Provisional Measures of the Shenzhen Municipality on the Social Assistance in Road Traffic Accidents deliberated and adopted at the Eighty-Fourth Executive Meeting of the Fourth Municipal Government is promulgated now and will take effect as of April 1, 2008.

Chapter I General Provisions

Article 1 In order to promote and maintain social stability, build a harmonious society, and protect the legitimate rights and interests of victims in road traffic accidents, these measures are hereby formulated in accordance with Law of the People’s Republic of China on Road Traffic Safety, Regulations on the Compulsory Insurance of the Liabilities of Motor Vehicles Traffic Accidents, Regulations of the Guangdong Province on Road Traffic Safety and in the light of the actual conditions of this city.

Article 2 These measures shall apply to the implementation of the social assistance in road traffic accidents and the use and management of the fund of social assistance in road traffic accidents (hereinafter referred to as the assistance fund) in the Shenzhen City (hereinafter referred to as this city).

Article 3 The social assistance in road traffic accidents referred to in these measures shall mean the payment made by the assistance fund according to these measures for the expenses of rescue and funeral of the persons who suffer personal injuries or die (hereinafter referred to as victims) because of road traffic accidents on their account and the financial assistance provided by the assistance fund according to these measures for the victims or their family members who have extraordinary difficulties in making a living.

The expenses of rescue referred to in these measures shall mean the medical expenses incurred by medical institutions in taking necessary measures according to the stipulated standards to treat injured persons in the road traffic accidents of motor vehicles when their vital signs are not stable or their vital signs are stable but their life may be threatened or diseases, malfunction of organs may occur or the period of illness apparently may be extended if these treatment measures are not taken.

Article 4 The social assistance in road traffic accidents shall follow the principle of combination of social participation and government support, openness, timeliness and convenience for the people.

Article 5 The municipal government shall establish and improve the system of social assistance in road traffic accidents，support, supervise and ensure the normal operation of assistance fund.

The division of traffic control of the municipal public security agency (hereinafter referred to as the municipal traffic control division) shall be responsible for the management and use of the assistant fund.

The municipal department of finance shall be responsible for the supervision and inspection of the management of budget and final accounting, financial management, and budget implementation of the assistance fund.

The municipal department of health shall be responsible for the supervision and inspection of the activities to rescue victims carried out by medical institutions according to stipulated standards.

The Shenzhen agency of insurance supervision shall be responsible for the supervision and inspection of the payment made by insurance companies to the assistance fund according to stipulated standards.

The municipal trade association of insurance shall be responsible for providing the insuring data and related information of the compulsory insurance of third party liability (hereinafter referred to as the traffic compulsory insurance) for motor vehicles.

Chapter II Administrative Organizations of Assistance

Article 6 The municipal government shall set up the Shenzhen Municipal Administrative Committee of the Fund of Social Assistance in Road Traffic Accidents (hereinafter referred to as the municipal committee of fund administration), the municipal committee of fund administration shall have one chairman who should be the leading official of the municipal government in charge of road traffic safety, the other members shall consist of the representatives of the municipal departments of finance, health, labor security, audit, the municipal traffic control division, the Shenzhen agency of insurance supervision, and professionals in medical science, law, finance, and insurance, etc., professionals shall not be less than 5. The municipal committee of fund administration shall hold meetings on a regular basis and execute the following duties:

(1) to supervise the assistance fund’s fund raising and payment on victims’ account;

(2) to coordinate, study the work related to the operation of the assistance fund;

(3) to deliberate and decide the important matters on the agenda and related items;

(4) to report to the municipal government on a regular basis the management of the income and expenditure of the assistance fund;

(5) the other duties stipulated by these measures.

Article 7 The municipal traffic control division shall be the department in charge of the social assistance in road traffic accidents in this city and, as the working body of the municipal committee of fund administration, execute the following duties:

(1) to be responsible for the day-to-day administration of the assistance fund;

(2) to accept, examine and verify the applications for assistance;

(3) to give assistance to qualified victims;

(4) to recover the payment on victims’ account according to law;

(5) to report to the municipal committee of fund administration the income and expenditure of the assistance fund on a regular basis;

(6) to work out related administration systems and directive rules on operation as a complement to these measures;

(7) to complete the other tasks assigned by the municipal committee of fund administration.

Article 8 The administrative expenses incurred by the municipal traffic control division in providing the social assistance in road traffic accidents shall be allocated by the department of finance from the departmental budget and may not be listed as a charge to the assistance fund.

Chapter III Administration of the Assistance Fund

Article 9 The sources of the assistance fund shall include:

(1) the funds retained from the annual premiums of the compulsory traffic insurance of this city in the proportion of 2%;

(2) the funds recovered from the payment on victims’ account according to law;

(3) the contributions from the public;

(4) the interests born by the assistance fund;

(5) the financial subsidies;

(6) the other funds.

