While the proportion of automobiles in Taiwan that is covered by compulsory motor third party liability insurance has reached over 99%, the percentage of motorcycles with such cover is around 80%, according to the Taiwan Insurance Institute.
Data from the Institute show that since 2010, the coverage of automobile compulsory liability insurance has been more than 99%. However, the coverage rate for motorcycles hit around 80% only last year.
Meanwhile, the loss ratio for compulsory motorcycle insurance has exceeded 100% in recent years, reaching as much as 139%, reported Commercial Times.
Insurance industry players believe that it is difficult to raise the coverage rate for motor cycles. One reason is that since 1 January 2013, motorcyclists have not been required to renew their licences. Previous to that, they had to show that they had bought mandatory third party liability insurance when they applied for licence renewals.
Meanwhile, premium rates for mandatory motor insurance for vehicles are not expected to increase. This is because reserves set aside in the motor business have not been depleted. Following a review, the nonlife sector decided to maintain auto premium rates at the current level.