Vehicle traffic accident tort liability compulsory insurance system

Author: Ding Fengchu
Publisher:
Publish Date: 2007-01-01
Features: With the increasing popularity of motor vehicles, road traffic accidents have become more frequent. To strengthen the protection of victims of traffic accidents, the "Road Traffic Safety Law of the People's Republic of China" stipulates the implementation of no-fault tort liability for motor vehicle traffic accidents (hereinafter referred to as "no-fault liability for motor vehicle accidents"). At the same time, the law also mandates the establishment of compulsory traffic accident liability insurance (hereinafter referred to as "compulsory traffic accident liability insurance") with such no-fault tort liability as the insurance coverage, along with the establishment of a social assistance fund for traffic accidents. The author unifies these as the "compulsory traffic accident liability insurance system." The establishment of the "compulsory traffic accident liability insurance system" is beneficial for victims of motor vehicle accidents to obtain timely compensation and medical treatment through insurance; it helps alleviate the financial burden of motor vehicle accident persons and resolve accident liability disputes; and through the implementation of a floating premium mechanism that "rewards the excellent and punishes the poor," it also promotes motor vehicle parties to enhance their safety awareness.