The Research On The Effectiveness Of Exception Clause In Insurance Contract

Exception clause is one of basic forms in insurance contract. It is ofgreat significance to the insurer, the policy-holder, the insurant and thebeneficiary, for the validity of exception clause can directly influenceinsured liability. In practice, it is no rare that insurers abuse exceptionclauses in the standard form of contract and exempt from their obligations,which more or less result in frustration of purpose of the insurant and thebeneficiary. Exception clause should have rationality and legitimacy.However, provisions related to exception clause of insurance law areabstract and the instructional documents for trial published by the higherpeople’s court are obviously different on exception clause, which bothmanifest its complicacy and urgency. Identification of insurant exception clause should be based on theessence of it and supported by considering set purpose of the form. By theway, set purpose is only a secondary consideration, so we can’t come to aconclusion that one provision isn’t the exception clause just because it’s in away reasonable. On how to perform specific explanation obligation, theinsurer might as well refer to ways and standard admitted and formed inpractice. This article argues that legal disclaimer isn’t the exception clausestipulated by article17of insurance law and the exception clause examinedand approved or recorded by the China Regulatory Commission still needspecific explanation. Article19of insurance law is in essence a symbol ofcontent control principle, and we have to consider carefully what it means.There is no doubt that clauses against the mandatory legal provision areinvalid. Besides, we should judge the validity of exception clause, whichexcludes right given by the discretionary legal provision and possiblyaggravates responsibilities of the policy-holder and insurant, based uponprinciple of equity and good faith.