Liability for Motor Vehicle Traffic Accident
Where a motor vehicle traffic accident causes any damage, liability shall be assumed according to the relevant provisions of the Road Traffic Safety Law.
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Liability for Motor Vehicle Traffic Accident
Article 48 Rule Where a motor vehicle traffic accident causes any damage, liability shall be assumed according to the relevant provisions of the Road Traffic Safety Law. Explanation This article is a general provision for automobile traffic accident liability. Unless the Road Traffic Safety Law provides a specific provision, this law shall apply. The imputation principle of automobile traffic accident liability does not directly follow fault or no-fault principle; however, it is a system which considers various factors to establish liability. The current trend in Tort Law legislation is that specific principles apply in specific situations; this reflects the specialization of legislation techniques. The PRC’s Road Traffic Safety Law specifies the imputation principle of automobile traffic accident liability that the insurance company shall bear no-fault liability, within the scope of compulsory third party liability insurance, for the motor vehicle. Where a motor vehicle is involved in a traffic accident and causes personal injury, death, or property loss, the insurance company shall indemnify the victim within the scope of the third party’s liability insurance coverage. The Social Assistance Fund for Road Traffic Accidents pays the costs of rescuing liable party’s victim; thus, it applies no-fault liability. The administrative organization of the fund may claim compensation from the liable party. Fault liability applies to traffic accidents between motor vehicles. The party at fault in a traffic accident shall bear the liability; if both parties are at fault, they each bear their share of the liability. No fault liability applies for traffic accidents where the driver injures a passenger or a pedestrian. Where a traffic accident injures a passenger or a pedestrian, the driver shall bear the liability; where the passenger or pedestrian intentionally or negligently cause the accident, the driver shall bear no liabilities or mitigated liabilities. Example Jia drove his Nissan to a relative’s house and hit Li, who was crossing an intersection. The police assigned 70 % of the liability to Jia and 30 % of the liability to Li. The two parties went to court due to disputes over the exact amount of X. Li and J. Jin, Concise Chinese Tort Laws, China-EU Law Series 1, DOI 10.1007/978-3-642-41024-6_18, © Springer-Verlag Berlin Heidelberg 2014
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Liability for Motor Vehicle Traffic Accident
compensation. Li claimed for 70 % of his medical fees and lost wages from Jia and the insurance company, which totaled ¥10,000. The court held that the Road Traffic Safety Law required the insurance company to pay Li up to the limit of the insurance policy. The amount in excess of the insurance policy is up to Jia to pay. Because of the insurance clause in this case, the insurance company paid ¥5,000 and Jia paid the remaining ¥2,000.
Article 49 Rule Where the owner and the driver of a motor vehicle are not the same person— due to rental, leasing, or any other reason—the liability
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