CNY 703,941.27 Awarded in Traffic Accident Dispute
Ms. Sun Hua brought a civil action against Mr. Cheng Donglin, his employer Eastern China City Management Station, and the Eastern China Branch of Pacific Insurance Company after a traffic accident left her with severe spinal injuries. The court found the driver fully at fault and ordered compensation totaling 703,941.27 CNY. The case highlights the allocation of liability between an employer and its insurer under China’s compulsory motor vehicle insurance framework.
On 15 February 2011, Mr. Cheng was driving a medium truck owned by the Management Station on a road in Eastern China City. The vehicle had safety defects. Mr. Cheng failed to keep a proper lookout and took improper evasive action, colliding with Ms. Sun. Police determined Mr. Cheng bore full responsibility. Ms. Sun was hospitalised, diagnosed with cervical spinal cord injury and incomplete quadriplegia, and underwent surgery and rehabilitation. She later sued for medical expenses, lost income, disability compensation, and other losses.
At trial, the court reviewed medical bills, hospital records, a police accident report, and a forensic appraisal. The appraisal confirmed Ms. Sun suffered a Grade 3 disability (severe) with left limb muscle strength at level 3, required 150 days of nutritional support, and had a long-term need for care. The insurance policy covering the truck was in force. The Management Station admitted vicarious liability for its employee’s actions. Ms. Sun presented evidence she had worked at a garment company in the city since 2009, earning an average monthly wage of 1,795 CNY.
The court held that Mr. Cheng, as the Management Station’s employee acting within the scope of employment, made the employer liable for the damages. The insurance company must pay within the compulsory liability limit of 122,000 CNY. Because Ms. Sun’s primary income came from urban employment, the court applied the urban standard for disability compensation rather than the rural rate. This significantly increased the award for her permanent impairment.
The court calculated specific losses: medical expenses 91,139.27 CNY, hospital food subsidy 3,690 CNY, in‑hospital nursing care 18,900 CNY, nutrition 2,250 CNY, lost wages 15,018 CNY, disability compensation 367,104 CNY, pain and suffering 40,000 CNY, post‑discharge nursing for 10 years at 1,350 CNY per month totalling 162,000 CNY, appraisal fee 2,640 CNY, transportation 1,000 CNY, and damaged clothing 200 CNY. The total came to 703,941.27 CNY. From the insurance payout of 120,200 CNY (covering medical costs, pain, part of disability, and clothing), the balance of 583,741.27 CNY was the employer’s responsibility.
After deducting 94,875 CNY already advanced by the Management Station, the court ordered the insurance company to pay Ms. Sun 120,200 CNY and the Management Station to pay an additional 488,866.27 CNY, both within ten days. The judgment clarifies that where a victim’s income source is urban, the more generous urban compensation standard applies even if the victim’s registered residence is rural. This case also confirms the employer’s vicarious liability for employee negligence and the primary role of compulsory insurance in covering immediate losses.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.