Mandatory Duty Of China's Traffic Accident Vehicle Insurance Comprehensive Study

In China, as the economy continues to develop, the volume of motor vehicle increases each year, which contributes to the increase in motor vehicle accidents. The compensation of motor vehicle accident damages is gradually becoming a prominent social problem as the accidents grow every year. In order to ease social conflicts and protect the victims, a new "Law of the People's Republic of China on Road Traffic Safety" was introduced in May 1, 2004 based on the experience of developed countries. This law clearly states that: China will enforce the implementation of the compulsory third party liability insurance system, while establishing a road traffic accidents relief fund. This marks the formal implementation of mandatory duty of China's traffic accident vehicle insurance system. In the initial set up phase of the system, mandatory duty of China's traffic accident vehicle insurance was at the nature of the heated debate because of the related measures are imperfect. Such a controversy reduced gradually after the "Vehicle risk Compulsory insurance Rule" became in effect in July 1, 2006.The mandatory duty of China's traffic accident vehicle insurance system, our country's first law to implement the compulsory insurance system, is universal, the seriousness and authority of the national statutory insurance. The purpose of its implementation is to protect the victims and promote road safety. If the vehicle causing the traffic accident has bought the compulsory third party liability insurance, the insurance company shall pay the rescue expenses for personal injury and property damage within the scope of the liability limit. At present, the United States, the United Kingdom, Japan, Germany and many other countries have already established their compulsory third party liability insurance system.Practice has proved that: the mandatory duty of China's traffic accident vehicle insurance can not only effectively decentralized risk of compensation, but also conducive to protect the victims. But we can not ignore that our country's mandatory duty of China's traffic accident vehicle insurance system is still in the initial stage. It is still far from perfect based on the observation of almost three years of operation. However, at present, the field of mandatory duty of China's traffic accident vehicle insurance system hasn't been well explored yet. Therefore, it is worth to explore the domain of mandatory duty of China's traffic accident vehicle insurance system. In this study, I first introduce the compulsory third party liability insurance system. Then I point out some existing problems of current mandatory duty of China's traffic accident vehicle insurance system. Finally I make some strong recommendations of solving these problems.