萬國法律事務所

Currently, the insurance premium rates for compulsory automobile liability insurance are classified into 10 levels. In order to encourage safe driving, the Deputy Director General of the Insurance Bureau of the Financial Supervisory Commission ("FSC"), recently stated that drivers having no claims records on their compulsory automobile liability insurance for the year can enjoy reduced insurance premium rates the next year. However, if claims have been made against drivers on the aforesaid insurance, their insurance premium rates will increase the following year.

For example, if a male aged from 30 to 60 paid a NTD 1,398 in insurance premium for his car's first-year compulsory automobile liability insurance and had no claims in that year, he can enjoy a 13% discount on the insurance premium the following year, which would be NTD 1,218; moreover, if he has no claims brought against his insurance in three continuous years, he can enjoy at most a 21% discount on his insurance premium, which would result in a reduced premium of NTD 1,099.

The Deputy Director General further stated that such reduction/increase of insurance premium rates only apply to cars, and indicated that motorcycles are excluded. This is because the basic insurance rates for motorcycles are lower, and the chance of a rate change is higher, and the costs will increase if the same model is applied to motorcycles. The Deputy Director General also pointed out that, the claims record follows the "car". For example, if B is in an accident while driving A's car, the insurance premium rates that A must pay for his car will increase.

According to the FSC statistics, as of the end of April 2015, the number of effective insurance policies for compulsory automobile liability insurance for cars and motorcycles are 7,550,000 and 10,700,000, respectively.