China's insurance watchdog will hold a hearing to discuss doubling maximum coverage of mandatory vehicle insurance to 120,000 yuan (US$16,239), an insurance spokesman said today.
The Insurance Association of China is required to submit a scheme on coverage adjustments, said Yuan Li, spokesman of the China Insurance Regulatory Commission.
China introduced a nationwide mandatory vehicle insurance policy in July 2006, forcing owners of the country's more than 130 million cars, motorcycles and tractors to buy policies. Except Shanghai, all other provinces opted for flat insurance rates.
In the first 10 months of this year, the insurance made 930 million yuan in total profits, Yuan said.
The premium is linked to a driver's accident record. Those at fault in a fatal traffic accident in the previous year must pay up to 30 percent more for their coverage.
The nationwide premium for family car owners is 1,050 yuan annually. Shanghai drivers with good records pay a minimum of 735 yuan while others pay up to 1,785 yuan.
(Shanghai Daily November 30, 2007)
