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Floating premium rates continue in Shanghai

By Song Hongmei (chinadaily.com.cn)
Updated: 2006-08-07 08:53

Many safe drivers in Shanghai enjoyed a discount in taking the nation's new mandatory vehicle insurance policy under the municipality's floating rates last month.

Insurance policies with premiums discounted accounted for 39.89 percent of the total taken in July; policies with premiums going up accounted for 13.91 percent; and the rest 46.20 percent of policy premiums remained the same, according to the Shanghai bureau of the China Insurance Regulatory Commission.

The regulator required vehicle liability insurance to become compulsory as of July 1. Under the regulations, drivers across China are forced to pay around 1,050 yuan (US$131) for compulsory insurance before taking to the road since its effect.

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The full text is available in the August Issue ofChina Insurance.