A Comparative Study Of Motor Vehicle Compulsory Liability Insurance Laws Between Mainland Of China And Taiwan Area

The compulsory mobile car indemnity liability insurance is an important institution which gives the victims of traffic accident sufficient remedies timely and properly, represses the number of traffic accident, and improves the industry of mobile car. This institution in our country develops unbalancely, mainland of China is starving for improving but it is more advanced in Taiwan. In order to be geared with international rules, we should integrate the cross-strait's institution, which will promote China's rule of law and benefit our country and people as well.The content of this paper is divided into five parts.Part One is the overview of the motor vehicle compulsory liability insurance, which briefly introduced its origination, significance and theoretical basis, based on which, summed up the characteristics of this insurance system, and forecast that the strengthening of civil liability is the trend in the future.Part Two shows the history and the current legislation of motor vehicle compulsory liability insurance in Taiwan. The law system in Taiwan is based on the"Compulsory Automobile Liability Insurance Law", and supplemented by the management measures and other supporting parallel implementation of the law and rules. Taiwanese adopted the principle of"limited no-fault"compensation to give victims the right to direct requests, and expanded the scope of the alleged victims. On the other hand, they created a special compensation fund, and established a temporary traffic accident death insurance system. Part Three presents the legislative mode and characteristics of motor vehicle liability insurance law in mainland of China. The Safety of Road Traffic Law and the Motor Vehicle Accident Compulsory Responsibility Insurance Regulations formulate the no-fault liability compensation principle; form the system of motor vehicles compulsory liability insurance and the social relief fund system. All these intend to help disadvantage victims and release the tension among the victims and the car holder in order to prevent or reduce the motor vehicle accidents, to maintain the social stability. The Regulation is"the hand of the market", by which our government could reform the car-insurance through compulsory policies to achieve the realization of social justice.Part Four is mainly about some major issues in the research between Taiwan and mainland of China by a comparative study. On the liability compensation, Taiwan"Compulsory Motor Vehicle Liability Insurance Act"expressly provided for motor vehicle liability, while our legislation does not deem"fault"as a burden of responsibility elements. On the request of provisions for the people who have rights, Taiwan takes the"good-will approved passengers"into consideration, and limits the insurers'subrogation. But The Regulation in mainland of China not only unprotects the damages of the actual car holders, but also excludes the relief of the"good-will approved passengers".On the scope of the compensation, the related laws in Taiwan explicitly pointed out that the insurance is for the personal injury, while our legislation included property losses in car-insurance liability insurance coverage. Moreover, the definition of the"insured person in a road traffic accident in the responsibility"in our laws is very vague. The amount of the restrictive provisions which the no-fault obligators should pay is also lack of corresponding legislations and theoretical foundation.On the premium rate and the supervision of the insurance industry, mainland of China and Taiwan both have taken note of the insurance premium rates, the payment of the motor vehicle drivers and the stimulation to the security people who actively avoid. What is worth to be referenced is that Taiwan set more detailed and stricter rules on the supervision of insurance.On the relief fund and compensation fund, The Regulations specially stipulates the traffic accident social relief fund which plays a similar role in the function in Taiwan. But the latter has a greater scope of compensation.On other issues, The Regulation especially defined the concept of"traffic accident rescue", and carried out a special care to the military vehicles. Those formulations all have defects compared with the related laws in Taiwan.Part Five proposes several suggestions on how to perfect the insurance system in mainland of China.On the premium rate, we should consider all the factors to determine a proper premium rate to reduce premiums and the insurer's operating costs. On the determination of the parties in the insurance, we shall, in accordance with the specific situation to broaden the scope of the insured to some extent.On the insurance system, first of all, we should insure the personal injury only, while set deductibles or co-insurance provisions on the property damages. Only by doing so, the loss of property liability could be excluded or reduced. Secondly, we should perfect the insurance system in the relevant provisions to balance the interest-conflicts between the parties. Third, the insurer's subrogation right should be clearly set out. Fourth, the insurer should be identified with the assistance or insurance obligations improve and perfect the system of the victim's relief fund, establish the victim's provisional payment system to ensure to compensate the victims timely and effectively. Finally, The Regulation should take the responsibility of cross-tube unified supervision, such as set up organizations to fully represent the interests of all parties and the professional and authoritative insurance trade associations, or reinsure the high risk factor mobility vehicles, etc.On the formulation and implementation of the law, The Regulation should be raised its legislative ranks to a higher legal status. For the reason that the administrative rules and regulations of car-insurance contrary to international practice, the law is lower than its effectiveness, thus application of social practice which will inevitably take effect conflicts. Meanwhile, we should establish and perfect the package of measures to build a complete motor vehicle accident victim security system, and handle the mutual relationship between the motor vehicle compulsory liability insurance and the social security system.In short, this paper seeks to conduct a general comparative study on cross-strait motor vehicle compulsory liability insurance law-system in order to explore the way to perfect our current related laws. We should integrate the cross-strait's institution, which will promote the Chinese rule of law and bring us great benefits.