Traffic Accident Dispute Yields CNY 194,432 in Damages
Three family members of a deceased truck driver brought a personal injury lawsuit against an insurance company and two other parties after a fatal highway collision. The court ruled that the insurance company must pay under the compulsory insurance policy and that the owner of the other vehicle must cover a share of the remaining losses based on fault. The case illustrates how Chinese courts allocate liability in multi-vehicle accidents involving death.
On September 26, 2011, at around 3:33 a.m., Mr. Liu was driving a heavy truck on the G15 expressway in Eastern China City. His vehicle struck the rear of a semi-trailer belonging to Mr. Wang and driven by Mr. Xue, who was employed by Mr. Wang. The traffic police determined that Mr. Liu bore primary responsibility, while Mr. Xue bore secondary responsibility. Both Mr. Liu and a passenger in his truck died. The three plaintiffs were Mr. Liu’s parents and his minor son. They sued Mr. Wang and the insurance company that had issued a compulsory motor vehicle liability policy for the semi-trailer.
During the hearing, the plaintiffs submitted evidence including an accident report, family registration documents, and expense receipts for transportation and accommodation. The insurance company disputed the claimed amounts for transportation and lost wages. The court accepted most of the evidence but found the transportation receipts lacked relevance and instead set the travel cost at CNY 1,500. The court also determined that the plaintiffs’ lost wages for funeral arrangements should be set at CNY 1,500. The defendants did not present any evidence of their own.
The court found that Mr. Liu’s death caused total losses of CNY 285,220 in death compensation, CNY 16,848 in funeral expenses, CNY 83,249 in dependent living expenses, CNY 1,500 in transportation, CNY 60 in accommodation, CNY 1,500 in lost wages, and CNY 20,000 in mental distress damages, for a combined CNY 408,377. Under relevant law, the insurance company was required to pay up to CNY 110,000 from the compulsory policy, including the mental distress amount. For the remaining CNY 298,377, the court assigned 65 percent liability to the plaintiffs and 35 percent to Mr. Wang, given the fault split. After deducting CNY 20,000 already paid by Mr. Wang, he owed CNY 84,432.
According to the Tort Law and the Road Traffic Safety Law, the insurance company’s compulsory coverage must compensate for mental distress damages in cases involving death. The court emphasized that the proportional fault rule applies when both drivers are at fault. Because Mr. Liu bore primary fault, his family had to assume 65 percent of the excess loss, while Mr. Wang as the employer of the second driver was responsible for 35 percent. This allocation reflects the principle that each party bears costs according to their degree of wrongdoing.
This case highlights how Chinese courts handle fatal traffic accidents by first applying compulsory insurance coverage and then apportioning remaining losses based on fault. For readers, it underscores the importance of obtaining adequate insurance and understanding that fault percentages directly affect the amount recoverable. The decision also confirms that mental distress damages can be claimed within the compulsory policy limit, which may influence future settlement strategies.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.