Litigation Costs Insurance System Research

Litigation is the main way for citizens to get right relief granted by laws.However, the litigation costs collected by court have become an obstacle oncitizens’ way to relief. In order to transfer litigation risk, the insurance systemfor litigation risk is born at the right moment. The system compensatesapplicant’s expenditure on civil action mainly through spreading the risk. Atpresent, insurance system for litigation costs has become a feasible program toeliminate some citizens’ scruples about litigation in some countries, but it is stilla new term in China.First, this article introduces the meaning, components and historicalevolution of the insurance system for litigation costs as well as states the legalbasis and insurance law basis of it. Second, by introducing the development oflitigation costs insurance in some typical countries, it summarizes theirreferential significance to China. Third, based on the comparison of thedistinction among litigation costs insurance, legal aid and judicial relief, ithighlights the advantages of litigation costs insurance, i.e., it is favorable forspreading the risk of litigation costs and improving citizens’ consciousness ofrights and so on. And then it presents the structure of litigation costs insurance inour country incorporating China’s current litigation costs system and citizens’income.Although there are still some obstacles for China to construct the system atpresent, such as weak awareness of lawsuit culture and insurance, variousstandards of legal costs, the article proposes some practical suggestions foreliminating the obstacles, such as enhancing litigation and insuranceconsciousness, clarifying standards of legal costs and so on, thus clearing theway for the construction of insurance system for litigation costs in our country.The author believes that only by accelerating the construction of litigationcosts insurance system and making it advance side by side with legal aid, can allcitizens are guaranteed the opportunities to get access to justice.