It is perhaps a sign of the times as China’s auto industry advances. China’s insurance regulator has said it is introducing compulsory vehicle liability insurance from July 1.
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The new regulation supplements rules on voluntary third-party motor insurance, the China Insurance Regulatory Commission said in a statement.
The regulator said insurers would pay out a maximum of 60,000 yuan under the policy to cover claims for death, injury, medical treatment or property damage resulting from a traffic accident.
Owners of family cars will have to pay up to 1,100 yuan (US$135) for insurance per vehicle each year if the cars are for family use only.
The CIRC said it has approved 22 insurers to offer the new policy, including PICC Property & Casualty Co., Ping An Property & Casualty Insurance Co. of China, China Pacific Property Insurance Co. and Dazhong Insurance Co.
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By GlobalDataAt present, only about 35% of business vehicles are covered for damage and injury, according to the commission.
A total of 98,738 people were killed and 470,000 injured in 450,000 traffic accidents in China last year.
