Whether compulsory traffic insurance is automatically transferred depends on whether the original owner's insurance policy follows the "vehicle principle." If the insurance explicitly states that the compulsory traffic insurance follows the motor vehicle, then it will be transferred to the new owner during the vehicle ownership transfer process. If the compulsory traffic insurance does not follow the vehicle, the new owner must visit the insurance company to complete the transfer procedure. The owner needs to prepare the vehicle registration certificate, the new owner's driving license, copies of the new and old owners' ID cards, the invoice from the used car transaction, and the endorsement application form provided by the insurance company to complete the compulsory traffic insurance transfer. Important Notes Once purchasing a used car, promptly complete the transfer procedures for compulsory traffic insurance and other insurance policies. Otherwise, if an accident occurs, the beneficiary will still be the original owner, and the new owner will not receive compensation. Compulsory Traffic Insurance for Vehicles: The full name of compulsory traffic insurance is "Compulsory Motor Vehicle Traffic Accident Liability Insurance." It is a mandatory liability insurance where the insurer compensates for bodily injuries, deaths, and property losses of victims (excluding vehicle occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limits. Premiums are based on nationally unified standards, but prices vary depending on vehicle type, primarily influenced by the number of seats. Compared to commercial third-party 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, related arbitration and litigation costs, and some indirect losses from accidents. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance provides compensation within the liability limits, with no deductible or exemption. 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 must fully record the rights, obligations, and responsibilities of both parties. The content of the policy serves as the basis for both parties to fulfill the contract. The insurance policy is proof of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources, eliminating the need to print insurance proof labels; Saves time and is convenient, unrestricted by time or location, with information accessible online anytime, quickly and efficiently; Allows for reissuance or resending, eliminating concerns about loss. If a physical copy is needed, it can be printed or mailed; Facilitates management, as electronic standardization makes it easier for insurance companies and traffic police to manage vehicle insurance information.
