Insurance plans for mainland-bound drivers only offer minimum coverage: Hong Kong watchdog
Plans offered by 12 Hong Kong insurance companies only cover the minimum limit of identical indemnity at 200,000 yuan but vary by 40 per cent
Insurance policies for Hong Kong motorists heading to mainland China provide only minimum protection but at a wide price range, the city’s consumer watchdog has found.
The Consumer Council said on Monday plans offered by 12 Hong Kong insurance companies only covered an identical indemnity limit of 200,000 yuan (US$28,000) per accident, the minimum requirement stipulated by mainland authorities.
“Consumers should be mindful that although buying compulsory motor insurance complies with the statutory minimum requirement on the mainland, the scope of indemnity coverage and limits may not be sufficient for all liabilities in the event of a traffic incident,” the council said.
Residents have been allowed to drive their cars into neighbouring Guangdong province since July last year using a temporary licence, which is valid for a year under the scheme known as “Northbound Travel for Hong Kong Vehicles”.
Drivers must first buy the compulsory insurance before applying for the licence.
They can top-up policies with their local insurers to fulfil the requirement under a unilateral recognition policy.
The council further discovered the premiums of such insurances varied by about 40 per cent, despite their unified indemnity limit.
