Midnight Start Clause

A recent court ruling in China has forced an insurer to pay a claim under mandatory traffic accident liability insurance despite the policy’s “midnight start” clause, because the insurer failed to offer alternatives or explain the risks of the clause. The court deemed the clause invalid in this specific case, setting a potential precedent. However, the claim under commercial third-party liability insurance was rejected, as the driver was deemed to have implicitly accepted the terms. The insurer was ordered to pay 180,000 yuan.