Traffic Accident Dispute Leads to CNY 157,905 Compensation Award
A court in Eastern China City has ruled on a motor vehicle accident liability case, awarding a total of approximately CNY 157,905 in compensation to an injured plaintiff. The dispute arose from a collision between a medium-sized passenger bus and a motorcycle in September 2011. The court found the bus driver fully at fault and ordered both the insurer and the driver to pay damages covering medical expenses, lost income, disability, and property loss.
The plaintiff, Mr. Li, was riding a motorcycle on a local road when the defendant, Mr. Chen, driving a medium-sized passenger bus, struck him. The accident occurred on September 15, 2011. Mr. Li suffered a severe crush injury to his right foot, including multiple fractures and dislocation, as well as skin avulsion. He was hospitalized for 50 days and required ongoing outpatient care. The traffic police determined that Mr. Chen was solely responsible for the accident. Mr. Li later filed a lawsuit seeking CNY 160,205 in damages. The bus was insured under a compulsory traffic insurance policy and a commercial third-party liability policy with a limit of CNY 100,000, both issued by a branch of the People’s Insurance Company in Eastern China City (the insurer).
During the hearing, Mr. Li presented medical records, expense receipts, a disability assessment, and proof of income. A forensic examination confirmed he had a Class IX disability (30% impairment) and required a second surgery costing CNY 5,000. The insurer argued that the bus had not purchased the “no deductible” endorsement, so it should not cover litigation or assessment fees, and had already estimated vehicle damage at only CNY 390. Mr. Chen did not appear in court despite being properly summoned. The court proceeded with a default judgment and reviewed all evidence, including the insurance policy covering the period from October 2010 to October 2011.
The court held that Mr. Chen bore full liability for the accident and must compensate for all economic losses. Mr. Li, as an urban resident with documented earnings of CNY 3,200 per month, was entitled to damages based on urban standards. The court accepted the medical and disability expert opinions, as well as the vehicle loss assessment of CNY 981. It found that medical expenses, hospital meals, nutrition, follow-up surgery, lost wages (for 163 days), nursing care, disability compensation, transportation costs, and mental distress damages were all reasonable. The court also allowed recovery for assessment fees, towing, and parking expenses.
The court applied the relevant provisions of the Traffic Safety Law and the Insurance Law. Under the compulsory insurance, the insurer must pay up to CNY 10,000 for medical expenses, CNY 106,085.60 for death/disability damages, and CNY 1,481 for property loss. Because the commercial policy lacked a “no deductible” clause, the insurer was required to pay 80% of the excess medical costs (CNY 31,247.27), while Mr. Chen had to pay the remaining 20% (CNY 7,811.81) plus all assessment fees (CNY 1,280). The insurer was ordered to pay a total of CNY 148,813.87, which included the CNY 10,000 already advanced by Mr. Chen, and Mr. Chen was ordered to pay an additional CNY 9,091.81.
This case underscores the importance of adequate insurance coverage in traffic accidents. The court’s decision clarified that even without a “no deductible” endorsement, the insurer remains liable for a substantial portion of damages, while the at-fault driver must cover the residual amount. The ruling also confirms that urban residents can claim damages based on their actual income and local living standards. The judgment was entered in default against the defendant driver, highlighting the need for all parties to participate in legal proceedings. The compensation was ordered to be paid within ten days of the judgment.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.