A BYD Sea Lion 06 EV is displayed at the Guangzhou auto show in November 2025. [Photo by Li Fusheng/chinadaily.com.cn]

Chinese automaker BYD has said it will compensate users for direct losses caused by accidents while using its urban navigation-assisted driving system, becoming the world's first major carmaker to offer liability coverage for both smart parking and urban assisted-driving functions.

Under the new program, BYD said users of its God's Eye A, God's Eye B as well as God's Eye 5.0 assisted-driving systems will be covered for one year if accidents occur while using the urban navigation function in compliance with system rules.

The compensation will cover direct economic losses that should be borne by the vehicle, including repair costs, third-party property damage and personal injury liabilities, according to the company.

Unlike typical assisted-driving insurance products offered in the market, BYD said its coverage program will be free, carry no compensation cap and will not affect users' future insurance premiums.