Compiled from: Shandong High Court, China Court Network

After a traffic accident, someone hurriedly bought insurance, with the purchase and the accident occurring on the same day. The insurance company initially did not notice the issue during litigation. So, can the liability for compensation be shifted to the insurance company? Recently, the Dengzhou City People's Court in Henan Province concluded a traffic accident compensation dispute.

Case Review

In March 2022, Zhang Wei purchased a light panel truck from another person. At 15:10 on April 6, 2022, Zhang Wei drove the vehicle to a section of a road in Dengzhou City, colliding with Li Xia, who was crossing the road on an electric bike, causing Li Xia to be injured and both vehicles damaged, resulting in a traffic accident.

After the accident, Zhang Wei immediately contacted the original owner to inquire about the vehicle's insurance status, and the original owner informed him that the vehicle's insurance had expired. Following advice from a "wise person," while waiting for the traffic police to handle the accident, Zhang Wei applied for compulsory traffic insurance and commercial third-party insurance through his phone with an insurance company, paid the premiums, and quickly completed the insurance process.

The accident was determined by the traffic police department to be equally the fault of Zhang Wei and Li Xia. The injured Li Xia was sent to a hospital in Dengzhou City and then to a hospital in Zhengzhou for treatment, incurring medical expenses of over 120,000 yuan. In February 2023, Li Xia filed a lawsuit in court, demanding that Zhang Wei and the insurance company compensate her for medical expenses, lost wages, and other costs totaling over 140,000 yuan.

During the court hearing, the defendant Zhang Wei was absent, and the insurance company argued in its defense that it was willing to assume insurance liability within the scope of the policy.

After the hearing, the presiding judge, while carefully reviewing the evidence of the vehicle's insurance status, discovered that the compulsory traffic insurance and commercial third-party insurance Zhang Wei purchased from the insurance company had a coverage period from April 7, 2022, to April 6, 2023, while the accident time recorded in the case files was 15:10 on April 6, 2022 (less than an hour before the insurance payment time). Based on the case file evidence, the accident occurred outside the insurance period.

However, because the accident time was close to the insurance purchase time, the judge, out of caution, further questioned Zhang Wei and the insurance company and thoroughly investigated the entire process of Zhang Wei's insurance purchase. During the court's investigation, the insurance company also confirmed that Zhang Wei's insurance purchase time was indeed after the accident, not within the insurance period, and rejected Li Xia's compensation claim. Based on valid evidence, the court ultimately ruled that Zhang Wei should compensate Li Xia for various losses totaling over 100,000 yuan.

[1] Civil Code

[2] Article 7

[3] Civil subjects engaging in civil activities shall adhere to the principle of good faith, act honestly, and keep their promises.

[4] Author's Opinion

[5] Zhang Wei's vehicle had lapsed insurance before the accident, yet he still drove it out. Only after the traffic accident did he think of purchasing insurance to shift liability. Such speculative behavior is clearly not supported by law, first because it falls outside the insurance coverage period, and second because it violates the principle of good faith.

[6] Many car owners who buy second-hand vehicles often overlook important steps after the transfer, such as vehicle insurance, taxes, and other issues. It is important to note that when using a vehicle, one must purchase compulsory traffic insurance in accordance with the law, and it is best to also supplement with necessary commercial insurance based on one's own driving conditions. If the vehicle's insurance has lapsed, never drive with a fluke mentality; otherwise, once a traffic accident occurs, you may face high compensation costs and other legal liabilities.