Regulations on the Compulsory Insurance for Liability for Traffic Accidents of Motor Vehicles (Revised in 2012)
Regulations on the Compulsory Insurance for Liability for Traffic Accidents of Motor Vehicles (Revised in 2012)
Regulations on the Compulsory Insurance for Liability for Traffic Accidents of Motor Vehicles (Revised in 2012)
Order of the State Council of the People's Republic of China No. 618
March 30, 2012
(Promulgated according to the Order of the State Council of the People's Republic of China No 462 on March 21, 2006; revised in accordance with the Decision of the State Council on Revising the Regulations on the Compulsory Insurance for Liability for Traffic Accidents of Motor Vehicles on March 30, 2012)
Chapter I General Provisions
Article 1 With a view to ensuring that the victims of road traffic accidents of motor vehicles may be compensated according to law and promoting road traffic safety, the Regulations is formulated in accordance with the Law of the People's Republic of China on Road Traffic Safety and the Insurance Law of the People's Republic of China.
Article 2 The owners or managers of the motor vehicles driving on the roads within the People's Republic of China shall purchase the compulsory insurance for liability for traffic accidents of motor vehicles in accordance with the provisions of the Law of the People's Republic of China on Road Traffic Safety.
The Regulations shall be applicable to the purchase of and compensation for the compulsory insurance for liability for traffic accidents of motor vehicles, and the supervision and administration thereof.
Article 3 The compulsory insurance for liability for traffic accidents of motor vehicles as mentioned in the Regulations refers to the compulsory liability insurance of an insurance company which compensates the victims other than the personnel in the motor vehicles and the insured for their personal injuries and death as well as property losses arising from the road traffic accidents caused by the insured motor vehicles within the scope of limit of liability for the compulsory insurance for liability for traffic accidents of motor vehicles.
Article 4 The insurance regulatory institution under the State Council (hereinafter referred to as the CIRC) shall conduct supervision and administration of insurance companies' business of the compulsory insurance for liability for traffic accidents of motor vehicles according to law.
The traffic control departments of the public security organs and the competent departments of agriculture (farm machinery) (hereinafter uniformly referred to as the competent departments of motor vehicles) shall conduct supervision and inspection of motor vehicles on their purchase of the compulsory insurance for liability for traffic accidents of motor vehicles according to law. The competent department of motor vehicles will not register those motor vehicles not involved in the compulsory insurance for liability for traffic accidents of motor vehicles, and the motor vehicle safety technical inspection organs shall not conduct inspection of them.
The traffic control departments of the public security organs and the traffic police shall, when investigating and handling acts against laws on road traffic safety and road traffic accidents, check the marks of the compulsory insurance for liability for traffic accidents of motor vehicles according to law.
Chapter II Insurance Purchase
Article 5 Insurance companies may, upon the approval of the CIRC, engage in the business of the compulsory insurance for liability for traffic accidents of motor vehicles.
In order to ensure the implementation of the system of the compulsory insurance for liability for traffic accidents of motor vehicles, the CIRC shall be entitled to require insurance companies to engage in the business of the compulsory insurance for liability for traffic accidents of motor vehicles.
No unit or individual may engage in the compulsory insurance for liability for traffic accidents of motor vehicles without the approval of CIRC.
Article 6 The compulsory insurance for liability for traffic accidents of motor vehicles shall apply the uniform insurance clauses and basic premium rates. The CIRC shall examine and approve the premium rates under the principle of making no profit or loss in general for the business of the compulsory insurance for liability for traffic accidents of motor vehicles.
When the CIRC examines and approves the premium rates, it may retain the relevant professional institution to make assessment, and may hold hearings to solicit the public opinions.
Article 7 An insurance company shall separate its business of the compulsory insurance for liability for traffic accidents of motor vehicles from other insurance businesses for independent accounting.
The CIRC shall verify the business of the compulsory insurance for liability for traffic accidents of motor vehicles of insurance companies and announce the results to the society on an annual basis. The CIRC may require or allow insurance companies to adjust the premium rates accordingly on the basis of their overall profits or losses from the business of the compulsory insurance for liability for traffic accidents of motor vehicles.
Where there is any major adjustment on the premium rates, the CIRC shall hold a hearing.
Article 8 Where an insured motor vehicle has no act against laws on road traffic safety or has no road traffic accidents, the insurance company shall reduce its premium rate in the next year.
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