From 1st January 2014, a new version of the Life Insurance Disabilities and Injuries Assesment Standard, co-published by Chinese Insurance Industry Association and Chinese Forensic Institute began being in effect. This is also the new industrial standard for disability payment in the domain of accident insurance of commercial insurance.

To better serve clients, GCL implemented upgrades in the accidentals and disabilities products. Over 30 kinds of accidentals and disabilities products of GCL were involved in the upgrade, of which the disabilities covered were increased.

The Table of the Disability Severity and the Life Insurance Payment Portion issued by People's Bank of China has long been the standard for the industry. However, the domain of the coverage has been increasing and the grades of job-related accidents and traffic accidents have been more detailed. The original standard is no longer suitable for the market.

The new standard refined the disability standard system and enlarged the disability coverage range, items and grades, from the previous 7 disability grades, 34 disabled items to 10 grades and 281 items. Coverage percentage (10%-100%) was also given respectively to each severity level. Instead of the limbs disability and joint function loss based standard, the new standard included psychological, neural and burn disabilities, expanded range of coverage organs damages and intellectual related disabilities. The new standard included over 100 mid disability supports, which were not included in the old standard, would enhance the disability support to the customers.

The new standard enlarged the coverage of accidental insurance, which means underwriting liability cost would increase, and the claim process would be more complex due to the identification of the disability grades. However, GCL will not be increasing the rates of most short-term products out of clients’ benefits. GCL will be introducing new accidental insurance products soon under the guidance of new standard.

GCL, as the largest joint venture life insurer in China, combines internationally advanced insurance knowledge and experience with a localized market approach; provides tailor-made diverse insurance products to meet different clients’ needs. The implementation of the new standard provides a great opportunity for GCL to continue offering clients all-round assurance protection and achieve the company promise -- ‘We care for your life’.