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.

EV giant pushes affordable autonomy with its system, aiming to make self-driving safer and accessible to mass-market consumers.

Chairman Wang Chuanfu said the carmaker aimed to achieve "zero traffic accidents" through intelligent-driving technology.