Insurance for car parking lots

By Zhang Fengming  |   2008-6-5  |     NEWSPAPER EDITION

SHANGHAI is poised to launch parking lot liability insurance to solve disputes on losses incurred in parking lots.

The Shanghai Parking Services Trade Association is teaming up with several insurers to offer the policy.

The basic premium per car per year is planned to be 50 yuan (US$7.20) with a maximum claim of 5 million yuan, the association said.

The premium is relatively cheaper than other products available in the market.

The products may be offered as soon as this month with 280 public parking lots as members of the association.

The association decided upon the move after receiving complaints about disputes between parking lots and auto owners. Some disputes led to court cases.

The policy would trim operational risks for parking lots as many can't afford compensation for expensive cars.

It will also save time for both parking lots and auto owners involved in disputes.

Private residential parking lots are welcome to buy the policy but public parking lots will be the first to sign.