Study On The Insurable Interest In The Liability Insurance

Liability insurance is a type of property insurance that provides protection fromclaims arising from civil damages or injuries to the insured. This type of insurancetakes the whole property of the insured and expected profit as insurance object, and itcarries the insurable interest of the liability insurance. While from the nature of interestsas well as the mechanism of the risk accident, the insurable interest still belongs topositive category of insurable interest. By comparing with the common proptertydamage insurance, due to the liability insurance has a unique social value in realizingdistributive justice and corrective justice, promoting social security level as well asgenerating positive external effect, the insurable interest in the liability insurance isdifficult to apply the general theory of the property insurance in the aspect of vector ofinterest, subject of ownership, existence time as well as influence factor of interestamount. Especially, the heterogeneity characteristic of insurable interest in liabilityinsurance will become more outstanding when the insured goes bankrupt, liabilityinsurance becomes compulsory or there are conflict of interests among the insurer, theinsured and the third person. It is obvious that the theorists and the practice of China’sinsurance legislation do not recognize the unique characteristic of the insurable interestin the liability insurance. Therefore, for the liability insurance, it is necessary to clarifythe positive interest attribute of insurable interest, increase the subject of ownership ofinsurable interest and establish conflicts settlement mechanism, in order to perfect thelegislation. Moreover, it is beneficial to the development of the theory and practice ofthe liability insurance.