Legal Research On Double Insurance

The system of double insurance, as the derivative of the indemnity principle, plays an important role in the enforcement of the indemnity principle and can effectively prevent the moral risk arising from the action of the insured who makes contracts with several insurers. However, the provisions of double insurance in the Insurance Law of PRC and the Maritime Code of PRC are too simple to protect the legitimate rights and interests of the bona fide insured and to balance the interests of the insurers. Therefore, it is necessary to improve the relating legislation to solve the problems arising with the development of insurance.By making a deep study of the several legal issues on double insurance, the article points out the defects should be reformed and improved in the relevant regulations and put forward some advices on their amendment.The article can be divided into five parts. The first part discusses the definition and the legislative intention of the system of double insurance. There are two opinions on the definition of double insurance. The dispute is about whether double insurance should be defined in broad sense or in narrow sense. Referring to the legislative intention of the system of double insurance, the article contents that the definition of broad sense should be adopted. Meanwhile, the article discusses the classification of double insurance, and compares it with other related issues.The second part discusses the component parts of double insurance and the time of judgment. To constitute double insurance of broad sense, the following five conditions must be fulfilled: the same subject-matter, the same insurable interest, the same peril, the same safe time limit, and several contracts with different insurers. And the different opinions on the time of judgment of double insurance are also discussed in this part. The author believes that when the insured makes the second contract with some insurer, the double insurance is made, and the policy holder or the insured should inform the insurer about this situation immediately.The third part discusses the scope of application of double insurance. In this part, by summarizing the legal provisions of different countries and the views of scholars, the article sets forth three viewpoints, the article agrees with the principle that maintains double insurance should be applied to the indemnity insurance.The fourth part discusses the legal effect of double insurance contracts, and the insurer's right of contribution and its enforcement. The Insurance Law of PRC lacks clear provisions of the legal effect of double insurance contracts. The article suggests that their effect should be decided by whether the policy holder is out of goodwill or not. In addition, the article makes a detail research on the insurer's right of contribution and its enforcement, and the insured's right of claim and asking for the return of premium.The fifth part discusses the duty of notification of policy holder in double insurance, including its legislative intention, its time and manner, its contents, its legal nature, and its legal liability while the duty is violated. The article also suggests that the provision of legal liability while the duty is violated should be added into the Insurance Law of PRC.In summary, the system of double insurance is very complicated. This article pays attention to the controversial problems about it and poionts out some defects in the existing law, meant to be followed by the soon improvement of the system.