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Public transport accident insurance unattended

By Zhao Tingting (chinadaily.com.cn)
Updated: 2008-05-30 14:05

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China Life Insurance (Group) Company's public transport accidental injury insurance product, the only one providing accidental injury insurance to public transport passengers, hasn't had a single customer since its launch eight years ago.

Bus No. 842's precipitate combustion in Shanghai on May 5, which killed 3 passengers and injured 12, turned public attention to insurance problems in public transportation.

Pubic transport companies are unlikely to buy insurance for passengers, according to a man surnamed Chen at Taiping Life Insurance Co Ltd. Purchase of insurance would be a burden to public transport companies, as they collect little in the form of fees. Only coach companies or airlines buy insurance for their passengers, said Chen.

Some related government departments in Shanghai came to realize the necessity and importance of public transport insurance and planned to buy public transport accident insurance for the city's senior citizens aged 70 or above.

The popularity of public transport accidental insurance will provide security to passengers and reduce management risks of public transport companies, according to Wang Xiaogang, an insurance analyst with Oriental Securities.

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The full text is available in the May Issue of China Insurance.Please visit publications for more subscription details.