Compulsory traffic insurance does not cover water damage to vehicles because it is designed to compensate third-party vehicles and individuals. Vehicle damage can only be claimed if the owner has purchased vehicle damage insurance. Compulsory traffic insurance is mandatory by law and is required for vehicles to legally operate on the road. According to Article 95 of the "Road Traffic Safety Law of the People's Republic of China," motor vehicles driven on the road without license plates, inspection certificates, insurance labels, or without carrying the vehicle registration certificate or driver's license will be detained by traffic management authorities. The authorities will notify the owner to provide the necessary documents or complete the required procedures and may impose penalties as stipulated in Article 90 of the same law. The vehicle will be promptly returned once the owner provides the necessary documents or completes the procedures. Intentionally obscuring, damaging, or improperly installing license plates will result in penalties under Article 90 of this law. Compulsory Traffic Insurance for Vehicles: The full name of compulsory traffic insurance is "Compulsory Liability Insurance for Motor Vehicle Traffic Accidents." It is a mandatory insurance where the insurer compensates victims (excluding vehicle occupants and the insured) for personal injuries, deaths, or property losses caused by road accidents involving the insured vehicle, within the liability limits. Premiums are based on nationally unified standards. However, the price of compulsory traffic insurance varies depending on the vehicle type, primarily influenced by the number of seats. Compared to commercial third-party liability insurance, which has over 20 exemption clauses, compulsory traffic insurance covers a broader range, including losses caused intentionally by the victim, the insured's own property losses, arbitration and litigation costs, and certain indirect losses from accidents. Additionally, compulsory traffic insurance compensates within liability limits regardless of fault, with no deductible or exemption clauses. Introduction to Electronic Insurance Policies: An electronic insurance policy is a digital policy issued by an insurer using digital signature software and enterprise digital certificates compliant with the PKI system, bearing the insurer's electronic signature. An insurance policy, abbreviated as a policy, is the official written proof of the insurance contract between the insurer and the insured. It fully records the rights, obligations, and responsibilities of both parties and serves as the basis for fulfilling the contract. The policy is evidence of the contract's establishment. Advantages of Electronic Insurance Policies: Saves paper resources by eliminating the need for printed insurance certificates; Convenient and time-saving, accessible anytime and anywhere online; Allows for reissuance and resending, eliminating concerns about loss. Paper copies can also be printed or mailed if needed; Simplifies management by standardizing electronic records, making it easier for insurers and traffic authorities to manage vehicle insurance information.
