Traffic Accident Claims in China: A Guide for Foreign Nationals

14. July 2026

Traffic accidents involving foreign nationals in China can be confusing and stressful, particularly when the foreign party is unfamiliar with Chinese traffic laws, insurance systems, and dispute resolution procedures. Gang Chen, a lawyer based in the Hechuan District of Chongqing with extensive experience in traffic accident claims, provides this practical guide for foreign nationals who have been involved in traffic accidents in China.

Immediate Steps After a Traffic Accident

The moments immediately following a traffic accident are critical for protecting your legal rights. Under Chinese traffic regulations, drivers involved in an accident with injuries or significant property damage must stop immediately, turn on hazard lights, and place warning triangles. The parties should not move the vehicles until the traffic police arrive and document the scene, unless the accident is minor and both parties agree on liability. Foreign nationals should call 122 to report the accident to the traffic police and 120 for medical emergencies. It is important to exchange information with the other driver, including name, phone number, license plate number, insurance policy number, and driving license information. Foreign nationals should also contact their insurance company and, if the accident involves significant injury or disputed liability, their lawyer. Under no circumstances should a foreign national admit fault or sign any liability determination document without legal advice.

Liability Determination in Chinese Traffic Accidents

The traffic police are responsible for investigating the accident and issuing a liability determination, known as a shigu ren ding shu. This document assigns responsibility as full liability, primary liability, equal liability, secondary liability, or no liability. The liability determination is crucial because it governs the allocation of damages between the parties. If a party disagrees with the liability determination, they may request a review within three days of receiving the document. The traffic police may also attempt mediation between the parties to reach a settlement on damages, particularly in cases involving minor injuries or property damage. However, the mediation is not binding, and either party may proceed to litigation if mediation fails.

Compensation for Injuries and Damages

Chinese law provides for compensation of various categories of damages in traffic accident cases. Medical expenses include hospitalization costs, surgery fees, medication, rehabilitation, and follow-up treatment. Lost income compensates for wages lost due to the accident and recovery period, calculated based on the victims average income over the past three months. If the accident results in disability, the victim is entitled to disability compensation based on the disability grading determined by a forensic medical evaluation. Additional compensation categories include transportation expenses for medical visits, nutrition fees during recovery, nursing care costs, and mental distress damages in cases of serious injury or death. In fatal accident cases, the family is entitled to funeral expenses, death compensation, and support for dependents. Attorney Chen advises clients to retain all medical bills, transportation receipts, and income documentation to support their compensation claims.

Insurance Claims Process

Chinas compulsory traffic accident liability insurance, known as jiao qiang xian, provides a base level of coverage for all vehicles registered in China. The coverage limits are RMB 180,000 for death and disability, RMB 18,000 for medical expenses, and RMB 2,000 for property damage in accidents where the insured driver is at fault. Above these limits, commercial third-party liability insurance provides additional coverage. Foreign nationals driving on an international driving permit should verify that their insurance policy provides adequate coverage in China, as some international policies may have limitations or exclusions. The claims process typically involves submitting the liability determination, medical records, expense receipts, and other supporting documents to the insurance company, which then assesses the claim and makes a payment within the policy limits. If the insurance company disputes the claim amount or delays payment, legal action may be necessary.

Gang Chen practices law in the Hechuan District of Chongqing, representing clients in traffic accident claims, personal injury litigation, and insurance disputes. He advises foreign nationals to seek legal representation promptly after a traffic accident to ensure their rights are protected throughout the claims process.

This article is for informational purposes only. Individuals should consult qualified legal professionals for advice tailored to their specific circumstances.

Personal Injury Application Notes

I convert complex Chinese procedure into a dated checklist with owners for translation, notarization, and internal sign-off across time zones.

I plan enforcement first—assets, licenses, receivables, and interim measures—so strategy is not limited to winning on paper.

Foreign individuals and companies typically need three workstreams in parallel: factual chronology, authority paperwork, and remedy selection. I keep those streams visible in status notes so headquarters can decide without re-reading the entire file. Where local counterparties rely on relationship pressure, I re-anchor discussions to contract text, statutory rights, and verifiable performance records. Fee arrangements, conflict checks, and confidentiality boundaries are confirmed before substantive drafting or filings begin. After key milestones I deliver a short handover: decisions made, open conditions, filing receipts, and calendar items for renewals or enforcement. This operating rhythm reduces repeat disputes and keeps institutional knowledge with the client rather than trapped in chat history.

⚖️ Written scope and remedy map
📜 Bilingual document control
🛡️ Deadline and limitation tracking
💼 Enforcement and settlement options in parallel

Operational Checklist for Foreign Readers

I plan enforcement first—assets, licenses, receivables, and interim measures—so strategy is not limited to winning on paper.

I document scope, assumptions, and decision rights at engagement start so foreign clients know what will be filed, who must approve, and when silence becomes a missed deadline.

⚖️ Written scope and remedy map
📜 Bilingual document control
🛡️ Deadline and limitation tracking
💼 Enforcement and settlement options in parallel

Risk Controls Before Escalation

I document scope, assumptions, and decision rights at engagement start so foreign clients know what will be filed, who must approve, and when silence becomes a missed deadline.

I treat bilingual consistency as a risk control: chops, authority documents, and English summaries must tell the same commercial story.