Circular of China Insurance Regulatory Commission on Regulating the Administration on Premium Rates in the Insurance Clauses of Commercial Motor Vehicles
(July 4, 2006 No. 75 [2006] of China Insurance Regulatory Commission)
All property insurance companies, all insurance regulatory bodies and China Insurance Association,
The Regulation on Compulsory Traffic Accident Liability Insurance for Motor Vehicles (hereinafter referred to as compulsory traffic insurance) as effective on July 1, 2006 is conducive to promoting a faithful and sound business operation of the property insurance sector, is conducive to promoting a healthy development of the insurance industry and is conducive to promoting the social harmony and stability. All insurance companies shall seize this good opportunity, actively promote product innovation and incessantly improve the product system so as to guarantee a smooth transition between the commercial motor vehicle insurance and the compulsory traffic insurance as well as a sustainable, quick and sound development of the property insurance sector. We hereby notify the relevant matters as follows:
1. An insurance company shall develop the commercial motor vehicle insurance products relating to the compulsory traffic insurance in a timely manner. The principles of compensation for commercial motor vehicle insurance shall comply with the relevant provisions of the Law of the People’s Republic of China on Road Traffic Safety. In particular, an insurance company shall develop products of the third party liability insurance for commercial motor vehicles beyond the maximum amounts of compensation in sub-items under the compulsory traffic insurance, whose structure of premium rates shall be basically consistent with the compulsory traffic insurance and in which the specific vehicle types can be further sub-divided.
