February: Auto Production and Sales

　　In February, the national economy continued to recover and grow rapidly. In addition, Chinese government kept offering preferential policies for automotive industry. Prior to Spring Festival, consumers have great demands. Therefore, the production and sales of vehicles reached a million units in February. Even though there was a holiday in February, the year-on-year growth of auto market was not affected. The growth rate was relatively high.

　　February 11

　　Summary:

　　The rate of Compulsory Traffic Accident Liability Insurance was linked with drunk driving.

　　Ministry of Public Security and China Insurance Regulatory Commission jointly issued a notice. According to the notice, from March 1 of 2010, China would gradually introduce a system in which the rate of Compulsory Traffic Accident Liability Insurance will be linked with the illegal drunk driving. Taking the real situation into consideration, different regions can set the specific standards. Based on measurement and verification, the specific standards should be consistent with the floating range of Compulsory Traffic Accident Liability Insurance which was jointly determined by Ministry of Public Security and China Insurance Regulatory Commission. If a driver once offended the regulation rules about drunk driving due to drinking alcohol, the rate of Compulsory Traffic Accident Liability Insurance will increase by 10% to 15%. If a drunk driver is caught by police, the rate of Compulsory Traffic Accident Liability Insurance will grow by 20% to 30%. The cumulative rate may not exceed 60%.

　　Comments:

　　Drunk driving endangers road safety, public safety as well as the safety of people's life and property. This system will increase the legal cost of drunk driving. The link between drunk driving and Compulsory Traffic Accident Liability Insurance acts as an important measure with the purpose of punishing drunk drivers through legal, administrative and economic means. (Translator: Qinghua/Hanxin)

　　See Original Chinese Report Please Clicks:

　　http://auto.sohu.com/20101126/n277930923_1.shtml