[2] Compiled from: Huangdao District Court, Qingdao City
 
[3] In practice, it is common for vehicles to engage in transportation operations under an affiliation arrangement, where the affiliated vehicle is typically insured in the name of the affiliated company. So, after a traffic accident, who should the insurance claim proceeds belong to? If the affiliated company receives the claim proceeds, should it return them to the vehicle owner?

 
 

Case review
[4] In 2018, Zhang signed a vehicle affiliation agreement with a freight company, stipulating that Zhang’s self-purchased truck would be affiliated with the company for operation, with an affiliation period of three years. During the operation period, insurance costs were to be borne by Zhang, and the affiliated company was responsible for handling vehicle insurance matters. In 2019, while operating the vehicle, Zhang was involved in a traffic accident, causing severe damage to the vehicle. After the incident, the affiliated company submitted relevant claim materials to the insurance company. During this time, Zhang had the vehicle repaired and paid for the repairs himself, but he did not receive the compensation payment. Upon inquiring with the insurance company, Zhang learned that the insurance company had transferred the vehicle damage claim proceeds of 100,000 yuan to the affiliated company.
 
[5] Upon learning this, Zhang approached the affiliated company to negotiate, but the company claimed that, according to the affiliation agreement, since the insurance premiums had been advanced by the company, there was no need to return the proceeds. After repeated demands by Zhang, the company only paid 35,000 yuan. Left with no choice, Zhang sued the affiliated company in court, requesting the return of the insurance claim proceeds and interest. However, the company still refused to return the funds, citing that the insurance premiums had been advanced by the company.
 
[6] During the court proceedings, Zhang acknowledged that the insurance premiums had been advanced by the company but argued that regardless of who paid for the insurance, there were records, and demanded that the affiliated company provide evidence of the specific amount advanced for insurance costs.

 
 

During the trial, the court investigated the details and relevant evidence of the insurance premiums advanced by the affiliated company, ultimately recognizing only 25,000 yuan of the amount. For the remaining funds, based on the agreement between the parties, Zhang paid for vehicle repairs himself after the accident, and the vehicle damage insurance claim was meant to cover the vehicle losses, thus it should belong to the affiliated person. The affiliated company's actions constituted unjust enrichment, and the court ruled for its return. Among this, since the defendant handled commercial insurance for the plaintiff as agreed and paid 25,000 yuan in premiums, the plaintiff should pay the defendant the advanced premium amount, which should be deducted. Based on the facts ascertained, the court ultimately ordered the defendant affiliated company to return 40,000 yuan to the plaintiff Zhang, along with any interest accrued during this period.
 
 
What is unjust enrichment?
Civil Code of the People's Republic of China
Article 985A person who has obtained unjust benefits without legal basis may be requested by the aggrieved party to return the benefits obtained, except in the following circumstances:
(1) Performance made to fulfill a moral obligation;
(2) Settlement made before the debt becomes due;
(3) A debt settlement made with the knowledge that there is no obligation to pay.
 
(4) Article 986(5) If the beneficiary neither knew nor ought to have known that the benefit obtained had no legal basis, and the benefit no longer exists, the beneficiary shall not be obligated to return the benefit.
 
(6) Article 987(7) If the beneficiary knew or ought to have known that the benefit obtained had no legal basis, the person who suffered the loss may request the beneficiary to return the benefit obtained and compensate for the loss in accordance with the law.
 
(8) Article 988If the beneficiary has gratuitously transferred the obtained benefits to a third party, the aggrieved party may request the third party to assume the obligation of restitution within the corresponding scope.
 
 
[1] The author's perspective
Disputes over unjust enrichment refer to disputes arising from the fact that one party gains benefits without legal basis, causing losses to another party. In daily life, disputes over unjust enrichment are common. Since unjust enrichment lacks legal grounds, even if it has become an established fact, the beneficiary must return the improper benefits.
 
The author reminds that there is no such thing as a free lunch. Never take property that does not belong to you; otherwise, you may not only be required to return it according to law but may also have to bear interest and compensate for losses.