Beijing, one of the trial districts for business auto insurance fee reform completed the system switch at 10:00 p.m. of yesterday. It’s learned that the first contract was signed by Pingan Property and Casualty Insurance Company, Beijing Branch. Currently, the reform has carried out in 36 provinces across the country.
The difference between all districts mainly lies in NCD coefficient and claim record floating coefficient. Beijing will stay the same with national standard in terms of pure premium’s calculation rules, additional cost rate, self-underwriting coefficient and independent channel coefficient. But it has a creative way of defining value ranges of NCD coefficient.
Li Qing, Vice General Manager of Pingan Property and Casualty Insurance Company, Beijing Branch, said that, Beijing has a NCD coefficient value range of 0.4 to 3, meaning Beijing’s auto owners have a wider floating range for actual insurance fees. Auto owners having no claims for consecutive several years can enjoy a 60% discount, while auto owners having several claims during one year will face a 3 times insurance fee.
The new regulation also introduces traffic violation coefficient as an adjustment factor. Drivers’ driving habits will influence the auto insurance fees. Drivers with low risks will have more benefits and drivers will bad habits will face possibilities of rising fees.
Besides, the new regulation increases insurance responsibilities of auto damage insurance, third party liability and passenger liability insurance. Eleven additional insurances with low frequency are deleted and some additional insurances are merged.
