Motor Vehicle Accident Compensation Claim – CNY 98,757 Awarded
The court ruled on a dispute arising from a three-party traffic accident in which a woman riding an electric bicycle was injured. The plaintiff, Ms. He, sought compensation from two drivers and their insurance companies for medical costs, lost income, disability, and other losses. The court held that the two insurance companies must each pay half of the total damages within the compulsory insurance limits, totaling CNY 98,757.46.
The accident occurred on October 4, 2010, in an Eastern China City. Ms. He was riding her electric bicycle when Mr. Shao’s car approached from behind. To avoid a collision, Ms. He swerved and crashed into the rear of Mr. Han’s parked car. The traffic police determined that Mr. Shao bore equal fault, while Ms. He and Mr. Han each bore minor fault. Ms. He sued Mr. Shao, Mr. Han, and the two insurance companies: the Eastern China City Insurance Branch (covering Mr. Shao’s vehicle) and the Central China City Insurance Branch (covering Mr. Han’s vehicle). She claimed total losses of CNY 112,268.35, including medical bills, assistive devices, lost wages, nursing care, hospital meals, nutrition, transportation, disability compensation, mental distress, appraisal fees, and property damage.
The court held a hearing on March 26, 2012. Ms. He was represented by her lawyer, Mr. Shen. Mr. Shao did not appear despite proper notice. The other defendants attended with their lawyers. Evidence presented included the traffic accident report, medical records, hospital bills, diagnostic certificates, a disability appraisal, and Ms. He’s employment contract. The Eastern China City Insurance Branch confirmed it had already advanced CNY 5,000 to Ms. He. The insurers argued that their liability should be capped by each insurance policy’s sub-limits and that medical expenses should be reviewed under national basic medical insurance standards.
The court found that Ms. He’s total compensable losses amounted to CNY 98,757.46. This included medical expenses of CNY 13,298.22, assistive devices CNY 140, lost wages for 150 days at CNY 83.97 per day totaling CNY 12,595.50, nursing care for 42 days at CNY 83.97 per day totaling CNY 3,526.74, hospital meals CNY 285, nutrition CNY 570, transportation CNY 1,000, disability compensation based on a 10% impairment rate using the urban standard of CNY 30,971 per year for 20 years totaling CNY 61,942, appraisal fees CNY 1,200, mental distress CNY 4,000, and property loss CNY 200. The court held that both insurance companies were jointly liable under the compulsory third-party liability insurance. Each insurer was ordered to pay half of the total loss, i.e., CNY 49,378.73. The Eastern China City Insurance Branch’s advance of CNY 5,000 was deducted from its share, leaving a net payment of CNY 44,378.73.
The court based its decision on the Tort Liability Law and the Road Traffic Safety Law. It rejected the insurers’ arguments regarding sub-limits and national medical insurance standards, noting that compulsory insurance covers all damages within the overall policy limit of CNY 122,000 per vehicle. The court also stated that the insured’s fault does not reduce the insurer’s liability under the compulsory scheme, as the insurance is designed to protect victims. Mr. Shao’s failure to appear was treated as a waiver of his right to contest the claims.
This case illustrates how courts allocate compensation in multi-vehicle accidents where multiple compulsory insurance policies apply. Each insurer bears an equal share of the victim’s total loss, up to the policy limit, regardless of the insured driver’s degree of fault. Advances paid by one insurer are credited against its obligation. The decision reinforces that compulsory insurance is a primary source of recovery for injured parties. Parties should note that failing to attend court does not prevent a judgment from being entered.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.