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Compulsory Automobile Liability Insurance
Comprehensive Audit Mechanism

The Comprehensive Audit Mechanism (CAM) for insurance companies was approved by the Financial Supervisory Commission in January 2007. The goal of the CAM is to improve insurance companies' operations of the Compulsory Automobile Liability Insurance (CALI).

  1. Purposes of the CAM

    1. To ascertain whether insurance companies are acting in compliance with the laws and regulations related to the CALI.
    2. To ascertain whether insurance companies are qualified to operate the CALI.
    3. To provide a platform for discussion with related agencies when questions arise from the laws and regulations related to the CALI.
    4. To track and rectify defects to ensure that insurance companies are incompliance with the laws.
    5. To invite the participation of external units in order to enhance the accountability of the CALI's operational results.
    6. To use the audit results as a reference for scoring the indicators of the CALI Differentiation Supervision Mechanism.
  2. Audit System

    1. Internal audit: Insurance companies should self-audit in accordance to the CALI internal audit system.
    2. External audit: It is divided into standard audit and special audit. Standard audit should be handled by Non-Life Insurance Association of the R.O.C and supported by the Taiwan Insurance Institute. Special audit should be based on the analysis of a special topic and handled by the Motor Vehicle Accident Compensation Fund as commissioned by the competent authority.
  3. Scope of the Audit

    The scope encompasses: Compulsory Automobile Liability Insurance Act, its derived law, and other related regulations on financial accounting, business operations, management, complaints and etc.

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