SHENZHEN drivers can save half the cost of premiums for commercial vehicle insurance if they have a safe driving record for three years, according to a new policy linking insurance premiums to compensation claims adopted last week.
Shenzhen is the first city in China to introduce the policy, which is expected to be extended throughout the country, according to the China Insurance Regulatory Commission.
Under the new policy, drivers who have 10 compensation payments in a year will have to pay three times the standard rate of a premium.
The Southern Metropolis Daily said Thursday that about 80 percent of car owners in the city could be subject to premium discounts.
Official figures showed that nearly 70 percent of car owners in Shenzhen had a clean record or just one claim the previous year. More than 70 percent of vehicles registered in Shenzhen are private cars.
This is a good move because the rule is now fairer, said Li Feng, secretary general of the city s insurance association.
The premium wasn t reasonable because car owners with clean traffic accident records paid the same premium as those who have had a number of accidents, Li said.
The insurance policy also links the premiums to seven traffic offenses: driving on the wrong side of the road, crossing against traffic lights, speeding, driving without a driver s license, hit and run, and driving under the influence of alcohol. (SD News)
