On May 31, a reporter from the "Daily Economic News" learned from the Shanghai Insurance Association that all auto insurance companies in Shanghai intend to provide motor vehicle commercial insurance policies and new energy vehicle commercial insurance policies (below) that are eligible and valid during the epidemic. The insurance period of the “Commercial Insurance Policy”) shall be extended for 30 days.The factors of non-insurance due to the suspension of the epidemic will be included in the non-compensation factor (NCD) of the customer in the next policy year, and the customer will continue to enjoy the premium discount for the next year.At the same time, customers who have taken out vehicle policy and re-insure after the epidemic can still continue to enjoy the renewal discount.
The Shanghai Insurance Association stated that it is initially expected that the extension of this auto insurance policy will cover the vast majority of non-commercial vehicles and commercial vehicles in Shanghai, covering the benefit of car owners to the greatest extent.
In this regard, industry insiders have expressed that it is a good thing when interviewed.Li Bin, a professional insurance lawyer, told the "Daily Economic News" reporter that the epidemic in Shanghai was about two months. During this period, the risk of vehicles falling under Article 53 of the "Insurance Law" was significantly reduced, but the parking of vehicles still faced other insurance companies. In terms of risks assumed, such as fire, explosion, falling objects, including traffic accidents, the Shanghai insurance industry has quantified this reduction by about 50%, which reflects the industry's commitment to social responsibility and respect for the legitimate interests of insurance consumers. It also reflects the fairness of the rate and the risk consideration borne by the insurance company.
Policy extensions for vehicles that have been parked due to the pandemic
The "Daily Economic News" reporter learned from the Shanghai Insurance Association that in order to thoroughly implement the "Notice on Financial Support for Freight and Logistics Guaranteeing and Smooth Work" issued by the General Office of the China Banking and Insurance Regulatory Commission, and "On Doing a Good Job in Current Auto Insurance" issued by the Property and Casualty Department of the China Banking and Insurance Regulatory Commission Relevant work supports the spirit of documents such as the “Notice on Unimpeded Freight Control for Epidemic Prevention and Control”, and actively responded to the call of the Insurance Industry Association of China “Notice on the Realization and Effectiveness of Various Policies for the Property Insurance Industry to Steadily Promote Economic Stabilization”. To perform social responsibilities, combine the actual situation in Shanghai, try our best to give back to the society under commercial principles, and provide policy extension for vehicles that have been suspended due to the epidemic.
The Shanghai Insurance Association stated that it is initially expected that the extension of this auto insurance policy will cover the vast majority of non-commercial vehicles and commercial vehicles in Shanghai, covering the benefit of car owners to the greatest extent.From the perspective of convenience, in order to minimize the difficulty of customer handling, the following extension operation mode will be adopted: for vehicles whose policy nature is non-business, the platform will extract policy data that meets the extension scope for automatic extension; for vehicles whose policy nature is business , each underwriting insurance company should take the initiative to contact the customer to go through the extension procedures.At the same time, in order to reflect the insurance industry's support for Shanghai's epidemic prevention and control work, the non-business vehicles used by police officers, medical staff, and social operation service personnel who participated in the epidemic prevention and control work during the epidemic period can also enjoy policy extension if certain conditions are met.
At present, the Shanghai insurance industry is actively carrying out work related to resumption of work and production and supporting the resumption of work and production in various industries, and is fully promoting the refinement of specific rules related to policy extension, data connection and system transformation and other specific work, and will provide qualified auto insurance customers as soon as possible. Apply for policy extension.
In an interview, Shuai Yong, the founder of the Heart of Law, told the "Daily Economic News" reporter that this is the progress of the insurance industry, and it also specifically reflects the principle of respecting the risk matching principle of auto insurance: when the vehicle is stopped, there is no risk. Premiums should not be paid, people-centred.
According to Li Bin's estimation, the average annual insurance premium will be 800 billion yuan after two years of comprehensive auto insurance reform.Shanghai is extended by one month, which is equivalent to a reduction of 8%. According to this ratio, the insurance premium will be converted into an amount of 64 billion yuan. If the national epidemic-related vehicles are 50%, and the general value of urban vehicles is generally higher than that of county and township vehicles, the entire industry will be involved nationwide. The estimated amount of refund (deferred) is close to 30 billion yuan in premiums.
There is precedent for the extension of auto insurance
On May 9, Shanghai Haosiri Law Firm published a "Proposal on Extending, Reducing and Exempting Insurance for Motor Vehicle Owners During the Epidemic Period" on the company's Weibo account.According to the proposal, at present, the number of motor vehicles in Shanghai is about 5 million. As citizens work from home and isolate themselves at home, most corporate cars and private cars are stagnant at home and cannot be used normally.In Shanghai, incidents such as motor vehicle traffic accidents and accidental damage to motor vehicles have been greatly reduced, and the incidence of various types of motor vehicle insurance claims has also been greatly reduced.
The proposal proposes to learn from the experience of Wuhan’s epidemic prevention and control in 2020, strengthen the support for Shanghai’s motor vehicle suspension policy due to suspension of production and home isolation, and that commercial insurance companies can appropriately extend the coverage period of auto insurance policies, or in new cases. Under the premise of not lowering the insurance compensation standard in the insurance year, the insurance premium of the car owner should be appropriately reduced to lighten the economic burden of the car owner.
In February 2020, when the Wuhan epidemic broke out, the Property and Casualty Insurance Department of the China Banking and Insurance Regulatory Commission issued the "Notice on Doing a Good Job in Auto Insurance Services During the Prevention and Control of the New Coronary Pneumonia Epidemic". After the 23rd, the protection period of the effective compulsory traffic insurance and commercial vehicle insurance policies of all property insurance institutions in Hubei will be temporarily extended automatically by one month or an appropriate time.When renewing the insurance, the no-claims preferential treatment factor of commercial vehicle insurance will not rise due to the failure to renew the insurance on time due to the impact of the epidemic.
Subsequently, the Hubei Insurance Industry Association issued the "Implementation Rules for Automatic Extension of Vehicle Insurance Periods in Hubei during Epidemic Prevention and Control", and insurance companies in Hubei will appropriately extend the coverage period of all valid auto insurance policies from January 23, 2020.
The "Daily Economic News" reporter also learned that on May 21, 6 safety and liability insurance service agencies in Beijing implemented the "Several Measures on Beijing Safety Production Liability Insurance to Support Insured Enterprises in Responding to the Novel Coronavirus Pneumonia Epidemic" Regarding relevant requirements, the "Social Announcement of Beijing An Liability Insurance's Supporting Measures for Participating Enterprises to Respond to the New Coronary Pneumonia Epidemic" was jointly issued, and the support measures introduced by some insurance companies also involved extending the insurance period.
