Best’s News & Research Service - November 18, 2016 10:22 AM (EST)
China’s Regulator and Supreme Court Issue Guidelines for Insurance Dispute Litigation
- By Iris Lai
- November 18, 2016 10:22 AM (EST)
BEIJING //BestWire// - The China Insurance Regulatory Commission and the Supreme People’s Court of the People’s Republic of China have issued guidelines for the establishment of insurance dispute litigation and a mediation system.
This system is essential for modernization of the insurance industry and consumer protection, said the CIRC in a statement. It involves a comprehensive litigation and mediation structure for insurance disputes.
The CIRC said began looking into the development of a resolution system in 2007. The regulator has worked with the Supreme People’s Court since 2012 with trial programs in various locations. The guidelines focus on various aspects for strengthening consumer protection, education and coverage, structure and process management.
In the first three quarters of 2016, the CIRC said it received 17,110 cases of consumer insurance complaints, down 15.6% from a year ago. Nonlife insurance-related complaints accounted for 51.05% of the cases, with the remaining being life insurance. Most of the complaints involved disputes involving insurance contracts, accounting for 90.67% of total cases.
Earlier this year, the CIRC rolled out the first insurance consumer confidence index in a bid to promote the sector’s improvement in services and product quality. The introduction of this index aims to push insurance companies for operational changes riding on consumer demand. The CIRC said this will enhance insurers’ obligation to protect consumer interests (Best’s News Service, April 8, 2016).
(By Iris Lai, Hong Kong bureau manager: Iris.Lai@ambest.com)