Research On Mandatory Traffic Liability Insurance

The first car appeared in1885when Auto Industry Revolution started. Due to thedangerous characteristics, cars have brought endless disasters in spite of greatconvenience and quick service to us. With the increasing number of vehicles, theseproblems have become main social problems which are getting worse and worse.Legislators in different countries are actively looking for a method to solve theproblems. Britain pioneered to introduce car insurance in1906, and then the UnitedStates announced their car insurance, which worth notice is that the United States hasbecome the first country to stipulate car insurance as mandatory insurance. After that,Germany, Sweden, Canada and Japan also started to apply car insurance system. Sofar, more than160countries around the world have established automobile insurancesystem. The said system can help reduce accident losses and protect the interests ofvictims.In2003, Road Traffic Safety Law of the People’s Republic of China put intoforce. Motor Vehicle Traffic Accident Liability Compulsory Insurance Regulations,together with the Compulsory Motor Vehicle Traffic Accident Liability InsuranceClauses, has formed a complete set of rules for mandatory traffic accident liabilityinsurance. As part of social security, the said system has played an irreplaceable rolein remitting social contradictions and providing relief for victims.Along with the number of traffic accidents increasing and the traffic accidentreasons diversified, new problems such as hush conditions of the insurance companyassume compensations, the sole factor in determining mandatory insurance rate, strictdefinition in the scope of victims, etc, have arisen therein, which have increasedvictims’ difficulty to acquire compensations. That People’s courts at various levelsoften make different decisions for same situations also lead people to question justicejudicial authority. This paper has brought up two issues by the analysis of two real cases afterintroducing the basic details and verdict thereof. The first issue is whether drivingwithout a license should become a legal factor for the insurance company to refuse toassume compensation liability. The second issue is whether the insurance companyshould strictly abide by the provisions of the limits of liability when assume trafficaccident liability. The author has made the final conclusion through the analysis oflegal theory, legislation, laws, etc. for the above two controversial issues.