What Is Depreciation Insurance?
The insurance company collects the corresponding insurance premiums based on the price of the new car, but pays the compensation based on the depreciated price of the car. This "depreciation compensation" regulation is called "overlord clause", and CCTV's "Weekly Quality Report" has exposed this phenomenon.
Depreciation compensation
- Chinese name
- Depreciation compensation
- Foreign name
- no
- Nature
- Overlord clause
- Department
- Insurance company
- The insurance company collects the corresponding insurance premiums based on the price of the new car, but pays the compensation based on the depreciated price of the car. This "depreciation compensation" regulation is called "overlord clause", and CCTV's "Weekly Quality Report" has exposed this phenomenon.
- Beijing owner Mr. Gao bought one in 2003
- It is stated in the terms of compensation treatment that
- "High insurance and low compensation" are dozens of hidden rules for operating vehicle insurance business
- Chen Xin, a professor at the Center for Insurance Law of the University of International Business and Economics, participated in the revision of the Insurance Law of the People's Republic of China in 2002 and 2009. Chen Xin told a CCTV reporter that the insurance company first collected the premiums based on the non-existent value, and later said that it would not pay, and that it could not take advantage of the front and leave the disadvantages to the insured. This is unfair.
At present, the number of motor vehicles in China is as high as 199 million. However, most insurance companies implement the terms of high insurance and low compensation. This also means that most car owners who have insured against car damage may be forced to accept this overlord clause for alleged fraud. [1]