Eastern China Court Rules Insurer Must Pay Despite Unlicensed Driving in 66,818 Yuan Injury Case

Eastern China Court Rules Insurer Must Pay Despite Unlicensed Driving in 66,818 Yuan Injury Case

Case Overview
A pedestrian injured by a driver without a valid license successfully obtained compensation from an insurance company in a road traffic accident case. The court in Eastern China ruled that the insurer must pay 66,818.8 yuan under compulsory insurance, even though the driver was unlicensed and fled the scene. The insurer was granted the right to recover the amount from the driver. The case highlights the scope of compulsory insurance in protecting accident victims regardless of the driver’s conduct.

Case Background and Facts
On March 22, 2010, Mr. Wu, driving a Santana sedan, collided with pedestrian Mr. Xu on a street in Eastern China. The accident occurred near a commercial bank branch. Mr. Xu sustained injuries requiring medical treatment. The traffic police investigation determined that Mr. Wu did not hold a valid drivers license and fled the scene after the accident. The police assigned full responsibility for the accident to Mr. Wu. The vehicle was insured under a compulsory motor vehicle liability insurance policy with a local branch of a major Chinese insurance company. Mr. Xu was a rural resident by registration but had been living and working continuously in an urban area for over one year, earning 4,000 yuan per month.

Court Proceedings and Evidence
Mr. Xu filed a lawsuit on October 29, 2010, seeking 72,050.4 yuan from the insurance company within the compulsory insurance limit, with Mr. Wu bearing joint liability. Mr. Wu objected to the disability assessment and requested a new evaluation. The insurer argued that it should not pay because Mr. Wu was driving without a license. The court held a public hearing on November 22, 2010. Evidence presented included the traffic accident report, medical expense receipts, medical records, two separate disability assessment reports, assessment fee receipts, a labor contract, marriage certificate, property certificate, and statements from the parties. The court conducted two disability evaluations, both concluding that Mr. Xu suffered a level 10 disability.

Court Findings and Judgment
The court confirmed the traffic police findings that Mr. Wu was fully at fault due to unlicensed driving and fleeing. The court held that the insurance company must still pay compulsory insurance benefits to the victim, even when the driver was unlicensed. The insurer could later seek reimbursement from Mr. Wu. The court calculated compensable items as follows: medical expenses of 4,561.8 yuan, lost income of 12,635 yuan based on 5 days hospitalization and 90 days rest at 133 yuan per day, hospital meal allowance of 150 yuan, nursing care of 250 yuan, and disability compensation of 49,222 yuan based on urban resident income standards. The total insurance payout was 66,818.8 yuan. The court ordered Mr. Wu to pay the first assessment fee of 1,200 yuan, which fell outside the insurance coverage. The court dismissed other claims. Court costs and the second assessment fee of 1,600 yuan were also assigned to Mr. Wu.

Key Legal Principles
The court applied the principle that compulsory motor vehicle insurance is designed to protect accident victims, not to excuse insurer liability based on driver misconduct. An insurer must pay benefits to an injured third party even if the insured driver was unlicensed or fled the scene. The insurer retains a right of recourse against the at-fault driver for amounts paid. The court also applied the rule that rural residents who have worked and lived in urban areas for over one year may claim disability compensation based on urban income standards.

Practical Insights
This case demonstrates that victims of traffic accidents can recover from insurance companies even when the driver acted unlawfully by driving without a license or fleeing. Insurance companies cannot deny payment to innocent victims based on the driver’s conduct. Victims should gather evidence of urban residence and income to support higher compensation claims. Drivers should understand that unlicensed driving and fleeing can lead to full liability and potential reimbursement claims by insurers.

Legal References
General Principles of the Civil Law of the Peoples Republic of China, Article 106, Paragraph 2
Road Traffic Safety Law of the Peoples Republic of China, Article 76
Supreme Peoples Court Interpretation on Compensation for Personal Injury, Article 17
Civil Procedure Law of the Peoples Republic of China, Article 64

Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for specific legal matters.