In short, liability insurance is insurance that covers the insurance company's claim coverage for the civil liability of the insured in the accident. In layman's terms, liability insurance is actually an effective way for policyholders to transfer liability risks. Generally speaking, the scope of compensation is divided into property damage and personal loss. Property losses are mainly handled through negotiation between the parties or a third-party public estimate. Personal losses are compensated with reference to the "Judicial Interpretation of the Supreme People's Court on the Trial of Personal Injury Compensation Cases". Attachment: "Judicial Interpretation of the Supreme People's Court on the Trial of Personal Injury Compensation Cases" Article 1 If the right holder of the right to compensation files a lawsuit to request the obligor to compensate for property losses and mental damage due to infringement of life, health, or body, the People's Court shall accept the case. The persons entitled to compensation as mentioned in this article refer to the victims who directly suffered personal injuries due to torts or other causes of harm, the dependents for whom the victims bear the obligation to support according to law, and the close relatives of the deceased victims. The term "compensation obligor" as mentioned in this article refers to the natural person, legal person or other organization that shall bear civil liability in accordance with the law due to the tortious behavior of himself or others or other causes of harm. Article 2 If the victim is intentional or negligent in causing or amplifying the same damage, the liability of the person obligated to compensate may be reduced or exempted in accordance with Article 131 of the General Principles of the Civil Law. However, if the tortfeasor causes damage intentionally or with gross negligence and the victim is only at ordinary fault, the liability of the person obligated to pay compensation will not be reduced. When applying the provisions of paragraph 3 of Article 106 of the General Principles of the Civil Law to determine the liability of the person with the obligation to compensate, if the victim has committed a major fault, the liability of the person with the obligation to compensate may be reduced. Article 3 If two or more persons cause harm to another person with the same intention or with the same negligence, or if their infringement acts are directly combined to produce the same damage result even though they do not have the same intention or negligence, it shall constitute a crime. **Any person who commits infringement shall bear joint and several liability in accordance with Article 130 of the General Principles of the Civil Law. If two or more persons do not have the same intention or the same fault, but several acts they respectively perform indirectly combine to cause the same damage, they shall each bear corresponding liability for compensation according to the magnitude of their fault or the proportion of the causative force. Article 4 If two or more persons jointly commit acts that endanger the personal safety of others and cause damage, and the actual perpetrator cannot be identified, they shall bear joint and several liability in accordance with Article 130 of the General Principles of the Civil Law. ***If a person who commits a dangerous act can prove that the damage was not caused by his or her behavior, he will not be liable for compensation. Article 5 Where a compensation right holder sues some co-infringers, the people's court shall add other co-defendants as co-defendants. If the compensation right holder gives up its claim against some of its co-infringers during the lawsuit, other co-infringers will not be jointly and severally liable for the share of compensation borne by the defendant who has given up his claim. If the scope of liability is difficult to determine, it is presumed that each party is equally liable as the infringer. The people's court shall inform the compensation right holder of the legal consequences of giving up the litigation claim, and state the circumstances of the abandonment of the litigation claim in the legal document. Article 6 If a natural person, legal person or other organization engaged in accommodation, catering, entertainment and other business activities or other social activities fails to perform safety guarantee obligations within a reasonable range, causing others to suffer personal injury, and the right holder of compensation requests that they bear corresponding liability for compensation. , the People's Court should support it. If damage occurs due to the infringement of a third party, the third party who committed the infringement shall bear the liability for compensation. If the safety guarantee obligor is at fault, he shall bear corresponding supplementary compensation liability to the extent that he can prevent or stop the damage. After the safety guarantee obligor assumes responsibility, he may recover compensation from the third party. If the holder of the right to compensation sues the person with the security obligation, the third party shall be named as the co-defendant, unless the third party cannot be identified. Article 7 A school, kindergarten or other educational institution that has the obligation to educate, manage and protect minors in accordance with the law fails to perform relevant obligations within the scope of its duties, causing minors to suffer personal harm, or minors cause personal harm to others. , shall bear the liability for compensation corresponding to its fault. If a third party causes personal injury to a minor due to infringement, he shall be liable for compensation. If schools, kindergartens and other educational institutions are at fault, they shall bear corresponding supplementary liability for compensation. Article 8 If the legal representative, person in charge, or staff of a legal person or other organization causes harm to others while performing their duties, the legal person or other organization shall bear civil liability in accordance with the provisions of Article 121 of the General Principles of the Civil Law.
