Road Traffic Liability in China

A View from Law and Economics

Series: 

Author:
Yu Yan
In Road Traffic Liability in China: A View from Law and Economics, Yu Yan provides an in-depth analysis of the Chinese road traffic liability system, as well as other alternative accident prevention schemes from a view of law and economics. The analysis refers to the functioning of the system both on paper and in practice. The conclusion shows that the current Chinese traffic liability system can only achieve partial deterrence, and that the problems of under-compensation and insufficient risk-spreading seem to be serious, at least in the economically underdeveloped regions. Based on these findings, Yu Yan suggests specific legislative changes to be taken for the policymakers to improve the system.
Copyright Year:
2020
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ISBN:
978-90-04-41108-1
Publication:
11 Nov 2019
Hardback
Availability:
Published
ISBN:
978-90-04-41001-5
Publication:
21 Nov 2019
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Yu Yan obtained her Ph.D. in Law in 2018 in Institute for Transnational Legal Research (METRO) at Maastricht University in the Netherlands. She now works as a research fellow in School of Law at Xiamen University in China. She has published several articles and her research interest includes tort law, law and economics analysis of accident law, and insurance law.
Acknowledgments
List of Illustrations
List of Abbreviations

Introduction
 1 Background
 2 Aims of the Book
 3 Structure and Brief Overview

1 The First Phase of Development
 Introduction
 1 The Legal Framework for Dealing with rta Related Disputes
 2 Rules on Road Traffic Liability
  2.1 Fault-Based Liability in the 1951 Interim Measures
  2.2 Vicarious Liability in spc’s Judicial Interpretations
  2.3 Fault-Based Liability in Local Laws
 3 Rules on the Compensation of Traffic Accident Victims
  3.1 Limited Amount of Compensation
  3.2 The Role of the “Danwei” in Victim Compensation
  3.3 Detailed Rules in the Local Administrative Measures
 4 Methods Used to Settle rta Compensation Claims
 5 The Development of Private Insurance
 6 Conclusion

2 The Second Phase of Development
 Introduction
 1 The Legal Framework for Dealing with rta Related Disputes
 2 Rules on Road Traffic Liability
  2.1 Strict Liability in the gpcl
  2.2 Inconsistent Interpretations in Local Laws
  2.3 A Uniform Interpretation in the 1991 Regulation
  2.4 Different Basis of Liability in the rtsl
  2.5 Liable Person in the tll
 3 Rules on the Compensation of Road Traffic Victims
  3.1 Rules for Tort Damages in the gpcl
  3.2 Detailed Criteria for Calculating Damages Provided by Local Laws
  3.3 Uniform Criteria for Calculating Damages in the 1991 Regulation
  3.4 Harmonising the Compensation Criteria in Two Judicial Interpretations
 4 Current Chinese Legal Framework for rta Prevention
  4.1 Aims of Tort Liability System
  4.2 Liability Rules
  4.3 Safety Regulation and Road Traffic Liability
 5 The Impact of Insurance on the Road Traffic Liability System
  5.1 cvli before 2006
  5.2 cvli after 2006
  5.3 Social Security Schemes in China
  5.4 A Comparison of Different Insurances: Some Empirical Evidence
 6 Conclusion

3 Economic Analysis of Road Traffic Liability
 Introduction
 1 Economic Essence of Tort Law
 2 Deterrence via Tort Liability
  2.1 Unilateral versus Bilateral Accidents
  2.2 Applied to Road Traffic Accidents
 3 The Impact of Imperfect Information
  3.1 Standard of Care
  3.2 Causation
  3.3 Damages
 4 The Impact of Regulation
  4.1 The Need to Regulate Traffic Safety
  4.2 Arguments for Licensing Driving
  4.3 Arguments for Regulation
  4.4 Violation of Traffic Regulation and Liability
 5 The Impact of Insurance
  5.1 Risk Aversion and the Demand for Insurance
  5.2 Problems of Insurance Markets and Possible Solutions
 6 The Impact of Insolvency
 7 The Impact of Litigation Costs
 8 Compensation via Road Traffic Liability
  8.1 Rationale
  8.2 Compensation Accomplished by Insurance
  8.3 Compensation Accomplished by Road Traffic Liability
 9 Conclusion

4 Empirics of Road Traffic Liability
 Introduction
 1 The Operation of the Road Traffic Liability Litigation System
  1.1 Frequency, Causes, and Severity of Road Traffic Accidents
  1.2 Claims Initiation
  1.3 Claims Resolution
 2 Effects of Road Traffic Liability Reform on Litigation and Insurance
  2.1 Trends in Road Traffic Liability Claims
  2.2 Effects of Tort Reform on Claim Frequency and Damage Awards
  2.3 Effects of Tort Reform on Insurance
 3 Safety Effects of Road Traffic Liability
  3.1 The Change in the Negligence Rule
  3.2 Safety Measures
 4 Costs and Benefits
  4.1 Administrative Costs
  4.2 Cost-Benefit Analysis
 5 Conclusion

5 Economic Analysis of Alternative Instruments
 Introduction
 1 Alternative Instruments for rta Prevention
 2 The Choice of Sanctions
 3 First-Party Insurance Scheme as an Alternative Compensatory Instrument
  3.1 First-Party Insurance versus Liability Insurance
  3.2 First-Party Insurance versus Tort Liability
 4 Compensation Schemes Not Based on Fault
  4.1 No-Fault Compensation Systems for rta s
  4.2 Some Empirical Evidence
  4.3 Rationale of Compulsory Insurance
  4.4 Rationale of Social Security
 5 Conclusion

6 Critical Analysis of the Current Road Traffic Liability System in China
 Introduction
 1 Critical Analysis of the Road Traffic Liability System in China
  1.1 Multiple-Goals
  1.2 Basis of Liability
  1.3 Objective Test to Determine Fault
  1.4 Imputability
  1.5 Causation and Causal Apportionment among Multiple Tortfeasors
  1.6 Quantum Rules
  1.7 The Role Played by the Victim
  1.8 Interplay between Traffic Safety Regulation and Tort Law
 2 Critical Analysis of the Chinese rta Compensation System
  2.1 Liability Insurance in China
  2.2 First-party Insurance and Social Security Schemes
 3 Some Empirics
  3.1 Frequency, Severity, and Causes of Road Traffic Accidents
  3.2 Claim Initiation
  3.3 Claim Resolution
  3.4 Litigation Costs
  3.5 The Effectiveness of Road Traffic Safety Regulation
 4 Conclusion

7 Summary, Policy Recommendations and Future Developments
 1 Summary of Main Findings
  1.1 Answers to Question 1
  1.2 Answers to Question 2
  1.3 Answers to Question 3
  1.4 Answers to Question 4
  1.5 Answers to Question 5
 2 Possibilities for Future Research
 3 The Way Forward

Appendix 1: Chinese Legislation
Appendix 2: Cases
Appendix 3: Interviews
Bibliography
Index
All interested in the Chinese road traffic liability system, as well as anyone with a general interest in the tort law and the law and economics analysis of accident law.
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Publisher:
Brill | Nijhoff
Language:
English
DOI:
https://doi.org/10.1163/9789004411081

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