What Does Compulsory Vehicle Insurance Cover?

[DeAngelo]

This type of insurance is a mandatory liability coverage that provides compensation for the personal injuries and property damage of the other party involved in a traffic accident. Below is relevant information about compulsory insurance: 1. Definition: Compulsory insurance, also known as statutory insurance, is coverage that must be purchased as required by law. While commercial insurance generally operates on a voluntary basis, compulsory insurance applies to certain high-risk areas that have broad impacts on public interests. 2. Compulsory Traffic Accident Liability Insurance: As stipulated in the 'Regulations on Compulsory Traffic Accident Liability Insurance for Motor Vehicles,' this insurance is a mandatory liability coverage where the insurer compensates for personal injuries and property damage caused to victims by the insured vehicle in road traffic accidents, within the prescribed liability limits.