The family of the villager leader killed in a controversial road accident in Yueqing County, Zhejiang Province has reached a compensation agreement with the driver, a quarry and a mine on Tuesday as the three parties agreed to pay 1.05 million yuan (US$159,417) in total.

Fei Liangyu, the driver, will pay about 300,000 yuan while the two companies will pay the rest to "comfort the family" because they were where the truck came from and went to when it knocked down Qian Yunhui on the morning of December 25 last year.

Villagers at first suspected Qian was murdered because he had petitioned for them over land seizure and accused local officials of malpractice. Wenzhou police stepped in and confirmed the case was a traffic accident.

Qian Chengxu, son of the victim, said he was told to go to Puqi Town government to negotiate the sum of compensation on Monday night. The negotiation lasted till 4am the next morning. Qian said he didn't know how the 1.05 million yuan was calculated.

According to his wife Qian Shuangping, it was the first time that local officials went to them to discuss compensation.

When asked whether the agreement suggested the family accepted the conclusion of the case, she said, "No matter we agreed or not, it changed nothing."