Circular on Strengthening Administration on Insurance Terms and Premium Rates of Commercial Insurance of Motor Vehicle
Circular on Strengthening Administration on Insurance Terms and Premium Rates of Commercial Insurance of Motor Vehicle
Circular on Strengthening Administration on Insurance Terms and Premium Rates of Commercial Insurance of Motor Vehicle
Bao Jian Fa [2012] No.16
February 23, 2012
All property insurance companies, all insurance regulatory bureaus and China Insurance Association:
In order to regulate the market order of the motor vehicle commercial insurance (hereinafter referred to as "commercial vehicle insurance"), perfect the supervision principle on commercial vehicle insurance, compliance with the principle of maintaining the social public interest and preventing unfair competition, in accordance with the Insurance Law of the People's Republic of China, Administrative Measures for the Insurance Clauses and Premium Rates of Property Insurance Companies and other laws, regulations and relevant provisions, we hereby notify the relevant issues in respect of strengthening the administration on commercial vehicle insurance clauses and premium rates as follows:
I. With respect to the principle of formulating the commercial vehicle insurance clauses and premium rates
1. The insurance companies shall, according to the relevant provisions of laws, regulations and China Insurance Regulatory Commission (hereinafter referred to as "CIRC") on formulating the commercial vehicle insurance clauses and premium rates. The insurance companies shall assume the corresponding legal liabilities on the formulated commercial vehicle insurance clauses and premium rates.
The commercial vehicle insurance clauses and premium rates formulated by the insurance companies shall be submitted to the CIRC for approval. The insurance companies shall strictly implement the commercial vehicle insurance clauses and premium rates approved by the CIRC.
2. The insurance companies in formulating the commercial vehicle insurance clauses shall conform to the principle of compliance with laws and regulations, fairness and justifiableness, good faith and easily understood.
The insurance companies in formulating the commercial vehicle insurance premium rates shall conform to the principle of sufficiency and fairness, match with the insurance liabilities and be able to compensate the cost of risk transfer, shall not endanger the corporate finance stability and solvency, nor damage the legal rights and interests of the policy holders and the insured.
3. China Insurance Association shall organize the professionals to research and formulate the model commercial motor vehicle insurance clauses (hereinafter referred to as "association clauses"), motor vehicle reference depreciation base and vehicle type data bases of China Insurance Association for the reference and using by the insurance companies.
China Insurance Association shall collect, make statistic and analyze the business data of all commercial vehicle insurance, at least measure and calculate for one time in two years reference pure loss rate for commercial vehicle insurance for reference and using by the insurance companies.
China Insurance Association shall report the formulated commercial vehicle association clauses and insurance reference pure loss rates to the CIRC.
4. The insurance companies may, by reference to and using the association clauses, formulate the companies' commercial vehicle insurance clauses, and by using the insurance loss rates, formulate the companies' commercial vehicle insurance loss rates.
The insurance companies, whose comprehensive cost rate is lower than the insurance average rate and below 100% for consecutive two fiscal years, in formulating the companies' commercial vehicle insurance clauses and premium rates according to insurance reference pure loss rates, may properly add the commercial vehicle insurance clauses to the association clauses.
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Bao Jian Fa [2012] No.16
February 23, 2012
All property insurance companies, all insurance regulatory bureaus and China Insurance Association:
In order to regulate the market order of the motor vehicle commercial insurance (hereinafter referred to as "commercial vehicle insurance"), perfect the supervision principle on commercial vehicle insurance, compliance with the principle of maintaining the social public interest and preventing unfair competition, in accordance with the Insurance Law of the People's Republic of China, Administrative Measures for the Insurance Clauses and Premium Rates of Property Insurance Companies and other laws, regulations and relevant provisions, we hereby notify the relevant issues in respect of strengthening the administration on commercial vehicle insurance clauses and premium rates as follows:
I. With respect to the principle of formulating the commercial vehicle insurance clauses and premium rates
1. The insurance companies shall, according to the relevant provisions of laws, regulations and China Insurance Regulatory Commission (hereinafter referred to as "CIRC") on formulating the commercial vehicle insurance clauses and premium rates. The insurance companies shall assume the corresponding legal liabilities on the formulated commercial vehicle insurance clauses and premium rates.
The commercial vehicle insurance clauses and premium rates formulated by the insurance companies shall be submitted to the CIRC for approval. The insurance companies shall strictly implement the commercial vehicle insurance clauses and premium rates approved by the CIRC.
2. The insurance companies in formulating the commercial vehicle insurance clauses shall conform to the principle of compliance with laws and regulations, fairness and justifiableness, good faith and easily understood.
The insurance companies in formulating the commercial vehicle insurance premium rates shall conform to the principle of sufficiency and fairness, match with the insurance liabilities and be able to compensate the cost of risk transfer, shall not endanger the corporate finance stability and solvency, nor damage the legal rights and interests of the policy holders and the insured.
3. China Insurance Association shall organize the professionals to research and formulate the model commercial motor vehicle insurance clauses (hereinafter referred to as "association clauses"), motor vehicle reference depreciation base and vehicle type data bases of China Insurance Association for the reference and using by the insurance companies.
China Insurance Association shall collect, make statistic and analyze the business data of all commercial vehicle insurance, at least measure and calculate for one time in two years reference pure loss rate for commercial vehicle insurance for reference and using by the insurance companies.
China Insurance Association shall report the formulated commercial vehicle association clauses and insurance reference pure loss rates to the CIRC.
4. The insurance companies may, by reference to and using the association clauses, formulate the companies' commercial vehicle insurance clauses, and by using the insurance loss rates, formulate the companies' commercial vehicle insurance loss rates.
The insurance companies, whose comprehensive cost rate is lower than the insurance average rate and below 100% for consecutive two fiscal years, in formulating the companies' commercial vehicle insurance clauses and premium rates according to insurance reference pure loss rates, may properly add the commercial vehicle insurance clauses to the association clauses.
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