(Establishment of an Insurance Contract before Issuance or Reissuance of a License Plate)
When applying for issuance of a license plate or a temporary pass, or prior to the expiry of the policy period for this insurance, the owner of any automobile for which establishment of a contract for this insurance is required shall, for each such automobile, apply to an insurer to establish a contract for this insurance.
A highway supervisory authority may not issue a license plate or temporary pass, reissue a license plate, register an alteration [of registered particulars], or inspect an automobile to which either of the following applies, provided that this restriction does not apply to transfer of title to a vehicle currently suspended from use:
1.Establishment of a contract for this insurance is required, but none has been established.
2.This insurance became effective less than 30 days earlier, provided that this does not apply with respect to an application for a temporary license plate or a temporary pass.

(Matters Required to Be Represented for Establishing Insurance Contract)
A proposer shall make truthful representations in regard to the following matters when applying to establish a contract for this insurance:
1.the automobile category;
2.the nature of its use;
3.the automobile license plate number, engine serial number, and vehicle body number;
4.the name, sex/gender, date of birth, domicile, and national ID number of the party with the duty to insure. For an automobile owner that is an incorporated or unincorporated body or agency: its name, the government uniform invoice number on the profit-seeking enterprise registration certificate or the uniform invoice number issued by the tax authority, the locations of its places of business or offices, and the name of its representative.

(Conditions of Refusing Coverage)
An insurer may not refuse to extend insurance coverage, except when a proposer has failed to make premium payments or has violated the duty of truthful representation under the preceding article.
When an insurer intends to refuse coverage as provided in the preceding paragraph it shall make a written expression of intention within 10 days of receiving the insurance proposal; when it has provided no such written expression by the end of that period, it will be deemed to have agreed to extend insurance coverage.

(Obligation to Deliver Insurance Documents)
After establishing a contract for this insurance, an insurer shall issue a document containing the policy provisions and an insurance card to the proposer.
Within four working days after establishing a contract for this insurance, the approved particulars shall be transmitted by the insurer to the agencies (organizations) designated by the competent authority and the central competent authority for transportation and communications, respectively.
When the insured, the policy period, the insured automobile, or the insurance card number listed on the insurance card is changed, the proposer shall notify the insurer to update such information.

(Conditions for Insurer to Terminate an Insurance Contract)
An insurer may not rescind an insurance contract.
An insurer may not terminate an insurance contract, except under one of the following conditions:
1.The proposer has violated the duty of truthful representation under Article：17.
2.The proposer has not made premium payments as stipulated.
Prior to terminating an insurance contract as provided in the preceding paragraph, an insurer shall notify the proposer in writing to make rectification within 10 days after its receipt of the notice; if the proposer makes rectification at any time prior to receipt of a notice of termination of the contract, the insurer may not terminate the contract.
When an insurance contract is terminated, the insurer shall give notice within three days to the highway supervisory authority with jurisdiction over the insured automobile, and to the agencies or organizations designated by the competent authority and the central competent authority for transportation and communications, respectively.
The insurer shall return to the proposer any unearned premium for the period after termination of the contract; the insurance contract shall be deemed to be in effect prior to return of the premium.

(Conditions for Proposer to Terminate an Insurance Contract)
A proposer may not rescind an insurance contract.
A proposer may not terminate an insurance contract, except under one of the following conditions:
1.The license plate of the insured automobile has been surrendered for cancellation, revoked (diao siao), revoked (jhu siao), or surrendered for suspension of use of vehicle.
2.The insured automobile is reported as scrapped.
3.Ownership of the insured automobile is transferred and the party with the duty to insure after transferal has already established a contract for this insurance, resulting in duplication of insurance.
After an insurance contract has been terminated as provided in the preceding paragraph, where premiums have already been paid the insurer shall return the unearned premium for the period after termination; where premiums have not been paid the proposer shall pay any premium earned prior to termination.

(Revocation of a Duplicate Contract with the Later Date of Effect)
When a proposer establishes a duplicate contract for this insurance either the proposer, or the insurer that issued the insurance contract with the later date of effect, may revoke the contract with the later date of effect; the same shall be true after the occurrence of an automobile traffic accident.
The right of revocation referenced in the preceding paragraph shall be exercised, at earliest, at the time duplication of insurance occurs, and prior to the expiry of the policy period of the insurance contract with the earlier date of effect.
When an insurance contract is revoked, the insurer shall return the premium (less any expenses needed to ensure the soundness of this insurance) to the proposer.

