Institute of Transportation, MOTC

　　To establish an objective and reasonable valuation basis of the compensation for damages in a traffic accident, we reviewed the compensation for damages defined in the civil law, the derivation of the loss of any kinds of possible costs followed by a traffic accident that corresponds with the concepts of cost analysis of an accident to build up the necessary covering range of the compensation for damages, and the actual investigation of both property loss and non-property loss of those victims of a traffic accident and their corresponding analysis to determine the required valuation basis of the compensation for damages.
　　Meanwhile, a total of five analysis methods are utilized in this study to simplify the procedure of determining the required valuation basis of the compensation for damages, such as the Questionnaire Survey Method used for estimating the aggressive property loss, the Method of Human Capital Approach, the Compensation for Damages Calculation Method and the Method of Expected Earning Value Approach used for calculating the negative property loss, and the Contingent Valuation Method used for estimating non-property loss by dealing with a simulated market for the mental loss of a person directly concerned with the damage to find the real value of the compensation for damages. Besides, the real value mentioned above must be an equivalent amount of money betweem the plaintiff who are not willing to accept and defendant who are not willing to pay. Finally, a traffic accident compensation cost model based on the results of the actual investigation of this study is proposed herein. These results will be considered a reasonable reference not only for the victims but also for the examining committee of a traffic accident.