Beijing Municipality, Implementation of the «PRC Road Traffic Safety Law» Procedures

Promulgated: October 22 2004
Effective: January 1 2005

Main contents: The municipality shall implement a compulsory third-party liability insurance system for motor vehicles and establish a social relief fund for road traffic accidents. Where personal injury or death or loss of property is caused by motor vehicle traffic accidents, and where the vehicle involved is covered by compulsory third-party liability insurance, the insurance company shall pay compensation first within the liability limit of the compulsory third-party liability insurance for motor vehicles. Where the vehicle involved is not covered by compulsory third-party liability insurance, the vehicle involved shall pay compensation first in accordance with the limit of liability of compulsory third-party liability insurance (Article 69). For traffic accidents between motor vehicles, the portion of indemnity in excess of the limit of liability of compulsory third-party liability insurance shall be borne by the party at fault; but shall be shared in accordance with the proportion of fault when both parties are at fault; and shall be equally shared when it cannot be determined which party is at fault (Article 70). For traffic accidents between motor vehicles and non-motor vehicles or pedestrians, the motor vehicle party shall not be responsible for compensation if losses are deliberately caused by drivers of non-motor vehicles or pedestrians; and insurance companies have the right of seeking recourse if compensation has already been paid by compulsory third-party liability insurance for motor vehicles first (Article 72). For motor vehicle traffic accidents that cause personal injury or loss of property, where the parties failed to report the case to the police and keep the site intact even as circumstances permit, making it impossible to investigate and ascertain basic facts of the accident, insurance companies shall pay compensation first within the liability limit of the compulsory third-party liability insurance for motor vehicles (Article 73). The portion in excess of the limit of liability shall be compensated depending on which party/parties is/are at fault and if necessary Procedures have been taken.
Related legislation: PRC Road Traffic Safety Law, Oct 28 2003, CLP 2004 No.5 p9 and PRC Road Traffic Safety Law Implementing Regulations, Apr 30 2004, CLP 2004 No.5 p10