If the above-mentioned personnel perform acts unrelated to their duties and cause harm to others, the perpetrators shall be liable for compensation. If the cause of compensation falls under the State Compensation Law, it shall be handled in accordance with the provisions of the State Compensation Law. Article 9 If an employee causes harm to others while engaging in employment activities, the employer shall bear liability for compensation; if an employee causes harm to others intentionally or due to gross negligence, he shall bear joint liability with the employer for compensation. If the employer is jointly and severally liable for compensation, it may recover compensation from the employee. The term "engaging in employment activities" as mentioned in the preceding paragraph refers to engaging in production and business activities or other labor activities within the scope authorized or instructed by the employer. If an employee's behavior exceeds the scope of authorization, but it is performed in the form of performing duties or is intrinsically related to the performance of duties, it shall be deemed to be engaged in employment activities. Article 10 If the contractor causes damage to a third party or causes damage to himself in the process of completing the work, the client shall not be liable for compensation. However, if the orderer is negligent in ordering, instructing or selecting, he shall bear corresponding liability for compensation. Article 11 If an employee suffers personal injury while engaging in employment activities, the employer shall bear liability for compensation. If a third party outside the employment relationship causes personal injury to an employee, the holder of the right to compensation may request the third party to bear liability for compensation or the employer to bear liability for compensation. After the employer assumes liability for compensation, it can recover compensation from the third party. If an employee suffers personal injury due to a work safety accident while engaging in employment activities, and the contractor or subcontractor knows or should know that the employer accepting the contract or subcontract business does not have the corresponding qualifications or safety production conditions, he shall bear joint and several liability with the employer for compensation. If it falls within the scope of labor relations and work-related injury insurance regulated by the "Regulations on Work-related Injury Insurance", the provisions of this article do not apply. Article 12 If a worker of an employer that is legally required to participate in the overall planning of work-related injury insurance suffers personal injury due to a work-related injury, and the worker or his close relative files a lawsuit in the People's Court to request that the employer bear civil liability for compensation, the worker shall be informed that the employer shall be liable for civil compensation according to the "Regulations on Work-related Injury Insurance". 》Processing according to the provisions. If a third party other than the employer causes personal injury to an employee due to infringement, and the compensation right holder requests the third party to bear civil liability for compensation, the People's Court shall support the request. Article 13 If a worker who provides labor services for others free of charge causes damage to others while engaging in helping activities, the worker being helped shall bear liability for compensation. If the worker being helped explicitly refuses to help, he will not be liable for compensation. If the worker who helps the worker commits intentional or gross negligence and the person who is entitled to compensation requests that the worker who helps the worker and the worker being helped bear joint and several liability, the people's court should support it. Article 14 If a worker suffers personal injury due to his activities, the worker being helped shall bear the liability for compensation. If the worker being helped explicitly refuses to help, he will not be liable for compensation; however, appropriate compensation can be made within the scope of the benefit. If a worker suffers personal injury due to infringement by a third party, the third party shall bear the liability for compensation. If the third party cannot be determined or has no ability to compensate, the injured worker may provide appropriate compensation. Article 15 In order to safeguard the legitimate rights and interests of the state, the collective or others, he or she suffers personal injury. Because there is no infringer, the infringer cannot be identified, or the infringer has no ability to compensate, the holder of the right to compensation shall request the beneficiary to provide appropriate compensation within the scope of the benefit. , the People's Court should support it. Article 16 In the following situations, the provisions of Article 126 of the General Principles of the Civil Law shall apply, and the owner or manager shall be liable for compensation, unless he can prove that he is not at fault: (1) Artificial construction of roads, bridges, tunnels, etc. The structures causing damage due to defects in maintenance and management; (2) Stacked items rolling or sliding down or stacks collapsing causing damage; (3) Trees toppling, breaking or fruits falling causing damage. In the case of item (1) of the preceding paragraph, if damage is caused by defects in design or construction, the owner, manager, and the designer or constructor shall bear joint and several liability. Article 17 The victim suffered personal injury, various expenses incurred for medical treatment and loss of income due to missed work, including medical expenses, lost work expenses, nursing expenses, transportation expenses, accommodation expenses, hospitalization food subsidies, and necessary nutritional expenses. , the person with the obligation to compensate shall compensate. If the victim becomes disabled due to injury, the necessary expenses incurred by him to increase his living needs and the loss of income caused by the loss of working ability, including disability compensation, disability assistive device fees, dependents' living expenses, and rehabilitation care, continued The obligor shall also compensate the necessary rehabilitation fees, nursing fees, and follow-up treatment fees actually incurred for the treatment.
