Auto insurance policy change has no impact in Shenzhen

An auto insurance practice change made by China¡¯s dominant non-life insurance player PICC Property and Casualty Co. has made no impact on Shenzhen¡¯s insurance market because local insurers already started a similar practice one year ago.

PICC Property and Casualty Co., which has shares listed in Hong Kong, introduced a clause early this month to exclude claims less than 500 yuan (US$60), reported Shenzhen Daily Thursday.

According to the Shenzhen unit of the Beijing-based insurer, the minimum-compensation clause has already been practiced in Shenzhen for a year, which rules that at least 1,000 yuan is excluded from the total compensation claimed.

Sources with other Shenzhen-based Insurers including Ping An Insurance and China Pacific Insurance all gave the same response.

According to an official with the Shenzhen Insurance Regulatory Bureau, Shenzhen¡¯s insurance market is more developed than other regions in China and the minimum-compensation clause has been practiced here and accepted by insurance buyers for a long time.

PICC P&C¡¯ s minimum-compensation practice has aroused wide complaints from its clients and many have turned to other insurers.

However, PICC P&C explained that this move was to alleviate the pressure on its resources and improve services to its quality clients.

According to PICC P&C, small claims accounted for up to 30 per cent of all claims in its motor vehicle insurance operations, which cost the company huge resources.

Source: Shenzhen Dialy