What is the role of compulsory traffic insurance?
1 Answers
The role of compulsory traffic insurance is for the insurance company to compensate for the personal injury, death, and property losses of victims (excluding the vehicle's occupants and the insured) caused by the insured motor vehicle in a road traffic accident, within the liability limits. Scope of compensation for compulsory traffic insurance: The scope of compensation for compulsory traffic insurance covers almost all road traffic liability risks, with no deductible rate or deductible amount; whereas commercial third-party liability insurance has corresponding deductible rates, deductible amounts, or liability exclusions. Premium characteristics of compulsory traffic insurance: Compulsory traffic insurance is China's first mandatory insurance system implemented by national law. Its premiums follow a nationwide unified fee standard, as stipulated by the state, but the price of compulsory traffic insurance varies for different car models, with the main influencing factor being the 'number of car seats'.