A Guide to Scooter Insurance
The number one question we get when talking about SKRT is insurance. After a lot of research and meeting with the largest insurance providers in Taiwan, we are ready to share what we've found - everything from the minimum legal requirements to a fully insured scooter for rent on the SKRT platform. Even if you do not list your scooter on SKRT, the information in this article will probably be helpful. So, let's get into it!
How Vehicle Insurance Works in Taiwan
Insurance procedures in Taiwan work differently than other countries. If you are in an accident and other people suffer some type of damage (property, injury, etc.) these people will collect your information and then you must make a claim with your insurance provider in order to pay the damaged parties (and vice versa if you are damaged). Policies are attached to the vehicle. Commercial insurance for scooters is a new development, after increasing demand from sharing platforms and food delivery companies; so these policies are new and may change over time.Compulsory Insurance
Having compulsory insurance is required by government law in Taiwan (it's right there in the name). No matter who is at fault in an accident, injured parties have the right to claim for insurance benefits.
Compulsory automobile liability insurance law provides three types of payment items:
- Injury medical expenses (per person) up to NT$ 200,000.
- Disability benefit (per person) up to NT$ 2 million.
- Death compensation (per person) up to NT$ 2 million.
*Taiwan National Health Insurance pays first. After it reaches its limit, compulsory insurance kicks in
Compulsory insurance only pays for third party injury related expenses, such as other drivers, passengers, your passenger, and/or pedestrians. To clarify, your vehicle's damage, your bodily injury, and others' property damages are not included in the coverage of compulsory insurance. Although compulsory insurance provides people with basic protection, sometimes it’s not enough for every accident. If the injured parties claim above the limit of any insurance policy, the owner is on the hook to cover any differences!
To cover such excessive expenses, insurance companies offer additional insurance options. Different insurance companies offer different options. Some companies offer bundled services which include the compulsory insurance (which may be a better deal overall), while others offer a-la-carte policies. Most of the additional policies only cover the scooter for personal use, i.e. not for commercial use.
The following is an example of compulsory insurance / additional insurance policy bundles through one of our partner providers:
Additional Insurances, with Commercial Options
Insurance companies differentiate personal use from commercial use. Compulsory insurance is always in effect and always offers coverage, no matter what. If you are using your scooter for personal purposes only, you don't need to worry about commercial insurance. But, if you are (for example) driving for a food delivery company, or (better example!) putting your scooter on SKRT and you want protection, you will need to consider a policy that includes commercial coverage. Additional Insurance options which protect against property damage have existed for a while, but only recently are there decent options to extend this insurance to commercial applications. Here are some example policies offered by one of our partners:
* Per person / total for all parties / property
** See the table above for what this policy covers
*** Taiwanese custom to give apologetic money if you wrong someone
What if there's an accident?
- First, and most importantly, make sure no one has been injured.
- Second, call the police and report the accident.
- Contact the insurance provider for your vehicle. This will save you a lot of trouble later.
- Collect the information we detail below.
- NEVER settle privately or negotiate on the scene, unless you clear it with the insurance provider first. Otherwise, you may void the policy and the insurance company will deny all claims.
Claiming for Compulsory Insurance
When a traffic accident occurs, the injured party can request payment from the owner's insurance company. "Injured Party" can mean either of the following:
- The actual victim who is injured.
- The survivors of a victim who has died in the accident.
The definition of survivors is different from that of legal heirs , and their order is as follows:
- Parents, children and spouses
- Grandparents
- Grandchildren
- Siblings
When there are several survivors in the same category, the insurance benefits or compensation are distributed equally according to the number of people.
The insurance company which the victim should claim from depends on who the victim is:
So, for example, if cars A, B, and C have an accident and they hit bicycle rider D, then the driver of car A can apply for compensation from either insurance company B or C, and both the passenger of car A and bicycle rider D can apply for compensation from any of the three insurance companies A, B or C.
As a fun side note, there is a government "Special Compensation Fund" for compulsory insurance, in the event that A, B, or C from above don't have compulsory insurance. That doesn't mean it's okay to skip getting compulsory insurance (more on that later).
Documents Needed for Compulsory Insurance
*You have 30 days to submit a claim for Compulsory Insurance
When you fill out the forms in step 1 above, you'll need to provide the insurance policy card, vehicle registration, and the rider's Driver's License (SKRT will provide this if the accident happened during a rental). Copies of the documents are okay.
Documents Needed for Additional Insurance
To file a claim for additional insurance, the insurance company will require more information than in the case of compulsory insurance. This information must be submitted for the insurance company's investigation into the accident. Here is a rough procedure in the event of an accident:
- Stay at the scene of the accident, immediately notify the police to come. Request drawings of the scene, and all transcripts.
- The scene should be kept intact and the injured should be sent to a doctor as soon as possible.
- Collect the name, contact information, license plate number, and insurance company of all other parties.
In the event of a hit and run, try to collect the other party’s model, color, car number, etc. Wait at the scene for police to arrive.
In the event of vehicle theft, you should immediately report to the police and the insurance department and obtain a police certificate of theft.
Collect as much information as possible. Get the names and contact information of everyone involved in the crash, including witnesses. Ask the other driver(s) for their license, car registration and insurance ID card, and get the makes and models of the cars involved. Note the location of the accident, time of day and the weather conditions. Smartphones are a great way to record all of these details.
Can I skip getting Compulsory Insurance?
No! All scooter owners must buy compulsory insurance in Taiwan, and SKRT requires proof of this insurance before listing your scooter. Police impose fines between NT$ 1,500-3,000 if you are caught without it, and in the event of an accident, the fines go up to NT$ 6,000-30,000 and your license plate will be confiscated.
With this information in hand, you can make an informed decision about which insurance is right for you. If it is still unclear, don't hesitate to reach out to us, either on our contact page or through social media. If you have your scooter on SKRT, or are interested in listing it, and want comprehensive insurance to protect your vehicle, we can set you up with the right options based on your needs.
As always, follow us on Instagram and catch more information (mostly fun stuff, we swear) @skrtscootersharing
