Research About Improvement Of Legislation Of Compulsory Motor Vehicle Insurance Regulations

Along with the social making progress, the motor vehicle become an integral partin human life. The popularity of the motor vehicle plays a strong role in promoting thesocial and economic life. According to information released by the Ministry of PublicSecurity, by the end of2012, motor vehicle ownership in China has exceeded240million, motor vehicle drivers in China has exceeded260million. The rapid growth ofthe number of motor vehicle ownership and drivers lead to a substantial increase inthe number of cases caused by traffic accidents. In2010, all public securitydepartments in China have received3,906,000cases of road traffic accidents, and itexceeds4,224,000in2011; in2010, all courts of first instance in China accept612,596cases of road traffic accidents, and it exceeds744,570in2011. Comparedwith the previous year, they increase respectively31.83%and21.54%. It can be seenthat the popularity of the motor vehicle cause damage to the victims. Under thiscircumstance, it is important and necessary to protect victims in road traffic accidentsand transfer traffic accident losses.In October28,2003, China passed "the Road Traffic Safety Law ", and it isrevised in2008. It is the first legislation that motor vehicles must be insured the thirdparty liability compulsory insurance. In2006, on the basis of "the Insurance Law" and"the Road Traffic Safety Law ", the State Council has promulgated and implemented"compulsory motor vehicle insurance regulations". This means compulsory motorvehicle insurance in China is formally established. Then it is revised in2012,insurance companies handle traffic compulsory insurance is no longer limited to theChinese-funded companies, insurance companies and operations of traffic compulsoryinsurance are facing tremendous challenges. However, traffic compulsory insurancesystem in China started late, legislation is still at an early stage, that leads to manyproblems and contradictions during implementation: firstly, the relevant provision of the victim is unreasonable, the scope of the victim is too small, it leads to some othervictims cannot be protected and to be compensated according to the law. Moreover,the relevant provision of the victim’s direct claim is not clear, this increases thedifficulty of the victim’s claim. Secondly, compensation norms are unreasonable. Thescope of compensation include both personal injury and property losses, it increasesthe insurance companies’ debts burden. Article22of "compulsory motor vehicleinsurance regulations" exists exploits, there is a confusion in judicial application. Breakdown of the limit of liability is not unreasonable, floating rate mechanismshould be further improved. Finally, Social Assistance Fund is lack of operability. Theassistance conditions are not strict enough, there is no limit that it should pay for,limited sources of funds and too narrow scope. It is very difficult to establish apractical and effective Social Assistance Fund.Relatively speaking, in many developed countries compulsory traffic accidentliability insurance develop earlier, and have a perfect legislation. They adopt a seriesof effective means to disperse damages risk in order to solve road traffic accidentdamages. It is an important reference to our compulsory motor vehicle insurancelegislation. Britain is the earlier country in the world which offer auto insurancebusiness, and it is also the earlier country to carry out the compulsory motor vehicleinsurance. As early as1930, it promulgated a "direct third party claims law", clearlydefined the third party can claim directly against the insurer. The United States is afederal state, in order to improve uninsured vehicle problems, not only does theintroduction of low-cost insurance policies expand insurance rates, but also uninsuredvehicles formulates severe punitive measures. Japan was the first Asian countryoffering motor insurance business, and is also the first Asian countries theimplementation of the compulsory motor vehicle liability insurance system."Motorvehicle damages security law" said, the scope of compensation only include personalinjury, and government protect the victims to obtain compensation costs. Taiwanregion legislate motor vehicle traffic compulsory insurance system since1954. Theinsurance applies to limit of liability without fault, the Ratemaking take from " thepeople" and "car" factors. Through the comparative study of the legal system of Britain, American, Japanand Taiwan, China should learn from the advanced legislative experience, it isnecessary to speed up the improvement in "compulsory motor vehicle insuranceregulations". first of all, the regulations should broaden the victim’s scope, andexpressly confer the victim’s direct claim. Secondly, the scope of damage shouldremove the loss of property, personal injury applies to the principle of liability withoutfault in the strict sense, and it cancels the limit of the breakdown of the limits ofliability. Finally, by refactoring the conditions of Social Assistance Fund andexpanding the sources of funds and expanding the scope of relief, the SocialAssistance Fund becomes more perfect. It can do compulsory motor vehicle insurancereserve additional work in order to provide more rapid and comprehensive relief forthe victims, and maintain social harmony and stability.