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China will end its fragmented work injury insurance system by extending its coverage to 27.24 million people working in the non-profit making sector, the Ministry of Labor and Social Security (MLSS) said Wednesday.

China has a fragmented work injury insurance system which sets various compensation rules according to different sectors people are working for, such as governments, profit making companies and public institutions, including non-government ones.

"This system has caused chaotic counterclaim activities from employees of various work units," said Hu Xiaoyi, a spokesman with the MLSS.

On Dec. 29, 2005, four central government departments including the MLSS jointly issued a circular on extending the present insurance coverage to non-profit making sectors, or public institutions, said Hu.

"It is a measure in China to improve its social security system," he added.

China now has 27.24 million people working in the non-profit making sector, but only 20 percent of them will be surely included in the newly issued insurance system.

In 1996, China issued a temporary regulation on compensation methods targeting employees only in companies, and in 2003, the State Council announced that the coverage should extend to all companies within Chinese territories and private business companies which have their own employees.

(Xinhua News Agency January 12, 2006)