Premier Wen Jiabao
December 17, 2012

Decision of the State Council on Amending the Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents

The State Council has decided to amend the Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents as follows:
One article is added as Article 43: "Trailers are not covered by compulsory motor vehicle traffic accident liability insurance. If road traffic accidents cause casualties and property losses, the insurance company insured by the tractor shall compensate within the limit of liability of compulsory motor vehicle traffic accident liability insurance; For the insufficient part, the towing vehicle party and the trailer party shall be liable for compensation in accordance with the law. "
This Decision shall come into force as of March 1, 2013.
The Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents shall be revised accordingly in accordance with this Decision, and the order of the articles shall be adjusted accordingly and re published.

Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents

(Decree No. 462 of the State Council of the People's Republic of China issued on March 21, 2006, revised for the first time according to the Decision of the State Council on Amending the Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents on March 30, 2012, and revised for the second time according to the Decision of the State Council on Amending the Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents on December 17, 2012)

general provisions

Article 1 These Regulations are formulated in accordance with the Road Traffic Safety Law of the People's Republic of China and the Insurance Law of the People's Republic of China in order to ensure that the victims of motor vehicle road traffic accidents are compensated according to law and promote road traffic safety.
Article 2 The owner or manager of a motor vehicle running on the roads within the territory of the People's Republic of China shall purchase compulsory motor vehicle traffic accident liability insurance in accordance with the provisions of the Road Traffic Safety Law of the People's Republic of China.
These Regulations shall apply to the insurance, compensation, supervision and administration of compulsory motor vehicle traffic accident liability insurance.
Article 3 The term "compulsory liability insurance for motor vehicle traffic accidents" as mentioned in these Regulations refers to compulsory liability insurance in which an insurance company pays compensation within the limit of liability for personal injury, death or property loss of the insured vehicle's personnel and the victims other than the insured due to road traffic accidents.
Article 4 The insurance supervision and administration institution of the State Council (hereinafter referred to as the CIRC) shall supervise and administer the compulsory motor vehicle traffic accident liability insurance business of insurance companies according to law.
The traffic management department of the public security organ and the competent agricultural (agricultural machinery) department (hereinafter referred to as the motor vehicle management department) shall supervise and inspect the participation of motor vehicles in compulsory motor vehicle traffic accident liability insurance according to law. The motor vehicle management department shall not register the motor vehicle that has not participated in the compulsory insurance for motor vehicle traffic accident liability, and the motor vehicle safety and technical inspection institution shall not inspect it.
When investigating and handling road traffic safety violations and road traffic accidents, the traffic management department of the public security organ and its traffic police shall check the insurance signs of the compulsory liability insurance for motor vehicle traffic accidents according to law.

