In Taiyuan Motorcycle Town, a motorcycle whizzes by from time to time. From being active in the road of returning home in the Spring Festival as a transportation tool, or walking in the streets and lanes of cities as a "motorcycle", motorcycle has become a symbol of speed and passion, carrying wanton and brave, and has been favored by more and more people.

According to the Ministry of Public Security, 5.34 million motorcycles were newly registered nationwide in the first half of 2022, an increase of 1.08 million, or 25.38 percent, compared with the same period last year.

01 Motorcycle market gradually back to temperature

After hitting the peak in 2008, the overall sales volume of motorcycles in China continued to fall and keep falling. In 2021, the production and sales volume of motorcycles in China exceeded 20 million units, setting the highest record since 2015.

There seems to be evidence of a resurgence in the motorcycle market. In China, motorcycles run through the memories of two generations.

In the early days, the motorcycle is an important tool of production and life, convenient and dexterous, cost-effective. For the post-90s and post-00s, motorcycles are not only a pragmatic tool, but also a brand new social symbol. The visual stimulation brought by social media and the exhilarating experience brought by lightning speed all make motorcycles quickly "break circles".

In addition to the increase in demand, the loosening of the "motorcycle ban" policy has also added a fire to the development of the motorcycle market.

Take some cities as an example. At the end of 2017, Xi 'an issued the "Decision on the Cleaning Result of Normative Documents". Among the series of annulled documents, Xi 'an issued the "Notice on Strengthening the Comprehensive Management of Road Traffic Order" in 2009. In Taiyuan City, the Notice of Taiyuan Public Security Bureau on the Restriction of Motorcycles issued on October 1, 2009 expired on October 1, 2014, and the city has not issued any new management policies.

In 2020, Li Shufu, a deputy to the National People's Congress and chairman of Geely Holding Group, suggested that the "ban on motorcycles" be lifted moderately, suggesting that pilot cities first resume the licensing and traffic of motorcycles. Although the motorcycle market lifted the boom again, but the quality of motorcycle insurance has not matched the heat of this market.

02 There are many obstacles to motorbike insurance

Compulsory traffic insurance refers to the compulsory motor vehicle accident liability insurance, which started in July 2006. It is the first compulsory insurance system which is implemented by the national law.

The price of motorcycle traffic insurance is related to the displacement, the higher the displacement, the more expensive the price. In 2021, the motorcycle heavy traffic insurance fee standard is as follows: for motorcycles with displacement of 50CC or less, the premium of heavy traffic insurance will be 80 yuan/year; For motorcycles with a displacement of 50CC-250CC (including), the premium of traffic insurance is 120 yuan/year; For motorcycles with displacement above 250CC, the premium of traffic insurance is 400 yuan/year.

The strong contrast between the low premium and the high risk factor makes many insurance companies indifferent to the management of motorcycle traffic insurance. At the same time, the uncontrollable risk of motorcycle riding has also become the consideration for insurance companies to refuse insurance.

In August this year, the Internet inspection team of The State Council visited a number of insurance institutions in Zhengzhou and Jiaozuo, Henan Province, and found that in many places, high-payer vehicles, such as motorcycles, were difficult to buy traffic insurance, and insurance companies set thresholds by means of disguised refusal or delay of insurance coverage. Inspection found that many places to clerk has no right to accept, the system failure, the system has not been opened as a reason to refuse owners to handle insurance, or through the setting of unreasonable conditions, so that the owners of the car, for example, for foreign car, the owner must have a local account, work certificate or social security certificate.

As a matter of fact, it is forbidden for insurance companies to refuse insurance in disguise or delay underwriting. According to Article 10 of Chapter I of the Regulations on Compulsory Insurance for Motor Vehicle Traffic Accident Liability, an applicant shall choose an insurance company that is qualified to engage in compulsory insurance for motor vehicle traffic accident liability, and the chosen insurance company shall not refuse or delay underwriting.

In addition to disguised refusal, delay underwriting, bundling is also the insurance company in the sale of strong insurance routine.

A man surnamed Gao, who lives in Taiyuan, bought a Suzuki UY125T in August and was required to buy an accident insurance policy of 50 yuan in addition to the 120 yuan premium. Coincidentally, when another owner called a motorcycle shop to consult, the shop owner directly reported a higher fee than the amount paid by the compulsory insurance, claiming that the higher part includes vehicle and vessel tax and accident insurance.

If the handling of heavy traffic insurance is just more threshold, then for commercial insurance, let the motorcycle owners into the "insurance no door" awkward situation. Many owners said that commercial insurance in the three liability insurance is the most difficult to handle, "many owners around do not buy channels, plus some owners change the car more frequently, simply do not do, when riding some attention, 'riding handsome not riding fast'", motorcycle enthusiasts Mr. Wang said.

Reporters as consumers to consult the PICC and other insurance companies, business personnel said that they do not sell three liability insurance and other commercial insurance. "It's hard for individuals to do it, because a lot of us do it in motorcycle shops," said one owner. At a motorcycle shop in Biker town, the owner said he could help with triple-liability insurance, which costs 780 yuan per year, but only covers cars and people. In addition, some insurance companies also set an age threshold for the purchase of motorcycle liability insurance. For example, for people born between 1990 and 1995, the motorcycle commercial insurance of Bohai Property Insurance can only buy the maximum insurance amount of 100,000 yuan. For many insurers, triple-liability insurance has become a "one more bill, one more bill" business.

The difficulty of dealing with theft in commercial insurance is relatively low. There are also some insurance companies on the market that are specially responsible for handling motorcycle theft and rescue business, such as Kali Cheng, Chebai Du and so on. Chebaidu a salesman said that if the motorcycle is lost and not recovered, the company will pay for a new car or compensation for the purchase of the car, if lost after the recovery, can also pay for a certain amount of car damage. The time limit is three years, and the coverage is nationwide.

03 What should insurance companies do after the reform of automobile insurance

In July 2020, the China Banking and Insurance Regulatory Commission issued the "Guidance on the Implementation of Comprehensive Auto Insurance Reform (Draft for Comments)". On September 19, the new comprehensive auto insurance reform was officially implemented. After the adjustment, the total liability limit for compulsory insurance will be raised from 122,000 yuan to 200,000 yuan, including death and disability compensation from 110,000 yuan to 180,000 yuan, medical expenses compensation from 10,000 yuan to 18,000 yuan, and property damage compensation will remain unchanged at 2,000 yuan. The limit of non-liability compensation will be adjusted in accordance with the same proportion, with the limit of compensation for death and disability increased from 11,000 yuan to 18,000 yuan, the limit of compensation for medical expenses increased from 1,000 yuan to 1,800 yuan, and the limit of compensation for property damage maintained at 100 yuan.

According to the Insurance Market Observation report for the first quarter of 2022 compiled by the Insurance Association of China, by the end of March this year, the average car insurance premium of consumers was 2,808 yuan, a decrease of 689 yuan or 20% compared with that before the comprehensive insurance reform, and about 89% of consumers' premium expenditure decreased.

After the auto insurance reform, the decrease of expense rate and the increase of loss rate will bring certain income pressure to small and medium-sized insurance enterprises. In the face of high loss rate of motorcycle insurance, some small and medium-sized insurance companies are likely to be shut out again. China Capital Securities research report believes that the car insurance reform is essentially market-oriented reform, small and medium-sized insurance enterprises will have to change the business strategy in the car insurance business. In the future, the best-selling motorcycle with large displacement and the blue ocean of the new energy car market are expected to become the new growth pole of small and medium-sized insurance enterprises.
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