Is it mandatory to purchase vehicle and vessel tax and compulsory traffic insurance?

[SanIris]

Yes, it is mandatory. The vehicle and vessel tax is included in the cost when purchasing compulsory traffic insurance, which is a mandatory insurance required by the state. 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 qualification mark or insurance mark, or the driver does not carry the vehicle registration certificate or driver's license, the traffic management department of the public security organ shall detain the vehicle and notify the party to provide the corresponding license, mark, or complete the necessary procedures. 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 personal injury, death, and property losses (excluding vehicle occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limits. The premium is based on the nationally unified standard rates. However, the price of compulsory traffic insurance varies for different vehicle types, primarily influenced by the number of car seats. Compared to the more than 20 exemption clauses in commercial third-party liability insurance, compulsory traffic insurance covers a broader range, including losses caused by intentional acts of the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses caused by the accident. Moreover, regardless of whether the insured vehicle is at fault in the accident, compulsory traffic insurance will compensate within the liability limits, with no deductible or exemption rate. Vehicle and Vessel Tax: Vehicle and vessel tax refers to a tax that owners or managers of vehicles and vessels within the territory of the People's Republic of China must pay according to the "Vehicle and Vessel Tax Law of the People's Republic of China." Starting from July 1, 2007, vehicle owners are required to pay the vehicle and vessel tax when purchasing compulsory traffic insurance. Introduction to Electronic Insurance Policies: An electronic insurance policy is a digital policy issued by an insurance company using digital signature software and enterprise digital certificates that comply with the PKI system, featuring the electronic signature of the insurance company. An insurance policy, abbreviated as a policy, is the formal written proof of the insurance contract between the insurer and the insured. The policy must fully record the rights, obligations, and responsibilities of both parties to the insurance contract. The content recorded in 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 marks on paper; Saves time and is convenient, not restricted by time or location, with information universally accessible online anytime, quickly and conveniently; Allows for reissuance or resending, eliminating worries about losing it. If a paper version is needed offline, it can also be printed or mailed; Facilitates management. After digital unification, insurance companies and traffic police departments can more easily manage the insurance information of various vehicles.