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Chinese Regulators Punish Six Insurers
China's insurance market watchdog has punished six insurers for irregularities in vehicle-related insurance business.
The insurers were disciplined for failing to apply for doing vehicle-related business or agent services, collecting arbitrary fees, or embezzling corporate funds for the payment of premium, an official with the China Insurance Regulatory Commission said.
"These activities severely infringed the Insurance Law and related rules and regulations, and must be seriously dealt with," the official said.
Officials with the commission said the companies would be forced to stop operation for three months for rectification purposes or be fined between 100,000-150,000 yuan. Some of these companies' applications to open new branches have been rejected.
All six firms are local branches of big insurance companies in the city of Nanjing, east China's Jiangsu Province.
Following recent bout of rampant premium collection on vehicle insurance in some areas in China, the regulator vowed to carry out a nationwide investigation soon to regulate the market.
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