China to Launch National Travel Agency Liability Insurance

SHANGHAI, Nov 11, 2009 (SinoCast Daily Business Beat via COMTEX) --

China is set to kick off a national travel agency liability insurance project next year.

Liability like traffic accidents and food poisoning tourists suffer when traveling will be listed into the security scope and indemnity per capita will be raised to at least CNY 200,000 from previously CNY90,000.

The project will be co-underwritten by six insurers, including PICC Property and Casualty Co., Ltd. (SEHK: 2328), China Pacific Property Insurance Co., Ltd., Ping An Property & Casualty Insurance Company of China, Ltd., China Life Property and Casualty Insurance Co., Ltd., China Continent Property & Casualty Insurance Co., Ltd., and Taiping General Insurance Co., Ltd. PICC Property and Casualty will serve as the lead underwriter via underwriting 45 percent of the project. Pacific Property will underwrite 15 percent, leaving the remainder to be shared by the other four averagely. They will jointly provide services to travel agencies that are willing to take part in the project.

Source: www.hexun.com (November 11, 2009)