Study Of An Insurable Interest In Legislation

Insurable interests principle, as one of the fundamental principles in insurance, is very significant. The definition of insurable interests and the establishment of insurable interests in insurance law play the decisive role in preventing moral risks in insurance. With the development of insurance, the definition of insurable interests has developed various doctrines based on the different opinions and arguments by legislators and jurists from different countries. The insurable interests of property insurance and the ones of personal insurance are different because two types of insurances have different features. The insurable interests in the property insurance is mainly based on economic interests of insurance object for policy-holders or the insured; whereas the insurable interests in the personal insurance is mainly based on the personal relationship or reliant relationship authorized by law in for policy-holders or insurants. Furthermore, the component requisites, occurrence basis and main functions between property insurance and personal insurance are quite different.From the theory and practice in insurance, some inadequate points lie in the legislation of insurable interests in Chinese insurance law. First, the definition of insurable interests isn't differentiated according to the difference of property insurance and personal insurance; Secondly, who can be the beneficiary in the insurable interests? Our insurance law singly emphasizes that the policy-holders holds the insurance interests, but neglects the necessities of other subjects in the insurance contracts, which is the limitation standing out in our insurance law. Actually, the property insurance contract, as an effective mechanism aimed in compensating for damages, emphasizes the principle of"without damages, without compensation". If the insured has no insurable interests for the insurance subject, the damages arisen by the insurance accidents don't occur, therefore the gain of the insurance coverage is illegal profit, which violates the principle of damages compensation in property insurance. Nevertheless, the regulations in our insurance law ignore the requirement for insurable interests held by the insured, so the insured should hold the insurable interests for the insurance subject in the property insurance and the policy-holder should possess the insurance interests in the personal insurance. Thirdly, the time period lasting in insurable interests has no specific regulations in our insurance law, which brings uncertain elements in insurance practice and insurance disputes and can not satisfy the development of the modern insurance. The writer proposes the time period of insurable interests can be determined by the differentiating property insurance and personal insurance. Meanwhile, the writer also puts forward the view that the insurable interests in the property insurance should exist when the insurance accidents take place; while the insurable interests in the personal insurance should exist when the insured insures. Lastly, regarding the alteration of insurable interests, the regulation on the transfer of property subject needs to be further discussed and the inheritance of insurable interests has no specific regulations in our insurance law.