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China ends fixed aviation accident insurance premium

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发表于 2017-8-6 14:17:14 | 显示全部楼层 |阅读模式
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                                            China's unified premium price of 20 yuan for aviation       accident insurance will end from Dec. 1, China Insurance Regulatory       Commission (CIRC) announcesin Beijing on Sept.       26,2007.(Xinhua File Photo)Photo       Gallery>>>
    BEIJING, Sept. 26 (Xinhua) -- China's unified premium price of 20 yuan for aviation accident insurance will end from Dec. 1, China Insurance Regulatory Commission (CIRC) announced here Wednesday.
    The 20 yuan insurance premium, with a ceiling of 400,000 yuan for accident compensation, has long been considered as a huge profit source for insurance companies.
    Unifying premium prices for aviation accident insurance was aimed at stabilizing the market, but it suppressed initiatives for insurance companies to improve their services, said a senior CIRC official.
    The CIRC decided to hand pricing rights to the insurers and let them develop insurance products.
    In hope of improving insurance services and protecting consumer rights, the CIRC also required insurers to strengthen internal management and monitoring.
    Through market competition and government regulation, China may see lower insurance premiums with higher compensation and longer expiration periods, industry insiders commented.
    Meanwhile, insurers can also make more profit by providing customized services, said the industry insiders.
    By the end of last year, 22 life insurance companies and 11 property insurance companies operated aviation accident insurance cover.
    The aviation accident insurance premiums totaled 176 million yuan in 2006 and 127 million yuan for the first seven months this year. (One U.S. dollar equals to 7.51yuan.)
               
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