Car Insurance Claim Time Limit in Taiwan: Statutory Deadlines, CALI vs Voluntary Cover, and MVACF Notice Rules

Understanding the car insurance claim time limit in Taiwan is essential for any driver, expat resident or fleet operator involved in a road traffic accident on the island. Taiwan’s framework layers compulsory automobile liability insurance (CALI) over voluntary third-party and own-damage policies, each with distinct notice windows and settlement deadlines that can catch English-speaking claimants off guard. Missing a single deadline, whether a contractual notification window or a statutory limitation period, can weaken an otherwise valid claim or extinguish it entirely. This guide consolidates the deadlines, documents and practical steps you need to preserve your rights from the moment of impact through to final settlement or litigation.

Quick action checklist, do these immediately after any car accident in Taiwan:

• Call 110 (police) and 119 (ambulance if needed). Do not leave the scene until officers arrive and issue an accident certificate.
• Seek medical attention and request copies of all hospital records, even for seemingly minor injuries.
• Preserve evidence: photograph the scene, collect witness contact details, and retain every receipt related to the accident.

Is Car Insurance Mandatory in Taiwan? CALI Scope and Penalties

Yes, car insurance is mandatory in Taiwan. The Compulsory Automobile Liability Insurance Act (CALI Act) requires every owner or operator of a motor vehicle registered for use on public roads to maintain compulsory automobile liability insurance. This mandatory liability insurance in Taiwan covers not just private cars but also commercial vehicles, taxis, buses, trucks, and motorcycles and scooters. The purpose is to guarantee that traffic-accident victims receive at least a baseline level of compensation regardless of fault determinations or the at-fault driver’s financial situation.

Penalties for non-compliance are significant. Owners who operate a vehicle without valid CALI coverage face administrative fines and may have the vehicle’s registration suspended. Repeat violations can result in escalating fines and compulsory impoundment. Critically, if an uninsured driver causes an accident, the victim may turn to the Motor Vehicle Accident Compensation Fund (MVACF) for compensation, and the MVACF will then seek full reimbursement from the uninsured driver, adding a layer of personal financial liability on top of the original damages.

Statutory and Contractual Time Limits for Car Insurance Claims in Taiwan

The insurance claim time limit in Taiwan is governed by a combination of the Insurance Act, the Civil Code and individual policy contracts. Understanding each layer is essential because a claimant who meets one deadline may still be time-barred under another.

Insurance Act obligations, insurer payment periods

Under Taiwan’s Insurance Act, an insurer is obligated to investigate a claim and pay indemnification within the period stipulated in the insurance contract after the insured event is reported. Article 34 of the Insurance Act provides that the insurer must finalise settlement within the contractually agreed timeframe once it has received a complete claim submission including all supporting documents. Where no specific period is stated, the insurer must act within a reasonable time. Industry observers note that most motor-insurance policies in Taiwan set a contractual settlement window, and insurers that unreasonably delay payment expose themselves to regulatory scrutiny from the Financial Supervisory Commission (FSC) and potential liability for default interest.

From the policyholder’s side, the Insurance Act imposes a prescription period for insurance-contract claims. Under Article 65 of the Insurance Act, the right to claim benefits under an insurance contract is extinguished if not exercised within two years from the date the insured becomes aware of the insurable event. This two-year prescription applies to contractual claims against the insurer, it is separate from and should not be confused with the civil-law limitation periods discussed below.

Civil limitation periods for personal injury and property damage

When a car accident claim extends beyond the insurance contract, for example, suing the at-fault driver directly in tort, Taiwan’s Civil Code governs the limitation period. Article 197 of the Civil Code provides that claims for damages arising from tortious acts must be brought within two years from the date on which the injured party becomes aware of the damage and the identity of the person liable. An absolute outer limit of ten years from the date of the tortious act also applies. For a car accident claim in Taiwan, the practical deadline is therefore two years from the date the claimant knows who caused the accident and the extent of their injuries or property loss.

