CHINA'S new industry-wide commercial auto insurance terms, which will take effect from tomorrow, will help protect policy buyers without significantly adding to premium costs, according to regulators and insurers.　
　
The new terms unify insurers' different practices on discounts, exemption amounts and additional risks.There will also be more coverage, with six more risks, including risks against robbery, broken glass and auto theft.

The China Insurance Regulatory Commission offers three versions of terms - A, B and C. The main terms of the three are basically the same, with some slightly different issues to meet policy buyers' different needs.

"The significance of the new terms is that the watchdog regulates the products and insurers can focus on offering good services to attract clients," said Jin Hao, deputy general manager with the auto business department of the China Pacific Property Insurance Co.

For instance, insurers choosing the A, B, or C versions receive a crystal-clear set of terms. This means that policy buyers save time trying to understand confusing jargon and insurers can concentrate on improving services. Before the move, insurers had their own say on issues such as discounts for renewing policies, causing a red-tape minefield for policy buyers.

Some policy buyers picked an auto insurance product because of its lower premium, leading to disputes when accidents occurred. Lower premiums usually mean more exemption clauses.

"The move is aimed to protect policy buyers by offering an industry-wide definition and terms with more coverage," said Dong Bo, deputy director of the non-life insurance department of CIRC. No major fee changes will be made in China's new industry-wide auto insurance terms.

Auto insurance can not only help boost economic development but also play a key role in protecting people's interests and maintaining a stable social development, said Zhou Yanli, vice chairman of the commission. Auto insurance premiums account for a majority of China's non-life insurance industry.