[2] Compiled from: Shandong High Court
 
Currently, paid designated driving has become a new business model, commonly used after business engagements, class reunions, family gatherings, and more. After a few drinks, people often choose paid designated driving services. So, if a scratch accident occurs on the way home driven by a designated driver, causing vehicle damage, who should bear the responsibility?
 
Case review
On December 5, 2018, Wang called a designated driving information platform, requesting a designated driver. The platform relayed the information to a labor service company, which assigned Chen to provide designated driving services for Wang.

 

At 22:45 that day, Chen was driving the vehicle east to west along Kejing First Road in Laoshan District, Qingdao, when it scraped against a pothole on the road, causing damage to the vehicle. The Laoshan Traffic Police Brigade issued an accident determination, stating that Chen was fully responsible for the accident. Wang subsequently filed a claim with his insurance company, which compensated him over 30,000 yuan in repair costs.
 
On January 15, 2019, Wang issued a motor vehicle commercial insurance rights transfer letter, agreeing to transfer all rights to the insured subject matter for the portion of the claim already paid to the insurance company, and authorizing the insurance company to recover from the liable party in its own name or in Wang's name. The insurance company subsequently sued the labor company where the designated driver Chen was employed and a designated driving information platform company in court.
 
The court held that although compulsory traffic insurance stipulates that "the insured refers to the policyholder and the legal drivers permitted by the policyholder," compulsory traffic insurance is a statutory third-party liability insurance that breaks the privity of contract and has special characteristics, which should not be extended to the commercial vehicle damage property insurance in this case. The designated driving company provides paid designated driving services for profit, which constitutes a business activity. Driving the vehicle is not entirely for the benefit of the insured but also to obtain its own benefits through service provision. The paid nature of its services breaks the consistency of interests with the insured, so it does not have vehicle loss insurance interest in the insured vehicle and thus cannot obtain the status of the insured. The designated driver is clearly not a family member and is not a party legally prohibited from being pursued by the insurance company for recovery.
 
In a traffic accident, the victim has the right to choose whether to claim compensation from the tortfeasor or the insurance company. That is, they can choose to seek compensation from the tortfeasor or claim from the insurance company. After the insurance company actually pays the insurance benefits to the victim, it obtains the right of recourse, which is the case here. The designated driving information platform company is merely an information provider, and there is no evidence proving a causal relationship between the vehicle damage caused by the designated driving and the platform's intermediary activities. Therefore, the court ruled that the labor company should compensate the insurance company for losses of over 30,000 yuan, while the designated driving information platform company bears no liability for compensation.
 
 
"Motor Vehicle Traffic Accident Compulsory Liability Insurance"
Article 5
A victim in a compulsory traffic insurance contract refers to a person who suffers personal injury or property loss due to a traffic accident involving the insured motor vehicle, but does not include the occupants of the insured motor vehicle or the insured.
 
 
[1] The author's perspective
Nowadays, designated driving has become a very common commercial practice. The paid services provided by designated driving companies, where they charge a fee, differ from unpaid borrowing between friends and family. Since the designated driving company charges a fee, i.e., operates for profit, this driving behavior is essentially a business activity, and thus the operator must bear the corresponding business risks.

Thus, for their own interests and to avoid unnecessary disputes, chauffeured driving companies should strengthen qualification checks and raise technical requirements for drivers. They can also purchase corresponding insurance to spread risks. Additionally, relevant authorities should continuously improve various systems to promote the healthy and orderly development of the chauffeured driving industry.