Practical takeaway, earliest action and how late is “too late”

Industry observers emphasise that the safest approach is to notify the insurer and gather documents within the first 48 to 72 hours, even though statutory deadlines technically allow longer. Below is a consolidated timeline of the key deadlines:

CALI vs Voluntary Motor Insurance, What Each Covers and Deadline Differences

Understanding the differences between compulsory automobile liability insurance in Taiwan and voluntary motor policies is critical because coverage gaps, benefit caps and notification procedures differ significantly between the two.

CALI provides a baseline, no-fault-style benefit to accident victims. It covers bodily injury and death of third parties (passengers and pedestrians) regardless of fault. CALI benefit caps are set by regulation: as published by the Insurance Bureau, the maximum payout for a single death is NT$2 million, with separate caps for medical expenses and disability benefits. CALI does not cover the insured driver’s own injuries, property damage to any vehicle or damage to roadside infrastructure. If actual losses exceed the CALI cap, the victim must look to the at-fault driver’s voluntary third-party policy, or pursue a direct civil claim, for the balance.

Voluntary third-party liability insurance extends coverage beyond the CALI cap and can include property-damage liability. Own-damage (comprehensive) insurance covers the policyholder’s own vehicle. These voluntary policies are governed by their individual terms, which typically impose stricter notification windows, often requiring the policyholder to report the accident within a set number of days (commonly five to seven working days, though this varies by insurer). Failing to comply with these contractual notice clauses can give the insurer a basis to reduce or deny the claim.

When a claimant’s losses exceed CALI limits, the standard sequence is: claim under CALI first for the statutory benefit, then claim the excess under the at-fault party’s voluntary third-party policy, and finally pursue the at-fault driver personally for any remaining shortfall. If the at-fault driver is uninsured or cannot be identified (hit-and-run), the victim can apply to the MVACF.

MVACF (CALI Fund) Claims and Notice Rules, Step by Step

The Motor Vehicle Accident Compensation Fund (MVACF) exists to ensure that accident victims are not left without recourse when the at-fault driver is uninsured, the vehicle is unidentified (hit-and-run), or the insurer is insolvent. MVACF Taiwan compensation is funded by a levy on CALI premiums and is administered under the CALI Act framework.

Eligibility: A victim may apply to the MVACF when compensation cannot be obtained through the normal CALI channel, typically because the at-fault vehicle had no CALI coverage, the vehicle cannot be identified, or the insurer responsible has been declared insolvent.

Step-by-step MVACF filing process:

1. Report the accident to police immediately by calling 110. Request and retain the official police accident certificate (事故證明). This document is a prerequisite for any MVACF claim.
2. Seek medical treatment and keep all hospital records, diagnosis certificates, receipts and treatment summaries.
3. Gather supporting documents: photographs of the scene, vehicle damage, traffic-signal conditions, witness statements and any dashcam footage.
4. Prepare and submit the MVACF application. The application can be filed through the MVACF service office or via the online portal. Include all documents listed below.
5. MVACF reviews and investigates. The Fund will verify eligibility, assess the claim against CALI benefit standards and may request additional evidence.
6. Fund issues compensation and exercises its right of recourse against the liable party or uninsured driver to recover the amount paid.

For enquiries, the MVACF can be contacted through the service hotline listed on its official website. Early contact is advisable because the Fund may provide guidance on additional evidence requirements specific to your case.

Practical Steps to Preserve and File a Car Insurance Claim in Taiwan, What to Do in the First 72 Hours

The actions you take in the hours immediately after a car accident in Taiwan can determine whether your claim succeeds or fails. Below is a concrete checklist to follow, whether you are filing under CALI, a voluntary policy or the MVACF.

