The Analysis Of Liability For Fault In Insurance Contract

Liability for fault in contract is the legal means to make up for the deficiency of the prior-contract obligation existing in contract law and tort law. It was used to protect the legal interest of the contracting parties and guarantee the trade security so as to safeguard the credit principle and keep the order of the market economy. Despite the fast growing of China's insurance industry with the boost of the massive market demand, there still exists in the trade market the widespread of cutthroat competition and credit crisis. During the establishment of an insurance contract, both applicant and insurer can break the prior-contract obligation which is based on the credit principle and bring about the damages to others, then have the liability for fault in contract. With its own characteristics, the insurance contract differentiates from other civil contracts in these areas of main scope, range of application, mode of undertaking duties and so forth. Nevertheless, the newly revised Insurance Law in 2009 has no explicit terms to regulate the liability for fault in contract, which results in the uncertainty of the law application.On the very account, this chapter puts forward the theoretical definition of the liability for fault in contract following two cases about insurance contract disputes. Then the particularity of the liability for fault in contract is analyzed. It also discusses the rationale about undertaking liability. At last, some immature suggestion is proposed about the system construction of liability for fault in contract with the expectation of improving the system of liability for fault in insurance contract and other common systems about liability for fault in contract.