On Identification Of Insurable Interest

The principle of insurable interest is the"cornerstone"of insurance law whose original function is mainly to distinguish the insurance from gamble. The insurable interest theories in the insurance well-developed countries and districts have been developed into systematic and complete ones after hundreds of years of sound evolvement. The Insurance Law of the PRC amended in 2009, although further specified the relevant stipulations concerning insurable interest to some extent, still is ambiguous compared with those of insurance well-developed countries, in addition, due to lack of relative judicial interpretation, disputes concerning insurable interest never cease in practice. Different judicial authorities will make different judgments for lack of systematic research on insurable interest theory, which undermines the authority of the judiciary and influences the long-term development of legal system construction of a socialist country. Thus, the author unifies the understanding of the definition of the insurable interest through deep research on property insurable interest system, aiming at offering positive references for judicial practice.This paper starts from the historical background and original function of insurable interest principle, combined with the development of various insurable interest theories and the legislation of China, illustrating the inevitability and positive significance of insurable interest principle. Then it makes a profound inquiry into the right way to define the property insurable interest and criticizes misunderstanding of the insurable interest and insurable interest principles by concluding the ways of understanding the property insurable interest and commenting the classical cases, and forms the main viewpoints of this paper. Finally, it discusses the positive effect of application of the finding of property insurable interest in the development of insurance trades.Through comparison, historical analysis, demonstration, and inking theory with practice, based on the development of domestic and foreign theories and practice, the author concludes the way of defining the property insurable interest as follows,1. The property insurable interest is legal and specific economic interest. The nature and attribution of an insurable interest generated from the object of insurance should be judged through the existing time and space of the insurable interest in an insurance contract.2. Chinese law prescribes that the property insurable interest restricts on the insured on the occurrence of the insurance accident instead of the insurant.3. The insurable interest is obviously distinguished form the insurable interest principles. Although the insurable interest is the foundation of the insurable interest principles, the latter as basis judges the classification of the insurable interest and determines the implementation of the settlement of the claim.It is of great practical significance to correctly defining the insurable interest. On the one hand, the correct defining on the insurable interest will help judicial authorities to smoothly settle the disputes concerning insurable interests, to improve the efficiency of insurance claims and to maintain social harmony and stability. On the other hand, correctly defining of the insurable interest and categorizing and developing the insurance product as well as marketing and managing the insurance product, could accelerate the process of insurance product innovation and protect the legal rights of the insured, improve the efficiency of the supervisory authority, and promote the healthy and orderly development of insurance business.