Decision of the Standing Committee of the National People’s Congress on Amending the Law of the People’s Republic of China on Road Traffic Safety

(Adopted at the 31st Meeting of the Standing Committee of the Tenth National People’s Congress on December 29, 2007)

At its 31st Meeting, the Standing Committee of the Tenth National People’s Congress decided to make the following amendments to the Law of the People’s Republic of China on Road Traffic Safety:

Article 76 is revised to read, “Where motor vehicles are involved in traffic accidents which cause casualties and property losses, the insurance company shall make compensation within the limit of the compulsory third party liability insurance for motor vehicles; if the said insurance is insufficient, the part not covered shall be compensated according to the following provisions:

“(1) where a traffic accident occurs between two motor vehicles, the party in fault shall bear the liability; and where both parties are in fault, the liability shall be shared on the basis of the proportion of each party’s fault; and

“(2) where a traffic accident occurs between the driver of a motor vehicle and the driver of a non-motor vehicle or a pedestrian, the driver of the motor vehicle shall bear the liability for compensation if the driver of the non-motor vehicle or the pedestrian is not in fault; if there is evidence which proves that the driver of the non-motor vehicle or the pedestrian is in fault, the liability for compensation to be borne by the motor vehicle driver shall be appropriately lightened on the basis of the degree of the fault; if the driver of the motor vehicle is not in fault, the liability for compensation to be borne by him shall not exceed 10 per cent.

“Where the losses in a traffic accident are caused by the driver of a non-motor vehicle or a pedestrian who deliberately runs into a motor vehicle, the driver of the motor vehicle shall not bear any liability for compensation.”

This Decision shall go into effect as of May 1, 2008.

The Law of the People’s Republic of China on Road Traffic Safety shall be amended correspondingly in accordance with this Decision and promulgated anew.