The Analysis Of The Compulsory Motor Vehicle Insurance

From the viewpoint of economics, systematic discussion on compulsory motor vehicle insurance is still blank in our country. Legal economical analysis to this system is relatively rare. As a kind of insurance, why we should change it into the compulsory insurance from business insurance? From the viewpoint of economics, this question namely: why it adjusts to control by the government? The answer is the market failure. This is the center clue of the article. All cores with economical law analysis in the text are the market failure phenomenon and the government control's necessity. The cost- income analysis is decisive to an economic person's behavior. It is important for us to resolve many existent problems in the compulsory motor vehicle insurance market .It means encouraging mechanism has an important function.First, the article generalizes the summary of liability insurance and General view of the domestic and international compulsory motor vehicle insurance. Henceforth, the next three chapters which are also the core of the article, analyze this system's existent is rationality from the viewpoint of economics. Then, discuss the moral hazard of it and the regulations .In the last part we discuss the relationship between tort liability and compulsory motor vehicle insurance, and then compare the efficiency of tort liability principles and strict liability.The greatest characteristic of the text is analyzing the legal system with the economical method. As to some legal problems, the view of economics is useful. All efforts that the author of this text makes are to attempt to make a relatively overall analysis of the system with economical method.