The China Banking and Insurance Regulatory Commission recently issued guidelines called the "Management Measures for the Protection of Consumer Rights and Interests of Banking and Insurance Institutions" (the “Measures”) which will come into effect from March 1, 2023. the Measures urge insurance institutions to operate with prudence while safeguarding the property and safety of their consumers. According to the Measures, insurance companies are expected to process insurance claims promptly, in accordance with the law, regulations, and contracts. Insurers are not to delay claim settlements or unjustly refuse claims.

We have taken the opportunity to analyze cargo insurance claims data from the past 5 years, which has led us to discover varying speeds of compensation within the insurance industry based on different types of cases. As a result, we have compiled a summary report, with the aim of providing our platform customers with valuable insights and guidance for preparing successful claims and receiving fair compensation:

The first：

Type of case where compensation can be obtained fastest: cases with significant social impact

      ①Tianjin Port Explosion Case.

②Chongqing Ship Capsizing Case.

③Henan Flood Case.

The second:

Types of cases that can be compensated within a reasonable time: cases with a clear accident report

①Security for general average matters in the Suez Canal Congestion Case.

②Marine accident, container falling into water or fire.

③Port accident, cargo fell.

The third:

The type of case in which insurance companies tend not to pay compensation and thus consequently demand a rigorous level of proof from the insured: cases related to management ability

①The cargos are lost due to the safekeeping of the Insured or its supplier.

②No accident, only improper packing operation (rough handling, unreasonable binding and fixing).

③The situation where similar cases repeatedly occur.

In these cases, the insurance company explicitly requires that all documents related to the transfer must be complete, accurate, and unalterable, and that third-party certificates or statements from the responsible parties must be provided. Additionally, the claim notice must be sent to the actual responsible party, and a response must be obtained from them. If the documentation is incomplete or of subpar quality, the claim for compensation will be denied.

The fourth:

The type of case where the insurance company pays the latest: cases where the owner arbitrarily disposed of the residual value of the goods

①On the one hand, the owner reported a total loss, and on the other hand, disposed of the damaged goods without the consent of the responsible party and the insurance company.

② The owner recovers the goods by himself, but the recovery price given is significantly lower than the market recovery price.

③Cases in which the owner arbitrarily decides to return or transfer the goods which cannot be inspected and repaired at the damaged place.

The fifth:Other influencing factors:

①Loss ration;

②Ability and possibility to recover from suppliers;

③The ability of the insured to use a combination of their own and the provider's various types of insurance;

④Business factors: Whether the customer has growth, whether there is an opportunity to offset the loss rate;

The above is a summary of the rate of payment in the insurance industry.