Research On Earthquake Insurance Law In Japan

Damage of earthquake carring characters of enomous disaster damages, uncertainty of frequency and the possibility of adverse selection. These characters are different from other types of commercial insurance. The implemencity of earthquake insurance system leads to highly concentration of seismic hazard, huge expense of earthquake insurance, difficult to achieve an average level of the risk. Meanwhile, earthquake insurance is not only based on the traditional theory of insurance law, also has strong political and social policies of colors. It is very difficult to meet the huge financial demand depends only on the statement of financial apartmengt and social contributions to surpport all of the post-disaster reconstruction.As an important tool and means of risk management, insurance, should give full play to its unique performance and role after the earthquake, which belong to its social responsibility, also meet requirements of insurance industry's development. Although earthquake insurance is not consistent the original features of traditional insurance law in early times, contrary to the basic principles of commercial insurance, but with the gradual modification and improvement of earthquake insurance in Japan, it has already entered the times of real commercial insurance products now.Japan as an earthquake-prone country, made it a turning point after Niigata earthquake, issued the "Earthquake Insurance Act" in 1966, and carried out a number of amendments and improves about the Act and regulations after Miyagi and Hanshin earthquake occurred. It made current law system of earthquake insurance developed fast, earthquake insurance legislation has accumulated a lot of relevant experience, developed a unique and appropriate to their conditions of earthquake insurance style legal system, which is different from California, New Zealand and China Taiwan's earthquake insurance legal system.Earthquake Insurance in Japan legal system is special insurance that based on the "Earthquake Insurance Act", subject to domestic and family property. Insured event include the fire, damage, burial, etc. The loss caused by earthquake, the damage to be filled is limited to the loss of economic value of the subject matter insured. Earthquake insurance, has property of subordinate which only lies on residential insurance and other commercial insurance cannot be made alone. Earthquake insurance rates are different according to geographical location and building structure. Build up re-insurance system, the government and the Japanese earthquake re-insurance companies and earthquake insurance underwriting commercial insurance company with the share of damage caused by the earthquake. For the payment of insurance insurers, have top limit of earthquake insurance contract relative to, and the proportion of primary insurance contracts expense. Meanwhile according to the extent of damage caused by the accident insurance expense types divided into a total loss, half loss and some damage, and the corresponding insurance also vary.The insurance form of existing earthquake insurance system in Japan is free will insurance. However, enforcement of earthquake insurance can increase the penetration rate, elimination of regional adverse selection, reduce earthquake insurance expenses. That is necessity and rationality for government and social policy constraints. Moreover, according to the level of people awareness about the insurance, the status and other point of view, it should be compulsory for earthquake insurance lies on the main contract of the fire insurance contract.The property of the earthquake insurance is to fill up the damage, but as the exception is the issue of earthquake insurance payment limitations. For the amount in excess of the insurance contract payment limitation, cannot simply deny its effectiveness. After the insured accident occured, insurance claim specific payment, the insurance should be caculate insurance payment based on the agreed conditions and damage. For those special issue agreed by the insured and the insurer in the contract of the individual items, although you can set up the limit of insurance payment processing methods, but the system must guard against the abuse of terms.It is significance to set up the terms of seismic exemption clauses in the general commercial damage insurance contracts. However because of exactly huge damage caused by earthquake, from social responsibility for both commercial insurance and government point of view, that is even more necessary for the insurance industry and government to compensate for it. Insurance, as stabilizer in building a harmonious society, should spread risk and provide a major responsibility for social security. Although earthquakes are acts cannot deny, but does not means let insurance companies to fight with it. The aim is to achieve stable and sustainable social and economic life of the operation by fill over some of the losses caused by the earthquake payment. That does not violate the economic principle of commercial insurance and insurance companies. In addition, the Government can take a variety of policies to support insurance companies to hold earthquake insurance, to fulfill its social responsibility. Therefore, it is necessary to set up earthquake insurance legal system, to fill over the damage after the earthquake when general commercial insurance contract on the seismic exemption cases.The successful point of Japanese earthquake-insurance system is to take the form of special legislation, applying national legislation to ensure the well operating of the system, which provision legal rights and obligations of each subject in the relationship. The Japanese government participate in the system of earthquake-insurance, co-ordination and support each other among the commercial insurance companies; limitating coverage of insurance expense, avoid too heavy assumption risk of earthquake damage. As to issue of Japanese earthquake insurance changing style from early compulsory insurance to depends on opinion of insurer, that still has question. In author's opinion, it should take views from people awareness of knowledge about earthquake insurance to ensure the advantages that is made earthquake insurance to seismic Insurance mandatory incidental to the main contract of fire insurance.Earthquake Insurance System in China initially formed in the 50's of 20th century, but still lack of basic conditions like a broad policy to carry out earthquake insurance system, technical and cultural aspects. Compared with Japan, China should re-examine our current situation of earthquake insurance legal system, and recognize these shortcomings. Develope earthquake insurance laws and institutional systems by build up earthquake insurance law system based on national conditions and the needs of country's development. Meanwhile, eventually prevent or reduce the damage caused by earthquke, also ensure stability and harmony of people's sociaty, which through insurance, this effective method of risk management in modorn society.On process of improving earthquake insurance system of China, we can learn from Japan's earthquake-insurance systems from several aspectations. That includes strengthen the legislation of earthquake insurance, display the leading role of the government and advantages of commercial insurance, principle as the manner of additional mandatary, set a maximum compensation limitation, establishment reinsurance under the government supporting, and establishing a wide range of risk-sharing mechanism of loss and so on.As one of the most basic and effective method to risk management in modern society, insurance, take important role increasingly with social economic activities. It will function in preventing earthquake damage and developing system of risk management, through building up the whole system of earthquake insurance legislation and Act. Futhermore, it will help to promoting social and economic development, also support of stability and people's lives and ensure the safety, stability and harmony of the whole sociaty.