What are the legal provisions for third-party liability insurance?
1 Answers
Third-party liability insurance refers to the situation where an accident occurs while a qualified driver approved by the insured is using the insured vehicle, resulting in injury, death, or property damage to a third party. In such cases, the insurance company will provide compensation according to the relevant terms of the contract, thereby alleviating the financial burden on the insured. Below are the insurance provisions and situations where the insurer is not liable for compensation: Insurance Provisions: Article 17 of China's Road Traffic Safety Law stipulates: The state implements a compulsory third-party liability insurance system for motor vehicles and establishes a social assistance fund for road traffic accidents. Accordingly, all motor vehicles within China must purchase third-party liability insurance. Insurance institutions may handle matters related to the conclusion of motor vehicle insurance contracts at the offices of traffic management departments of public security authorities. Situations Where the Insurer is Not Liable for Compensation: Losses incurred due to an accident involving the insured vehicle, such as suspension of business, cessation of operation, power outage, water outage, gas outage, production halt, communication interruption, or other indirect losses. If the insured vehicle is damaged in an insured accident and loses its operational capability, the insurer is not liable for compensation for losses such as business suspension or inability to continue transportation during the period from damage to repair.
