Liability Exemption Clauses In Motor Insurance Contracts

For motor insurance contracts, the liability exemption clauses are important as well as controversial. Since a long time ago, due to the lack of research into and legal basis for the liability exemption clauses in motor insurance contracts, a large number of problems in insurance practice have been occurring, which leads to the issue regarding whether insurance companies will make compensations for the insured, thus carrying substantial social bearing. If these problems are not properly handled, the substantial economic benefits of insurance companies and the insured will be affected and it will also lead to bad impression on the public. So far, many insurance companies have been considered totally in lack of credibility by the public because of some unreasonable refusal to compensate and in many people's mind insurance companies want only to cheat insurance premium out of the public instead of paying compensations. All these will affect the development of the whole industry of insurance. On the other side, in some situations where there are circumstances for exempting liability, the combination of many factors just makes it impossible to apply the exemption clause, which forces insurance companies to bear the compensation liability not belonging to them. This not only damages the legal rights and benefits of the insurance companies, but disturbs the normal operations of the insurance companies.This paper probes into the liability exemption clauses in insurance companies and concentrates on the discussion of the proper design of the liability exemption clauses in motor insurance companies from the aspect of fair measurement and procedure mechanism. Feasible reference is hopefully realized for resolving such disputes on a fair and rational basis.This paper, besides the preface and conclusion, includes three chapters, totaling about 33,ooo characters.First chapter, beginning from introduction of the notion of liability exemption clauses, gives a brief discussion on the legal theories related to the liability exemption clauses. Second chapter gives an analysis of the appropriateness of the liability exemption clauses in motor insurance contracts from the angle of fair measurement Chapter three analyzes the properness from the angle of procedure mechanism.