Roadside rescue excessive charges result from lack of competition

The police officers are working on the site after car crashes in Hangzhou city.[Photo/IC]

The driver of a truck that rolled over on an expressway in Central China's Hunan province was charged about 36,000 yuan ($5,600) by a roadside rescue company without being informed in advance how much it would cost to lift the truck. Xinhua News Agency commented on Saturday:

The longevity of overcharging by roadside rescue companies is the result of the lack of competition. Some roadside service providers are in a close relationship with local transportation officials and they have basically monopolized the market, which allows them in effect to extort money from drivers in need of their help.

In many cases, it is often the local authorities that assign the companies to deal with roadside accidents.

However, the official regulations covering roadside rescue services make clear that customers should be told how much the charge will be before any service is provided.

It is obvious that both the Hunan roadside rescuers and the local transportation authorities have failed to abide by these rules.

To put an end to such overcharging requires both the local governments and the market to play their role. On the one hand, competition is needed to make sure all consumers are charged a fair price.

On the other, the relevant authorities should step up their supervision over the industry and keep unqualified companies at bay.