date the "Rules on Compulsory Insurance against Accidental Injury
of Air Passengers" promulgated on April 24, 1951 by the Financial and Economic
Commission of the Government Administration Council of the People's Republic
of China shall be repealed.