(Yicai Global) Feb. 25 -- Chinese authorities have began to crack down on the country's compromised vehicle insurance sector where car dealers and insurers have offered better ratings for a pay, as well as collected bogus fees. 

The China Banking and Insurance Regulatory Commission has issued a document which shows that this year, it has shut down 24 vehicle insurance branches of the nations top insurers, including seven of PICC Property and Casualty's offices, eight from Ping An Property and Casualty Insurance, and four from Taiping General Insurance, Securities Times reported after seeing the document. 

It is rare to see such intensive punishments spanning so many provinces in the sector, various industry participants said in the report. 

Firms in eastern Zhejiang, Shandong, Anhui, central Henan, and southwestern Sichuan, among other regions, did not adhere to the relevant regulations involving terms and rates, the bureau said in a statement on Feb. 20. Agents and insurers came up with additional fees involving consulting, and offered better conditions for insurance plans. 

Last year, China's property insurers struggled with profit margins that fell below zero while those for car insurance were 0.14 percent. Losses stood at CNY1.4 billion (USD200 million) for the sector. Auto insurance makes up 60 percent of all premiums that these companies receive.

The bureau also criticised regional authorities' low levels of efficiency in terms of detecting the fraudulent practices earlier. 

Editor: Emmi Laine