That is, start-up expenses, management fees, indirect claims, turnover tax, insurance guarantee fund, reinsurance expenses and social assistance fund for road traffic accidents.

(1) Initial expenses: mainly refers to the related expenses incurred for concluding insurance contracts, among which the policy solicitation fee (i.e. handling fee) is a very important one. The handling fee ratio shall not be higher than 4% of each premium.

(2) Management expenses: mainly refers to the daily management expenses after the conclusion of the insurance contract. ?

(3) Indirect claims expenses: including the exploration, inspection and appraisal expenses paid to the company's claims personnel. ?

(4) Turnover tax: urban maintenance and construction tax and education surcharge. (The business tax on compulsory insurance has been reduced)

(5) Insurance guarantee fund: The insurance company shall withdraw the insurance guarantee fund according to the premium income of 1% and include it in the current profit and loss. ?

(6) Reinsurance cost: Operators of compulsory insurance business often make appropriate reinsurance arrangements for compulsory insurance business according to needs, and sub-business should bring certain profits to reinsurance entrants, which constitutes reinsurance cost. The reinsurance arrangements made by various insurance companies are different, and the reinsurance fees are also different. ?

(7) Social assistance fund for road traffic accidents: The social assistance fund for road traffic accidents is drawn every year according to a certain proportion of the premium charged for compulsory insurance. The fund has not yet been established.

Extended data

The full name of compulsory traffic insurance is "compulsory liability insurance for motor vehicle traffic accidents", which is a kind of compulsory liability insurance that the insurance company compensates the victims (excluding the people on board and the insured) for personal injuries and property losses caused by road traffic accidents of insured motor vehicles within the limit of liability.

Compulsory insurance is the first compulsory insurance system implemented by national laws in China. Its premium is subject to the national unified charging standard, which is uniformly stipulated by the state, but the compulsory insurance price of different models is also different, and the main influencing factor is "the number of car seats".

References:

Compulsory Insurance-Baidu Encyclopedia