(Transfer of Ownership)
When ownership of an insured automobile is transferred, procedures for establishing a contract for this insurance or for modification thereof shall first be completed, provided that this restriction does not apply to transfer of title to a vehicle currently suspended from use; prior to completion thereof, a highway supervisory authority may not process title transfer registration.

(Modification and Notification of Insurance Contract)
Any notice given to an insurer by a proposer, insured, or claimant, and any application by a proposer for modification of an insurance contract, shall be made in writing; the same applies to any notice given by an insurer to a proposer, insured, or claimant, and to any agreement by an insurer to modification of an insurance contract.

(Payment of Insurance Benefits)
Upon the occurrence of an automobile traffic accident involving an insured automobile, an insurer shall be liable for payment of insurance benefits to claimants as provided herein.
An insurer shall pay insurance benefits within 10 working days from the day after all relevant evidentiary documents have been submitted by the insured or a claimant; the content of those evidentiary documents shall be prescribed and announced by the competent authority in consultation with related agencies or organizations.
If, for reasons attributable to itself, the insurer fails to make payment within the time limit given in the preceding paragraph, it shall pay default interest at the rate of 10 percent per annum from the day after the time limit for payment has ended.
A claimant's right to claim insurance benefits as provided in paragraph 1 and insurance benefits not yet collected by a claimant may not be attached, assigned, or provided as security.

(Policy Period of Insurance)
The policy period of this insurance shall be determined by the competent authority in conjunction with the central competent authority for transportation and communications on the basis of practical need.

(Types and Amounts of Insurance Benefits)
Benefits payable under this insurance are:
1.personal injury medical expense benefits;
2.disability benefits;
3.death benefits.
Standards for the tiers, amounts, and approval procedures for the benefits referenced in the preceding paragraph shall be determined by the competent authority in conjunction with the central competent authority for transportation and com- munications based on actual social and economic conditions.
When the standards under the preceding paragraph are amended and an automobile traffic accident occurs after the date the amendment takes effect, the insurer shall handle insurance benefits in accordance with the amended provisions.

(Conditions of Insurer not Liable for Insurance Benefits)
When an automobile traffic accident involving an insured automobile occurs as a result of either of the following behaviors on the part of an injured party or other claimant, an insurer is not liable for payment of insurance benefits:
1.Caused it through a deliberate act.
2.Caused it through a criminal act.
When there is more than one other claimant and a deliberate or criminal act has been committed, as referenced in the preceding paragraph, by one or more persons among them, the insurer shall deduct the portion payable to such person or persons and pay the remainder to other claimants.

(Conditions for Insurer to Be Subrogated to the Claimant's Right of Claim against the Insured)
When an automobile traffic accident involving an insured automobile occurs as a result of any of the following behaviors on the part of an insured, the insurer shall still bear liability for payment of insurance benefits as provided herein, provided that the insurer may be subrogated to the claimant's right of claim against the insured, within the amount of benefits paid:
1.Was driving the automobile after ingesting alcohol or another similar substance and had a breath or blood alcohol concentration exceeding the standard set by any act or regulation governing road traffic.
2.Was driving after having taken intoxicants, hallucinogens, narcotics, or other similar controlled substances, as verified through a test.
3.Caused it through a deliberate act.
4.Was engaging in a criminal act or evading lawful arrest.
5.Was driving an automobile in violation of Article：21 or 21-1 of the Act Governing Management of Roadway Traffic and Administration of Sanctions.
An insurer's right of subrogation as referenced in the preceding paragraph shall be extinguished if not exercised within two years of the date on which the insurer pays insurance benefits.

(Provisions Regarding an Insurer Subrogated to the Claimant's Right of Claim not to be Bound by a Settlement, Waiver of rights, or Other Agreement between a Claimant and an Insured)
An insurer shall not be bound by any settlement, waiver of rights, or other agreement between a claimant and an insured that was made without the consent of the insurer and would impede exercise of the insurer's right of subrogation to a claim by the claimant against the insured as referenced in the preceding article.

