Discussion On The Application Of The Indemnity Principle In The Third Field Insurance

Indemnity Principle, one of the basic principles of insurance law, is applied to ensure the insured can be restored to the same financial position after a loss that he/she was in prior to the loss, and prevent the insured to gain the unjust enrichment. In the consideration of the nature of the loss, the indemnity principle is suitable to the material loss which could be measurable by the money, while the payment principle to the abstract loss which could not be measurable by the money.The third field insurance consists of health insurance and accident & disability insurance. It is, bearing the nature of indemnity and payment, between the property insurance and life insurance. At current, the insufficient research on the third field insurance results in a series of problems in legal practice and policy fulfillment. And much argument is concerned about the nature of the medical expenses, such as whether the indemnity principle could be applied to the medical expenses, whether the double payment on the medical expenses means the unjust benefit, whether the insurer have the right of subrogation after the indemnity.The article consists of five chapters. Based on the nature of loss in Chapter one, the author attempts to present the definition and the application of the indemnity principle in Chapter two, and to focus on the definition, character, and range of the third filed insurance and the significance of the application of indemnity principle. In Chapter five, the author brings up the legal thoughts on improving the law system of the third field insurance.