FOREIGN INSURERS GET ENTRY INTO CHINESE MOTOR SECTOR

Non-Chinese insurers will be allowed to offer mandatory third-party liability motor insurance from today, after the State Council unveiled its amendment to the law on Compulsory Traffic Accident Liability Insurance for Motor Vehicles, which takes effect today. The opening-up of the sector was revealed first by US vice-president Joe Biden on an official visit to Beijing in February (IIN 24, February 15 2012). The new law amends the previous wording, which said that only "China-funded" insurance companies could offer third party liability motor cover. The amended version deletes the words "China-funded". Mandatory third party motor liability was introduced in China in 2006, with foreign insurers restricted to the less widely sold comprehensive motor sector.