Although the overall auto insurance has some attributes of insurance, there are still many differences from regular vehicle insurance.
Overall vehicle insurance is a non-operating economic activity carried out in the transportation system, an administrative measure of traffic safety management, and a government act.
The purpose of co-ordinating vehicle insurance is to accumulate special funds for accident claims, and implement the same adjustment, so that enterprises can reduce risks, reduce the pressure of economic compensation caused by accidents, and protect the legitimate rights and interests of the parties involved in accidents. Therefore, consumers should raise their awareness of risk prevention, be alert to the relevant information of "motor vehicle safety planning", and choose regular insurance companies to buy auto insurance to avoid unnecessary losses.
When traffic accidents, natural disasters, accidental injuries of passengers, etc. occur in the car that pays the overall traffic safety fee. It can get the corresponding economic compensation from the traffic safety co-ordination fee, which is not real insurance.
Because the following risks may occur after purchasing the whole insurance: 1. Risk of surrender: When the ownership of the vehicle is transferred, the overall insurance of the vehicle cannot be transferred with the vehicle like term insurance, but the owner needs to withdraw from the "overall motor vehicle safety planning" of the original transportation company. At this time, it is easy for the owner to surrender.
2. Claim risk: Sometimes, in case of a major accident, it may be that compulsory insurance is not enough to pay for the loss, and the part with insufficient compensation can only be paid by the owner first, and then take the road of "motor vehicle safety coordination". However, how to claim compensation, the standard of claim compensation, how to pay more and how to pay less, and when to pay compensation are all agreed in the "motor vehicle safety overall planning" contract. The Insurance Law and the supervision scope of the CBRC do not protect the limits and standards of claims for auto insurance co-ordination.
3. Risk of dispute resolution: In case of claim settlement or surrender dispute, the owner will either remain silent or go to court for prosecution. Through prosecution, the court also made a ruling based on the general law "Contract Law" instead of the special law "Insurance Law". Even if the court holds that the overall contract is valid, and even if compensation can be paid according to the contract law after litigation, the registered capital of the transportation company is limited and the assets are small, so it is impossible to perform the contract, and it may not be able to give risk compensation.