The China Insurance Regulatory Commission (CIRC) has backed a new insurance policy on compensation for victims of traffic accidents caused by drunken drivers.
Under the terms of the policy, which was introduced by a Chinese insurance company earlier this year, if a policy holder has a driving accident while drunk, and causes injury or property loss to a third party, the insurance company will pay compensation of as much as 250,000 yuan ($30,000) to the third party.
Although the new policy has been approved by the CIRC, it has aroused controversy among Chinese insurance companies and the general public.
Beijing police said the new policy might lead to an increase in drinking and driving because people would feel a reduced responsibility to remain sober when driving.
However, a CIRC official said the new policy aimed to protect the interests of the third party, and was not at odds with a driver's legal responsibility or the punishment he might receive for drinking and driving.
The CIRC considered it an ordinary liability insurance business, the official said.
