Where casualties or damage to property occur as a result of aircraft accident, the owner of the aircraft shall be liable for compensation regardless of whether such accident is due to willful action or negligence. Such an owner of the aircraft shall also be liable for damage caused by force majeure. The same also applies to damage caused by falling or dropping of objects from the aircraft.

Where the damage as referred to in the preceding article is caused by an aircraft operated on lease, conditional purchase or lending, the owner and lessee, the conditional purchaser or borrower shall be jointly and severally liable. But if the said conditional purchase and lease have been registered, the lessee and purchaser shall be singly liable unless the owner is faulty for negligence.

The aircraft operator shall be liable for accidental death or injury of passengers in the aircraft or while embarking or disembarking the aircraft. But if such death or injury is attributed to the passenger’s fault, such liability may be exonerated or reduced.
The aircraft operator shall be liable for causing damage to passengers because of flight delay, provided that the aircraft operator can prove the delay is caused by force majeure. The liability shall be limited to the necessary extra expense incurred to the passengers through the flight delay.

Where damage is caused by the willful act or negligence of an airman or a third party, the owner, lessee or borrower has the right to make a claim against such airman or third party.

Where there is a special contract providing for the amount of compensation for damage to passengers or duty personnel aboard an aircraft, the special contract shall prevail. If the special contract contains discriminating clauses unfavorable to ROC citizens, the most favorable clauses shall apply. Where there is no special contract, the MOTC shall, according to related regulations or rules in this Law, and making reference to international standards for liability, prescribe rules for compensation and submit to the Executive Yuan for approval and promulgation.
The special contract referred to above shall be in writing.
The standards of liability set forth in the first paragraph shall not affect the right of the victim to bring claim in a lawsuit.

The liability of aircraft users or carriers for loss of cargo, or checked-in baggage shall be limited to NT$1,000 per kilogram, unless the nature and value of the cargo or baggage which have been declared to air carriers and specified in the airway bill or passenger tickets.
Passengers’ carry-on baggage shall be compensated for actual damages. Each passenger shall not claim compensation for more than NT$20,000.
Aircraft users or carriers shall not claim for limited liability if the damage mentioned in preceding 2 paragraphs was caused by their intention or by their gross negligence.
The preceding 3 paragraphs shall also be applied to air freight forwarders, airport ground handling services and air cargo entrepots when being claimed for compensations.

An aircraft owner shall, prior to applying for registration pursuant to Article 8; or a civil air transport enterprise, prior to applying for a license pursuant to Article 48, purchase liability insurance.
The amount of liability referred to in the preceding paragraph shall be prescribed by the MOTC, and such amount shall be complied with for effecting liability insurance.

Where a foreign aircraft operates in the ROC territory with a special permit, the MOTC may order such foreign aircraft to produce, in advance, an appropriate amount as security for liability or a certificate of insurance.

CAA may detain any foreign aircraft that fails to produce proof of liability insurance, or makes an emergency landing or crashed without a special permit to operate in the ROC territory. If there is any damage to persons or property, compensation shall be made in accordance with the ROC laws.
In the events of the circumstance described in the preceding paragraph, except where other violations of law are found, the aircraft shall be released if its owner, lessee, borrower or pilot-in-command produces proof of liability endorsed by CAA.

Litigation over damages provided for in Article 89 shall be under the jurisdiction of the court where damage occurred.
Litigation over damage provided for in Article 91 shall be under the jurisdiction of the court at the place where the contract of carriage was concluded or at the destination of the flight.

At the request of any interested party or the public prosecutor, the court may declare a person dead who has been missing for six months following the date an aircraft carrying this person was involved in an accident.

Except as otherwise provided for in this Act, all matters relating to liability for aircraft accident and jurisdiction of litigation thereof shall be governed by the provisions of the Civil Code and the Code of Civil Procedure.