(Legislative Purpose)
This Act is specially adopted in order to ensure prompt basic coverage for the injured parties in automobile traffic accidents that result in injury or loss of life and to maintain roadway traffic safety.

(Scope of Application)
Compulsory automobile liability insurance ("this insurance") shall be subject to the provisions of this Act; the Insurance Act will govern with respect to any matters not provided for herein.

(Competent Authority)
The competent authority under this Act is the Financial Supervisory Commission.

(Parties to Provide Relevant Information)
In order to investigate claim adjustments, actuarial statistics, and compensation in relation to automobile traffic accidents covered by this insurance, the competent authority may request insurers, the police, traffic supervisory and other agencies or organizations connected with this insurance to provide relevant information.

(Definition of Automobile)
In this Act, "automobile" means an automobile as provided in Article 2, subparagraph 10 of the Highway Act, or any other motorized machinery driven on a road.
"Motorcycle," as used in Articles 38 and 49, is also an automobile as defined in Article 2, subparagraph 10 of the Highway Act.
In addition to the vehicles given in the two preceding paragraphs, "automobile" also includes specified overland motorized vehicles that do not run on rails and have a transport function; the range of vehicles to be included in this category and the automobile categories for which the establishment of a contract for this insurance is required will be prescribed and announced by the competent authority in conjunction with the central competent authority for trans- portation and communications.

Mini electric two-wheel vehicle under Article 69, Paragraph 1, Subparagraph 1, Item 3 of the Road Traffic Management and Penalty Act shall be regarded as “automobile” under this Act; the party with the duty to insure shall establish a contract for this insurance as provided herein; for mini electric two-wheel vehicle without an insurance contract, the highway supervisory authority will not accept an application for registration, or replacement or issuance of license plate.
For mini electric two-wheel vehicle that has been inspected, applied for safety type approval and affixed with a certificate of approval prior to the implementation of Article 71-1, Paragraph 4 of the Road Traffic Management and Penalty Act, the party with the duty to insure shall establish a contract for this insurance as provided herein within two years after the implementation of the aforementioned provisions, and shall apply for registration and receive and be affixed with a license plate in accordance with the Penalty Act.
If the party with the duty to insure a mini electric two-wheel vehicle fails to establish a contract for this insurance as provided herein, any automobile traffic accident caused by the mini electric two-wheel vehicle will not be covered by this insurance.

(Establishment of Insurance Contract)
Owners of automobiles for which the establishment of a contract for this insurance is required shall do so in accordance with this Act; the same shall apply to military-use automobiles during non-wartime periods.
Where the owner of an automobile as given in the preceding paragraph has not established a contract for this insurance, the owner registered with a highway supervisory authority shall be presumed the party with the duty to insure.
For an automobile as given in paragraph 1 to which any of the following applies, its user or manager will be treated as the party with the duty to insure:
1.The license plate has been returned, surrendered for cancellation, or revoked (jhu siao).
2.The owner is unknown.
3.The owner is unable to manage or use the automobile for reasons attributable to the automobile's user or manager.
With respect to this insurance, the party with the duty to insure shall maintain the validity of the insurance contract, and prior to the termination of that contract or when an insurer refuses to insure pursuant to the provisions of Article：18, paragraph 1 shall establish another contract for this insurance in accordance with the provisions of this Act.

(Claiming Insurance Benefits or Compensation)
Where an injured party suffers injury or loss of life as the result of an automobile traffic accident, regardless of whether the injuring party is at fault, a claimant may claim insurance benefits from an insurer or compensation from the Motor Vehicle Accident Compensation Fund ("the Compensation Fund") in accordance with the provisions of this Act.

(Definition of Insurer)
In this Act, "insurer" refers to an insurance enterprise to which the competent authority has granted permission to provide this insurance.
With respect to applications by insurance enterprises for permission as referenced in the preceding paragraph, regulations governing qualification requirements, required documentation, conditions for revocation of permission, and other matters for compliance shall be adopted by the competent authority in conjunction with the central competent authority for transportation and communications.

(Definition of Proposer and Insured)
In this Act, "proposer" means a party that applies to an insurer to establish a contract for this insurance pursuant to Article：6 and bears an obligation to pay insurance premiums.
In this Act, "insured" means a proposer to whom an insurer extends coverage and any person using or managing the insured automobile with the proposer's consent.

(Definition of Injuring Party and Injured Party)
In this Act, "injuring party" means any person who, through the use or management of an automobile, causes an automobile traffic accident.
In this Act, "injured party" means a person who suffers injury or loss of life as the result of an automobile traffic accident.

