10.27 China to use social aid funds for auto accident relief

China to use social aid funds for auto accident relief

http://autonews.gasgoo.com/auto-news/1012716/China-to-use-social-aid-funds-f
or-auto-accident-relief.html

 

Shanghai, October 27 (Gasgoo.com) China's administrative regulations,
jointly released by China's related authorities, on social aid funds for
automobile accident relief will take effect as of January 1, 2010, Xinhua
News reported today. 

 

The social aid funds will be used mainly for paying rescue expenses and
funeral fees for road traffic accident victims, when the offending vehicles
have no accident liability compulsory insurance, or the offending autos
escape after the accident, or the rescue fees exceed the medical
compensation limit of the accident insurance.

 

The funds will come from premiums of accident liability compulsory
insurance, local government subsidy to insurance companies, penalties from
owners of offending vehicles with no accident liability compulsory
insurance, capital recovered from persons responsible for the traffic
accidents, social donations, and other sources.

 

Experts said that the new measures are important supporting regulations for
the system of accident liability compulsory insurance for motor vehicles,
adopted by China in July 2006. 

 

The new rules will exert a huge influence on China's traffic accident
compensation, including the operational cost of the liability compulsory
insurance.

 

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