According to Article 6 of the Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents, the compulsory liability insurance for motor vehicle traffic accidents is subject to uniform insurance clauses and basic insurance rates. The State Council insurance supervision and management institutions shall, in accordance with the principle that compulsory motor vehicle traffic accident liability insurance business is generally unprofitable and loss-free, verify the insurance premium rate.

The compulsory motor vehicle traffic accident liability insurance business of an insurance company shall be managed and accounted for separately from other insurance businesses. If the insurance premium rate is greatly adjusted, the the State Council insurance regulatory agency shall hold a hearing.

The State Council insurance supervision and management institutions shall inspect the compulsory insurance business of motor vehicle traffic accident liability of insurance companies every year and announce it to the public; According to the overall profit and loss of the motor vehicle traffic accident liability compulsory insurance business of the insurance company, the insurance company may be required or allowed to adjust the insurance rate accordingly.

Extended data:

If the insured motor vehicle does not have road traffic safety violations and road traffic accidents, the insurance company shall reduce its insurance premium rate in the next year. In the following years, if the insured motor vehicle still has no road traffic safety violations and road traffic accidents, the insurance company shall continue to reduce its insurance premium rate to the minimum standard.

If the insured motor vehicle has a road traffic safety violation or a road traffic accident, the insurance company shall raise the insurance premium rate in the next year. In case of repeated road traffic safety violations, road traffic accidents and major road traffic accidents, the insurance company shall raise the insurance premium rate.

If the insured is not at fault in the road traffic accident, the insurance premium rate will not be increased. The standards for lowering or raising the insurance premium rate shall be formulated by the the State Council Insurance Regulatory Authority in conjunction with the the State Council Public Security Department.

Baidu Encyclopedia-Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents