Application Of Laws For Compensation Of Compulsory Liability Insurance For Traffic Accident Of Motor-driven Vehicle Under The Circumstance Of Liability Exemption

Liability exemption system refers to a stipulation that in case of circumstances stipulated by laws and regulations or agreed by insurance contract,insurer should be exempted from compensation or pay compensation on a conditional basis for loss of victim within the scope of compensation of compulsory liability insurance for traffic accident of motor-driven vehicle under such circumstances.The commercial and aleatory nature of compulsory liability insurance for traffic accident of motor-driven vehicle and requirements of preventing moral hazard determined the emergence of liability exemption system for compulsory liability insurance for traffic accident of motor-driven vehicle.Due to the fact that stipulations on such liability exemption system are scattered in different laws and regulations and aren't sufficiently explicit and specific,there is no unified understanding on circumstances of liability exemption and scope of compensation in China and the legal chaos of “different judgments on the same case” could finally emerge.Interpretation of Several Issues Concerning Applicable Laws for Judgment of Cases Involving Compensation for Damages Caused by Road Traffic Accidents Issued by the Supreme People's Court of the People's Republic of China coming into effect on December 21,2012 included new stipulations on the liability exemption system for compulsory liability insurance for traffic accident of motor-driven vehicle and solved the legal problem of “different judgments on the same case” to a certain degree,but there are still some problems in certain aspects of the liability exemption system: Stipulations on such liability exemption system in different laws and regulations aren't unified,which results in different understandings on the liability exemption system by different agencies and concerned parties in traffic accidents and thus causes the chaotic situation in the process of applying the liability exemption system.The purpose of establishing the liability exemption system in China is to promote road traffic safety,but relevant restrictions on compensation paid by insurance company in the process of exercising the system cause direct damage to the ability of victim in a traffic accident to secure compensation,which goes against thelegislative intent of compulsory liability insurance for traffic accident of motor-driven vehicle,namely protection of concerned parties,and results in conflict in the legislative intent.Meanwhile,the situation of providing different degrees of protection to victims caused by such liability exemption system also goes against the basic principle of laws,namely the principle of fairness.Under the circumstances of liability exemption,when an insurance company assumes the liability to pay compensation which shouldn't be assumed by it,the insurance company is also entitled by law to exercise right of recovery for compensation from the infringing party after paying the abovementioned compensation.However,due to lack of laws and regulations on such right to claim compensation from the infringing party and consideration of litigation cost by insurance companies,they are often unwilling to exercise this right,which causes actual loss of insurance companies on one hand and helps infringing parties escape from appropriate punishment on the other hand and thus is adverse to realization of social fairness and justice.In this paper,after research and analysis on compulsory liability insurances for traffic accident of motor-driven vehicle and liability exemption systems for such insurances implemented in relevant countries and regions,a conclusion is reached through analysis on specific cases: In case of any conflict among relevant stipulations on liability exemption system for compulsory liability insurances for traffic accident of motor-driven vehicle,Interpretation of Several Issues Concerning Applicable Laws for Judgment of Cases Involving Compensation for Damages Caused by Road Traffic Accidents Issued by the Supreme People's Court of the People's Republic of China should prevail because of effect superiority and other superiorities of judicial interpretations in judicial practice,in addition to which it is suggested that stipulations on liability exemption system in Regulations on Compulsory Liability Insurance for Traffic Accident of Motor-Driven Vehicle should be amended for the purposes of realizing uniformity of laws and regulations on such liability exemption system and the status of interconnection and uniformity and providing a legal basis for unifying criteria of judgment by courts hearing traffic accidents under the circumstance of liability exemption.In case of any conflict in legislative intent of compulsory liability insurance for traffic accident of motor-driven vehicle resultingfrom liability exemption system,we should insist that protection of victims serves as the primary legislative intent.Under the circumstance of liability exemption,insurance company should assume the liability for paying compensation to victim for personal injury first-in-line,regardless of whether the actual infringing party has paid any compensation in advance.Through reducing restrictions on compensation payment by insurance companies under the circumstance of liability exemption,conflict in legislative intent may be avoided and equal protection of victims may also be realized.Exercise of right of recovery for compensation by insurance companies can be protected through improvement of relevant legislation and means to change way of recovery for compensation.With continuous improvement in relevant factors influencing compulsory liability insurance for traffic accident of motor-driven vehicle,stipulations on liability exemption system for compulsory liability insurance for traffic accident of motor-driven vehicle should be gradually removed.