Court Awards CNY 98,661.6 in Eastern China City Traffic Accident Case
A court in Eastern China City has ordered compensation of 98,661.6 CNY to a man injured in a rear-end collision, with liability shared between the at-fault driver, a taxi company, and two insurance carriers. The judgment resolved a dispute over medical costs, lost income, and vehicle damage arising from the 2011 accident.
The plaintiff, Mr. Liu, was riding an electric bicycle on November 12, 2011, when the defendant, Mr. Zhu, driving a taxi owned by Changping Taxi Company, struck the rear of Mr. Liu’s bicycle. The traffic police determined Mr. Zhu was fully at fault for failing to maintain a safe distance. Mr. Liu suffered a compression fracture of the second lumbar vertebra, requiring 30 days of hospitalization and incurring medical expenses of 8,985.56 CNY, which Mr. Zhu paid upfront. The taxi was insured under a compulsory traffic insurance policy with People’s Insurance Eastern China City Branch and a commercial third-party liability policy (200,000 CNY limit, without deductible) with Sunshine Insurance Eastern China Province Branch. Mr. Liu sought 100,947 CNY in damages, later amended his claim, and named Mr. Zhu, the taxi company, and both insurers as defendants.
At the court hearing on February 29, 2012, Mr. Liu presented five groups of evidence: identity documents and wage records, the accident report, vehicle and insurance documents, medical bills and discharge records, a forensic assessment, and receipts for transportation, towing, repair, and parking fees. The taxi company did not appear despite proper summons, and the court proceeded in its absence. Mr. Zhu admitted liability and noted he had already paid the medical bills. The two insurers appeared through authorized representatives. People’s Insurance argued its liability was limited to the compulsory policy and that it should not pay litigation or appraisal costs. Sunshine Insurance confirmed it covered only the excess above the compulsory limit.
The court found Mr. Zhu liable for the full accident and held him and the taxi company jointly responsible for Mr. Liu’s losses. Because the vehicle was insured, the insurers were required to pay directly to the victim within their respective policy limits. The court accepted the forensic assessment, which rated Mr. Liu’s injury as a Grade IX disability and set a 120-day rest period, 60-day nutrition period, and 60-day nursing period. Mr. Liu was classified as an urban resident, so disability compensation was calculated using the urban standard. The court approved Mr. Liu’s claimed amounts for lost income, nursing care, nutrition, and hospital meals as within legal ranges. It also awarded 9,000 CNY for emotional distress and 300 CNY for transportation, both determined at the court’s discretion.
On the legal analysis, the court applied the Road Traffic Safety Law and relevant tort principles. The medical and related expenses (total 10,785.5 CNY) were first covered by the compulsory insurer up to 10,000 CNY; the remaining 785.5 CNY fell under the commercial policy. However, Mr. Liu and Sunshine Insurance reached a settlement during trial, and Mr. Liu withdrew that portion of the claim, which the court permitted. The remaining 88,271.6 CNY (lost income, nursing, disability, emotional distress, and transportation) was fully payable by the compulsory insurer under its death and disability coverage. Vehicle repair, towing, and parking costs (390 CNY) were paid under the property damage limit. The 900 CNY appraisal fee was ordered to be paid directly by Mr. Zhu and the taxi company, as such costs were not covered by insurance.
In summary, the court ordered People’s Insurance Eastern China City Branch to pay 98,661.6 CNY (including the 8,985.56 CNY already advanced by Mr. Zhu), with Mr. Zhu and the taxi company jointly liable for that sum and also ordered to pay the 900 CNY appraisal fee. Other claims were dismissed. Payment was due within ten days of the judgment. The case highlights how traffic accident liabilities are apportioned between tortfeasors and insurers in Eastern China, and that victims may negotiate partial withdrawal of claims during trial. The ruling also confirms that joint and several liability applies to the driver and the registered vehicle owner.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.