Compensation for death or injuries resulting from automobile accidents is set to be increased to a maximum of NT$2.5 million, up from NT$1.2 million, according to the Ministry of Transportation and Communications.
The amount of compensation that transportation operators must pay passengers in the event of an accident is capped by the ministry at NT$1.2 million for deaths, NT$800,000 for major injuries and NT$400,000 for minor injuries.
However, because of pressure following recent bus accidents, most notably the Dragon Bus accident that resulted in six deaths in July, the ministry yesterday held a meeting with businesses and government agencies to revise its compensation policy.
The meeting reached a consensus that compensation for death in an accident would be raised to NT$2.5 million, while compensation for major injuries would be increased to NT$1.4 million. Compensation for minor injuries will remain at NT$400,000.
The increased amount of compensation, however, would increase the financial burden for transportation operators. The compulsory motor liability insurance covers up to NT$1.4 million for death and upwards of NT$40,000 for major injuries. With the ministry's new policies, transportation operators could be forced to pay up to NT$1.1 million, the gap between the highest level of compensation available and insurance coverage.
MOTC official Chang Shun-ching (張舜清) explained that in an effort to ensure that accident compensation was paid, the ministry was planning to push through revisions that would make it mandatory for bus companies to purchase passenger insurance in addition to liability insurance.
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