What Does Compulsory Traffic Insurance Cover?

[JulietteMarie]

The compulsory traffic insurance includes provisions related to material losses and personal injuries. As a mandatory insurance, the Compulsory Traffic Accident Liability Insurance Regulations issued by the State Council stipulate that all motor vehicles operating on roads must be covered by compulsory traffic insurance. This insurance implements a unified national liability limit, a unified basic premium rate, and unified policy terms. As long as losses are caused to a third party, regardless of fault, they all fall within the compensation scope of compulsory traffic insurance. Compulsory traffic insurance is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, or property losses of victims (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limit. All owners or managers of motor vehicles operating on roads within China must purchase compulsory traffic insurance, and uninsured vehicles are not allowed on the road.