What to Do After Spring Festival: Dealing with Emergencies and Filing Claims

Returning home for Spring Festival is a major event in the lives of Chinese people. However, as travelers head back home, families reunite, friends visit one another, and festive outings take place, various risks also emerge. Every year during the Spring Festival period, insurance companies are at their busiest, dealing with injuries from fireworks, car accidents, elderly or child falls... Accidents and emergencies are constant, and post-holiday insurance claims issues follow. In this issue, let’s talk about post-holiday insurance claims.

 

 

Spike in Insurance Claims During the Holiday

“During this year’s Spring Festival, we received non-stop calls reporting losses. The total number of auto insurance claims was 3 to 5 times the usual amount!” On the ninth day of the Lunar New Year, Gu Zhiyong, general manager of the claims department at an auto insurance branch in Henan who had been busy handling post-holiday auto insurance claims, told us that everyone in the claims department had been extremely busy over the holiday.

Due to the unprecedented surge in both pedestrian and vehicle traffic, the annual Spring Festival has been dubbed by netizens as “the largest periodic human migration in history.” The massive movement of people returning home during the holiday speaks volumes. On these crowded journeys home, it’s inevitable that vehicles will experience scratches, bumps, and collisions.

“Every year during the Spring Festival, it’s the peak season for auto insurance cases. This year, with more travelers on the road, the accident rate also increased significantly,” Gu Zhiyong said. The peak for vehicle-related incidents during the Spring Festival mainly occurs around the days of returning home and heading back to work.

For the Year of the Dragon Spring Festival, the peak for auto insurance claims started as early as the 23rd of the 12th lunar month, during the Little New Year. It reached a first high point on the 28th and 29th. During the festival, as visits to relatives and friends ramped up, the number of claims began to surge from the second day of the first lunar month, peaking again from the fourth to the seventh day due to the return travel wave.

“On the fifth day of the first lunar month alone, we received 20 to 30 claims reports—it was exhausting!” Xiao Zhao, an auto insurance surveyor at a property insurance company in Zhengzhou, said that the company receives over ten claims cases daily during the Spring Festival. Multiple property insurance companies noted that the number of claims during the Spring Festival peak is 3 to 5 times the usual volume.

In addition to a spike in auto insurance claims, other types of accident and medical insurance claims also see a concentrated rise during the holiday.

“During the Spring Festival, we’ve received multiple cases of finger injuries caused by fireworks,” said Zhao Jianping, an insurance expert from the operations department of a life insurance company in Henan. Meanwhile, the cold weather and increased outdoor activity during the holidays have also led to a higher incidence of cardiovascular and cerebrovascular diseases, causing a corresponding increase in life insurance and inpatient medical insurance claims.

What were the main types of incidents during the Year of the Dragon Spring Festival? What should the insured do to better protect their rights after an incident? For different scenarios, we’ve invited insurance experts to offer advice.

“When I was driving back home for the Spring Festival this year, there was snow on a section of the highway and my car skidded into the guardrail. Thankfully, it wasn’t serious and no one was hurt.” When recalling her harrowing journey back to Nanyang from Xi’an for the Spring Festival, Ms. Yuan said she felt a bit shaken. She said that because the incident happened out of town, she was stunned afterward. After calming down a bit, she tremblingly called the insurance company’s claims hotline.

“After asking about the situation at the scene, the claims officer reassured me that it wasn’t a big issue and that I could just take photos of the site with my phone. That calmed me down and I gradually felt at ease,” Ms. Yuan said. The staff told her that as long as she preserved the scene photos and kept the highway toll receipts, she could directly apply for a claim after returning to Xi’an after the holiday.

It is reported that the Spring Festival is also a time when the number of out-of-town auto insurance claims noticeably rises. According to claims personnel, out-of-town incidents account for nearly half of all auto insurance claims during the Spring Festival.

Insurance claims analysts explained that the rise in out-of-town incidents is related to the significant increase in vehicle ownership in recent years, as well as more people choosing to drive home or go on road trips during the Spring Festival. Furthermore, many drivers are unfamiliar with the roads and terrain back in their hometowns, which is another major reason for the increase in incidents.

Compared to normal times, out-of-town Spring Festival incidents also show distinct holiday patterns: there is a peak from the 27th to the 29th of the 12th lunar month, and another from the 3rd to the 8th of the first lunar month, primarily around the times of returning home and going back to work.

