80% car owners support premium rates float

According to a Chinese newspaper Shanghai Securities News, October 21st, Beijing Insurance Industry Association announced its float program on commercial premium rates of motor vehicles in Beijing (draft).Starting in 2010, auto insurance rates and claims records will be linked. The car owners who keep safe driving for five years can get a minimum discount premium of 40% while the maximum premium of those who claims eight times or more may go up to three times.

To the new program, 82.6% of netizens expressed their favor. To adopt the incentives and punitive measures simultaneously obviously will insure the car the owners which keep good driving track record to acquire more equitable treatment. However, some experts have pointed out that there are many cases for car owners to claim. To distinguish active or passive claims may impartially protect the interests of another part of car owners who claim frequently.

In addition, if the claims records exceeding the limitation, the car owners will not be able to obtain concessions on premium rates as well as be influenced on the renewal of their vehicles. In the survey, 17.4% and 4.3% of the netizens have mentioned that insurance companies refuse to renew their coverage because of their excessive claims and bad personal credit history last year. Currently, some of the insurance companies make a rule that cars claim more that eight times one year will not be allow renewing their contract. However, this time the DRAFT does not make clear to the cars claim too excessively, the insurance companies should charge high premium or give out a declination.

The survey also investigates relevantly on settlements after claims. Results have showed during the settlement of claims, nearly a half cars owners solve problems themselves and another half entrust to the auto repair factories or 4S shops. Reporter has learned that since the promulgation of the new Insurance Law, some cities are trying a pilot scheme to cancel auto insurance claims agent system. As a result, the frauds due to the insurance claims records are perpetrated will have been confined effectively. If this time the DRAFT of Beijing is carried out finally, car owners will be deeply influenced on the expense of auto insurance premium. So experts suggest car owners should check their auto insurance claims personally.(Translator: Yalong/ Jessie)

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