Article 10 The insurance companies doing business in the compulsory traffic insurance shall pay their dues to the account of the assistance fund by bank transfer within 3 business days from the end of every quarter in the proportion stipulated by Item (1) of Article 9 of these measures.

Article 11 The assistance fund shall be managed by special financial account and earmarked for specific purposes only. The surplus of the assistance fund at the end of a year shall be all carried over to the next year and may not be misappropriated for other purposes. If there is a deficit of the assistance fund at the end of a year, appropriate financial subsidies shall be provided.

If there is an ample surplus or a heavy deficit of the assistance fund, the municipal traffic control division shall jointly with the municipal department of finance, the Shenzhen agency of insurance supervision propose an adjustment of the proportion of the next year’s compulsory traffic insurance premiums to be retained for the assistance fund, after the municipal committee of fund administration discusses and adopts the proposed adjustment, it shall be reported to the municipal government and implemented after approval.

Article 12 If one of the following cases applies to the road traffic accidents taking place in this city, and victims and injuring parties cannot afford the expenses of rescue or funeral, the victims or their close relatives may apply for the assistance fund according to these measures to pay victims’ expenses of rescue or funeral:

(1) victims’ expenses of rescue exceed the liability ceiling of the compulsory traffic insurance of insurance companies;

(2) injured victims’ expenses of rescue or dead victims’ expenses of funeral in the case of the accidents caused by motor vehicles which are not insured by the compulsory traffic insurance;

(3) victim’s expenses of rescue or funeral in the case of runaway after causing accidents;

(4) the other cases in which the compensation of the compulsory traffic insurance is not available.

If the persons who cause accidents leading to serious injury or death run away, and victims and their family members have no labor capacity, no income, and have difficulties to maintain a normal life, the victims or their close relatives may apply to the municipal traffic control division according to these measures for one-time assistance in dealing with difficulties.

Article 13 Medical institutions shall take necessary treatment measures to rescue victims and calculate the expenses of rescue according to the drug catalogue, items of diagnosis and treatment, and standards of medical service facilities of the basic medical insurance of this city. If the above-standard rescue is needed in special cases, it shall be approved either by the person in charge of the related departments and sections of medical institutions or the person in charge of medical institutions. The payment of the expenses of rescue on victims’ account shall not be more than 40,000 RMB.

The expenses of funeral shall be calculated according to the standards set by the Guangdong Province.

The one-time assistance in dealing with difficulties shall not be more than 10,000 RMB unless the municipal government stipulates otherwise.

Chapter IV Assistance Implementation

Article 14 When victims apply for assistance from the assistance fund according to the first section of Article 12 of these measures, the victims or their close relatives (hereinafter referred to by a joint name as the applicants) shall file applications to the municipal traffic control division.

If the victims referred to in the previous section need assistance from the assistance fund and there is difficult to verify the identity of the victims or the victims and their close relatives cannot apply because of special difficulties, medical institutions and funeral homes may submit applications for assistance to the municipal traffic control division instead.

Article 15 After accepting applications and verifying the qualification for assistance by investigation, the municipal traffic control division shall, within 7 business days from the date of accepting applications, notify in writing the applicants of approval of payment for the expenses of rescue or funeral on their account; as for those who are not qualified for assistance, the municipal traffic control division shall, within 7 business days from the date of accepting applications, given them reasons in writing for not making payment on their account.

Article 16 The municipal traffic control division shall, within 3 business days from the date of issuing the notice of approval of payment on victims’ account, ask medical institutions to provide detail lists of the expenses of rescue of victims, check and ratify the expenses of rescue according to related standards within 15 business days from the date of receiving the detail lists, and credit the ratified expenses of rescue to the accounts of medical institutions within 10 business days from the date of ratifying the expenses.

In the process of checking and ratifying the expenses of rescue, the municipal traffic control division may check with medical institutions and related departments and verify the facts, the medical institutions and related departments shall provide the related materials truthfully and cooperate actively.

Article 17 The municipal traffic control division shall, within 10 business days from the date of issuing the notice of approval of payment on victims’ account, credit the ratified expenses of funeral to the accounts of funeral homes.

Article 18 When victims apply for assistance from the assistance fund according to the second section of Article 12 of these measures, the applicants shall file applications to the municipal traffic control division and submit the related materials to certify satisfaction of the requirements of the second section of Article 12 of these measures.

After accepting applications and verifying the qualification for assistance according to the second section of Article 12 of these measures by investigation, the municipal traffic control division shall ask the municipal committee of fund administration to consider applications and make decisions. If the municipal committee of fund administration approves giving assistance after consideration, the municipal traffic control division shall provide one-time assistance in dealing with difficulties for applicants within 3 business days from the date of approval of giving assistance. The sum of the one-time assistance in dealing with difficulties shall be as much as that decided by the municipal committee of fund administration.

