A Study On The Doctrine Of Reasonable Expectation In Insurance

As a new principle in insurance contract explanation, the doctrine of reasonable expectation in insurance remains a controversy since it appears because it discards the basic principles of"explicit terms in contract must be observed and performed"in contract law and because it goes beyond the traditional principles and theories of insurance contract explanation. The disputes range from whether it can be applied to how it can be applied in justice practice. By analyzing the background and basis of the birth of the doctrine of reasonable expectation in insurance, this paper introduces how to have a good judgment whether it is appropriate to apply this doctrine and the significance of applying this doctrine so as to present the necessity of the introduction of the doctrine of reasonable expectation in insurance into China.This paper studies the doctrine of reasonable expectation in insurance from four aspects. Firstly, this paper illustrates the background of the birth of the doctrine of reasonable expectation in insurance and gives a comparatively more wholesome and accurate definition of this doctrine, combining the definition of this doctrine of scholars home and abroad with the understanding of this doctrine of the author of this paper. Because some scholars in China hold that there is an overlapping between the doctrine of reasonable expectation and the Interpretation Rule of the contra proferentem in concept, this paper distinguishes the definition of the doctrine of reasonable expectation from the Interpretation Rule of the contra proferentem. Secondly, this paper analyzes the practical and theoretical basis of the birth of the doctrine of reasonable expectation and illustrates the historical inevitability of its birth. The reason for the controversy of the doctrine of reasonable expectation is the subjectivity of judgment in justice practice. Therefore, through case analysis, with regards to the conditions of applying the doctrine of reasonable expectation, this paper analyzes in detail the criteria for judgment in practice, namely, objectivity and reasonability. The ultimate goal of studying a doctrine is to make good use of it. Lastly, combining the present situation of the insurance industry in China, this paper reveals the necessity and significance of applying the doctrine of reasonable expectation in China in that it can accelerate the healthy and orderly development of the insurance industry in China effectively and better protect the interest of the policy-holder or the insured from being harmed. The doctrine of reasonable expectation which restricts the advantageous position of the insurer can effectively balance the interest of different sides. The legislation suggestions are also proposed for the references of the legislative agencies.