Fatal Motorcycle Accident Leads to CNY 230,000 Wrongful Death Claim
The Eastern China City People’s Court recently ruled on a wrongful death lawsuit arising from a motorcycle accident. Four family members of the deceased pedestrian brought a claim against the unlicensed driver, the vehicle owner, and the insurer. The court apportioned liability among the defendants and ordered the insurance company to pay within the compulsory insurance limits, while also holding both the driver and the vehicle owner partially responsible.
On 11 November 2011 at approximately 6:40 p.m., Mr. Yang was driving a motorcycle without a valid license on a road in Eastern China City. He struck Ms. Liu, a 66-year-old pedestrian crossing the street. Ms. Liu was rushed to hospital but died the same day from her injuries. A police investigation determined that Mr. Yang was entirely at fault and that the motorcycle had not undergone annual inspection. The motorcycle was registered in the name of Mr. Chen, who had allowed Mr. Yang to take the vehicle for repairs. Mr. Yang later paid the plaintiffs a total of CNY 72,000, including medical costs and advance compensation. The plaintiffs, consisting of Ms. Liu’s husband, Mr. Zheng, and their three adult children, sought CNY 230,129.09 in damages from Mr. Yang, Mr. Chen, and the insurance company, China Property Insurance Co., Ltd. Eastern China City Branch.
During the court hearing, both sides presented evidence. The plaintiffs submitted police accident reports, medical records and bills, funeral expense receipts, and proof of family relationship. The insurance company argued that because the driver had no license and the vehicle’s registration had expired, it should not be liable under the compulsory insurance policy. The vehicle owner, Mr. Chen, claimed he did not know Mr. Yang had taken the motorcycle, a statement the court found inconsistent with his earlier testimony that Mr. Yang had taken it for repairs. After reviewing the documents and hearing witness statements, the court accepted the police report as accurate and ruled that the insurance policy remained in force for mandatory coverage.
The court found that Mr. Yang, as the unlicensed and negligent driver, bore primary responsibility. However, it also held Mr. Chen partially liable because he allowed an unlicensed person to drive the motorcycle and failed to keep the vehicle properly inspected. According to relevant law, the insurance company must pay within the compulsory liability insurance limits, even if the driver was unlicensed. The total economic loss was calculated at CNY 193,614.09, comprising medical expenses of CNY 2,532.77, funeral costs, loss of dependency, transportation, and other items. The court disallowed the claim for mental distress damages because the driver faced criminal prosecution for the fatal accident.
The court applied principles of joint and several liability. Under the Motor Vehicle Traffic Accident Liability Compulsory Insurance system, the insurer’s obligation covers basic medical and death benefits regardless of the driver’s license status. The evidence showed Mr. Chen bore a share of fault for entrusting the vehicle to an unqualified driver. The court allocated 90 percent liability to Mr. Yang and 10 percent to Mr. Chen. The insurance company was ordered to pay CNY 112,736.59 directly to the plaintiffs. After deducting the insurance payout and the pre-paid amount, Mr. Yang still owed CNY 789.75, and Mr. Chen was ordered to pay CNY 8,087.75. The court also required the defendants to cover most of the litigation costs.
This case reinforces that vehicle owners must exercise care when lending their vehicles. Allowing an unlicensed driver to operate a motorcycle and failing to maintain annual inspection can result in personal liability. The ruling also clarifies that compulsory motor insurance provides a safety net for