Enhancing Insurance Options for Northbound Drivers
In a recent report, the Consumer Council highlighted the need for more diverse insurance options for motorists driving north. The council emphasized that while current insurance schemes offer basic protection, there is a significant disparity in costs among providers. This discrepancy in premiums could potentially leave drivers exposed to financial risks in the event of an accident. Therefore, the council urged the insurance industry, regulatory bodies, and government departments to consider expanding the range of motor insurance products available to Northbound drivers.
One of the key requirements for drivers crossing the border from Hong Kong is to purchase compulsory motor insurance mandated by mainland China. This insurance is necessary for obtaining a temporary license or acquiring an equivalent top-up cover under the “unilateral recognition” policy with local insurers. The council’s investigation revealed that there is a nearly 40% difference in premiums among the twelve local companies offering these plans, despite all providing the same indemnity limit of 200,000 yuan.
Discrepancies in Premiums
Among the eleven insurers that disclosed their charges, the annual premiums for vehicles with fewer than six seats ranged from HK$832 to HK$1,159. For cars with six to eight seats, prices varied between HK$963 and HK$1,342 per year. The significant gap in premiums raises concerns about the affordability of insurance for Northbound drivers, especially considering the already high costs associated with cross-border travel.
Gilly Wong, the council’s chief executive, expressed optimism about the developments in the insurance industry. Some insurance companies are actively working on enhancing their products by increasing coverage on the medical side. This is crucial, as medical expenses can be substantial in the event of an accident. Wong emphasized the importance of offering comprehensive insurance products to ensure that motorists have adequate protection while driving north.
Importance of Third-Party Liability Insurance
In addition to mandatory motor insurance, the council recommended that motorists consider purchasing extra third-party liability insurance to bolster their protection. However, it cautioned that there are differing concepts regarding these policies in Hong Kong and mainland China. Unlike in Hong Kong, third-party liability policies in mainland China do not cover passengers on board but rather individuals who sustain injuries, fatalities, or property damage caused by the vehicle.
To extend coverage for passengers, the council advised drivers to acquire a separate insurance policy for “persons on board liability.” This additional coverage can provide peace of mind to motorists and ensure that all individuals in the vehicle are protected in the event of an accident. By having comprehensive insurance coverage, drivers can mitigate financial risks and safeguard themselves against unforeseen circumstances while driving north.
Overall, the Consumer Council’s findings underscore the importance of having adequate insurance coverage for Northbound drivers. With the evolving landscape of the insurance industry, it is essential for motorists to explore their options and choose policies that offer comprehensive protection at competitive rates. By expanding insurance offerings and promoting greater transparency in premium pricing, drivers can navigate cross-border travel with confidence and peace of mind.