Drivers who wreck their car after a few too many cold ones at the local pub can now get coverage for the costs, thanks to a new controversial drunk-driving policy offered by an insurer.

Holders of the liability policy, launched by the Tian'an Insurance Co Ltd of China, can receive up to 175,000 yuan (US$21,085) in compensation for losses suffered in accidents they cause while driving impaired.

"Previously, drivers had to pay claims to victims by using their own money if an accident happened due to drunken driving," the Shanghai-based insurer said in a statement. "If the violator cannot pay the claims in a timely manner, the victims will suffer."

While Tian'an states "the introduction of the product definitely has no intentions to motivate drunken driving," the company has drawn plenty of criticism.

"Drunken driving is an illegal practice," said Xu Yuzhou, a lawyer at Shanghai Junyue law firm.

"If such violations can be insured, does it mean that similar personal assaults can also be insured?" Xu asked.

"To some extent, it carries risks to the public and encourages drunken driving," Xu said. Shanghai traffic police say they are aware of the controversial product and think it may motivate drunken driving.

"We are discussing methods to deal with the product," one traffic official said, without elaborating.

Tian'an's 20 mainland branches have sold more than 400 of the policy since it was introduced earlier this year, said company official Qin Xiaohua.

"Not a single claim has been paid out so far," he said, adding that the policy doesn't cover drivers who deliberately cause accidents due to driving after drinking.

There were 87 drinking-related traffic accidents in Shanghai during the first two months of this year, killing 18 people and injuring 35 more.

Economic losses from the accidents topped 780,000 yuan (US$94,353.3), according to Yang Ye of the Shanghai Public Security Bureau.

(eastday.com August 18, 2003)