Newsletter
Stipulation of Rate Structure Specifications for Personal Accidents Insurance and Travel Accidents Insurance
1. The surcharge rate of personal accident insurance (including travel accident insurance) sold since July 1, 2005 may not be subject to the Ministry of Finance Letter Tai-Tsai-Bao No. 842037573 regarding "Personal Insurance Rate Structure" issued on December 30, 1995.
2. The premium rates of travel accident insurance shall not exceed the rates set out in the "Standard Rates Table for Insurance Claim of Accidental Death and Disability for Individuals Insured by Travel Accident Insurance" and the "Standard Rates Table for Insurance Claim of Accidental Medical Treatment for Individuals Insured by Travel Accident Insurance". Each insurance company may adjust the rates according to its empirical loss rate data, but the minimum expected loss rate of the accidental death and disability insurance shall be 90% of the loss rate set out in the standard rates table as mentioned above, and the minimum expected loss rate of the accidental medical treatment insurance shall be 70% of the loss rate set out in the standard rates table as mentioned above. The special reserve ratio for major accidents is one per cent (1%).
3. To improve the soundness of financial structure of the insurance industry, insurance enterprises shall, at the end of each business year, reserve in its special surplus reserve account under the owner’s equity the balance of 10% of the total premium income, after tax deduction at the nominal tax rate of 20%, according to the "Standard Rates Table for Insurance Claim of Accidental Death and Disability for Individuals Insured by Travel Accident Insurance" from all personal travel insurance for accidental death and disability policies sold in that year.
4. This order takes effect on January 1, 2021. The letter Jin-Guan-Bao-Tsai-Zhi No. 10704504811 issued by Financial Supervisory Commission on November 14, 2018 is annulled today.