The Supreme People's Court Releases Typical Cases on Compensation for “Goodwill Ride” Accidents

On the 6th, the Supreme People's Court released typical cases of compensation for damages in road traffic accidents, including one case focused on how liability is allocated after an accident involving a “goodwill ride.” In the case, Zhang, while giving his coworker Old Li a free ride, was involved in a singlevehicle traffic accident when the vehicle crashed into a roadside tree, causing injuries to Old Li. The traffic authorities determined that Zhang bore full responsibility for the accident, and Old Li later filed a lawsuit seeking compensation for medical expenses from Zhang and the insurance company. The court held that, according to the relevant provisions of the Civil Code, when a noncommercial motor vehicle gives another person a free ride and an accident occurs, if the liability lies with the motor vehicle side, compensation liability may be appropriately reduced, except where the driver acted intentionally or with gross negligence. Based on the cause of the accident and Zhang's specific conduct, the court found that although he bore full responsibility, his conduct did not amount to gross negligence, and ultimately ordered Zhang to bear 80% of the compensation liability. The court also pointed out that the compulsory motor vehicle liability insurance and commercial thirdparty liability insurance taken out by Zhang primarily cover losses suffered by third parties and do not cover damage related to passengers riding in the vehicle free of charge. Since the vehicle did not have passenger liability insurance, the insurance company did not bear compensation liability in this case. This case provides a reference for allocating liability in similar traffic disputes.