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Article 1 |
These regulations are stipulated in accordance with the provision of Paragraph 2 of Article 8 of the Compulsory Automobile Liability Insurance Act (hereinafter referred to as "this Act").
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Article 2 |
An insurer applying to engage the Compulsory Automobile Liability Insurance (hereinafter referred to as "this Insurance") shall be qualified as follows:
(1) An established property insurance company approved by the competent authorities.
(2) Its business scope includes automobile insurance, with sound condition in finance and business management, and ability to operate this Insurance.
(3) To cope with the Special Compensation Fund under this Act, it can uphold the legitimate rights and interests of the injury party of an automobile traffic accident.
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Article 3 |
A property insurance company applying to operate this Insurance shall submit to the competent authority the following documents as follows:
(1) Application Form for a property insurance company operating Compulsory Automobile Liability Insurance (shown as the attachment),
(2) Business Plan for operating this Insurance, and
(3) Any other documents required by the competent authority.
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Article 4 |
The Business Plan mentioned in the paragraph 2 of Article 3 shall include the items as follows:
(1) Operation model for this Insurance, organization structure and department responsibility.
(2) Personnel allocation, management and training plan.
(3) Operation procedure and control level for issuing insurance certificates and other documents required by the competent authority.
(4) Internet software and hardware equipments for efficient connection to the network and computer system of this Insurance.
(5) Plan to provide 24 hours claim reports service.
(6) Claim settlement procedure, including handling procedure of subrogation.
(7) Procedure for complaint cases.
(8) Procedure of accounting arrangement.
(9) Internal audit system related to this Insurance.
(10) Operation methods to cope with the Special Compensation Fund.
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Article 5 |
A property insurance company operating this Insurance, in order to achieve the goal of "no-gain-no-loss" in the operation, should spread the risks only by way of domestic co-insurance.
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Article 6 |
A property insurance company operating this Insurance, shall start to operate within the approved period, subject to the Business Plan required in Article 4 and the regulations relevant to this Insurance.
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Article 7 |
The competent authority may revoke the authorization granted to a property insurance company operating this Insurance if it receives an order to remedy the violation in any of the following within a designed period but fails to do so:
(1) The insurer has been fined over 5 times or the accumulated fines is over NT$ 10 million within one year by the competent authority owing that any kind of required reserves is not deposited in financial institution with fixed term deposit or treat special reserve as a profit
(2) The insurer has been fined over 10 times or the accumulated fines is over NT$ 10 million within one year by the competent authority owing that the premium is not calculated in accordance with the premium rate stipulated by the competent authority.
(3) The insurer has been fined over 10 times or the accumulated fines is over NT$ 10 million in recent two years by the competent authority owing to violating the laws or regulations relevant to this Act, but times and amounts stipulated in the preceding two paragraphs.
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Article 8 |
When a property insurance company operating this Insurance which plans to stop operating this Insurance, it shall disclose the specific reasons, propose business transfer plan, receive an approval and revocation permission by the competent authority and make a public announcement in major newspapers.
The business transfer plan mentioned in the preceding paragraph shall include business transfer or the way to terminate liability and the proposed date to stop operation.
The property insurance company, whose permission to operate this Insurance is revoked by the competent authority subject to Article 7, shall submit the business transfer plan as required in the preceding paragraph to the competent authority within one month after receiving the notification.
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Article 9 |
A property insurance company cannot apply for a permission to operate this Insurance within two years if its permission is revoked due to the reasons stipulated in the preceding two articles.
Any property insurance company applying to reinstate its operation shall explain the reason and apply for approval by the competent authority subject to Articles 3 and 4.
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Article 10 |
The Regulations shall be implemented from the day of announcement.
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