Compensation｜Motor Vehicle Accident Compensation Fund

The Purpose of Establishing MVACF

The Motor Vehicle Accident Compensation Fund ("the Fund") is established in accordance with the provision of Article 38 of the Compulsory Automobile Liability Insurance Act ("the Act") in order to secure basic compensation for victims in automobile traffic accidents.

Conditions Apply for Compensation

Claimant who cannot get insurance benefits in accordance with the Act due to the following conditions may claim for compensation of the Fund within the amount stipulated by the Act: Claimant may apply for compensation of the Fund based on the amount insured:

1. An accident vehicle cannot be traced.
2. An accident vehicle is an uninsured automobile.
3. An accident vehicle is an insured automobile that was used or managed without the consent of the insured.
4. All or some of the accident vehicles are ones for which establishment of a contract for this insurance is not required.

However, the victims or other persons legitimate to rights of claims who cause car accidents due to the following conditions, will not be compensated by the Fund:

1. Caused it through a deliberate act.
2. Caused it through a criminal act. Or each of the vehicles is an automobile for which establishment of a contract for this insurance is not required, the drivers of such vehicles may not apply to the Fund for compensation.

Certificates of Accident

When the accident occurs, the claimants shall immediately report the accidents to the police and request the certificate of accident.

The Fund's Right of Subrogation

According to Article 43, the Fund shall not be bound by any settlement, waiver of rights, or other agreement between a claimant and a party liable for damages when such agreement was made without the consent of the Fund and would impede exercise of the Fund’s right of subrogation to a claim by the claimant against the party liable damages. When a claimant has received damages from a party liable for damages, the Fund shall deduct the amount of such damages when making its own compensation payment. When a deductible amount is not deducted, the Fund may claim for return of compensation within the limit of deductible amount. The Fund entrusted to domestic non-life insurers to process claim services and payment, therefore, the claimant may chose one of the insurers to claim.