On September 10, in order to implement the requirements of the "Guiding Opinions on the Implementation of Comprehensive Reforms of Auto Insurance" on improving the level of compulsory traffic insurance protection, the China Banking and Insurance Regulatory Commission recently issued the "Announcement on Adjusting the Limits of Compulsory Traffic Insurance Liability and Rate Floating Coefficient" (hereinafter referred to as "announcement").

    The "Announcement" is divided into three parts: The first is the content of the new liability limit plan, which clarifies the compensation limit for death and disability of compulsory traffic insurance of 180,000 yuan, the compensation limit for medical expenses is 18,000 yuan, and the compensation limit for property losses is 20,000 yuan. When the insured is not liable, the compensation limit for death and disability is 18,000 yuan, the compensation limit for medical expenses is 1,800 yuan, and the compensation limit for property losses is 100 yuan. Compared with the original liability limit, in addition to the property damage compensation limit remains unchanged, the death and disability compensation limit and the medical expenses compensation limit have been greatly increased.

    The second is the content of the new rate floating coefficient scheme, which clarifies that the rate floating coefficient schemes in various regions of the country are subdivided from the original category 1 into 5 categories. The upper limit of the floating rate remains unchanged at 30%, and the floating rate is lowered from the original minimum of -30%. Expand to -50%, and increase the rate of preference for consumers who have not paid. Through the introduction of five types of rate fluctuation coefficients, to a certain extent, the problem of large differences in the compensation rate of compulsory traffic insurance among different regions has been alleviated, and the low-level compulsory traffic insurance compensation rate of some regions has been improved.

    The third is to stipulate the switching time and transitional arrangements, and clarify that if a road traffic accident occurs after 0:00 on September 19, 2020, the new and old compulsory traffic insurance policies will be implemented in accordance with the new liability limit.

    The "Announcement" will be officially implemented on September 19, 2020. In the next step, the China Banking and Insurance Regulatory Commission will guide all the China Banking and Insurance Regulatory Bureaus, property insurance companies and related units to do all the work of compulsory traffic insurance to ensure the smooth and orderly progress of the reform of compulsory traffic insurance.