Waiver And Estoppel Of Insurance Contract

The principle of Waiver and Estelle originates from contract system of common law, and the insurance law research area started to attach the important attention to the principle of Waiver and Estelle in the 20 century. In order to grant the remedy measures to the insured who is in disadvantage position and difficulty to completely understand the articles in insurance contract when it is concluded, as well as to restrict the insurer from refusing to undertake the insurance liability by taking advantage of violation of condition or breaking assurance, the court of common -law countries develops the principle of Waiver and Estelle which is favorable to the insured.Waiver refers to one party to insurance contract abandons his right to be claimed in insurance contract; while estoppels refers to the insurer wrongly state facts which is reasonably depended by policy holder or insured, so as to the interests of the insurer or the policy holder would be damaged if it is allowed the insurer to not be binding by what has previously been stated as the truth; thus the insurer shall be prevented from making an allegation or a denial that contradicts what previously stated as the truth and shall be subject to such restriction.The paper is consisted up of four parts which mainly introduces the principle of Waiver and Estelle in insurance contract. Firstly, the paper makes the basic analysis of Waiver and Estelle. The emphasis is placed on theoretical evolvement, implication, constitutive elements as well as the relationship between the Waiver and Estelle. It's no really the independent categories of the application of Waiver and Estelle or there is no definite dividing line as to the application of Waiver and Estelle. Under many circumstance, Waiver and Estelle are coincidently applied, while there is important meaning to differentiate the application of Waiver and Estelle under special circumstance.Second, the paper states the application of principle of Waiver and Estelle. The principle of Waiver and Estelle, corresponding to the policy holder's obligation of notification and assurance, balances the interests between the insurer and the policy holder. When the policy holder breaks his/her obligation of notification and assurance, the insurer can adopt the principle of Waiver and Estelle to safeguard his/her interests. It is sure that the application of Waiver and Estelle may amend the contractual content, while the application of Waiver and Estelle is different to the contractual content amendment.Third, the paper makes the analysis of restriction on the application of the principle of Waiver and Estelle. The application of the principle of Waiver and Estelle is conducive to restrict the insurer to misuse her right so as to safeguard the policy holder and the insured lawful rights and interests. However, in the event there is no restriction on the insurer's exercising such rights, it is possible to cause imbalance among right structure. Therefore, it is necessary to impose the restriction on the exercising the right of Waiver and Estelle. Such restriction usually includes mandatory provisions, principle of insurance interests, unjustified enrichments of the insured as well as non-abandoning article.Finally, the paper discusses the feasibility for application of the principle of Waiver and Estelle in China. The paper makes the analysis of feasibility for application of the principle of Waiver and Estelle from the perspective of theoretical basis, value as well as practical requirements.