Is Compulsory Traffic Insurance and Vehicle and Vessel Tax Mandatory to Purchase?

[LunaMarie]

Both compulsory traffic insurance and vehicle and vessel tax are mandatory purchases. The vehicle and vessel tax is included as a tax fee when purchasing compulsory traffic insurance, while compulsory traffic insurance is a nationally mandated insurance. Without purchasing it, you cannot drive on the road. Otherwise, according to the "Road Traffic Safety Law," you may face a warning or a fine ranging from 20 to 200 yuan. Article 95 stipulates: If a motor vehicle driven on the road does not display an inspection compliance mark, insurance mark, or does not carry the vehicle registration certificate or driver's license, the traffic management department of the public security organ shall detain the motor vehicle and notify the party to provide the corresponding license, mark, or complete the necessary procedures. Compulsory traffic insurance, also known as compulsory liability insurance for motor vehicle traffic accidents, is clearly defined in China's "Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents" regarding its compensation scope. Insurance companies are required to compensate for personal injuries, deaths, and property losses of victims (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured motor vehicle, within the liability limits. The compulsory liability insurance for motor vehicle traffic accidents implements a unified liability limit nationwide. The liability limits are divided into death and disability compensation limits, medical expense compensation limits, property loss compensation limits, and compensation limits for the insured's non-liability in road traffic accidents. The compulsory traffic insurance liability limit refers to the maximum compensation amount that the insurance company will bear for all victims' personal injuries, deaths, and property losses in each accident during the insurance period (usually one year).