(Deduction of Insurer’s Liability)
When an automobile traffic accident involving an insured automobile occurs and the insured has already paid partial damages, the insurer bears liability for payment of insurance benefits only within the balance of the insured amount provided for herein after deduction of the compensation already made, provided that where the claimant and the insured have agreed that no such deduction may be made, such agreement shall govern.
Where an insured pays damages in advance as contemplated under the preceding paragraph, the insurer shall make payment of such amount to the insured within the limit of the insured amount as provided herein, provided that this provision shall not apply under the circumstances given in the proviso of the preceding paragraph.

(Deduction of Claim for Damages)
Insurance benefits paid by an insurer as provided herein will be deemed part of the damages payable by the insured and may be deducted by the insured when subject to a claim for damages.

(Insurer Subrogation Right)
When the occurrence of an automobile traffic accident is attributable to a third party other than the insured, the insurer may, after payment of insurance benefits, be subrogated to the insured's right of claim against such third party, provided that the amount claimable thereby may not exceed the amount of insurance benefits paid.
When the third party given in the preceding paragraph is an insured's or claimant's spouse, head of family, other family member, blood relative within the fourth degree, or relative by marriage within the third degree, the insurer shall have no right of subrogation, provided that this restriction shall not apply when the accident resulted from the deliberate intent of such a third party.

(Procedure of Traffic Accident Involving an Insured Automobile)
When an automobile traffic accident involving an insured automobile occurs, it shall be handled in accordance with the following provisions:
1.The insured or the injuring party shall immediately escort the injured party to a local or nearby medical facility for emergency treatment, or shall request another person to do so, provided that this shall not apply when it is obviously impossible to carry out a rescue under the conditions at the time of the accident.
2.The insured or injuring party shall immediately report the accident to the local civilian or military police authorities for handling, and shall notify the insurer in writing within five days.A claimant may also give written notification directly to the insurer.
3.The insured, the injuring party, and claimants shall cooperate with the insurer in providing human evidence, physical evidence, and other related information and documentation.
The insurer shall still bear liability for payment of insurance benefits should the insured, an injuring party, or a claimant violate its obligations under the provisions of the preceding paragraph, provided that any of those parties shall bear liability for damages if the insurer incurs damages as a result of their deliberate intent or negligence.

(Claimant’s Right Against the Insurer for Provisional Payment of Insurance Benefits)
When an automobile traffic accident results in loss of life, a claimant may make a claim against the insurer for provisional payment in an amount equivalent to one-half of the insurance benefits by presenting evidentiary documents.
When an automobile traffic accident results in disability, a claimant may make a claim against the insurer for provisional payment of the insurance proceeds based on a disability tier already determined by the insurer, by submitting evidentiary documents.
The insurer shall make payment within 10 working days from the day after a claimant presents evidentiary documents as provided in either of the preceding two paragraphs. If, for reasons attributable to itself, the insurer fails to make payment within the prescribed time limit, it shall pay default interest at the rate of 10 percent per annum beginning from when the prescribed time limit expires.
When a provisional payment of insurance proceeds by an insurer exceeds the amount of insurance benefits actually payable, the insurer may claim for return of the excess portion by the claimant.

(Procedure of a Single Automobile Traffic Accident Involving Multiple Insured Automobiles)
When a single automobile traffic accident involves multiple automobiles, the matter shall be handled in accordance with the following provisions:
1.When each accident vehicle is an insured automobile, a claimant may claim for payment of insurance benefits jointly and severally by each insurer that is required to bear the obligation to pay benefits.
2.When each accident vehicle is an automobile as set forth in Article：40, paragraph 1, the claimant may claim for compensation from the Compensation Fund.
3.When some of the accident vehicles are insured automobiles and some are automobiles as set forth in Article：40, paragraph 1, a claimant may claim for payment of insurance benefits or compensation jointly and severally by each insurer that is required to bear the obligation to pay benefits and by the Compensation Fund;
Apportionment of liability among the insurers or among the insurers and the Compensation Fund as referenced in the preceding paragraph shall be proportional to the number of accident vehicles for which each is required to bear liability for insurance benefits or compensation payments.

(Prohibition for Insurer Reject to Pay Benefits due to Claimant Hold Other Insurance)
When a claimant claims insurance benefits in accordance with the provisions of this Act, the insurer may not reject or reduce payment of benefits on the grounds that the claimant holds another type of insurance in addition to this insurance.