Research On The Compensation System Of The Compulsory Automobile Liability Insurance

Traffic compulsory insurance has an important impact on the level of protection of traffic accident victims. In China, a motor accident may turns to be a tragedy for the victim’s fa mily, and the compulsory money may become the only source of income for the family in the later years. As the limit of liability compensation system directly influences the victims’ compensation, it should be constructed as the core point of compulsory insurance. However, in the practical application over the judiciary process, as different courts have different understandings towards the compensation system, a wide range of applicable differences are resulted. The reason lies in two points: there are some legislative system problems in the compulsory system and the insurance level that accident victims get is too low. In order to achieve the "Compulsory Automobile Liability-Insurance Regulations" goals, give victims the basic guarantee and resolve application differences of courts, China should formulate specific law to regulate the compulsory insurance system. For the victims’ personal injury compensation, compulsory insurance system should adopt the victim limits model, and the limits for medical expenses and death and disability compensation should be merged. In the field of limit mode, a pressing matter of the moment is to improve the limits, the medium term should gradually bridge the compulsory insurance and commercial three liability insurance in the security field between the many differences, but the radical method is to adopt the highest minimum liability system of limitation, merge the voluntary automobile liability insurance and the compulsory insurance, and change the break-even mode of operation to the moderate profits operation mode.