Drivers in China face new rules on compulsory insurance premiums for their cars that took effect yesterday.

Premiums will be linked to drivers' accident records, so those who caused a fatal traffic accident in the previous year must pay up to 30 percent more for their coverage.

And drivers who are involved in more than two non-fatal accidents must pay 10 percent more, said China Insurance Regulatory Commission, the country's top insurance regulator.

Good drivers, however, will enjoy discounts of between 10 and 30 percent, according to the number of years of safe driving.

The nationwide premium for family car owners is 1,050 yuan (US$137) annually. Shanghai drivers with good records pay a minimum of 735 yuan while others pay up to 1,785 yuan.

After public consultation, the CIRC dropped a draft plan to also link drivers' premiums with their records of traffic infringements, such as running red lights or speeding.

Draft rules issued on June 15 suggested the CIRC might link premiums to driving records, but it received 684 e-mails and 19 fax messages complaining about the plans.

Critics said linking premiums to traffic infringements would make it much harder to get a discount.

For instance, one draft rule said drivers could have lower insurance rates only if they had not broken any traffic laws in the previous year.

Many drivers complained that meeting the discount requirement was almost "mission impossible" as traffic police are sometimes inclined to hide and trap drivers.

New drivers can also unwittingly break traffic laws if they drive in unfamiliar streets, drivers complained.

"After hearing views from the various sides, the watchdog decided to make rules in line with most drivers' opinion," said Yuan Li, spokesperson for CIRC.