“The most crucial thing about out-of-town incidents is to report them immediately and preserve all relevant evidence,” said Gu Zhiyong, general manager of the claims department at an auto insurance branch in Henan. Currently, insurance companies are simplifying the claims process for out-of-town incidents to ensure prompt compensation for vehicle owners. Drivers in a hurry should report incidents immediately upon occurrence to avoid future disputes.

He reminded that failing to report an out-of-town incident promptly may result in the inability to determine liability. If you have to return to the incident location later to handle it, it can be very difficult for both the vehicle owner and the insurance company. By reporting it promptly, the insurance company can help collect all necessary claim documents, including liability determination statements. If the vehicle owner misses anything, dealing with supplementary documentation afterward can be troublesome, especially if done out of town.

Gu Zhiyong said that the larger insurance companies, which hold a significant share of the auto insurance market, have generally introduced nationwide claims services. After an out-of-town incident, customers can file claims directly at the accident site and receive full claims services at nearby branches. Alternatively, they can return to their original place of insurance to apply for claims while the accident site assists with on-site investigation. Of course, the ability to receive timely claims services also depends on factors such as the number of domestic service points and the information system infrastructure of the underwriting insurance company.

To make things easier for customers, many companies have now introduced self-service survey services. Especially for out-of-town incidents where it’s hard for surveyors to arrive quickly and police may not be readily available, for single-liability incidents like hitting a tree, wall, or guardrail, policyholders can take photos on-site using mobile phones or cameras as evidence for later claims. When applying for claims, just provide the relevant photos along with the highway receipts.

In addition, experts remind that if a vehicle collision occurs out of town, it should also be taken to an assessment site for inspection promptly. While minor scrapes aren’t a big problem, some collisions may cause internal damage to the vehicle that isn’t visible without disassembly. This could lead to actual repair costs exceeding the estimated amount. In such cases, the vehicle owner should promptly stop repairs and notify the insurance company to conduct an investigation. Continuing repairs without notifying the insurer means the insurer will not cover repair costs exceeding the estimated amount.

Speaking of this Year of the Dragon Spring Festival, Mr. Chen, who is from Zhoukou, felt a bit frustrated. It turned out that on the first day of the Lunar New Year, his car parked in the village caught fire. Several children who had been setting off fireworks nearby were so scared they didn’t dare admit it was their firework that caused the blaze.

Mr. Chen immediately reported the incident to the insurance company. However, since it was the first day of the Lunar New Year, the surveyor couldn’t reach the scene. He promptly took photos and, following the insurance company’s instructions, covered the damaged vehicle with a large plastic sheet to protect the scene until the surveyor could inspect it after the holiday.

“We receive several cases every year of cars damaged by firecrackers,” said claims officer Xiao Zhao. Setting off firecrackers during the Spring Festival to add to the festive atmosphere is a long-standing tradition. Especially during the holiday period, it’s the peak time for children to play with firecrackers. But amid the celebrations, many car owners find themselves quite helpless, as vehicles are often parked in residential areas, making it inevitable that beloved cars get damaged by fireworks. Of course, extreme cases like Mr. Chen’s are relatively rare.

“We’d also like to remind car owners to park their vehicles a bit farther from residential areas during the Spring Festival. It’s also a good idea to cover your car with a protective cover if possible. It might be a bit more troublesome, but small precautions can help you avoid major risks,” said Gu Zhiyong. The situation with Mr. Chen’s car is considered one of the more severe cases of firecracker damage, but the final compensation decision will depend on the surveyor’s assessment after inspecting the site. Generally speaking, however, the chances of the insurance company providing compensation are quite high. If spontaneous combustion is confirmed, compensation may also be available through the spontaneous combustion insurance policy.

However, Gu Zhiyong also reminds car owners that if a vehicle is damaged by firecrackers, in most cases, as long as the owner has comprehensive car insurance, the insurance company will provide compensation. It’s important to note, though, that many insurance contracts include exemption clauses stipulating a 30% deductible. For example, if the car owner cannot identify who set off the firecrackers that caused the damage, the insurance company will apply the deductible and only compensate 70% of the claim amount. If the car windows are damaged and the owner has separately purchased glass breakage insurance, the insurance company may provide full compensation within the terms of the policy.