(ECNS) -- Drivers who have records of running both red-lights and speeding will have to pay a higher premium on their insurance, with the increase capped at 45 percent, in the year following the indiscretion, according to a reform briefing by Beijing Insurance Regulatory Bureau on Thursday.
A total of 41 companies will pilot the reform across the city. According to the meeting, adjustments will be made so that car owners who have fewer compensation records will enjoy a higher deduction percentage on the premiums they have to pay for their cars in the following year.
On the other hand, driving habits will be linked to premium rates. In the new rules, running red lights or speeding could result in a premium increase of up to 15 percent, respectively.
The regulator said further adjustments would be made according to the weight of traffic violations in premium rates.
Running red lights and speeding are highly risky behavior that have resulted in many road accidents, said Cui Zhenhai, an official from the bureau. In order to encourage drivers to develop good driving habits, other forms of traffic violations would also be linked to premium car rates in future, he said.
