CNY 45,861 Awarded in Traffic Accident Dispute
The Eastern China City People’s Court recently ruled in a motor vehicle accident dispute, ordering compensation for damaged goods. The plaintiff, a textile and audio equipment factory, sought recovery for losses caused by a multi-vehicle collision. The court held the primary defendant liable for negligence and apportioned damages under compulsory insurance and tort law. The total awarded amount was CNY 45,861.40, comprising an insurance payout and employer liability.
The accident occurred on August 24, 2011, when a heavy dump truck owned by the second defendant and driven by its employee, Mr. Qian, crossed a solid lane divider on a national highway near a town in Eastern China City. The truck collided with an oncoming heavy van driven by Mr. Zhang. The van then flipped and struck a third vehicle driven by Mr. Dong. The plaintiff’s cotton yarn, loaded on Mr. Zhang’s van, was destroyed. A traffic police report assigned primary fault to Mr. Qian for violating lane markings, secondary fault to Mr. Zhang for failing to ensure safe driving, and no fault to Mr. Dong. The plaintiff claimed CNY 83,000 in property losses and handling fees.
During the court hearing, the plaintiff presented a traffic accident determination report and an official loss assessment from the local price certification center. The assessment valued the destroyed cotton yarn at CNY 63,000 and the cargo transfer and handling costs at CNY 2,200, totaling CNY 65,200. The first and second defendants did not contest these documents. The third defendant, an insurance company, did not appear despite proper summons. The court accepted the evidence as valid and established the loss amount.
The court found that Mr. Qian’s violation of traffic lane markings directly caused the collision and subsequent damage to the plaintiff’s goods. Since Mr. Qian was an employee of the second defendant and acted within the scope of his employment, the employer bore vicarious liability. The court also noted that the second defendant’s vehicle was insured under a compulsory third-party liability policy with the third defendant. However, the plaintiff had not made a claim against the insurer of Mr. Dong’s vehicle, which also had a compulsory policy. Therefore, the court deducted the portion attributable to that insurer.
The court applied Article 76 of the Road Traffic Safety Law, which requires insurers to compensate within compulsory policy limits first, with any excess apportioned according to fault. Since the accident involved multiple victims, the compulsory limit was shared proportionally. The court calculated the third defendant’s liability at CNY 836 after accounting for the other insurer’s share. For the remaining loss, the second defendant, as the employer of the at-fault driver, was ordered to pay 70% of the excess (reflecting the primary fault), amounting to CNY 45,025.40. The plaintiff’s claim for the full CNY 83,000 was rejected for lack of supporting evidence.
This case illustrates how Chinese courts handle multi-party traffic accidents with insured vehicles and employee drivers. The decision reinforces that employers are liable for employees’ negligent driving during work, and compulsory insurance payouts are limited and shared among victims. Claimants must join all relevant insurers to avoid deductions. The judgment was entered in 2012 and is enforceable within ten days. The court also ordered the defendants to bear partial litigation costs.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.