There are big changes! Please note to such owners

The number of new energy vehicles in China showed a sustained and high-speed growth trend, with an increase of more than 1 million units for three consecutive years. According to data from the Ministry of Public Security, by the end of 2020, the number of new energy vehicles in the country reached 4.92 million, accounting for 1.75% of the total number of vehicles.

The China Insurance Industry Association (hereinafter referred to as the "Insurance Association") has officially issued the "China Insurance Industry Association New Energy Vehicle Commercial Insurance Exclusive Clauses (Trial)" (hereinafter referred to as the "Clauses"), which will make new energy vehicle consumers have more effective and targeted insurance protection.

In recent years, China's new energy vehicle industry has developed rapidly, and new energy vehicles have become increasingly favored by consumers. According to the latest data released by the China Association of Automobile Manufacturers, in the first 11 months of this year, the production and sales of new energy vehicles reached 3.023 million units and 2.99 million units, respectively, an increase of 1.7 times year-on-year; the market penetration rate reached 12.7%, higher than the previous 10 months.

However, new technologies also bring new challenges. In the view of the insurance industry, new energy vehicles use power batteries as energy storage devices, vehicle auxiliary equipment extends to charging facilities, in the process of vehicle use, in addition to the traditional traffic accident risk, power battery fire, deflagration caused by major accidents constitute a new risk factor.

The reporter learned from the industry that compared with traditional cars, new energy vehicles have a higher frequency of insurance and different types of vehicles have greater differences. According to the data released by China Bancassurance, in 2017, the insurance rate of new energy vehicles in household cars was 11.7 percentage points higher than that of non-new energy vehicles; among government cars and road passenger cars, the insurance rate of new energy vehicles was significantly lower than that of non-new energy vehicles, which were 8.0 percentage points and 7.1 percentage points lower, respectively, and the insurance rate of other vehicle types was smaller.

In view of the protection gap that has become increasingly prominent with the increasing popularity of new energy vehicles, the insurance industry urgently needs product innovation to upgrade insurance protection and insurance services. In the comprehensive reform of motor insurance launched in September last year, the China Banking and Insurance Regulatory Commission proposed to support the industry to formulate model clauses for new energy vehicle insurance, driver and occupant accident insurance, and motor vehicle extended warranty insurance, and explore the development of innovative products such as motor vehicle mileage insurance (UBI) in new energy vehicles and qualified traditional cars.

Therefore, the launch of the "Terms" is highly anticipated by the industry and beyond.

The Articles clearly define new energy vehicles. The new energy vehicles covered by the new energy vehicle insurance clause refer to vehicles that use a new power system and are completely or mainly driven by new energy, including plug-in hybrid (including range extender) vehicles, pure electric vehicles and fuel cell vehicles.

Specifically, the Clauses include two model clauses, the Model Clauses for Commercial Insurance for New Energy Vehicles of the China Insurance Industry Association (for Trial Implementation) and the Model Clauses for Accident Injury Insurance for New Energy Vehicle Drivers and Occupants of the China Insurance Industry Association (for Trial Implementation).

According to the "Model Clauses of New Energy Vehicle Commercial Insurance of China Insurance Industry Association (Trial)", the main insurance includes three independent types of insurance, including new energy vehicle loss insurance, new energy vehicle third-party liability insurance, and new energy vehicle vehicle personnel liability insurance, and the insured can choose to insure all insurance types or some of them. Additional insurance cannot be insured independently.

The insurance liability scope of new energy vehicle insurance has also been further expanded. In view of the hot issues of consumer concern such as "electricity safety" and "fire accidents", the "Provisions" clearly include accidents (including fire and combustion) in the insurance liability of the main insurance (car damage insurance, third-party liability insurance, and vehicle personnel liability insurance), clarify the use status of new energy vehicles including driving, parking, charging and operation, and delete the ambiguous "commercial place" expression in the exemption of liability.

In the vehicle loss insurance, it is emphasized that the "three electricity" system and the factory equipment belong to the insurance liability of the vehicle loss insurance, which fills the insurance gap of the "three electricity" system risk of new energy vehicles, and at the same time exempts the risk caused by battery attenuation and the risk of loss of new energy vehicles due to external power grid failure during charging.

Mao Zhiwen, marketing director of PICC Property & Casualty Insurance, told reporters: "The car damage insurance highlights the structural characteristics of the 'three electric' system of new energy vehicles in a listed manner, and the text content is clear at a glance, which is convenient for consumers to read and understand, and expands the protection unit to vehicle-specific use scenarios, such as self-service charging, special vehicle engineering operations, etc." The upgrade optimizes the connotation and extension of traditional car insurance, and enhances the applicability and pertinence of the terms. ”

In terms of additional insurance, compared with the "Model Clauses for Commercial Insurance of Motor Vehicles (2020 Edition)", on the basis of the original 9 clauses, the Clauses have added three new clauses: external power grid fault loss insurance, self-use charging pile loss insurance and self-use charging pile liability insurance, and revised the special clauses on value-added services for the characteristics of new energy vehicles, highlighting the risk characteristics and protection needs of new energy vehicles in product design.

Electric piles are important supporting facilities for new energy vehicles, but there are many hidden risks in the use of electric piles. Relevant data show that among the causes of spontaneous combustion accidents in new energy vehicles, spontaneous combustion accidents in the charging and full-charge static state accounted for 38% and 24% respectively, especially when the battery state of charge (SOC) exceeded 90%, accounting for 45% of the number of spontaneous combustion accidents. Especially in lightning weather, if lightning strikes occur, it is very likely to hit the charging pile that is being charged, although the charging pile is connected to the ground, but after hitting the charging pile, a huge current and voltage may be generated, which will cause damage to the battery.

In view of this, the "Provisions" combine the characteristics of charging new energy vehicles, develop self-use charging pile loss insurance, self-use charging pile liability insurance, on the basis of covering the loss of the vehicle, but also include the charging pile and other auxiliary equipment losses and equipment itself may cause property losses and personal injury, focusing on solving the risks arising from auxiliary facilities in the application of new technologies. This is also the first time that auto insurance has underwritten external fixed auxiliary equipment, which is an innovative exploration in the field of auto insurance.

The reporter learned from the Insurance Association that according to the rate switching time of the new energy vehicle commercial insurance model clause, all new insurance and renewed new energy vehicles (excluding motorcycles, tractors, and special vehicles) are uniformly insured by the "New Energy Vehicle Model Clauses (Trial)", and the "China Insurance Industry Association Motor Vehicle Commercial Insurance Model Clauses (2020 Edition)" are no longer applicable. Non-new energy vehicles cannot be insured by the Model Clauses for New Energy Vehicles (Trial).

▍ Source: Financial Times