Research On The Legal Regulation Of Motor Vehicle Third Party Liability Insurance

With the rapid development of China’s economy, motor vehicles become more and more popular in China, which brings much convenience to people while also results in casualties and property losses due to the inadvertence of motor vehicle drivers. In order to reduce the driving risk of motor vehicle owners or keepers and to make up the loss of traffic accident victims, the state implemented motor vehicle liability compulsory insurance and insurance companies also launched motor vehicle third party commercial liability insurance. The implementation of these two insurances in a large extent solved the worries of the insured and the victims of traffic accidents. In the process of their implementation, however, some deficiencies have also been exposed, which led to fierce discussions among both theorists and practicers. This paper, based on the reality, introduces the controversial disputes of motor vehicle third party commercial liability insurance and then analyzes the reasons of these disputes so as to propose effective measures to consolidate its legal theory and system establishment.The first part of this paper introduces the concept and features of liability insurance so as to further introduce motor vehicle third party liability compulsory insurance and motor vehicle third party commercial insurance. Since they are all concerned with third party, this paper collectively referred to as motor vehicle third party liability insurance. Then the paper analyzes the differences between these two insurances to establish theoretical foundation for the next parts, which respectively analyze the reason of the dispute occurred in motor vehicle third party liability and propose suggestions for the improvement of the system.The second part of this paper mainly intends to discuss the two focuses of dispute about the system of motor vehicle third party liability insurance in practices with real cases. The first one is the dispute on the scope of the third party. This paper elaborates the dispute with the definition of this issue by the existing laws and regulations in China and that of the third party in practices. The second one is about the limited compensation system. This paper discusses this issue with legal and jurisprudential basis.The third part presents that the controversy of the motor vehicle third party liability insurance system lies in the different standards for the definition of the third party in the practical circle. Actually, the substantial cause of the disputes caused by the limited compensation is legislatively failed to perceive the intention of the motor vehicle third party liability insurance.Based on the first three parts, the fourth part raises some relevant suggestions to China’s motor vehicle third party liability insurance system from perspectives of China’s national conditions and the intention of motor vehicle third party liability insurance with consideration of legislation and researches both at home and abroad, weighing the interests of insurers, the insured and victims.