By the end of 2014, China's motor vehicle ownership reached 264 million, of which 105 million private cars, and the country has 25 private cars per 100 households. Commercial auto insurance is related to thousands of family interests, but high security and low compensation, third party liability insurance does not include the owner or driver family, auto insurance can not be effective in time after purchase, and many other "overlord clauses" have been criticized for many years.
At the beginning of February, the China Insurance Regulatory Commission officially announced the launch of the market-oriented reform of commercial auto insurance rates. Immediately, the China Insurance Industry Association launched the “2014 Model of Commercial Auto Insurance Industry Models” to publicly solicit opinions. The industry believes that the model clause has carried out major surgery on the chronic diseases of the past auto insurance, and has benefited consumers in many aspects.
Abolishing the "high security and low compensation" and perfecting the subrogation recovery of the capital university economic and trade university professor Guo Guozhu pointed out that the biggest bright spot of the model clause is to properly solve the problem of "high security and low compensation" and "no responsibility and no compensation" that confuse consumers.
What is high insurance and low compensation? An old car with a value of only 50,000 yuan after 10 years of use must pay premiums at the new car price of 100,000 yuan when insuring commercial auto insurance, but only pay the old car price. For this problem, the model clause is clear and the amount of insurance is determined according to the actual value of the insured motor vehicle at the time of insurance.
"In this way, the insurance of the old car does not need to pay the premium according to the purchase price of the new car. The insurance company will lose all the insurance vehicles during the insurance period. The insurance company will compensate according to the insurance amount. When some losses occur, the insurance company will pay the actual repair cost within the insurance amount. Calculating compensation, this is a very favorable regulation for the insured.” Ruan Guozhu pointed out that this institutional arrangement laid the foundation for the next transition to the implementation of model-based pricing – “model pricing” can more objectively and intuitively reflect different models. The actual risk exposure and maintenance cost levels match the risk premium to the actual risk exposure.
It is understood that in October last year, the China Insurance Industry Association officially released a model standard database to the property insurance industry. The database covers 1915 brands and 160,000 models of 1895 automakers. "Based on the industry model clauses, companies can innovate auto insurance products. It is conceivable that 'model pricing' is the general direction of future auto insurance rate reform."
The so-called "no liability or no compensation" means that in the event of a car accident in the current terms, if the vehicle is not responsible, the loss of the vehicle caused by the third party requires the insured vehicle to directly recover the compensation from the responsible person, and the insurance company will not compensate. "The model clause stipulates: 'If the insured claims to the third party because of the damage caused by the third party to the insured motor vehicle, the insurer shall actively assist; the insured may also directly claim from the insurer. The insurer pays the insured first in the insured amount and exercises the right of the insured to claim compensation from the third party within the amount of compensation', which better solves the long-term problem that the insured has no responsibility in the car accident. At the time, the insurance company will not be compensated." Guo Guozhu said that considering the fact that the success rate of previous subrogation recovery is very low and the cost of recovery is high, in order to encourage the insured to do their best to assist in recovery, the model clause stipulates that the insurer will be compensated before the recovery. When the insurer has a 30% deductible, it is equivalent to letting the consumer share part of the recovery cost.
Abolish 15 disputes and expand insurance coverage In 2013, the number of cases involving auto insurance in the country reached more than 600,000. Many cases were caused by insufficient auto regulations or ambiguity. For example, the previous commercial third party liability insurance clause will be exempted from the personal injury and death of the insured and the driver's family members. The family members will suffer personal injury or death in the accident and the insurance company will not compensate. This kind of regulation has caused long-term disputes about what is a "third party" in insurance, and thus has led to more than one legal action.
The model clause includes “insurance” into the scope of the third party, and further clarifies that the scope of “in-car personnel” is “the moment in which an accident occurs, in the body of the insured motor vehicle or on the vehicle body, including The people who are getting on and off the car" have expanded the scope of the insured.
"The model clause will be the family members of the insured, such as spouses, children, parents, etc., because the personal injury caused by the accident of the vehicle is covered by the insurance company. If the driver again causes the wife or child to be injured or injured due to the accident, the vehicle will not be injured. There will be unnecessary disputes due to the refusal of compensation.” Guo Guozhu pointed out that the model clauses are not controversial in the exemption of the current commercial auto insurance clauses. “The personal injury suffered by the people on board when they are under the insured motor vehicle” The 15 items, such as the unqualified examination, were deleted, which further expanded the scope of insurance coverage.
The model clause also significantly adjusted the types of primary and additional insurance. For example, the two main types of insurance in the old clauses, namely, car damage insurance and third party liability insurance, were redesigned into four types: car damage insurance, third party liability insurance, vehicle personnel liability insurance and full vehicle theft insurance. The major insurance has been revised and redesigned drastically, integrating more than 30 additional risks in the past into 11.
“After the implementation of the new clauses, if the aforementioned risks lead to insurance accidents, the insured may directly receive compensation under the main insurance. The 23 deleted risks have little meaning for the actual risk protection of consumers, or some insurers have already added them as value added. Additional insurance for services, these additional risks do not need to allow consumers to choose to insure, such as the current additional replacement tire service, additional oil delivery, 'on-the-light' start-up service, additional trailer service, etc.." Guo Guozhu believes that these services are placed The responsibility of the main insurance greatly facilitates the insured and reduces the burden on the consumer.
The model clauses are humanized, and the insurance can be effective immediately. In the future, auto insurance consumers will receive a clear and well-written pamphlet when they apply for insurance, replacing the previous pages of insurance contracts with dense fonts and confusing expressions. The industry believes that the model clause fully reflects the essence of this round of reform is the principle of legitimacy, rationality, popularity and humanity.
Compared with the 2009 version of the commercial auto insurance clause, the model clause simplifies and optimizes the insurance clause system and structure. Except for the special vehicle, motorcycle, tractor and one-way vehicle, the other motor vehicles adopt uniform insurance clauses. At the same time, the exemption of liability exemption is classified and sorted. On the one hand, the deductible rate and deductible are separately listed. On the other hand, the liability exemption clause is divided into three categories: non-guarantee, exclusion, loss and expense.
According to the relevant person in charge of the China Insurance Association, in order to meet the needs of insurance consumers for the “instant effect” of the insurance policy, the amendment to this clause deletes the agreement of “the next day is effective at zero hours” in the insurance policy, and follows the principle of freedom of contract and allows insurance. People choose between “zero-time protection” or “immediately effective”, allowing conditional insurance companies to design their own insurance policies.
"Of course, this model clause is not perfect, and there are still many areas to be improved. In addition, consumers are also concerned about how much the rate associated with the terms and conditions can change, and whether they can enjoy more affordable premiums. It is better for consumers, and that's even better," said Guo Guozhu.