Compulsory traffic insurance does not cover water-damaged vehicles because it is designed to compensate third-party vehicles and individuals. Vehicle damage can only be claimed if you have purchased vehicle damage insurance. Compulsory traffic insurance is mandatory by the state, and it is required for normal road use. Otherwise, according to the Road Traffic Safety Law, the traffic management authorities may impound the vehicle, require the owner to provide the corresponding license, registration, or complete necessary procedures, and may issue a warning or impose a fine ranging from 20 to 200 yuan. 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 liability insurance where the insurance company compensates for bodily injuries, deaths, and property losses of victims (excluding vehicle occupants and the insured) caused by road traffic accidents within the liability limits. The premium is based on a nationally unified standard. However, the price of compulsory traffic insurance varies depending on the vehicle type, primarily influenced by the number of seats. Compared to the over 20 exemption clauses in commercial third-party insurance, compulsory traffic insurance covers a broader range, including losses caused intentionally by the victim, the insured's own property losses, related arbitration and litigation costs, and certain indirect losses due to accidents. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance provides compensation within the liability limits without deductibles or exemption rates. Introduction to Electronic Insurance Policies An electronic insurance policy is a digital policy issued by an insurance company using digital signature software and an enterprise digital certificate 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 must fully record the rights, obligations, and responsibilities of both parties. The content of the policy serves as the basis for fulfilling the contract. The policy is evidence of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources, eliminating the need to print insurance proof labels; Time-saving and convenient, unrestricted by time or location, with information accessible online anytime, quickly and easily; Allows for reissuance and resending, eliminating concerns about loss. If a physical copy is needed, it can be printed or mailed; Simplifies management, as electronic standardization makes it easier for insurance companies and traffic police to manage vehicle insurance information.
