Drivers face 1,000 yuan insurance charge
By Hu Yuanyuan (China Daily)
Updated: 2006-06-20 08:50
Drivers across China will be forced to cough up around 1,000 yuan (US$125)
for compulsory insurance before taking to the road next month.
The
insurance regulator yesterday said vehicle liability insurance would become
compulsory on July 1.
Rates will differ, depending on the vehicle and the
driver's record. A family car with less than 6 seats should cost 1,050 yuan
(US$131) every year, with claims limited to 60,000 yuan (US$7,500), including
50,000 yuan (US$6,250) for death or deformity, 8,000 yuan (US$1,000) for medical
treatment and 2,000 yuan (US$250) for damage.
A book about
the Regulation on Compulsory Traffic Accident Liability Insurance for
Motor Vehicles. Drivers across China will be forced to cough up around
1,000 yuan (US$125) for the compulsory insurance before taking to the
road next month. [newsphoto] |
The China
Insurance Regulatory Commission (CIRC), the industry regulator, said the
Compulsory Liability Insurance Policy was designed to ensure victims of traffic
accidents receive timely medical treatment and financial
compensation.
"The policy is a little expensive for me," Liu Yang, who
drives a Jetta car, told China Daily. He complained that his other car insurance
last year already totalled 1,600 yuan (US$200).
"The coverage of 2,000
yuan (US$250) for potential damage is the main reason for such high premiums,"
said Hao Yansu, an insurance professor with the Central University of Finance
and Economics.
(For more biz stories, please visit Industry Updates)
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