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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