Under Compulsory Motor Vehicle Insurance, what serves as the basis for determining passenger liability insurance requirements?

Determining passenger liability insurance requirements under Compulsory Motor Vehicle Insurance typically focuses on the vehicle's horsepower. The rationale behind using horsepower as a basis is that it is a measure of the vehicle's power and performance capabilities, which can be directly correlated with potential risk or exposure in the event of an accident. Higher horsepower vehicles may be associated with more power, which can lead to higher potential damages in a collision, thus necessitating higher coverage requirements for passenger liability.

In contrast, other factors such as weight, age, or manufacturer do not as directly correlate with the insurance coverage needed for passenger liability. Vehicle weight could impact the accident's severity but isn't a direct measure of risk in terms of passenger liability. The age of the vehicle may influence its overall value and safety features but doesn't determine the risk in the same way horsepower does. Similarly, the manufacturer may provide some insights into the vehicle's safety record or reliability but does not specifically guide the level of liability insurance required for passengers. Therefore, horsepower provides the most pertinent measure for assessing risk levels associated with passenger liabilities in vehicle insurance.