Major reform of auto insurance! The China Insurance Regulatory Commission supports raising the limit of commercial vehicle insurance liability to a maximum of 10 million
The China-Singapore Jingwei client issued the "Guiding Opinions on the Implementation of Comprehensive Reform of Auto Insurance (Consultation Draft)" on July 9th, and publicly solicited opinions from the public. The deadline for feedback is August 8, 2020. The consultation draft is clear, to increase the limit of commercial vehicle insurance liability, combined with the level of economic and social development, to support the industry to increase the commercial product liability liability limit of model products from the 50,000-500 million grade to the 100,000- 10 million grade to meet consumer risks Security needs.
Screenshot of the China Insurance Regulatory Commission website
The China Insurance Regulatory Commission pointed out that the deep-seated contradictions in the auto insurance market have not been fundamentally resolved. After years of reform and development, China's auto insurance has achieved positive results, but the problems of artificially high prices, high handling fees, extensive operations, disordered competition, and data distortion are more prominent. In addition, in recent years, the number of traffic accidents in my country has decreased significantly, and the auto insurance compensation rate has been correspondingly lower. However, the marketization mechanism of auto insurance terms and rates has not been perfect, resulting in the inadequate auto insurance protection and premium prices.
The consultation draft proposes that the main objective of "protecting consumers' rights and interests" includes: the establishment of a market-based clause rate formation mechanism, the optimization of guarantee responsibilities, rich product services, reasonable additional fees, sound market system, orderly market competition, and business operation Benefit enhancement, high-quality development of auto insurance, etc. In the short term, "price reduction, increased insurance, and improved quality" will be the staged goals.
It is reported that the "Guiding Opinion" has three major blocks, nine parts, and 32 articles: the first block is the first part, that is, the overall requirements. The second part is the second part to the seventh part, that is, the reform involves the compulsory insurance, commercial vehicle insurance, clause rate formation mechanism, product access management, supporting infrastructure, supervision and so on. The third block is the eighth-ninth part, that is, the division of tasks and the implementation of guarantees.
The consultation draft stipulates that the limit of liability for compulsory traffic insurance shall be increased, and the limit of total liability for compulsory traffic insurance shall be increased from 122,000 yuan to 200,000 yuan, of which the limit for death and disability compensation shall be increased from 110,000 yuan to 180,000 yuan, and the limit for medical expenses compensation shall be increased from 10,000 yuan. To 18,000 yuan, the compensation limit for property losses remains unchanged at 2,000 yuan. The limit of non-responsibility compensation is adjusted in the same proportion, of which the death and disability compensation limit is increased from 11,000 to 18,000 yuan, the medical expense compensation limit is increased from 1,000 yuan to 1,800 yuan, and the property damage compensation limit remains unchanged at 100 yuan.
The consultation draft stipulates that the optimization of the floating coefficient of the traffic accident insurance rate of the strong traffic insurance, on the basis of increasing the liability limit of the strong traffic insurance, combined with the comprehensive compensation rate level of the strong traffic insurance of various regions , introduces the regional floating factor into the road traffic accident rate adjustment coefficient, and the floating ratio The upper limit remains unchanged at 30%, and the downward float has been expanded from the lowest -30% to -50%, increasing the rate of preferential treatment for consumers who have not paid compensation.
The consultation draft is clear, and the increase in the liability limit for commercial vehicle insurance, combined with the level of economic and social development, supports the industry to increase the liability limit for commercial three liability insurance for demonstration products from the 50,000-500 million grade to the 100,000- 10 million grade, which is more conducive to meeting Consumers' demand for risk protection will better play the role of economic compensation and conflict resolution.
The consultation draft proposes to enrich commercial auto insurance products, support the industry to develop new energy auto insurance, driver accident insurance, motor vehicle extended warranty insurance model terms, and explore the development of motor vehicle mileage insurance (UBI) in new energy vehicles and qualified traditional vehicles ) And other innovative products, formulate model clauses for car insurance value-added service insurance including inspection, road rescue, driving service, safety inspection, etc., to provide consumers with more standardized and rich auto insurance protection services.
The consultation draft also proposes to rationally lower the surcharge rate, and guide the industry to lower the upper limit of the surcharge rate for commercial vehicle insurance products from 35% to 25%, and the expected compensation rate is increased from 65% to 75%. Properly support property insurance companies to report and report commercial and auto insurance products with an upper limit of less than 25% in online sales and e-marketing.
The consultation draft requires that the real-name payment system for auto insurance be fully implemented. Property and casualty insurance companies should strengthen the identity verification of policyholders, do policy signing, clause interpretation, and exemption statements, promote real-name payment, promote transparency of information, prevent sales misleading, advance insurance premiums, Act on behalf of signatures, etc. to safeguard the legitimate rights and interests of consumers.
The request for comment draft request strengthens intermediary supervision, establishes and improves the system of insurance agencies and intermediaries in the same field of auto insurance, and severely cracks down on illegal and illegal behaviors such as handling fees, fictitious invoices, and bundling sales of fictitious intermediary businesses. Promote the construction of insurance systems and intermediary organizations to improve the docking of information systems, standardize the settlement and payment of handling fees, and prohibit the advancement of sales personnel. Intermediary agencies are prohibited from conducting off-site auto insurance business in violation of regulations.
In addition, to prevent monopolistic behavior and unfair competition, the request for comments requires that bribery, false propaganda, misleading consumers, and fabrication of misleading information to disrupt the order of the auto insurance market in order to obtain trading opportunities or competitive advantages are prohibited. Vehicle sales channels, network information platforms and other abuses of market dominance that undermine fair competition and damage the rights and interests of auto insurance consumers must be investigated and dealt with in accordance with law. (Sino-Singapore Jingwei app)