Insurance Company Cannot Refuse Payout Despite Drunk Driver Causing Fatal Accident

An insurance company has been ordered to pay 120,000 yuan to the family of a pedestrian killed by a drunk motorcycle rider, rejecting the insurer’s argument that drunk driving excludes coverage. The ruling reinforces that compulsory traffic insurance protects victims regardless of the driver’s conduct.

In November 2011, a motorcyclist was riding while intoxicated on a village road in Zhejiang province when he collided with two pedestrians walking along the roadside. One of the pedestrians, a 68-year-old man, was seriously injured and died two days later despite emergency treatment at multiple hospitals.

Traffic police determined that the drunk motorcyclist bore full responsibility for the accident. The victims had committed no traffic violations.

The victim’s family, including his wife and two sons, filed a claim against both the motorcyclist and his insurance company. The family had already reached a separate settlement with the driver for 130,000 yuan outside the insurance coverage, and sought the remaining 120,000 yuan from the compulsory traffic insurance policy.

The insurance company argued that it should not be required to pay because the driver was intoxicated at the time of the accident. The company claimed that under insurance regulations, drunk driving falls outside the scope of compulsory coverage, and that the insurer’s obligation was limited to advancing emergency medical expenses, which could then be recovered from the at-fault driver.

The court rejected the insurance company’s arguments. The court found that the fundamental purpose of compulsory traffic insurance is to protect accident victims, not to shield insurers from liability based on the driver’s conduct. While the insurer may seek reimbursement from the at-fault driver after paying the victim, it cannot refuse to pay the victim in the first instance.

The court confirmed the following damages: medical expenses of 11,193 yuan, death compensation of 156,852 yuan based on applicable standards, funeral expenses of 15,324 yuan, lost wages for family members handling funeral arrangements of 2,015 yuan, nursing care of 167 yuan, hospital meal subsidies of 30 yuan, and a reasonable transportation allowance. The total legitimate claim exceeded the 120,000 yuan insurance limit.

The court ordered the insurance company to pay the full 120,000 yuan directly to the victim’s family within the compulsory insurance coverage limit.

This case establishes that compulsory traffic insurance serves victims first. Insurers who pay claims involving drunk drivers retain the right to pursue reimbursement from the responsible parties afterward.

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