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China Introduces First Guidelines for New Energy Vehicle (NEV) Insurance

by Kaia

Beijing, China – China has unveiled its first-ever guidelines for insuring new energy vehicles (NEVs), addressing critical challenges faced by both vehicle owners and insurers.

The new regulations, announced on Friday, aim to tackle high insurance premiums and the risk of coverage denial that NEV owners have long experienced. Insurers, on the other hand, have been grappling with significant financial losses due to the expensive repair costs associated with NEVs.

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The guidelines were jointly issued by the National Financial Regulatory Administration along with three other government bodies, and include measures to reduce maintenance costs for NEVs. They also call for the exploration of a risk-classification system to improve insurance models tailored to these vehicles.

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In conjunction with these guidelines, the Insurance Association of China and the Shanghai Insurance Exchange revealed plans to launch an insurance platform for the NEV sector on Saturday. The platform is designed to ensure adequate insurance coverage for NEVs, with a specific focus on high-risk vehicles. It will also prevent insurers participating in the platform from refusing coverage to NEV owners.

China’s NEV market has seen rapid growth in recent years, with official data revealing that by the end of 2024, the number of NEVs in use across the country is projected to reach 31.4 million—an impressive 260-fold increase over the past decade. The new insurance guidelines aim to support the continued expansion of this rapidly evolving sector.

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