What Does Passenger Liability Insurance Mean?
1 Answers
Passenger liability insurance, also known as seat insurance, refers to the passenger coverage under passenger liability insurance. It means that if an insured accident occurs while a qualified driver, permitted by the policyholder, is using the insured vehicle, resulting in bodily injury or death to passengers inside the vehicle, the insurance company will compensate according to the insurance contract for the liability that the policyholder is legally obligated to bear. Generally, the insured amount for passenger liability insurance is determined through negotiation between the policyholder and the insurance company. Typically, the coverage per seat ranges from approximately 10,000 to 50,000 RMB, and the number of insured individuals cannot exceed the vehicle's fixed seating capacity. The coverage for drivers and passengers usually ranges from 10,000 to 50,000 RMB, though some companies may offer options up to 100,000 RMB. If the passengers frequently riding in the private car are family members or very familiar friends, and these individuals, including the car owner, have already purchased personal accident insurance, then purchasing passenger liability insurance may not be necessary. This is because the coverage of passenger liability insurance is limited to the insured vehicle, which is significantly narrower than that of personal accident insurance. If the passengers in the vehicle frequently change, and it is uncertain whether they have personal accident insurance, it is advisable to purchase passenger liability insurance.
