Research On The Function Interaction Between Tort Liability Law And Liability Insurance

Tort liability law, which covers all aspects of life, including product defects, accidents, medical malpractice, environmental pollution, tort, animal damage, is a law closely related to public interest that has the wind of history at its back. Liability insurance takes the civil compensation of the insured as its insurance subject. When the insured person causes harm to others in professional and daily life, due to negligence or lawful civil compensation, though not at fault, the insurance is to be borne by the insurer if the insured asks for compensation. Therefore, the correct handling of the interaction between liability insurance and tort law is of great significance for better protection of the legitimate rights and interests of citizens and legal persons, and for social justice and stability, because it crystallizes tort liability, prevents and punishes any violations, and compensates for the victim, thus reducing possibilities of civil dispute. This thesis studies the concepts of liability insurance and tort liability law, their development and the significance of their interaction to the society:This thesis is divided into five parts:The first part focuses on the concept of liability insurance and its development. With the concept framed, the overall value of liability insurance is repositioned. Its five fundamental characteristics include the extensive insurance liability coverage, replacement of the specific limits of liability insurance amount, legitimate insurance compensation, and guarantee of the interests of the insured and the third party. Furthermore, the development of tort liability in other countries provides an approach to tort liability's significance in the Chinese society, based on the fact that civil compensation diversifies its risk by commercial insurance.The second part analyzes the current development of the Tort Liability Act. Due to the relief property of tort liability law and its various forms in different stages, the ultimate goal is emphasized that the system of tort liability law be people-oriented. A tendency for the change of its structure, theory, principle and compensation should go with the industrialization and modernization. In addition, "Tort Liability Law" in China is of great significance to the development of both tort liability law and the society, as it serves not only as a protection of civilian rights, but also as a fundamental part of the Civil Code, indicating a progress of Chinese socialist legal system and tort liability system, which enhances public awareness of civil rights.The third part researches on the relationship between liability insurance and tort liability law. Liability insurance is the basic of the improvement and development of civil liability. It guarantees the victim of adequate compensation, and separates rights of court decisions and the tort liability subject, thus changing the dilemma in tort liability law to a large extent. Its influence on tort liability law can be found in a systematical level, as it provides an approach to undertake the risks at a lower cost in a relatively simple and intuitive way, which is the essential quest of tort law for the most effective risk acceptance. Meanwhile, liability insurance encourages victims to claim their rights, and ensures an effective practice of valid judgments, resulting in the fact that the range of tort liability is widening as the promotion of liability insurance. However, there is possibility that liability insurance becomes causes for moral risks of the parties, which reduces the insured's awareness to avoid risks and leads to more accidental issues and a lessening pre-judgment function of tort liability law, because when the tort liability subject has the tort liability insurance, due to the absence of direct compensation for accidents within the range of the insurance, it is possible that the subject bears less vigilance, even indulging himself by not taking adequate preventive measures, and is under the risk of more accidents, which is a result of the principle of no liability in tort liability law. Therefore, the restriction of moral hazard for the victim should be a significant element of liability insurance and tort law, as well as an important part of a good interaction between liability insurance and tort liability law.The fourth part discusses the influences of the German liability insurance on tort law, and of tort liability law on liability insurance respectively. The interaction between German liability insurance and its tort liability law inspires and sets a model for that in China, which is still under development compared to the German one, and needs progress undoubtedly, as the range of tort liability is growing with the development of the society. The German liability insurance system is an archetype of the civil law system that is most advanced and systematical with law formulation as its sources and cases as its notes. It guarantees citizens of the fastest and maximum compensation by personal liability insurance, without any unnecessary lawsuits that would be a waste of time, energy and assets. On the other hand, the requirements and challenges from the public are reduced due to the quick and efficient process of compensation, which explains why German tort liability law should serve as an example for that in China.The fifth part is an academic analysis of a reasonable interaction between the liability insurance and tort law. Only a balance between liability insurance and tort law, both as significant parts of the system of tort liability compensation, ensures a good development and mutual influence of these two systems, as well as the optimal allocation of judicial resources. As for improvements of liability insurance, it is imperative to strengthen position of the victim, endow him with direct right to request restitution and the insurer with direct participation right, and balances the order of liability insurance damages claims and subrogation exercise of the right claims. Meanwhile, an emphasis of objectiveness of tort fault and diversification of tort liability principle in the Tort Liability Act also ensures a good interaction between the Act and the liability insurance for a just and harmonious society.