Notice of China Insurance Regulatory Commission on Strengthening the Administration of
the Business Accounting of Compulsory Traffic Accident Liability Insurance for Motor Vehicles
(No.45 [2007] of China Insurance Regulatory Commission)
All Chinese Insurance Companies and Insurance Regulatory Bureaus:
In order to implement the Regulation on Compulsory Traffic Accident Liability Insurance for Motor Vehicles (hereinafter referred to as Regulation), strengthen the administration of the business accounting of compulsory traffic accident liability insurance, improve the authenticity of business data and safeguard the legitimate rights and interests of the assured, we hereby notify the relevant issues as follows:
I. All insurance companies qualified for engaging in compulsory traffic accident liability insurance business (hereinafter referred to as companies) shall, in strict accordance with the requirements of the Interim Measures for the Administration of the Independent Business Accounting of Compulsory Traffic Accident Liability Insurance for Motor Vehicles (No.74 [2006] of China Insurance Regulatory Commission) and the Guidelines for the Expense Allocation of Insurance Companies (No.90 [2006] of China Insurance Regulatory Commission), examine and calculate the business profits and losses, exclusive assets and exclusive liabilities of compulsory traffic accident liability insurance by following the basis principles of accuracy, fairness and transparency.
II. Each company shall, before August 1st, 2007, report a special financial statement on compulsory traffic accident liability insurance business conducted from July 1st, 2006 to June 30th, 2007. Such financial statement shall have been audited by a certified public accountant, and its content shall be governed by the relevant provisions of the Interim Measures for the Administration of the Independent Business Accounting of Compulsory Traffic Accident Liability Insurance for Motor Vehicles.
