Eastern China Court Awards Over CNY 173,000 in Multi-Vehicle Accident
The Eastern China City court has ruled in a personal injury case arising from a three-party car accident, ordering two insurance companies and the at-fault driver to compensate the pedestrian plaintiff for medical expenses, lost income, and other damages. The judgment clarifies how compulsory insurance limits apply when multiple vehicles are involved.
On April 15, 2010, Mr. Jiang was driving a car owned by Ms. Zhou on a road in Eastern China City when his vehicle collided with a car driven by Mr. Shen, owned by Ms. Cao. The impact also struck pedestrian Mr. Shan, who suffered a comminuted fracture of the left lower leg and a fractured left shoulder blade. The traffic police determined that Mr. Jiang bore full fault, while Mr. Shen and Mr. Shan had no fault. Mr. Shan later sued Mr. Jiang, Ms. Zhou, Mr. Shen, Ms. Cao, and the two insurance companies that had issued compulsory third-party liability (CTPL) policies for the two cars: Pacific Insurance and People’s Insurance. He claimed total losses of 210,486.16 CNY, with Mr. Jiang and Ms. Zhou having already paid 40,870.32 CNY.
At the hearing, Mr. Shan presented medical records, a forensic appraisal showing two level-10 disabilities, receipts for medical expenses, and evidence of his employment history. Pacific Insurance and People’s Insurance appeared and argued that their liability should be limited to sub-items within the CTPL policy and that medical costs should be capped under national basic insurance rules. People’s Insurance further argued that because its insured car did not physically strike Mr. Shan, it bore no liability. Mr. Shen and Ms. Cao did not attend the hearing.
The court held that Mr. Jiang was fully liable for the accident and that both insurance policies were triggered. It rejected People’s Insurance’s argument that no collision meant no coverage, noting that the accident involved all three parties under one incident. The court also rejected the insurers’ call for sub-item limits, stating that such a reading would undermine the legislative purpose of the CTPL system to ensure victims receive timely compensation. The court found that People’s Insurance must pay under the no-fault limit because its insured driver had no fault.
On damages, the court calculated verified material losses at 167,064.44 CNY. This included medical expenses of 38,262.42 CNY, lost income of 17,633.70 CNY for seven months, nursing costs of 5,038.20 CNY for two months, and a disability award of 74,330.40 CNY based on the urban income standard because Mr. Shan’s main income came from non-agricultural work. The court also allowed dependent living expenses for his father and son