Study On The Third Party’s Direct Claim In Liability Insurance

The third partys’direct claim right system in liability insurance is a significant legal system which provides timely compensation to the victims and maintains the social stability and harmony. Certain special laws in China, such as Civil Aviation Law, Special Maritime Procedure Law and relevant international convention that China signed have already accepted this system. The Insurance Law is expected to set up the third party direct claim right, yet it did not achieve such a purpose. The Compulsory Insurance Regulations on the Third Party of Automotive Vehicle also has certain regulations about the third party direct claim right. But those legislation and regulation just state the third party direct claim right in principle. They lack of operability, what’s more, the theoretical concepts are still vague. Therefore, it is necessary to clearly define the concept of third party direct claim right on the basis of conceptual framework in civil law, contract law and insurance law. To make the third party direct claim right more practical and feasible, the paper compares the legislation and legal practice of third party direct claim right, absorbs its essence, and gives solution to related issues about third party in liability insurance. That is, the nature of third party direct claim right in compulsory liability insurance and non-required liability insurance has to be distinguished. On the premise of this, a detailed distinction should be made in its acquirement, content, exertion and defense encountered. On the acquirement of third party direct claim right, it is agreed in non-required liability insurance and legislated in compulsory liability insurance. On its content, the third party direct claim right comprises the rights of requesting payment, receiving payment and creditor’s rights protection. On its encountered defense, the third party in non-required liability insurance is restricted by the defense agreed between the insurer and the insured. On its legal system, the paper proposes to govern the third party in liability insurance on the basis of regulations in the Insurance Law, set the compulsory liability insurance as special provisions and systematically regulates the acquirement, exertion and encountered defense in the third party direct claim right. Besides, to facilitate the acquirement of third party claim right, the paper proposes suggestions on assisting obligation of the insured. In this way, apart from improving the legislation, the paper also provides concrete methods to the exertion of third party direct claim right and thus achieves the purposes of protecting the third party.