If the victim dies, the compensation obligor shall, in addition to compensation for the relevant expenses stipulated in paragraph 1 of this article based on the rescue and treatment conditions, also compensate for funeral expenses, dependents' living expenses, death compensation expenses, and transportation expenses incurred by the victim's relatives for funeral matters. , accommodation fees, lost work time and other reasonable expenses. Article 18 If the victim or a close relative of the deceased suffers mental damage, and the right holder of the right to compensation applies to the People's Court for compensation for mental damage consolation money, the "Interpretation of the Supreme People's Court on Several Issues Concerning the Determination of Liability for Compensation for Mental Damage in Civil Torts" shall apply. The right to request solatium for mental damage shall not be transferred or inherited. This is except where the person obligated to compensate has promised in writing to pay monetary compensation, or the person entitled to compensation has filed a lawsuit in the People's Court. Article 19 Medical expenses are determined based on receipts for medical expenses, hospitalization fees and other receipts issued by medical institutions, combined with relevant evidence such as medical records and diagnosis certificates. If the person with the obligation to compensate has any objection to the necessity and rationality of the treatment, he shall bear the corresponding burden of proof. The amount of compensation for medical expenses shall be determined based on the actual amount incurred before the conclusion of the first-instance court debate. For the necessary rehabilitation fees for organ function recovery training, appropriate plastic surgery fees, and other follow-up treatment fees, the compensation rights holder may sue separately after the actual occurrence. However, the expenses that must be incurred based on the medical certificate or appraisal conclusion can be compensated together with the medical expenses that have already been incurred. Article 20 The compensation for lost work is determined based on the victim’s lost work time and income status. The time missed from work is determined based on the certificate issued by the medical institution where the victim received treatment. If the victim continues to miss work due to injury and disability, the missed work time can be calculated to the day before the disability date. If the victim has a fixed income, the lost wages shall be calculated based on the actual reduced income. If the victim has no fixed income, the calculation shall be based on his average income in the last three years; if the victim cannot provide evidence to prove his average income in the last three years, the calculation may be based on the average salary of employees in the same or similar industry in the previous year where the court where the suit is filed is located. . Article 21 Nursing fees are determined based on the income status of the nursing staff, the number of caregivers, and the duration of care. If the nursing staff has income, it shall be calculated with reference to the regulations on lost work pay; if the nursing staff has no income or employs nursing workers, it shall be calculated with reference to the labor remuneration standards for local nursing workers engaged in the same level of care. In principle, the number of nursing staff is one person, but if the medical institution or appraisal institution has clear opinions, the number of nursing staff can be determined by reference. The nursing period shall be calculated until the victim regains his ability to take care of himself. If the victim cannot regain the ability to take care of himself due to disability, a reasonable period of care may be determined based on his age, health status and other factors, but the maximum period shall not exceed twenty years. The level of care for the victim after the victim is determined to be disabled should be determined based on the degree of dependence on care and the preparation of disability assistive devices. Article 22 Transportation expenses are calculated based on the actual expenses incurred by the victim and his necessary accompanying persons for medical treatment or transfer to a hospital for treatment. Transportation expenses should be supported by official receipts; relevant vouchers should be consistent with the location, time, number of people, and frequency of medical treatment. Article 23 The hospitalization food subsidy can be determined by referring to the business trip food subsidy standards for general staff of local state agencies. If the victim does need to go to other places for treatment and cannot be hospitalized due to objective reasons, the reasonable part of the accommodation and food expenses actually incurred by the victim and his accompanying persons shall be compensated. Article 24 Nutritional expenses are determined based on the victim’s disability and with reference to the opinions of the medical institution. Article 25 Disability compensation shall be based on the degree of the victim's inability to work or the level of disability, and shall be based on the per capita disposable income of urban residents or the per capita net income of rural residents in the previous year where the court where the lawsuit is filed is based. Ten years count. However, for those over 60 years old, the age will be reduced by one year for every additional year; for those over 75 years old, it will be calculated as five years. If the victim becomes disabled due to injury but his actual income does not decrease, or if the degree of disability is minor but causes occupational hindrance that seriously affects his employment, the disability compensation may be adjusted accordingly. Article 26 The fee for assistive devices for disabled people is calculated based on the reasonable cost standards for general applicable devices. If the injury requires special needs, you can refer to the opinions of the assistive device dispensing agency to determine the corresponding reasonable fee standards. The replacement cycle and compensation period of assistive devices are determined with reference to the opinions of the dispensing agency. Article 27 Funeral expenses shall be calculated based on the average monthly salary of employees in the previous year at the location of the court where the lawsuit is filed, and calculated as a total of six months.
