What Does Compulsory Traffic Insurance Cover?
2 Answers
Compulsory Traffic Insurance (CTI) provides coverage for personal injuries and property losses suffered by victims in road traffic accidents caused by the insured motor vehicle. Below is relevant information about CTI: 1. Overview: The full name of CTI is 'Compulsory Traffic Accident Liability Insurance for Motor Vehicles.' It is China's first mandatory insurance system implemented by national legislation. The premium follows a nationally unified pricing standard set by the government, but the cost varies depending on the vehicle model, primarily influenced by the 'number of car seats.' 2. Article 3 of the 'Regulations on Compulsory Traffic Accident Liability Insurance for Motor Vehicles': The term 'compulsory traffic accident liability insurance for motor vehicles' as mentioned in these regulations refers to the mandatory liability insurance where the insurance company compensates, within the liability limits, for personal injuries and property losses suffered by victims (excluding the driver and the insured) in road traffic accidents caused by the insured motor vehicle.
As a new driver who just got my license, the first thing I focus on when buying a car is what compulsory insurance is. Essentially, it's the mandatory traffic insurance required by the state for every vehicle. Its core purpose is to protect third parties: if I accidentally hit someone while driving, the insurance company will cover the other party's medical expenses for injuries, disability compensation, or even unfortunate death compensation; it also covers property damage, such as if I damage someone else's car or roadside property. There are limits on the total amount, with the maximum compensation for personal injury or death being over 100,000 yuan, and around 2,000 yuan for property damage. The benefit is that even if I'm not at fault, I can still receive a small compensation. When purchasing, remember to bring your vehicle license and ID card, choose a reputable company, and don't skip it just to save money—otherwise, you might get fined if caught by traffic police. This insurance gives me peace of mind while driving, avoiding debt from accidents.