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Liability insurance rule under review
By Xiao Zhang (China Daily)
Updated: 2004-04-27 08:43

A new regulation requiring all motorists to buy third party liability insurance is currently under review and will likely be promulgated in the near future, China's insurance watchdog said yesterday.

Although the regulation may come later than expected - May 1, when a new law on road traffic safety that places greater responsibility on motorists in accidents comes into effect - the implementation of the new law will not be affected, officials with the China Insurance Regulatory Commission (CIRC) said.

"They are still discussing it (the regulation) today," said Liu Jingsheng, director of the commission's property insurance department, yesterday, referring to related government agencies led by the State Council.

The CIRC is currently working on formulating terms and premium rates for the mandatory third party liability insurance, but it will take more time before all details of the regulation can be settled, he said.

But once the regulation is enacted, it will help compensate victims of traffic accidents and promote social stability, Liu said.

Although 24 provinces, municipalities and autonomous regions in China have rules requiring motorists to buy liability insurance, only less than 30 per cent of automobile owners in the country are now actually covered by third party liability insurance.

Injuries from road traffic accidents are the second leading cause of death for people aged 15 to 45 in China, according to the World Health Organization.

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