Insurance policy to become easier to understand

Insurance policies are often complained about by Chinese consumers as something full of abstruse terms and hard to comprehend, but from June 1, a new popularized policy may change their thinking.

Xie Guanxing, CEO of CITIC Prudential Life Insurance Company Ltd., the first Sino-British joint venture to operate life insurance business in China, said over 30 products of the company will adopt a new policy from Tuesday.

The new policy features popular wording for some professional terms, like "you" for "policy-holder" and "we (us)" for "insurer",to make it more understandable for common people.

Besides containing all the information listed in the old one, the new policy will add service articles, charts and explanations of technical terms of concern to people.

"People with a senior high-school educational background can easily read it," said Xie.

A seminar was held Sunday by the China Insurance Association, with life insurers and property insurers in the country coming to talk about popularizing wording of insurance policies, a move seenby industrial experts as a push for the new version.

Insurance articles, especially those in life insurance policies,have long been denounced for their long and complicated sentences and abstruse writing, which has hindered the insurance companies' expansion among potential consumers.

In management regulations of insurance companies issued earlier this month, the China Insurance Regulatory Commission, the industrial watchdog, also called on insurers to choose clear and easy-to-understand wording in writing insurance articles and explaining premium rates.

Source: Xinhua