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“No-Fault” Auto Insurance Required in City

Beijing approved a new traffic regulation on October 29 requiring all motor vehicles to be covered by third-party or "no-fault" auto insurance.

Under current insurance regulations, insurers pay indemnities only when drivers covered by a company are held responsible for accidents.

The new regulation means insurance companies will pay compensation within ranges set in compulsory third-party insurance policies when accidents involving vehicles occur and result in deaths, injuries or financial losses.

It also stipulates that other compensation will be paid by affected parties, according to their culpability, for accidents involving pedestrians or non-motorized vehicles. In such instances, insurance companies will cover a part of the damages. The remainder will be assessed against those held responsible for accidents.

The regulation will go into effect on January 1, 2005.