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September 23, 2016

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Car insurer wins case over crash

A company that provides drivers was ordered to pay 26,500 yuan (US$3,973) compensation to an insurance company after one of its employees damaged a customer’s car in a road accident, according to Pudong New Area People’s Court.

This is the first time in Shanghai that a car insurance company has successfully received compensation from a driving service provider.

The accident occurred on December 8, 2014, when a driver, surnamed Chen, was sent by Shanghai Master An Driving Service Company to take a customer, surnamed Qian, home. Chen crashed Qian’s car into a road barrier in Pudong, and the damage was covered by the car’s insurance provider China Dadi Insurance Company.

Dadi then applied for a compensation from Master An, which it blamed for causing the accident. Police said Chen had taken full responsibility for the crash.

After Dadi paid compensation to Qian in January 2015, it sued Master An, stating the driving service provider should be responsible for Dadi’s financial loss.

The court ruled Master An’s contract with Qian was not water tight as it did not explain the accident related terms clearly.




 

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