As for those who are not qualified for assistance, the municipal traffic control division shall give applicants reasons in writing for not giving assistance within 20 business days from the date of accepting applications.

Article 19 If applicants have objections to the decisions of not giving assistance or the sum of assistance to be given, they may apply for administrative review or take administrative action according to law.

Article 20 After payment is made from the assistance fund on victims’ account, the municipal traffic control division shall recover the payment from the parties liable for the civil liabilities of traffic accidents. Victims or their heirs shall have the obligations to assist in recovery.

If the parties liable for civil liabilities of traffic accidents fail to perform their obligations to make compensation after the deadline, the municipal traffic control division may take civil action according to law and put the related information into the credit system.

Article 21 The municipal traffic control division shall clear and verify payment for the expenses of rescue and funeral on victims’ account on a regular basis, write off recovered payment on victims’ account, as for the payment on victims’ account which indeed cannot be recovered, it shall be reported to the municipal committee of fund administration and dealt with according to the related rules of the state after being approved by the committee.

Chapter V Supervision and Management of the Assistance Fund

Article 22 The municipal traffic control division shall keep the accounting files and the related materials of the income and expenditure of the assistance fund according to law, and report the use of the assistance fund to the municipal committee of fund administration on a regular basis.

Article 23 The Shenzhen agencies of insurance supervision shall report to the municipal committee of fund administration at the end of January of every year the payment for the dues made to the assistance fund by insurance companies in the previous year.

Article 24 The municipal committee of fund administration shall report to the municipal government every first quarter the collection, payment on victims’ account, recovery, and balance of the assistance fund in the previous year, make them public to the society, and accept the society’s supervision.

Article 25 The municipal traffic control division shall report and submit to the municipal department of finance on a regular basis the statistical statements and reports on the business of the assistance fund and the income and expenditure, surplus of the assistance fund, and send a copy of them to the Shenzhen agency of insurance supervision.

The municipal department of finance shall supervise and inspect the implementation of the budget of the assistance fund according to law.

Article 26 The municipal department of audit shall audit and supervise the income and expenditure of the assistance fund according to law, and make the audit results public to the society.

Chapter VI Legal Liabilities

Article 27 If the insurance companies doing business in the compulsory traffic insurance fail to pay their dues on time and in full according to these measures, the municipal traffic control division shall impose a surcharge for overdue payment as much as 5/10,000 of the dues per day. If payment is still not made 3 months after deadline, legal action shall be taken at the people’s court according to law.

Article 28 If assistance applicants swindle the payment from the assistance fund by means of providing fabricated facts of traffic accidents or providing false materials, etc., the municipal traffic control division shall order returning the swindled sum and impose a fine of the same sum; those suspected of committing crimes shall be handed over to a judicial office to be dealt with according to law.

Article 29 If medical institutions swindle the payment from the assistance fund by means of listing false expenses of treatment, raising the rates of charges, etc., the department of health shall order returning the swindled sum and impose a fine as much as three times of the swindled sum.

If funeral homes swindle the assistance fund by cheating, the municipal department of civil administration shall order returning the swindled sum and impose a fine as much as three times of the swindled sum.

Article 30 If the municipal traffic control division or its personnel take one of the following acts, the responsible department or the supervision agency shall order correcting, circulate a notice of criticism of the division; sanctions shall be imposed on the directly responsible persons in charge and the other directly responsible persons according to law; those whose circumstances are serious and who are suspected of committing crimes shall be handed over to a judicial office to be dealt with according to law:

(1) to fail to use the fund within the limits of the use of the fund stipulated by these measures;

(2) to fail to accept, examine and verify applications for assistance according to these measures;

(3) to fail to make payment on victims’ account according to these measures;

(4) to fail to recover payment on victims’ account according to these measures;

(5) to provide false reports, statistical statements, documents, and materials.

Article 31 If the personnel of government offices abuse power, practice favoritism and commit irregularities, neglect duties, solicit and accept bribes, sanctions shall be imposed according to law; those suspected of committing crimes shall be handed over to a judicial office to be dealt with according to law.

Chapter VII Supplementary Provisions

Article 32 If the identity of the persons who died in traffic accidents cannot be verified, their death compensation shall be kept by the assistance fund instead.

Article 33 The accidents caused by vehicles traveling out of roads shall be dealt with by reference to the related provisions of these measures.

Article 34 The municipal traffic control division shall formulate corresponding detail implementation rules within 6 month from the date when these measures take effect.

Article 35 These measures shall take effect as of April 1, 2008.

(Note: The text above is a translation of the Chinese version for reference only. In case of any discrepancy between the two versions, the original published Chinese version shall prevail.)