Study On Valued Insurance Contract

Insurance Law of PRC allows the parties to the property insurance contract to agree on the insurable value and specify the agreed insurable value in the contract. In the insurance practice and theory, such kind of contract is called valued insurance contract. The insured valued in the valued insurance contract is ascertained prior to the occurrence of the insured risks and is used to calculate insurance indemnity, which is of help to lower the cost of insurance indemnification and improve the efficiency of indemnification, but is meanwhile easy to arouse moral risk. Through agreeing on the insurable value that is obviously inconsistent with the actual value of the insured subject at the time of occurrence of the accident, the parties might thus gain extra interest during insurance indemnification. According to the basic principle under the insurance contract, i.e., the Principle of Indemnity, regulations on valued insurance contract, especially on excess valued insurance contact, are necessary to be established. This paper, beginning with introduction and description on insurable value, makes analysis on the connotation of valued insurance contract and carries out systematic discussion on the issues related to valued insurance contract; furthermore, through the method of comparison and with reference to the mature legislation on insurance in other countries, subject to the specific situation in China, this paper provides the suggestion on perfection of the legislation on valued insurance contract in China.Apart from Introduction and Conclusion, this paper's main content includes the following three chapters:Chapter 1 "Insurable value": First, confirmation on the connotation of insurable value. and its characteristic of timeliness is discussed; Second, discussion on two different measures of insurable value is made, which builds up a foundation for further research on valued insurance contract in the following text.Chapter 2 "Brief Introduction of valued insurance contract": firstly, from the aspects of definition of valued insurance contract, its characteristic different from unvalued insurance contract, its constitutive factors and application scope, connotation of valued insurance contract is systematically expounded; secondly, characteristics of valued insurance contract are analyzed from the perspective of its advantages and disadvantages, with a viewing to establishing a complete research frame on valued insurance contract.Chapter 3 "Current situation of valued insurance contract in China and suggestion on perfection" is the essence of analysis and research in this paper, and is also the key point of this paper. At first, problems in the legislation and judicial practice of valued insurance contract are analyzed and the viewpoint that to establishing regulations on excess valued insurance contract is the key issue to perfect valued insurance contract is thus pointed out. Later, suggestion on perfection of valued insurance contract in China is explicated in details as follows: first, to ascertain the definition of valued insurance contract and its application scope in China; second, to establish regulations on excess valued insurance contract.