China Drafts Law on Autonomous Vehicle Violations and Compulsory Insurance

The draft amendment to the Road Traffic Safety Law was submitted for its first review at the 24th session of the Standing Committee of the 14th National People's Congress on August 25. The draft includes a dedicated chapter on special provisions for autonomous vehicles, distinguishing between autonomous driving and driver-assistance functions, and clarifying core elements such as conditions for road use, handling of traffic violations, and the insurance system.

Under the draft, autonomous vehicles may activate autonomous driving functions within their designed operational conditions after registration. Manufacturers or importers must ensure that the functions cannot be activated when conditions are not met, and no unit or individual may alter autonomous driving functions without authorization.

Regarding traffic violations, the draft stipulates that when a road traffic safety violation occurs while autonomous driving is activated, the manufacturer or importer is responsible for accepting the handling. If the enterprise believes the violation is unrelated to the autonomous driving function, it bears the burden of proof. Vehicles without activated autonomous driving functions, or those with only driver-assistance functions, remain subject to regulations for non-autonomous vehicles. In accident investigations, traffic management departments may lawfully obtain data from autonomous vehicles and commission qualified institutions for inspection or appraisal.

On insurance, the draft establishes a compulsory motor vehicle traffic accident liability insurance system for autonomous vehicles, with specific measures to be formulated by the State Council. In January 2025, four departments including the National Financial Regulatory Administration issued guidance requiring coordinated industry efforts to study the medium- and long-term impact of intelligent driving on auto insurance operations. Currently, insurance products specifically for intelligent driving risks remain in the exploratory stage, mainly due to insufficient actuarial data. Vehicles with L3 and above intelligent driving capabilities have not yet been deployed on a large scale, resulting in limited accident samples and a lack of effective data feedback to the insurance industry. Additionally, unresolved issues such as the boundaries of liability for algorithm defects and product quality, as well as the attribution of risks from system upgrades, have made insurers cautious in product development.

Beijing has taken the lead nationally in developing and applying commercial insurance for intelligent connected new energy vehicles, planning to optimize and upgrade the existing new energy vehicle insurance system to achieve unified adaptation for L2 to L4 levels of intelligent connected new energy vehicles. The new products largely follow the existing commercial new energy vehicle insurance framework, adhering to the principle of "overall stability with partial optimization," with a focus on providing risk coverage for specific intelligent driving scenarios and software and hardware losses.