(Definition of Claimant)
In this Act, "claimant" means any of the following persons that may claim insurance benefits from an insurer or compensation from the Compensation Fund:
1.In the case of a person who has suffered injury as the result of an automobile traffic accident, it shall be the injured party himself.
2.In the case of a person who has suffered loss of life as the result of an automobile traffic accident, it shall be the survivors of the injured party, in the following order:
(1) parents, children, and spouse;
(2) grandparents;
(3) grandchildren;
(4) siblings.
When there are several persons at the same position in the order, insurance benefits or compensation will be distributed equally among them according to their number.
When, upon the death of an injured party, there are no claimants as provided in paragraph 1, subparagraph 2, persons paying the funeral and interment expenses of the deceased may, within the limit of [actual] funeral and interment expenses, claim benefits from an insurer or compensation from the Compensation Fund.Any sum remaining after deduction of the funeral and interment expenses from the insurance benefits shall belong to the Compensation Fund.When, upon the death of an injured party, there are neither claimants as provided in paragraph 1, subparagraph 2 nor persons paying for the funeral and interment expenses, insurance benefits shall be returned to the ownership of the Compensation Fund.
Items included under funeral and interment expenses under the preceding paragraph, and their amounts, will be prescribed and announced by the competent authority.

(Definition of Insured Automobile and Uninsured Automobile)
In this Act, "insured automobile" means an automobile for which the establishment of a contract for this insurance in accordance with the provisions of this Act is required.After ten days from the insurer's receipt of an insurance proposal, if the insurer has not expressed any intention of either commitment or refusal to provide insurance, the automobile indicated in the proposal shall be deemed an insured automobile.
The automobile recorded on the insurance card for this insurance ("insurance card") shall be presumed to be the insured automobile.
In this Act, "uninsured automobile" means an automobile for which establishment of a contract for this insurance in accordance with the provisions of this Act is required but for which none has been established.

(Definition of Automobile Traffic Accident)
In this Act, "automobile traffic accident" means an accident in which an automobile is used or managed in such a manner as to cause injury or loss of life to a passenger or to a third party outside the vehicle.

(Time Limitations on Claims for Insurance Benefits)
A claimant's right to claim insurance benefits from an insurer shall be extinguished if not exercised within two years of the time when he learns of the occurrence of damage and the existence of the insurer, or within ten years of the date of the occurrence of the automobile traffic accident.
When a claimant has claimed against an insurer for insurance benefits prior to the end of the period of prescription referenced in the preceding paragraph, the period from the time the claim becomes effective until the notice of the insurer's decision on insurance benefits is received shall not be counted against the period of prescription.
When there is an interruption in the period of prescription for a claimant's right to claim insurance benefits from an insurer, or when the period has not ended, or when a given time period is not counted against the period of extinctive prescription as referenced in the preceding paragraph, such event shall, within the limit of the insured amount, have the same effect with regard to the claimant's right to claim damages from the insured.When there is an interruption in the period of prescription for a claimant's right to claim damages from an insured, or when the period has not ended, such event shall have the same effect with regard to the claimant's right to claim insurance benefits from the insurer.
The provisions of the preceding three paragraphs apply mutatis mutandis to all matters relating to the right to claim compensation from the Compensation Fund arising out of this Act, with the exception that the beginning of the period of extinctive prescription for the right of claim is governed by the following provisions:
1.In cases where an accident vehicle cannot be traced, the period is counted from the time it is known that there is damage and it is confirmed that the at-fault automobile cannot be traced.
2.In cases where an accident vehicle is an uninsured automobile, the period is counted from the time it is known that there is damage and it is confirmed that the at-fault automobile is uninsured.
3.In cases where an accident vehicle is an insured automobile that was used or managed without the consent of the insured, the period is counted from the time it is known that damage has occurred and it is confirmed that the insured automobile was used or managed without consent.
4.In cases where an accident vehicle is one for which establishment of a contract for this insurance is not required, the period is counted from the time it is confirmed that damage has occurred and that the injuring automobile is one for which establishment of a contract for this insurance is not required.

(Proposer Renewal Notification)
An insurer shall notify a proposer to renew the insurance 30 days prior to the expiry of the policy period.When an insurer fails to provide such notification and an insured peril occurs within 30 days after the expiry of the original policy period, the insurer shall still be liable for payment of insurance benefits if the proposer completes renewal procedures and extends the beginning of the policy period retroactively to the expiry of the original policy period.