Chapter II Insurance

Article 5 An insurance company may, upon the approval of the CIRC, engage in compulsory liability insurance for motor vehicle traffic accidents.
In order to ensure the implementation of the compulsory liability insurance system for motor vehicle traffic accidents, the CIRC has the right to require insurance companies to engage in the compulsory liability insurance business for motor vehicle traffic accidents.
Without the approval of the CIRC, no unit or individual may engage in the compulsory liability insurance business for motor vehicle traffic accidents.
Article 6 The compulsory liability insurance for motor vehicle traffic accidents shall adopt uniform insurance clauses and basic insurance rates. The CIRC shall examine and approve the premium rate in accordance with the principle that the compulsory insurance business of motor vehicle traffic accident liability is generally not profitable and not loss making.
When examining and approving insurance rates, the CIRC may employ relevant professional institutions to conduct assessment, and may hold hearings to listen to public opinions.
Article 7 The compulsory motor vehicle traffic accident liability insurance business of an insurance company shall be managed and accounted for separately from other insurance businesses.
The CIRC shall check the compulsory insurance business of motor vehicle traffic accident liability of insurance companies every year and publish it to the public; According to the overall profit or loss of the compulsory motor vehicle traffic accident liability insurance business of the insurance company, the insurance company can be required or allowed to adjust the insurance rate accordingly.
The CIRC shall hold a hearing if the adjustment of the premium rate is relatively large.
Article 8 If the insured motor vehicle has not committed any road traffic safety violations or road traffic accidents, the insurance company shall reduce its insurance premium rate in the next year. In the following years, if the insured motor vehicle still has no road traffic safety violations and road traffic accidents, the insurance company shall continue to reduce its insurance rate until the minimum standard. If the insured motor vehicle has road traffic safety violations or road traffic accidents, the insurance company shall increase its insurance rate in the next year. In case of repeated road traffic safety violations, road traffic accidents, or major road traffic accidents, the insurance company shall increase its insurance rate. If the insured is not at fault in a road traffic accident, the premium rate shall not be increased. The standards for reducing or increasing the premium rate shall be formulated by the CIRC in conjunction with the public security department under the State Council.
Article 9 The CIRC, the public security department of the State Council, the competent agricultural department of the State Council and other relevant departments shall gradually establish an information sharing mechanism for compulsory liability insurance for motor vehicle traffic accidents, road traffic safety violations and road traffic accidents.
Article 10 When applying for insurance, an applicant shall select an insurance company that is qualified to engage in compulsory motor vehicle traffic accident liability insurance, and the selected insurance company shall not refuse or delay underwriting.
The CIRC shall publicize to the public the insurance companies that are qualified to engage in the compulsory liability insurance business for motor vehicle traffic accidents.
Article 11 When applying for insurance, an applicant shall truthfully inform the insurance company of important matters.
Important matters include the type of motor vehicle, manufacturer's license plate model, identification code, license plate number, nature of use, and the name (name), gender, age, residence, ID card or driver's license number (organization code) of the owner or manager of the motor vehicle, the accident of the motor vehicle before the renewal of the insurance, and other matters specified by the CIRC.
Article 12 When signing a compulsory liability insurance contract for motor vehicle traffic accidents, the applicant shall pay all the insurance premiums at one time; An insurance company shall issue insurance policies and insurance marks to the applicant. The insurance policy and insurance mark shall indicate the insurance policy number, license plate number, insurance period, name, address and claim telephone number of the insurance company.
The insured shall place insurance signs on the insured motor vehicle.
The pattern of insurance marks is unified nationwide. Insurance policies and insurance marks shall be produced under the supervision of the CIRC. No unit or individual may forge, alter or use forged or altered insurance policies or insurance marks.
Article 13 When signing a compulsory motor vehicle traffic accident liability insurance contract, the applicant shall not request the insurance company to attach other conditions beyond the insurance terms and premium rates.
When signing a compulsory motor vehicle traffic accident liability insurance contract, the insurance company shall not force the applicant to conclude a commercial insurance contract or put forward requirements for additional conditions.
Article 14 An insurance company shall not terminate the compulsory liability insurance contract for motor vehicle traffic accidents; However, except that the applicant fails to perform the obligation of truthfully informing important matters.
If the applicant fails to perform the obligation of truthful disclosure of important matters, the insurance company shall notify the applicant in writing before terminating the contract, and the applicant shall perform the obligation of truthful disclosure within 5 days from the date of receiving the notice; The insurance company shall not terminate the contract if the applicant performs the obligation of truthful disclosure within the above period.
Article 15 When an insurance company cancels the compulsory insurance contract for motor vehicle traffic accident liability, it shall withdraw the insurance policy and insurance logo and notify the motor vehicle management department in writing.
Article 16 An applicant may not terminate a compulsory motor vehicle traffic accident liability insurance contract, except under one of the following circumstances:
（1） The registration of the insured motor vehicle is cancelled according to law;
（2） The insured motor vehicle stops driving;
（3） The insured motor vehicle is proved lost by the public security organ.
Article 17 Before the cancellation of the compulsory insurance contract for motor vehicle traffic accident liability, the insurance company shall bear the insurance liability in accordance with the contract.
When the contract is terminated, the insurance company may collect the premium from the date of commencement of the insurance liability to the date of termination of the contract, and the remaining premium shall be returned to the applicant.
Article 18 Where the ownership of the insured motor vehicle is transferred, the formalities for the modification of the compulsory motor vehicle traffic accident liability insurance contract shall be gone through.
Article 19 When the compulsory liability insurance contract for motor vehicle traffic accidents expires, the applicant shall renew the insurance in a timely manner and provide the insurance policy of the previous year.
Article 20 The period of compulsory motor vehicle traffic accident liability insurance is one year, but the applicant may apply for short-term compulsory motor vehicle traffic accident liability insurance under any of the following circumstances:
（1） Temporary entry of foreign motor vehicles;
（2） Temporary road driving of motor vehicles;
（3） The motor vehicle is less than one year away from the prescribed scrapping period;
（4） Other circumstances specified by the CIRC.