• At the scene (first 30 minutes): Call 110 (police) and 119 (ambulance) if anyone is injured. Do not move vehicles until police arrive unless doing so is necessary to prevent further danger. The Taipei City Government advises keeping the scene undisturbed and turning on hazard lights.
• Document everything: Use your phone to photograph vehicle positions, damage, skid marks, traffic signals, licence plates and road conditions. Record a short video if possible. Collect names, phone numbers and identification details of witnesses.
• Obtain the police accident certificate: Ask the attending officers when and where you can collect the official certificate (usually available from the local police station within a few days). This document is essential for all insurance and MVACF claims.
• Visit a hospital: Even if injuries seem minor, get a medical examination and request a written diagnosis certificate and copies of all treatment records. Delayed symptoms, especially soft-tissue injuries, are common and must be documented early.
• Notify your insurer promptly: Contact your CALI and voluntary insurer as soon as practicable. Many policies expect notification within 48 to 72 hours. The early practical effect of prompt reporting is smoother claim processing, even though the statutory limitation is longer.
• Keep all receipts: Tow-truck fees, taxi fares, rental-vehicle costs, pharmacy bills and repair estimates are all potentially compensable and must be documented.

Sample insurer notification (email or message):

“Dear [Insurer Name], I am writing to report a traffic accident that occurred on [date] at [location]. My policy number is [number]. A police report has been filed (case reference: [number]). I sustained [brief injury description] and my vehicle sustained [brief damage description]. I attach photographs and the police certificate. Please advise on next steps for processing my claim. I am available at [phone/email].”

Common Pitfalls, Insurer Denials and Remedies

Even with prompt reporting, claims can be denied or reduced. Understanding the most common insurer defences, and how to counter them, helps claimants protect their car accident claim in Taiwan before the deadline expires.

• Late notice. Insurers may argue that delayed notification prejudiced their ability to investigate. Preserve independent evidence (photos, dashcam footage, medical records) to rebut this argument. Late notice alone does not automatically void a claim under the Insurance Act, but it shifts the burden to the claimant to prove the loss.
• Failure to mitigate. If you did not seek prompt medical treatment or failed to secure the accident scene, insurers may reduce the payout. Always follow the 72-hour checklist above.
• Inconsistent statements. Avoid speculating about fault or providing detailed narratives before consulting a lawyer. Stick to factual descriptions of what happened and let investigators determine liability.
• Fraud suspicion. Unusual claim patterns or inflated repair estimates can trigger fraud investigations and delay payment. Submit only genuine, documented expenses.

If your insurer denies a claim, request the denial in writing with specific reasons. You can file a complaint with the Insurance Bureau under the FSC, which has authority to review insurer conduct. If administrative channels do not resolve the dispute, litigation remains an option, but remember the two-year prescription under Article 65 of the Insurance Act for contractual claims and the two-year limitation under Article 197 of the Civil Code for tort claims.

When to Consult a Lawyer, Scenarios and Next Steps

Not every fender-bender requires legal representation, but certain situations warrant professional advice as early as possible to protect your rights within the car insurance claim time limit in Taiwan:

• Serious personal injury or fatality, damages are likely to exceed CALI caps significantly
• Disputed liability, the other party denies fault or counter-claims
• Insurer denial or unreasonable delay in settlement
• Subrogation threats, your insurer seeks to recover from you after paying a third-party claim
• Cross-border complexity, foreign drivers, international driving permits or overseas insurance policies
• Hit-and-run or uninsured driver, MVACF claims with evidentiary gaps

An insurance-law specialist can review your documentation, calculate the true value of your claim (including future medical costs and lost earnings), negotiate directly with the insurer and, if necessary, file suit within the applicable limitation period.

Reporting Obligations by Entity Type

Sources

1. Motor Vehicle Accident Compensation Fund (CALI / MVACF official), English Unit page
2. Motor Vehicle Accident Compensation Fund (Service / English)
3. Insurance Act / FSC statute repository
4. Insurance Bureau, CALI benefits FAQ
5. Taiwan Insurance Institute, Introduction of CALI system (research PDF)
6. ICLG, Taiwan Insurance & Reinsurance Laws and Regulations 2026
7. Taipei City Government / DOT, How do I ensure my rights and interests in a car accident?
8. SSRN, Academic analysis of CALI and victim rights