Is the Compulsory Traffic Insurance Label Still Required in Jiangsu?

[JuliannaRose]

In Jiangsu Province, where electronic insurance policies have not been implemented, it is still necessary to display the compulsory traffic insurance label on vehicles. Since the 2020 auto insurance reform, the electronic policy for compulsory traffic insurance has been promoted nationwide, but its implementation takes time. Currently, only some regions have truly adopted it. In areas where electronic policies are in effect, the compulsory traffic insurance label no longer needs to be displayed. When encountering traffic police, only the electronic policy needs to be presented. However, in regions where the electronic policy has not yet been implemented, the compulsory traffic insurance label must still be displayed; otherwise, penalties may apply. According to Article 95 of the Road Traffic Safety Law: If a motor vehicle driven on the road does not display the inspection qualification label or insurance label, or if the driver fails to carry the vehicle license or driver's license, the traffic management department of the public security authority shall detain the vehicle, notify the party to provide the corresponding license, label, or complete the necessary procedures, and may impose penalties in accordance with Article 90 (a warning or a fine ranging from 20 to 200 yuan). As of 2022, the following provinces and cities have abolished the paper label for compulsory traffic insurance: Beijing, Shanghai, Shandong, Shanxi, Guangdong, Henan, Hubei, Hunan, Jiangxi, Guizhou, Guangxi, Yunnan, Shaanxi, Hebei, Sichuan, and Gansu. 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 injuries, deaths, 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 depending on the vehicle type, primarily influenced by the number of seats. Compared to the over 20 exemption clauses in commercial third-party liability insurance, compulsory traffic insurance covers a much broader range, including losses caused intentionally by the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses due to accidents. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance will provide compensation within the liability limits, with no deductible or exemption. Introduction to Electronic Policies: An electronic policy refers to a digital insurance policy issued by an insurance company using digital signature software compliant with the PKI system and an enterprise digital certificate, bearing the electronic signature of the insurance company. An insurance policy, abbreviated as a policy, is the official 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. The content of the policy serves as the basis for both parties to fulfill the contract. The policy is proof of the establishment of the insurance contract. Advantages of Electronic Policies: Saves paper resources, eliminating the need to print insurance proof labels; Time-saving and convenient, unrestricted by time or location, with information readily available online anytime, fast and easy; Allows for reissuance or resending, eliminating concerns about loss. If a paper version is needed offline, it can be printed or mailed; Facilitates management, as electronic standardization makes it easier for insurance companies and traffic police departments to manage vehicle insurance information.