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Confusion Still Reigns Over Road Rules

Local implementation of widely debated national traffic laws went into effect in Beijing this month.

The municipal measures are hoped by local legislators to address current difficulties in dealing with accidents involving motorists and pedestrians or cyclists.

But there is still a lack of a relevant regulation on third party insurance, which may undermine the law's effectiveness.

According to the regulations, drivers of all motor vehicles in the capital will be liable to pay compensation to pedestrians or cyclists with whom they are involved in accidents. This is regardless of who was at fault.

The rules clearly expect insurance companies to cover this liability, but since May 1, when the national law came into effect, some have refused to pay up.

They cite current insurance regulations, which stipulate that only when the driver is responsible for the accident should the insurance company cover compensation. Many drivers cannot afford the level of compensation themselves.

To solve the dilemma, national regulation making third party insurance compulsory was originally expected to be in place ahead of Beijing's local implementation of the law, according to Wang Jiayan, deputy director of the Legal Affairs Committee of Beijing's Municipal People's Congress.

But no such regulation has come into effect. "Thus the current confusion remains unchanged," Liu Qin, a researcher with the Beijing Municipal Public Security Bureau of Traffic Administration, told China Daily on Monday.

"The purpose of insurance companies is to earn money, not to better administer traffic laws," Liu said. "Some types of trucks are refused third party insurance to avoid large amounts of compensation. But what should they do if accidents occur?" he asked.

The researcher expressed his wish for the government to bridge the disparity between insurance and government policies so that enforcement of the law can be more effective.

(China Daily January 4, 2005)

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