Chapter III Compensation

Article 21 If the road traffic accident of the insured motor vehicle causes personal injury, death or property loss to the vehicle's personnel and the victims other than the insured, the insurance company shall compensate within the limit of the compulsory motor vehicle traffic accident liability insurance according to law.
The loss of road traffic accident is intentionally caused by the victim, and the insurance company will not compensate.
Article 22 Under any of the following circumstances, the insurance company shall advance the rescue expenses within the liability limit of the compulsory motor vehicle traffic accident liability insurance, and have the right to claim compensation from the perpetrator:
（1） The driver has not obtained driving qualification or is drunk;
（2） The insured motor vehicle causes an accident during theft and robbery;
（3） The insured intentionally creates a road traffic accident.
The insurance company shall not be liable for the property loss of the victim caused by any road traffic accident under any of the circumstances listed in the preceding paragraph.
Article 23 The compulsory liability insurance for motor vehicle traffic accidents shall be subject to a unified limit of liability throughout the country. The liability limit is divided into death and disability compensation limit, medical expenses compensation limit, property loss compensation limit and compensation limit for which the insured is not liable in road traffic accidents.
The limit of liability of compulsory insurance for motor vehicle traffic accident liability shall be stipulated by the CIRC in conjunction with the public security department, the health department and the agriculture department of the State Council.
Article 24 The State shall establish a social relief fund for road traffic accidents (hereinafter referred to as the relief fund). In any of the following circumstances, the funeral expenses and part or all of the rescue expenses for the casualties of the victims in the road traffic accident shall be advanced by the relief fund, and the relief fund management agency shall have the right to recover from the person responsible for the road traffic accident:
（1） The rescue expenses exceed the liability limit of the compulsory motor vehicle traffic accident liability insurance;
（2） The motor vehicle causing the accident does not participate in the compulsory liability insurance for motor vehicle traffic accidents;
（3） Escaping after a motor vehicle hit and run.
Article 25 The sources of the rescue fund include:
（1） Funds drawn in accordance with a certain proportion of the insurance premium of the compulsory motor vehicle traffic accident liability insurance;
（2） Fines the owner and manager of a motor vehicle who fails to obtain compulsory motor vehicle traffic accident liability insurance in accordance with regulations;
（3） The funds recovered by the relief fund management organization from the person responsible for the road traffic accident according to law;
（4） Fruits of relief fund;
（5） Other funds.
Article 26 The financial department of the State Council, together with the CIRC, the public security department of the State Council, the competent health department of the State Council and the competent agricultural department of the State Council, shall formulate specific measures for the administration of the relief fund for trial implementation.
Article 27 If the insured or the victim notifies the insurance company of the road traffic accident of the insured motor vehicle, the insurance company shall immediately give a reply, informing the insured or the victim of the specific compensation procedures and other relevant matters.
Article 28 If the insured motor vehicle has a road traffic accident, the insured shall apply to the insurance company for compensation. The insurance company shall, within one day from the date of receiving the application for compensation, notify the insured in writing of the certificates and materials related to compensation that need to be provided to the insurance company.
Article 29 An insurance company shall, within 5 days from the date of receipt of the certificates and materials provided by the insured, make an assessment on whether it is an insurance liability, and notify the insured of the results; If the insurance liability does not belong to the insurance liability, the reasons shall be explained in writing; If the insurance liability falls within the scope of insurance liability, the insurance compensation shall be paid within 10 days after reaching an agreement with the insured.
Article 30 If the insured and the insurance company have a dispute over compensation, they may apply for arbitration or bring a lawsuit to the people's court according to law.
Article 31 An insurance company may pay the insurance benefits to the insured or directly pay the insurance benefits to the victim. However, if the insurance company needs to pay or advance the rescue expenses for rescuing the injured, the insurance company shall pay or advance the rescue expenses to the medical institution in a timely manner after verification after receiving the notice from the traffic management department of the public security organ.
If the rescue fund management institution needs to advance the rescue expenses for rescuing the injured, the rescue fund management institution shall, after receiving the notice from the traffic management department of the public security organ, timely advance the rescue expenses to the medical institution after verification.
Article 32 Medical institutions shall rescue and treat the injured in road traffic accidents with reference to the relevant clinical diagnosis and treatment guidelines organized and formulated by the competent health department under the State Council.
Article 33 When an insurance company compensates for the insurance money or advances the rescue expenses, and the rescue fund management institution advances the rescue expenses, it is necessary to verify the relevant information with the relevant departments and medical institutions, the relevant departments and medical institutions shall cooperate.
Article 34 The staff of an insurance company or the rescue fund management institution shall keep confidential the personal privacy of the parties concerned.
Article 35 The items and standards of compensation for damages in road traffic accidents shall be implemented in accordance with the provisions of relevant laws.

