Alibaba, Tencent, Ping An Introduce Taobao Transaction Insurance
Tencent Tech, 12/05/13
Online insurance company ZhongAn Online Property and Casualty Insurance, a joint venture between Chinese e-commerce Alibaba Group, internet company Tencent (0700.HK), and insurance firm Ping An, has launched its first product, "Zhong Le Bao," aimed at merchants on Alibaba's C2C & B2C e-commerce site Taobao.
Taobao has previously required all merchants on the platform to pay a "consumer protection deposit," as well as add a "consumer protection" icon to their Taobao stores to ensure that consumers will receive product refunds in the event of a dispute. Under the newly implemented system, Taobao merchants who join the "Zhong Le Bao" program and select a desired amount of insurance protection are awarded the same "consumer protection" status they would by placing a deposit, but at a lower cost.
Insurance claims under "Zhong Le Bao" follow a "pay first, claim later" policy, whereby in the event of a dispute between merchant and buyer resulting in the merchant having to issue compensation to the buyer, "Zhong Le Bao" will first pay the claimed amount to the buyer on behalf of the merchant, then follow up the claim with the merchant.
Editor's Note: For more information on this topic, please see "Tencent, Alibaba, Ping An Online Insurance JV Starts Operation," MD 11/06/13 issue.
Keywords: Ping An Insurance ZhongAn Online Property and Casualty Insurance e-commerce Taobao Internet B2C Tencent JV 0700.HK Alibaba Group consumer protection online insurance
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