(Establishment of the Compensation Fund)
The Compensation Fund shall be established in order to ensure prompt basic coverage for all the injured parties in automobile traffic accidents under this Act, and to ensure the soundness of this insurance system. The Compensation Fund shall maintain separate accounts for automobiles, motorcycles, and mini electric two-wheel vehicle as a basis for calculation of fees.
The Compensation Fund shall be an incorporated foundation; its articles of incorporation and regulations governing management of the fund shall be adopted by the competent authority in conjunction with the central competent authority for transportation and communications.

(Sources of the Compensation Fund)
Sources of the Compensation Fund are as follows:
1.Contributions to the Compensation Fund included in premiums for this insurance;
2.Income obtained through subrogation to claims as provided in Article：42, paragraph 2;
3.Interest generated by the Fund;
4.Income obtained as provided in Article：11, paragraph 3;
5.Other revenues.

(Requirements of Claiming for Compensation from the Compensation Fund)
When an automobile traffic accident occurs and a claimant is unable, for one of the following reasons, to claim insurance benefits from an insurer in accordance with this Act, the claimant may claim for compensation from the Compensation Fund within the limit of the insured amount provided for herein:
1.An accident vehicle cannot be traced;
2.An accident vehicle is an uninsured automobile;
3.An accident vehicle is an insured automobile that was used or managed without the consent of the insured;
4.All or some of the accident vehicles are ones for which establishment of a contract for this insurance is not required.
When doubt exists regarding a determination on use or management of the automobile without the consent of the insured as set forth under subparagraph 3 of the preceding paragraph, a provisional payment of insurance proceeds prior to the establishment of such fact shall be made by the insurer of the insured automobile.
When each of the accident vehicles is an automobile for which establishment of a contract for this insurance is not required as given in paragraph 1, subparagraph 4, the drivers of such vehicles may not apply to the Compensation Fund for compensation.
When, after payment of compensation by the Compensation Fund as provided in paragraph 1, subparagraph 1, it is found that the accident vehicle is an insured automobile under this insurance, the Compensation Fund may claim against its insurer for return of the compensation.
When an insurer returns compensation to the Compensation Fund in accordance with the preceding paragraph, it will be deemed to have paid insurance benefits to the claimant as provided herein.
When a claimant in respect of an automobile traffic accident applies for compensation from the Compensation Fund as provided in paragraph 1, then the provisions of Article：25, paragraphs 2 through 4, and Articles 27, 28, 35, and 37 shall apply mutatis mutandis, provided that the payment of compensation for personal injury medical expense benefits through the mutatis mutandis application of Article：27 shall not include the amount of benefits paid by National Health Insurance.

(Provisions Applied Mutatis Mutandis to an Automobile Traffic Accident Involving an Uninsured Automobile or an Automobile not Required to Establish an Insurance Contract)
The provisions of Article：34 shall apply mutatis mutandis when an automobile traffic accident occurs involving an uninsured automobile or an automobile for which establishment of a contract for this insurance is not required.

(Compensation from the Compensation Fund)
Compensation paid by the Compensation Fund as provided in Article：40 will be deemed part of the damages payable by the party liable for damages, and may be deducted by that party when subject to a claim for damages.
After paying compensation, the Compensation Fund may be subrogated to the claimant's right of claim against the party liable for damages, provided that the amount claimable thereby may not exceed the amount of compensation paid.
The right of claim under the preceding paragraph shall be extinguished if not exercised within two years of the date on which compensation is paid by the Compensation Fund.
When the party liable for damages is a claimant's spouse, head of family, other family member, blood relative within the fourth degree, or relative by marriage within the third degree, the Compensation Fund shall have no right of subrogation, provided that this restriction shall not apply when the circumstances set forth under any of the subparagraphs listed under Article：29, subparagraph 1 apply to the party liable for damages.

(Provisions Regarding the Compensation Fund Subrogated to the Claimant's Right of Claim not Bound by a Settlement, Waiver of rights, or Other Agreement between a Claimant and a Party Liable for Damages)
The Compensation Fund shall not be bound by any settlement, waiver of rights, or other agreement between a claimant and a party liable for damages when such agreement was made without the consent of the Compensation Fund and would impede exercise of the Compensation Fund's right of subrogation to a claim by the claimant against the party liable for damages.
When a claimant has received damages from a party liable for damages, the Compensation Fund shall deduct the amount of such damages when making its own compensation payment.When a deductible amount is not deducted, the Compensation Fund may claim for return of compensation within the limit of the deductible amount.