Insurance Company Pays Compensation After Truck Injures Pedestrian in Southwestern China

A pedestrian injured by a truck has received compensation through a combination of insurance coverage and driver liability. The case illustrates how compulsory traffic insurance and commercial liability policies work together to cover accident damages.

In December 2010, a truck driver struck a pedestrian walking along a national highway in southwestern China. The child suffered a complex elbow fracture, nerve damage, and multiple soft tissue injuries. The driver was determined to bear full responsibility for the accident.

The injured child was hospitalized for 32 days, with the driver covering initial medical expenses. A second surgery was required in July 2011, costing an additional 4,206 yuan paid by the family. A medical assessment confirmed a Level 10 disability.

The case involved three defendants: the truck driver, who was the vehicle owner, the transport company under which the truck was registered, and the insurance company providing both compulsory traffic insurance and commercial third-party liability coverage.

The transport company argued that as a mere registration entity for the vehicle, the insurance company should bear primary responsibility. The insurance company accepted coverage under policy terms but contested several claim amounts, requesting deductions for non-essential medical treatments and declining to pay litigation and assessment costs.

The court determined that under Chinese traffic safety law, the insurance company must first pay compensation within the compulsory insurance coverage limit. Any damages exceeding that limit fall to the at-fault driver. As the registration company, the transport entity was held jointly liable for the driver’s obligations.

The court made several important findings on damages. The disability compensation was calculated using urban resident standards rather than rural rates because the child had been living with family in an urban area and attending school there. This resulted in a significantly higher compensation of 30,922 yuan. The court confirmed assessment costs at 700 yuan based on the actual receipt rather than the 1,300 yuan claimed.

Mental distress compensation of 2,000 yuan was upheld given the permanent disability suffered by the child. Nursing care fees and hospital meal subsidies were calculated based on standard rates for the actual hospitalization period.

This case demonstrates that vehicle registration companies share liability for accidents involving vehicles registered under their names. Additionally, the standard used for disability compensation depends on the victim’s actual living circumstances rather than registered residence.

Disclaimer: This article summarizes a court judgment for educational purposes only and does not constitute legal advice.