Court Orders Insurance Payout of CNY 121,125.8 for Pedestrian Injury
A court in Eastern China City has ruled that a property insurance company must pay 121,125.8 CNY in medical expenses to a pedestrian who suffered severe injuries in a traffic accident. The plaintiff, Mr. Wang, was struck by a medium-sized bus while riding a bicycle, leaving him in a vegetative state. The court found the driver primarily liable and ordered the insurance company to compensate within the compulsory traffic accident liability insurance limit.
The accident occurred on August 5, 2011, when Mr. Song, an employee of a trading company, drove a company-owned bus. He collided with Mr. Wang at a crosswalk, causing Mr. Wang traumatic severe brain injury. Police determined Mr. Song bore primary responsibility for the accident, while Mr. Wang bore secondary responsibility. Mr. Wang incurred 121,125.8 CNY in medical expenses by September 15, 2011, and had paid this amount himself. The trading company had already paid 90,000 CNY. Mr. Wang sued Mr. Song, the trading company, and the insurance company for the unpaid medical costs, demanding priority payment from the insurance under the compulsory insurance policy.
During the hearing, Mr. Wang submitted evidence including a traffic accident determination letter, vehicle registration, insurance policy, medical records, and invoices. The trading company and the insurance company acknowledged the accident and the medical expenses amount but argued over insurance coverage limits. The insurance company contended it should only pay up to 10,000 CNY under the medical expense sub-limit. Mr. Song did not appear in court despite being properly summoned, waiving his right to defend.
The court found that Mr. Song’s traffic violation caused the accident, and based on police liability assessment, Mr. Song was 90% responsible. Because Mr. Song was driving in the course of his employment, the trading company bore vicarious liability for the damages. The court confirmed the medical expenses of 121,125.8 CNY were undisputed by all appearing parties. It held that the insurance company, as the insurer of the vehicle, must fulfill its obligation to pay first under the compulsory insurance policy, without applying the sub-limits the insurer had argued for.
Legally, the court applied the Supreme People’s Court Interpretation on compensation for personal injury cases, specifically Article 17 concerning medical expenses. It also relied on the Civil Procedure Law provisions on evidence and default judgment. The court reasoned that the compulsory insurance system is designed to promptly compensate victims, and the insurer cannot reduce payouts by dividing coverage into sub-categories. The driver’s failure to appear did not prevent the court from deciding based on the presented evidence.
The court ordered the insurance company to pay the full 121,125.8 CNY in medical expenses within ten days of the judgment, and dismissed all other claims. The trading company was ordered to bear 1,000 CNY in case acceptance fees, with Mr. Wang bearing 30 CNY. This case highlights that courts in China generally prioritize victim compensation under compulsory insurance, requiring insurers to pay within the total coverage limit regardless of sub-limits. It also reaffirms the principle of employer vicarious liability for employee negligence during work.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.