Insured or Not Insured - by 7 Minutes

A man in eastern China who crashed into a luxury car on the day he bought his own second-hand vehicle is facing a repair bill of more than 100,000 yuan (US$14,000) for both cars. However, his insurer refused to cover the damage, saying the policy was still seven minutes from taking effect.

According to Zhejiang Television, a man surnamed Ma from Taizhou in Zhejiang province took out a loan of 115,000 yuan (US$16,000) to buy a second-hand car. On August 4, Ma picked up his car from a showroom and bought commercial insurance for 3,995 yuan (US$560). Later that evening, he rear-ended a Maserati SUV worth about 1.1 million yuan (US$153,000).

No injuries were reported, but Ma was found to be at fault. Photos showed the front of his car had been heavily damaged, while the Maserati’s rear suffered dents and scratches. Ma’s driving experience remains unclear. In China, new drivers can obtain a license in as few as 45 days after passing four exams.

Ma estimated the cost of repairs for the Maserati would be about 60,000 yuan (US$8,400) and about 40,000 yuan (US$5,500) for his own car. He immediately filed a claim, but the insurer rejected it, saying the crash happened at 6.53pm, seven minutes before the policy took effect.

Ma said he was told he must cover the full cost himself, placing him under heavy financial strain. Lin, a manager for second-hand car sales, said Ma’s vehicle met all requirements to be driven legally.

Insurance staff said they could offer Ma some help after learning of his financial difficulties, acknowledging they should have reminded him not to drive before the policy took effect at 7.00pm. Ma insisted that he had repeatedly confirmed with the salesperson that the insurance would take effect immediately after he bought the car.

As of this writing, he is still negotiating with the insurer. The local Consumer Rights Protection Centre is mediating. The incident has sparked a widespread discussion on mainland social media.

Last November, a Rolls-Royce owner in Guangdong province, southern China, declined compensation after a minor collision with a lorry. She described the encounter with the lorry driver as a blessing and said she believed that “good deeds will be rewarded”, a response that won nationwide praise.