Chapter IV Penalty Provisions

Article 36 Those who illegally engage in compulsory motor vehicle traffic accident liability insurance without the approval of the CIRC shall be banned by the CIRC; If a crime is constituted, criminal responsibility shall be investigated according to law; If the case does not constitute a crime, the CIRC shall confiscate the illegal gains. If the illegal gains exceed 200000 yuan, a fine of not less than one time but not more than five times the illegal gains shall be imposed; If there is no illegal income or the illegal income is less than 200000 yuan, a fine of 200000 yuan to 1 million yuan shall be imposed.
Article 37 If an insurance company engages in the compulsory insurance business of liability for motor vehicle traffic accidents without the approval of the CIRC, the CIRC shall order it to make corrections, return the premiums collected, confiscate the illegal income, and impose a fine of not less than one time but not more than five times the illegal income if the illegal income is more than 100000 yuan; If there is no illegal income or the illegal income is less than 100000 yuan, a fine of 100000 yuan to 500000 yuan shall be imposed; If it fails to correct within the time limit or causes serious consequences, it shall be ordered to suspend business for rectification or its insurance business license shall be revoked.
Article 38 If an insurance company violates the provisions of these Regulations and commits one of the following acts, the CIRC shall order it to make corrections and impose a fine of not less than 50000 yuan but not more than 300000 yuan; If the circumstances are serious, the business scope may be limited, the company may be ordered to stop accepting new business or its insurance business license may be revoked:
（1） Refusing or delaying to underwrite compulsory liability insurance for motor vehicle traffic accidents;
（2） Failing to engage in the compulsory motor vehicle traffic accident liability insurance business in accordance with the unified insurance terms and basic insurance rates;
（3） Failing to separate the compulsory liability insurance business for motor vehicle traffic accidents from other insurance businesses for management and accounting;
（4） Forcing an applicant to enter into a commercial insurance contract;
（5） Cancelling the compulsory insurance contract for motor vehicle traffic accident liability in violation of regulations;
（6） Refusing to perform the agreed obligation of compensation for insurance benefits;
（7） Failing to timely pay or advance the rescue expenses in accordance with the regulations.
Article 39 If the owner or manager of a motor vehicle fails to purchase the compulsory liability insurance for motor vehicle traffic accidents in accordance with the regulations, the traffic management department of the public security organ shall detain the motor vehicle, notify the owner or manager of the motor vehicle to purchase the insurance in accordance with the regulations, and impose a fine of twice the amount of the insurance premium that should be paid according to the minimum liability limit for the insurance.
The owner or manager of a motor vehicle shall return the motor vehicle in a timely manner if he/she has completed the compulsory liability insurance for motor vehicle traffic accidents in accordance with regulations.
Article 40 If a motor vehicle running on the road fails to place an insurance sign, the traffic control department of the public security organ shall detain the motor vehicle, notify the party concerned to provide an insurance sign or go through the corresponding formalities, and may give a warning or impose a fine of not less than 20 yuan but not more than 200 yuan.
If the party concerned provides the insurance mark or completes the corresponding formalities, it shall return the motor vehicle in a timely manner.
Article 41 The traffic control department of the public security organ shall confiscate, detain or impose a fine of not less than 200 yuan but not more than 2000 yuan on the forgery, alteration or use of forged or altered insurance marks or the use of insurance marks of other motor vehicles; If a crime is constituted, criminal responsibility shall be investigated according to law.
If the party concerned provides the corresponding legal certificate or completes the corresponding formalities, the motor vehicle shall be returned in a timely manner.

Chapter V Supplementary Provisions