Insurers resume auto-purchase loans
1 October 2003
Chinese insurance companies are slowly resuming auto-loan insurance business after many had stopped selling policies in July as a result of increased incidences of defaults and insurance fraud.
China Daily reported that the Suzhou and Shanghai branches of PICC Property and Casualty have been in talks with banks to redesign the scheme and resume the service. In Shenzhen, Pacific Property Insurance and China Merchants Bank have struck a deal that requires a 30 per cent downpayment for auto loans and a maximum lending term of three years.