New Energy Vehicle Insurance Exclusive Clauses Are Released, And Vehicle Spontaneous Combustion Risks Are Included in The Insurance Coverage

On December 14, the Insurance Industry Association of China formally issued the "Exclusive Terms for Commercial Insurance of New Energy Vehicles (Trial)" (hereinafter referred to as "Exclusive Terms"), new energy vehicles caught fire, batteries and energy storage systems, motors and drive systems, charging The risks of equipment such as piles are included in the insurance coverage, and the application scenarios are further expanded to cover driving, parking, charging and operations.

According to the latest production and sales data released by the China Association of Automobile Manufacturers on December 10, from January to November 2021, the production and sales of new energy vehicles will be 3.023 million and 2.99 million respectively, and the market penetration rate of new energy passenger vehicles will reach 19.5%. In addition, the National Development and Reform Commission and the Ministry of Industry and Information Technology have issued multiple articles proposing to accelerate the promotion and application of new energy vehicles and speed up the construction of supporting facilities such as charging and swapping power stations.

The accelerated transformation of electrification in the automotive industry has brought about explosive growth of new energy vehicles. With the increasing market share of new energy vehicles, special vehicle insurance for new energy vehicles becomes more important. According to statistics from Bank Insurance Credit, the number of new energy vehicles insured increased by 78.6% annually from 2013 to 2017, and the average premium for auto insurance policies was 21% higher than that of traditional fuel vehicles. It is estimated that the scale of premiums in 2025 will reach 154.3 billion yuan, and new energy vehicle premiums will account for 15.7% of total auto insurance premiums.

However, current insurance companies are not sufficiently motivated to underwrite new energy vehicles, mainly due to the low profitability of new energy vehicle insurance due to the high risk rate of new energy vehicles. According to a research report by Shenwan Hongyuan, the current loss ratio of new energy vehicle insurance generally exceeds 85. %, the industry is facing greater pressure from underwriting losses.

Therefore, how to resolve the contradiction between the growing auto insurance demand of new energy vehicle owners and the lack of enthusiasm of underwriting companies for new energy vehicle insurance is an important problem that needs to be resolved urgently.

The "Exclusive Clause" clarifies that the scope of insurance for new energy vehicles is for people driving within the territory of the People's Republic of China (excluding Hong Kong, Macao, and Taiwan), using new power systems, and relying entirely or mainly on new energy sources to drive on roads. Wheeled vehicles, crawler vehicles and other vehicles used for passengers or used to transport articles and special operations, but excluding motorcycles, tractors, and special vehicles. According to the definition, the new energy vehicles that can be insured this time cover plug-in hybrid (including extended range) vehicles, pure electric vehicles and fuel cell vehicles.

3 main risks, fire and burning are regarded as the guaranteeable range

The three main insurances of the "Exclusive Clause" are new energy vehicle loss insurance, new energy vehicle third-party liability insurance, and new energy vehicle personnel liability insurance. The three main insurances are relatively independent and can be covered by one or more at the same time. Insured.

The guarantee responsibility of "New Energy Vehicle Loss Insurance" is: during the insurance period, the insured or the insured new energy vehicle driver is injured due to natural disasters or accidents (including fire and combustion) during the use of the insured new energy vehicle. Insurance of new energy vehicle body, battery and energy storage system, motor and drive system, other control systems, and all other direct losses of the equipment at the factory, and does not fall within the scope of exemption from the insurer’s liability, the insurer shall follow the agreement of this insurance contract Responsible for compensation. The use process of new energy vehicles includes driving, parking, charging and operation.