Goto Main Content
:::

Chapter Law Content

Title: Compulsory Automobile Liability Insurance Act CH
Category: Financial Supervisory Commission(金融監督管理委員會)
Chapter 5 Penalty
Article 48
(Penal Provisions)
An administrative fine of not less than NT$3 million and not more than NT$15 million shall be imposed by the competent authority for violation of Article 8, paragraph 1 by an insurance enterprise.
An administrative fine of not less than NT$200,000 and not more than NT$1 million shall be imposed by the competent authority for violation of Article 18, paragraph 1 or Article 20 by an insurer.
An administrative fine of not less than NT$600,000 and not more than NT$3 million shall be imposed by the competent authority for violation by an insurer of Article 45, paragraph 4 or Article 47, paragraph 1 or 2, or violation of the regulations to be adopted pursuant to Article 47, paragraph 3 governing the following matters as they relate to this insurance: accounting treatment; the reporting of operational and financial information; and the provisioning, custody, utilization, withdrawal, and transfer of the various reserves.
An administrative fine of not less than NT$60,000 and not more than NT$300,000 shall be imposed by the competent authority for violation by an insurer of Article 15; violation of Article 19, paragraph 1 or 2; violation of the regulations to be adopted pursuant to Article 46 governing accurate keeping of records on insurance coverage and handling of claims adjustment; or violation of the Article 15 provisions regarding notification.
When issuing a disposition pursuant to the preceding four paragraphs, the competent authority may order the violator to make rectification within a specified period; when the insurer fails to make rectification by the end of the period, the competent authority may issue an administrative fine for each successive instance of failure, and may also render the following dispositions based on the severity of the violation:
1.Order the violator to dismiss managers or staffers from their positions.
2.Dismiss directors or supervisors from their positions or suspend them from execution of the duties of those positions for a specified period.
3.Suspend the writing of new business for this insurance for a specified period.
4.Void or revoke the insurer's permission to provide this insurance.
Article 49
(Penal Provisions)
The penalty for a party with the duty to insure who fails to establish a contract for this insurance as provided herein, or fails to establish another such contract prior to the expiry of the policy period for this insurance, shall be as below:
1.When the violation is discovered at a roadside check by the highway supervisory authority or by the police when performing traffic duties, or reported by the highway supervisory authority or police together with a violation of the Road Traffic Management and Penalty Act, an administrative fine will be imposed by the highway supervisory authority. For an automobile, an administrative fine of not less than NT$3,000 and not more than NT$15,000 shall be imposed; for a motorcycle, an administrative fine of not less than NT$1,500 and not more than NT$ 3,000 shall be imposed; and for a mini electric two-wheel vehicle, an administrative fine of not less than NT$750 and not more than NT$1,500 shall be imposed.
2.When an uninsured automobile causes an accident, the highway supervisory authority will impose an administrative fine of not less than NT$9,000 and not more than NT$32,000.
Administrative fines under the preceding paragraph may be paid in installments. The central competent authority for transportation and communications in conjunction with the competent authority shall adopt regulations governing related matters including the conditions for applying, numbers of installments, and handling of failure to pay by the deadline.
Article 50
(Procedures for Payment of the Administrative Fine)
Certificates for this insurance shall be inspected by highway supervisory authorities during roadside checks and by the police when engaged in traffic duties; instances where this insurance has not been taken out as required shall be reported.
When the highway supervisory authority or police reports a person for violation of the Road Traffic Management and Penalty Act, the instance where the person has not taken out this insurance as required shall be reported at the same time.
Upon receipt of a notice of a violation of this insurance, a party with the duty to insure shall within 15 days appear at the designated location to receive a decision; when said party has failed to appear by the end of that period, the highway supervisory authority may issue a default decision, provided that when the party with the duty to insure acknowledges that the facts of the violation are as stated in the notice, said party may directly pay the administrative fine imposed by the highway supervisory authority at the designated site without waiting for a decision, and the case will then be closed.
Article 51
(Compulsory Execution)
Prior to the payment of an administrative fine issued pursuant to this Act, a highway supervisory authority will not process any license re-issuance, register an alteration [of registered particulars], or handle inspection for an automobile for which establishment of a contract for of this insurance is required.
Compulsory execution procedures will be initiated in accordance with the law for failure to pay the administrative fine referenced in the preceding paragraph within the prescribed period.
Article 51-1
Where a party with the duty to insure fails to establish another contract for this insurance as provided herein within six months after the expiry of the original policy period, the competent authority may forward the case to highway supervisory authority to revoke the party’s automobile license plate.