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Research on the operation management of automobile transportation business from the angle of liability insurance

  • Date:2019-03-05
  • Update:2020-05-15
  • Department:IOT

Research result:

  In this research, the analysis and review are executed for the current status of the liability related management mechanism for the automobile transportation business in Taiwan and local/overseas literature or the system specification in advanced countries. Regarding the passenger liability insurance to be secured by the taxi transportation business, we have invited the representatives from taxi associations and league as well as the representatives from MOTC, Directorate General of Highways, scholars and experts to participate in the discussion with a consensus reached as well. In the meantime, we also submitted the Amended Clause Comparison Table for Highway Law where Item 4 under Article 65 of Highway Law was amended for including the passenger liability insurance in the compulsory insurance clauses for the taxi passenger transportation business in order to protect passenger’s rights.

  As for the issue on whether the liability insurance should be used to prove the incorporation conditions requested by the automobile transportation business, we suggest that the limousine and the taxi should be guided for the trial test in the future. Currently, the analysis data obtained from taxi driving behaviors is quoted by the competent insurance authority and relevant property insurance firm for establishing an impartial fare charging mechanism through which, favorable insurance premiums will be offered for encouraging the drivers to reduce traffic accidents and improve their driving behaviors. We suggest that such methods should be promoted to the limousine passenger transportation business in order to apply the analyzed driving behavior data and traffic accident reduction incentives to the favorable premiums indicated in the insurance policy secured by the taxi and limousine passenger industries. As a result, it will not only reduce the fleet taxi problem but will provide higher protection for the third party that will be offered by the liability insurance secured by the automobile transportation business.

Promotion of result :

Name of Activity  Target  Activity Method Sustainability 
Compulsory Passenger Liability Insurance Seminar for Taxi Passenger Transportation Business Representatives from Department of Highways & Railways-MOTC, Directorate General of Highways as well as scholars, experts and representatives from taxi association and league. One session of seminar will be convened. After reaching solid conclusions, it is suggested that Item 4 under Article 65 of Highway Law should be amended.
The liability insurance certificate should be used for encouraging the automobile transportation business to apply for the incorporation. Limousine passenger transportation and taxi passenger transportation association. 1~2 sessions of seminar will be convened. The liability insurance certificate should be used as one of the conditions for encouraging the automobile transportation business to apply for the incorporation, in order that the result will be used as the reference for amending the Automobile Transportation Business Management Rules
Draft of amended clauses for Article 65 of Highway Law.
 Amended clauses The car owners must secure the Compulsory Automobile Liability Insurance pursuant to the regulations of Compulsory Automobile Liability Insurance Law.
Before applying for the license from the competent highway authority, the motorcycle owner shall secure the liability insurance according to the amount stipulated by MOTC.
The highway automobile passenger transportation business, city automobile passenger transportation business and limousine passenger transportation business shall secure Passenger Liability Insurance and the minimum premiums shall be stipulated by MOTC. If failing to secure the required Passenger Liability Insurance, then the offender shall be imposed with a sum of NTD100,000 up to NTD500,000 as the penalty fine.
The operator is required to secure Passenger Liability Insurance when running taxi passenger transportation business or taxi passenger service business, and the minimum premiums and the execution method shall be stipulated by MOTC. (Addition)
 
 Description  Added Item 4. In Article 6: “Operation Approval Method for Taxi Passenger Service Business”, it specifies that the businesses applying for the dispatch business (The fleet business) must secure the Passenger Liability Insurance in coverage amount over NTD1,500,000.00 for each person and it means that the “fleet taxi business” is required by MOTC to secure the Passenger Liability Insurance. However, only 38% of vehicles have joined the fleet business by now and it means that nearly 60% of taxis used by ordinary passengers in Taiwan are not provided with the Passenger Liability Insurance. Due to this reason, Item 4 is added in this article to stipulate that the companies running the taxi passenger transportation and taxi passenger service business should secure the Passenger Liability Insurance in order to protect the passengers when using the taxi as transportation tool.

5-year Loss Rate of Random Automobile Third Party Liability Insurance (Bodily Injury) for Private Car Risk Group

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