Article 28 The dependent's living expenses shall be calculated based on the degree of the dependent's inability to work and based on the per capita consumption expenditure of urban residents and the per capita annual living consumption expenditure of rural residents in the previous year where the court where the lawsuit is filed is located. If the dependent is a minor, the period will be counted until the age of eighteen; if the dependent is unable to work and has no other source of living, the period will be counted for twenty years. However, for those over 60 years old, the age will be reduced by one year for every additional year; for those over 75 years old, it will be calculated as five years. Dependents refer to minors who are legally obliged to support the victim or close adult relatives who have lost the ability to work and have no other source of income. If the dependent has other dependents, the person obligated to compensate shall only compensate the victim for the portion that he should bear according to law. If there are several dependents, the total annual compensation shall not exceed the per capita consumption expenditure of urban residents or the per capita annual living consumption expenditure of rural residents in the previous year. Article 29 Death compensation shall be calculated over twenty years based on the per capita disposable income of urban residents or the per capita net income of rural residents in the previous year where the court where the lawsuit is filed is located. However, for those over 60 years old, the age will be reduced by one year for every additional year; for those over 75 years old, it will be calculated as five years. Article 30 If the right holder of compensation provides evidence to prove that the per capita disposable income of urban residents or the per capita net income of rural residents in his place of domicile or habitual residence is higher than the standard for the location of the court where the suit is filed, the disability compensation or death compensation may be based on the standard of his place of domicile or habitual residence. Relevant standard calculations for habitual residence. The relevant calculation standards for dependents’ living expenses shall be determined in accordance with the principles of the preceding paragraph. Article 31 The People's Court shall determine the actual compensation amount for the property losses in Articles 19 to 29 in accordance with Article 131 of the General Principles of the Civil Law and Article 2 of this Interpretation. In principle, the material damage compensation determined in the preceding paragraph and the mental damage consolation payment determined in accordance with the first paragraph of Article 18 shall be paid in one lump sum. Article 32 If the determined period of nursing care, the number of years for payment of assistive device fees or the number of years for payment of disability compensation exceeds the determined period, and the compensation right holder files a lawsuit with the People's Court to request continued payment of nursing fees, assistive device fees or disability compensation, the People's Court shall accept the case. . If the person obligated to compensation really needs to continue nursing care or preparing assistive devices, or has no ability to work and no source of income, the People's Court shall order the person obligated to compensate to continue paying relevant expenses for five to ten years. Article 33 If the compensation obligor requests payment of disability compensation, dependents’ living expenses, or disability assistive device expenses in the form of fixed payments, he shall provide corresponding guarantees. The people's court may determine the payment of relevant expenses in the form of fixed deposits based on the payment ability of the compensation obligor and the provision of guarantees. However, the expenses, death compensation and mental damage consolation that have been incurred before the conclusion of the first-instance court debate shall be paid in one lump sum. Article 34 The People's Court shall specify in legal documents the time and method of payment of fixed payments as well as the payment standards for each period. If relevant statistical data changes during the implementation period, the payment amount shall be adjusted accordingly in a timely manner. The fixed payment shall be paid according to the actual lifespan of the compensation obligee and shall not be limited by the compensation period in this interpretation. Article 35 The per capita disposable income of urban residents, the per capita net income of rural residents, the per capita consumer expenditure of urban residents, the per capita annual living consumption expenditure of rural residents, and the average salary of employees as mentioned in this interpretation shall be based on the statistics of each province and autonomous region published by the government statistics department. , municipalities directly under the Central Government, special economic zones and separately planned cities, the relevant statistical data of the previous year are determined.