The Analysis And Assessment Of The Compulsory Auto Insurance System In China

The compulsory auto insurance insures the compensating liabilities by the vehicle owner or the authorized driver arising from an accident. Up till now, many countries have established the compulsory auto insurance systems by law, such as America, Japan and the UK. The world has seen the fact that this compulsory insurance not only help the drivers out of the burden of liability but also, what is more important that, it protect the interest of the injured in the accident. As the economy developed, more and more Chinese now drive cars, and we are now suffering from the increasing traffic accidents. To solve this social problem the government has revise and issued"The traffic safety law"in 2004, which first time requested the establishment of the compulsory auto insurance system and the relief fund in china.And"the regulation of the compulsory auto insurance"has been passed by the 127th executive meeting of State Council on march 1, 2006 and applied to practice over the whole country on July 1,2007.The compulsory insurance scatters and transfers the accident risk through the special system and is regarded as the most important part of the whole social security system. It reflects the spirit of protect the weak and respect the life. To establish a public system just like the compulsory insurance system depend the supports and co-operation from many aspects. First it needs a well organized and professional team to design a practical and optimized product; secondly it needs the support and co-operation from the other related division; thirdly the success of every public policy needs the support and understanding from the people.According to the importance and complexity of the compulsory insurance system, we do not expect to come up with an optimized system at once, we will keep on studying and practicing, and will always drive for the better. So the purpose of this article is to analyze the rations of the policy provision of the compulsory auto insurance in china, based on the 1-year experience. The article mainly talked about three features of the compulsory auto insurance, which are the compulsory, the no-fault compensation and the floating rates. I have analyzed the advantages and disadvantages of these three features and implied the empirical analysis method to prove the conclusion. In the end I have supply some solutions according to the disadvantages mentioned above.The main innovation of this article is that it figures out the three features of the compulsory insurance and analyze them one by one, which help the understanding of these results and influences. In conclusion,the writer hopes that this aticle could make a little contribution to the establishment of the system and the relative research work.