INSURANCE companies would take into account traffic offenses for automobile insurance premiums, according to a flexible auto insurance pricing scheme released Monday.
The premium would be increased for motorists caught committing a range of offenses including driving on the wrong side of the road, ignoring traffic lights, speeding, driving without a license, hit-and-run and drinking and driving, Shenzhen Special Zone Daily reported.
The new premium system would take effect March 1, the paper said.
The scheme was aimed at giving insurers greater autonomy in developing new auto insurance products and setting premium charges. PICC Property and Casualty, Ping An Insurance and China Pacific Insurance (Group) would retain the existing system of floating discount rates, according to earlier media reports.
Auto insurance rates would also be related to and decided by the number of claims.
The program would be promoted nationwide in the second half of 2013 after the Shenzhen trial was completed, media reports said.
A survey in November showed 80 percent of 816 respondents supported the scheme, the Shenzhen Insurance Association said.
Automobile insurance is a major contributor to the non-life insurance segment. (Li Hao)
