Recently, the Supreme People's Court (SPC) has issued the Interpretation on Several Issues Concerning the Application of Law in the Trial of Cases on Road Traffic Accident Compensation (II) (the "Interpretation"), which will take effect on June 30, 2026.
The Interpretation consists of 12 articles and provides rules on matters including liable parties, determination of liability, calculation of compensation, and procedural provisions. Its highlights include: (1) clarifying liability allocation in situations involving the leasing or borrowing of motor vehicles; (2) strengthening protection for victims in "dooring" incidents (where a vehicle occupant opens a door and injures others); (3) clarifying fault determination in "gratuitous ride" situations; (4) addressing issues concerning the scope and calculation methods of compensation; and (5) optimizing litigation procedures through consolidated adjudication. In particular, the Interpretation clarifies that where an infringed party claims that the liability of a passenger belongs to the liability of the motor vehicle side, and requests the insurance company to provide compensation within the liability limits of compulsory motor vehicle traffic accident liability insurance and in accordance with the terms of the commercial third-party liability insurance contract, the people's court shall support such claim.