Incontestable Clause’s Perfection Owing To Cancellation Right In "Contract Law"

With the improvement of people’s standard of living, their demands for insurance is increasingly strong.More people have realized that effective means of insurance is to spread the risk, coming into the ranks of the uninsured. However, due to the Insured in an insurance contract is in the dominant position, the insured must faithfully inform the insurer, however, insurers abuse its right to release and wantonly escape the responsibility of paying, caused the decline in the credibility of the insurance industry, making the insurance industry has led to serious crisis of confidence。incontestable clause in that case was, national laws for the insurer’s right to release more stringent legislation, requires a certain period of time, the Insurer shall not be insured person did not fulfill the obligation of truthfully and refused to pay, the move to a large extent, enhancing the confidence of policy holders, making the corner of insurance.Incontestable clause is intended to address insurers use of insurance disarmament and the establishment of the right to abuse its dominant position, to a large extent, improve the credit insurer to promote the development of the insurance industry, making insurance more popular。Introduced new provisions of the Insurance Act will not be a defence in China, the aim is to balance the interests of the relationship between the insurer and the insured。China’s new incontestable clause of Article16th of the Insurance Act, requires more than two years from the date of the formation of contracts, the Insurer shall not terminate the contract, the insurance event occurred, the insurer shall assume responsibility for compensation or pay the insurance money, which to a certain extent improved the imbalance of rights and obligations of the insurer and the insured, but the incontestable clause is not a fundamental solution to the insurer and policyholder interests balanced fact that。Legal provisions not defend terms for all insurance contract, and no provisions exception for situation, policyholders deliberately fraud insurance use NOT defend terms provisions two years period, insurers THE in legal provisions must to policyholders compensation or pay insurance, this against fair justice principles, and in Must be degree also indulge insurance fraud behavior, damage innocent policyholders legal interest。This article attempts to explore other means to improve the application of the incontestable clause to prevent a two-year period of the Insured by incontestable clause mean to commit insurance fraud, damage the legitimate interests of other innocent policyholders。Remove the Introduction and Conclusion outside of this article, How is divided into three parts of the body, the specific details are described below:The first part, mainly to China’s new incontestable clause of Article16th of the Insurance Act introduced。The section from the concept of incontestable clause, theoretical basis for the background and made a presentation, combined with the value pursuit of incontestable clause, describing the necessity and importance of introducing incontestable clause in China。Start with the case made in China there are defects in the system of incontestable clause, in conclusion, incontestable clause is a provision, and does not provide for exceptions, easily condone the use of two-year period for policyholders act of insurance fraud, which in turn leads to perfect a incontestable clause。The second part focuses on insurance fraud challenges to the incontestable clause。This article says insurance fraud is different from general insurance fraud, so this section for the concept and elements of insurance fraud carried out a detailed introduction, in turn, raises insurance fraud have a challenge on incontestable clause, causing against the legislative intent, insurance fraud on the rise, development of the insurance industry crisis consequences。Part III focuses on the Rights of cancellation of contract law on the improvement of the incontestable clause。First for under the Insurance Law and under the Contract Law problem for clear description, combination of for insurers statutory disarmament the right to and undo the right to for range introduced, summary in insurers statutory disarmament the right to and undo the right to competition timely, can for insurers undo the right to make up for not defend terms defects, punishment use NOT defend terms two years period fraud behavior, maintenance social fair justice, this is this article innovation.