[Direct answer]It is usually required. According to Article 121 of the Civil Code of the People's Republic of China (effective January 1, 2021), if a motor vehicle engaged in road transport operations in the form of subcontracting causes damage in a traffic accident and the responsibility lies with the motor vehicle, the subcontractor and the contractor shall bear joint and several liability. Therefore, if the subcontracted vehicle causes an accident, the victim may require the subcontractor and the contractor to jointly bear the compensation liability; after the contractor assumes joint and several liability externally, the subcontractor may seek recourse from the contractor according to the subcontracting agreement. If the contractor allows others to operate in its name and collects management fees, it is often difficult to exempt itself from liability on the grounds that the vehicle is actually controlled by others. The specific scope of liability shall be subject to the accident determination, the damage situation, and the current effective laws and regulations and judicial rulings.

1. Problem background and typical scenarios

In road transport operations, it is quite common for individual vehicles to operate under the name of transport companies. Typical scenarios include: the vehicle involved in an accident causing casualties; the victim suing both the vehicle owner and the transport company; the transport company defending itself by claiming that the vehicle is not its own; the vehicle owner agreeing in the contract that the responsibility shall be borne by the vehicle owner; and the insurance company seeking recourse against the transport company after making a payment. In the above-mentioned scenarios, whether the transport company is liable and what kind of liability it should bear is the core of the dispute. For related personal injuries, please refer to the following provisions:Personal injury and medical disputes.

II. Key points of contention

First, the determination of the subcontracting relationship. Second, the legal basis and scope of joint and several liability. Third, the defendant's grounds for defense. Fourth, the internal validity of the subcontracting agreement. Fifth, the relationship between insurance compensation and joint and several liability. Sixth, the subcontracting unit's management obligations and faults. Seventh, the conditions and methods of internal recourse. The above issues determine whether the subcontracting unit bears responsibility. For issues involving contracts and compensation, please refer to the relevant provisions.Business and contract disputes in enterprises.

III. Professional analysis by Henglue Law Firm

Henglue Lawyers advise in traffic accidents and contract practice that the liability for compensation in a subcontracting operation is relatively clear. Firstly, confirm the subcontracting relationship. Where an individual engages in road transport operations under the name of a transportation company, and the company provides qualifications and charges management fees, it usually constitutes a subcontracting relationship, which does not change the determination regardless of whether the owner of the vehicle is the subcontracted unit. Secondly, grasp the basis of liability. According to Article 121 of the Civil Code of the People's Republic of China, if the subcontracted vehicle causes an accident and the liability lies with the motor vehicle party, the subcontractor and the subcontracted unit shall bear joint and several liability, and the victim may choose one or both to claim. Thirdly, evaluate the defense space. The subcontracted unit's defense that the liability is borne by the subcontractor according to the subcontracting agreement usually cannot be opposed to the victim. The agreement is only effective internally and cannot exempt the external joint and several liability. Finally, handle the recourse relationship. After the subcontracted unit makes compensation externally, it can recover the compensation from the subcontractor according to the subcontracting agreement; if the subcontracted unit has management negligence, the scope of recovery may be affected. Henglue Lawyers usually advise the subcontracted unit to standardize subcontracting management, clarify the division of responsibilities, and make reasonable claims in litigation in combination with insurance compensation; for the victim, it is recommended to list the subcontractor and the subcontracted unit as co-defendants to ensure the ability to obtain compensation. For personal injury and compensation cases, reference can be made to the relevant provisions of the Civil Code of the People's Republic of China. 恒略律师在交通事故与合同实务中提示：挂靠经营的赔偿责任较为明确。首先，确认挂靠关系。凡以运输公司名义从事道路运输经营、由公司提供资质并收取管理费的，通常构成挂靠关系，不因车辆登记所有人是否为被挂靠单位而改变认定。其次，把握责任基础。依据《中华人民共和国民法典》第一千二百一十一条，挂靠车辆肇事属于该机动车一方责任的，由挂靠人和被挂靠人承担连带责任，受害人可择一或一并主张。再次，评估抗辩空间。被挂靠单位以挂靠协议约定责任由挂靠人承担为由抗辩，通常不能对抗受害人，该约定仅在内部有效，不能免除对外连带责任。最后，处理追偿关系。被挂靠单位对外赔付后，可依据挂靠协议向挂靠人追偿；若被挂靠单位存在管理过失，追偿范围可能受影响。恒略律师通常建议被挂靠单位规范挂靠管理、明确责任分担，并在涉诉时结合保险赔付情况合理主张；对受害方则建议将挂靠人与被挂靠单位列为共同被告，以保障赔付能力。涉及人身损害与赔偿的，可参考《中华人民共和国民法典》相关规定。Personal injury and medical disputes.

