Regulator Supports Insurance for 'Drunken Driving'

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Last updated at: (Beijing Time) Friday, August 22, 2003

Regulator Supports Insurance for 'Drunken Driving'

The China Insurance Regulatory Commission (CIRC) Thursday said that it supports a controversial new insurance policy on compensation for victims of a traffic accident caused by a drunken driver.

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The China Insurance Regulatory Commission (CIRC) Thursday said that it supports a controversial new insurance policy on compensation for victims of a traffic accident caused by a drunken driver.

According to the new insurance policy introduced by a domestic insurance company earlier this year, when the policy holder comes into a traffic accident after drinking alcohol and causes injury or property loss to a third party, the insurance company will take the responsibility for compensation as much as 250,000 yuan (30,120 US dollars).

Although the new insurance policy has been duly approved by theChina Insurance Regulatory Commission, it has aroused controversy among Chinese insurance companies and the general public.

A CIRC official said the new policy aims to protect the interests of the third party, and does not conflict with the administrative punishment or the penal responsibility the driver should take for the accident according to law.

The CIRC considers it as an ordinary liability insurance business, the official said.

Beijing police officer Liu Jingyu said the new policy may help a drunk driver elude their responsibilities arising from a traffic accident, which could lead to an increase in people driving while inebriated.

The number of traffic accidents on Beijing's roads has been on rise. In the first seven months of the year, 792 people died, according to statistics from the Beijing Traffic Management Bureau.

Alarmingly, Liu said the number of drunk driving-related accidents is already on the rise.

Nearly 70 per cent of 1,426 respondents to a Internet survey said they objected to the policy. However, the China Insurance Regulatory Commission says the new cover aims to help protect the victims of traffic accidents.

The liability insurance policy is aimed at covering their losses and it does not mean drunk drivers will elude their responsibilities, a commission statement said.

In many other countries, such insurance is compulsory so all drivers can cover the compensation claims of victims in traffic accidents, business insiders said.

China should introduce the policy across the board to better protect the rights of all citizens, they argue.

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