Consumer council urges improved insurance amidst increasing cross-border travel

It recommended additional commercial insurance as compulsory alone may be insufficient.

As applications for Northbound Travel for Hong Kong vehicles rise due to more convenient cross-border travel, the Consumer Council has advised motorists to ensure their insurance coverage is sufficient in case of accidents.

Hong Kong vehicles entering the Mainland must have compulsory motor insurance, which provides coverage of HK$219,622 (RMB 200,000) per incident. However, the council noted that this may be insufficient and recommended additional commercial motor insurance for more comprehensive coverage.

The study also highlighted significant variations in premiums between insurers by nearly 40%, ranging from HK$832 to HK$1,159 for vehicles with fewer than six seats and HK$963 to HK$1,342 for those with six to eight seats. 

It further noted that third-party liability coverage differs between Hong Kong and the Mainland, where passengers on board are not covered. To ensure better protection, the council recommended third-party liability and persons-on-board liability policies for both motorists and passengers.

Despite the variations, coverage limits remained the same for the 12 companies. Third-party bodily injury or death had a coverage limit of HK$197,660 (RMB 180,000), HK$19,766 (RMB 18,000) for medical expenses, and HK$2,196 (RMB 2,000) for property damage.

The council also urged the insurance industry, regulatory bodies, and government departments to improve unilateral recognition insurance products, offering higher indemnity limits and more comprehensive options for consumers.

($1 = RMB 0.91)