IV. Practical suggestions and legal basis

Action list: First, confirm whether there is a subcontracting business relationship; Second, the victim can list the subcontractor and the subcontracted unit as co-defendants; Third, review the insurance compensation situation and clarify the responsibility sharing for the excess amount; Fourth, standardize the subcontracting agreement and clarify internal responsibilities and recourse; Fifth, the subcontracted unit should strengthen the management of vehicles and drivers to reduce risks. Legal basis: Article 121 of the Civil Code of the People's Republic of China (effective January 1, 2021) regarding the liability for infringement of rights in subcontracting motor vehicles; Article 76 of the Road Traffic Safety Law of the People's Republic of China (amended on April 29, 2021) regarding the compensation for motor vehicle accidents. For cases involving personal injury, reference can be made to the relevant provisions.Personal injury and medical disputesFor matters involving contracts and compensation, you can refer to the following for more information.Business and contract disputes in enterprises; For matters involving the enforcement of compensation, you can refer to the following for reference.Creditor's rights and debts, and enforcementThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Advice

Firstly, if the vehicle involved in the accident is registered under a subcontracting arrangement, the subcontractor and the unit to which the vehicle is subcontracted shall bear joint and several liability. Secondly, the agreement on the allocation of liability under the subcontracting arrangement is only effective internally. Thirdly, the unit to which the vehicle is subcontracted will usually find it difficult to establish a defense that the vehicle does not belong to it. Fourthly, the victim should list both parties as co-defendants. Fifthly, the unit to which the vehicle is subcontracted should strengthen its management and standardize the recovery of compensation. In cases involving personal injury and compensation, the parties may resolve the disputes through legal means.Personal injury and medical disputesObtain a comprehensive solution for the service.

VI. Frequently Asked Questions

Q1: If a vehicle involved in an accident is registered under a shell company, is the shell company liable to compensate for the losses?

It is usually required. According to Article 121 of the Civil Code of the People's Republic of China, if a motor vehicle engaged in road transport operations in the form of subcontracting causes an accident and it is the responsibility of the vehicle, the subcontractor and the contractor shall bear joint and several liability.

Q2: What is a subcontracting relationship?

Generally, it refers to individuals engaging in road transport operations under the name of a transportation company, with the company providing qualifications and charging management fees, while the actual control of the vehicles is in the hands of the individuals. Whether it constitutes a subcontracting relationship depends on the operating name and management relationship.

Q3: Is the agreement stipulating that the responsibility lies with the party providing the name for registration legally binding?

It is effective internally, but cannot exempt the joint and several liability externally. The subcontracting agreement is an internal agreement and cannot be used against the victims; after the subcontracted unit makes compensation externally, it can recover the compensation from the subcontractor according to the agreement.

Q4: Can the unit being used for subcontracting refuse to compensate?

Generally, this is not allowed. If the unit being "hanged" allows others to operate in its name, it usually needs to bear joint and several liabilities to the outside world; if it defends itself by claiming that the vehicle is not its own and is actually controlled by others, it is usually difficult to get support for this defense.

Q5: How to seek compensation from the unit that was used for fraudulent purposes if they refuse to pay?

According to the affiliation agreement, the plaintiff can seek compensation from the affiliated party and require them to bear corresponding responsibilities; if there are management negligence or disputes over the scope of advance payments, the amount of compensation can be determined based on the provisions of the agreement and the actual losses, and if necessary, the matter can be resolved through litigation.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Personal injury legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.