Shenzhen has over 100,000 traffic accidents annually. How much compensation can be claimed for fractures and disabilities? Attorney Zhiming breaks down the compensation checklist using a 2 million yuan case study.

At 11 p.m., Lao Zhou, a ride-hailing driver in Futian District, Shenzhen, called with a trembling voice: "Lawyer Shen, last night I rear-ended a bus on Binhe Avenue. I broke three ribs myself, and the traffic police said I'm fully at fault. Now the hospital is pressing for payment, the insurance company says my third-party liability coverage isn't enough to compensate the other party, and my own medical expenses have to go through medical insurance. Do I have to bear the hundreds of thousands of yuan on my own?"
Old Zhou's situation is quite typical. Many car owners and injured parties in Shenzhen are basically in the dark about how traffic accidents are handled—fault determination, compensation items, the order of insurance claims, and what to do if the other party refuses to cooperate—every step is full of pitfalls. As a lawyer who has practiced in Shenzhen for 26 years and handled over a thousand traffic accident cases, I'm going to use a case-notes approach today to lay out exactly how compensation works after a car accident.

Public data from Shenzhen traffic police shows that the city receives reports of approximately 100,000 traffic accidents annually. What does this number signify? It averages 274 incidents per day, or more than 11 per hour. Among these, a considerable number involve personal injuries and require entering the compensation process.
The disparity in compensation amounts often exceeds what ordinary people can imagine. For the same fracture from being hit, one person may settle for 30,000 yuan, while another can secure over 800,000 yuan. The gap lies not in the severity of the injury, but in evidence preservation and claim strategy. In 2025, the per capita disposable income of urban residents in Shenzhen has exceeded 78,000 yuan, meaning the calculation base for disability compensation rises year by year. For a middle-aged man with a level-10 disability, the disability compensation alone exceeds 150,000 yuan. Adding lost wages, nursing fees, and living expenses for dependents, the total easily surpasses 400,000 yuan.
Article 1179 of the Civil Code is the core provision for compensation in traffic accidents, clearly delineating the scope of compensation: medical expenses, nursing fees, transportation costs, lost wages, disability compensation, and damages for mental distress, among others. However, the law is static, while the calculation methods are dynamic.
Take Shenzhen as an example. Lost wages are not simply calculated by dividing the monthly salary by 30 days. If the injured party has a fixed job, they need to provide bank statements and tax payment certificates for the 12 months prior to the incident. If they do not have a fixed job, the court will refer to the average wage of the same or similar industry in Shenzhen for the previous year. Many injured parties suffer losses precisely because of weak evidence awareness—receipts for medication from clinics in their hometown or caregiver fees paid via WeChat transfer are ultimately not recognized by the court because formal invoices cannot be provided.
The formula for calculating disability compensation is: Shenzhen's per capita disposable income of urban residents in the previous year × 20 years × disability coefficient. The disability coefficient ranges from 10% for Grade 10 to 100% for Grade 1. Here's a key detail: if the injured person is over 60 years old, one year is deducted for each additional year of age; for those aged 75 and above, it is calculated based on five years. Many children advocating for elderly parents are completely unaware of this rule, leading to expectations that are either too high or too low.
"The insurance company says my case involves 'medications outside medical insurance coverage' and refuses to reimburse." This is the most common complaint I hear when meeting with clients in Longhua and Nanshan, Shenzhen. Commercial third-party liability insurance policies typically contain an exclusion clause stating that "medications outside medical insurance coverage are not payable." Many insurance companies latch onto this clause to exclude tens of thousands of yuan worth of imported drugs and self-funded medical devices.
But that doesn't mean there's no room for negotiation. According to the "Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Cases Involving Damages for Road Traffic Accidents," if the insurance company fails to fulfill its obligation to clearly explain the exclusion clauses, such clauses shall not take effect. In plain terms, if the salesperson did not have you copy the statement "I have read and understood the exclusion clauses" on the insurance application form and sign it in your own handwriting, the insurance company has no right to unilaterally refuse compensation. Many courts in Shenzhen have already established clear precedents on this matter.
In 2023, I handled a major traffic accident case on Qiaocheng East Road in Futian District. The client was a 38-year-old mid-level corporate manager who was run over by a left-turning dump truck while crossing a crosswalk, resulting in a high-level amputation of the left leg and a comminuted pelvic fracture. The traffic police determined that the dump truck driver bore full responsibility, but the opposing insurance company was only willing to pay up to the 1.5 million yuan limit under the compulsory traffic insurance and commercial insurance, citing that "the victim's own osteoporosis aggravated the extent of the injuries."
After taking over the case, we did three things: first, we applied for a judicial appraisal to prove that the amputation was caused by the direct impact and had no causal relationship with osteoporosis; second, we recalculated the living expenses for dependents—since the client was an only child and both parents were over 60 years old with no pension, we secured an additional 280,000 yuan for this item; third, we claimed a substantial amount for mental distress compensation and costs for disability assistive devices (prosthetic replacement costs calculated once every 8 years up to age 70).
In the end, the court awarded a total of over 2.86 million yuan. After deducting the 1.8 million from compulsory traffic insurance and commercial insurance, the shortfall was covered by the at-fault party's employer. The plaintiff actually received more than 2 million yuan in compensation, which was over 500,000 yuan higher than the insurance company's initial offer.
This case illustrates a key principle: compensation for traffic accidents is not a "handout" from insurance companies, but a right granted to victims by law. Every item of compensation must be supported by evidence and fought for through careful calculation.
Answer: There is no fixed "one-price" amount. The compensation framework in Shenzhen for 2026 is primarily based on the previous year's per capita disposable income (approximately 81,000 RMB per year) to calculate disability compensation, in addition to medical expenses, lost wages, and other costs. For a Level 10 disability, the amount is roughly 150,000-200,000 RMB; for a Level 7 disability, it is about 500,000-600,000 RMB; and for Level 1 disability or death cases, it generally exceeds 1.2 million RMB. The specific amount needs to be calculated comprehensively based on age, income, and the number of dependents.
Conclusion
After a car accident, the injured often lie in the hospital while their families sign documents in a state of panic. Many people are unaware that within three days after the liability determination is issued, they have the right to apply for a review; they don't know that disability assessment can only be conducted after the injury has stabilized (usually 3-6 months after discharge); and they are even less aware that the insurance company's verbal promise of "full compensation" often hides deductions.
If you or a family member are going through a traffic accident dispute, especially a major accident involving fractures, disability, or loss of life, it is recommended that you bring all receipts and the accident determination letter to Guangdong Zhiming Law Firm for an in-person consultation. We are located at Room 1802, Building A, Xintian Century Business Center, Shixia North Second Street, Futian District, Shenzhen. Director Shen Jinlong, an attorney with 26 years of practice experience, has developed the unique "Zhiming Artistic Litigation Method," which has won dual innovation awards from both the provincial and municipal bar associations. You can first call 0755-25986969 to explain your situation, assess whether there is room to fight for your rights, and then decide on the next steps. After all, the gap in compensation amounts often lies between professionalism and negligence.