Article 76 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 percent.

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.

Article 77 With respect to an accident that occurs when a vehicle runs outside the roads, the traffic control department of the public security organ shall, upon receiving the report on the accident, handle the case by referring to the relevant provisions of this Law.

Chapter VI

Supervision of Law Enforcement

Article 78 The traffic control department of the public security organ shall strengthen administration of the traffic police and help enhance their qualifications and raise their level of road traffic administration.

The traffic control department of the public security organ shall, among the traffic police, conduct professional training and appraisal in respect of the legal system and traffic safety administration. Where a traffic policeman fails to pass the appraisal, he shall not take the post to perform his duties.

Article 79 When the traffic control department of the public security organ and the traffic police exercise control of road traffic safety, they shall, in compliance with their statutory functions and duties and the statutory procedure, simplify official formalities and do their work in an impartial, strict, civil and efficient manner.

Article 80 When performing their functions and duties, the traffic police shall, in accordance with relevant regulations, wear their uniforms and the badges of the people’s police, hold their papers of the people’s police, keep up the bearing of the police, carry themselves with dignity and direct traffic in conformity with standards.

Article 81 Fees for the cost of the plates and certificates issued in accordance with this Law shall be collected strictly in accordance with the rates fixed by the department for pricing under the State Council, and shall be turned over to the State Treasury in full.

Article 82 When the traffic control department of the public security organ imposes fines as an administrative punishment, it shall, in accordance with the provisions of relevant laws and administrative regulations, separate the decision on fines from the collection of fines; and the fines collected and unlawful gains confiscated according to law shall be turned over to the State Treasury in full.

Article 83 When a traffic policeman investigates and handles violations of the law on road traffic safety or traffic accidents, he shall withdraw in any of the following circumstances:

(1) if he is a party to the case or close relative of the party;

(2) if he or his close relative has an interest in the case; and

(3) if he has other relations with the party to the case, which may affect the impartial disposition of the case.

Article 84 Administrative law enforcement conducted by the traffic control department of the public security organ and the traffic police shall be subject to supervision exercised by the administrative supervisory authority according to law.

The supervisory department of the public security organ shall, in accordance with law, supervise the enforcement of laws and regulations and the observance of discipline by the traffic control department of the public security organ and the traffic police.

The traffic control department of the public security organ at a higher level shall supervise the law enforcement by the traffic control department of the public security organ at a lower level.

Article 85 When performing their duties, the traffic control department of the public security organ and the traffic police shall consciously accept supervision by the community and citizens.

All units and individuals shall have the right to report or complain against the traffic control department of the public security organ and the traffic police for their failure to enforce laws strictly or their violations of laws or rules of discipline. The authority that receives such report or complaint shall, in compliance with its duties, conduct investigation and impose punishment without delay.

Article 86 No unit shall impose, or impose in disguised form, any penalty quota to the traffic control department of the public security organ; and the traffic control department of the public security organ shall not make the amount of fines imposed as the criterion for appraisal of the performance of traffic police.

The traffic control department of the public security organ and the traffic police shall have the right to refuse to carry out the instructions that transcend the provisions of laws and regulations, and report the matter to the authority at a higher level at the same time.