What is No-Fault Compensation in Auto Insurance?

1 Answers
StLeonardo
07/30/25 4:35am
No-fault compensation in auto insurance refers to a situation in a traffic accident where one party is fully at fault while the other party bears no responsibility at all. In such cases, if the at-fault party suffers vehicle damage but no personal injuries, the no-fault party is not required to bear any costs. Instead, the repair expenses and other related costs are covered by the at-fault party's insurance company. If the at-fault party sustains personal injuries or fatalities, there is a provision under compulsory insurance for no-fault compensation. According to this clause, the insurance company of the no-fault party is required to compensate the injured or deceased party within the no-fault compensation limit. This effectively transfers the liability to the insurance company.
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