The Analysis Of Legal Expenses Insurance System In China

Since reform and opening up in China, the number of all kinds of cases the people’s court has handled is rising from613000in1974to7.462million. Among these cases, the number of criminal cases is rising from295000to872000, and the number of civil cases is rising from318000to6436000, and the number of administrative cases is rising from about6000in1987to154000. As we see, the proportion of the civil cases has risen from51.9%to86.2%. This shows the legal consciousness of our citizens is increasing. Although our country’s GDP in world is in high rank, we have the largest population, uneven Development and low per-capital income. Facing so rapid growth of lawsuits, our country which is in the primary stage of socialism, will has instable and not harmonious factors. Therefore, Legal aid system can’t completely maintain civil legal rights and interests. Insurance, as a risk transfer mechanism, is an efficient means of transferring risk in order to safeguarding social stability. In the background of high case rate, it is a society inevitable choice commercial insurance to preserving family harmony and stability, or maintaining civil legal rights and interests, civil legal expenses insurance system should be emerge as the times require. Legal expenses insurance system refers to an insurance system, which means that the insurance have the right to request insurance companies to pay the Court costs for the insured according to contract requirement when the insurant are in the event of a lawsuit. Its existence has the important practice significance:on one hand, it can increase the citizens’right consciousness and help the citizens enjoy the protection of laws. On the other hand, civil legal expenses insurance opens up a new field for the insurance market in our country as a new type of insurance, and it will accelerate the pace of China’s insurance industry with the world, and this is the new opportunity to the development of China’s insurance industry.This paper is divided into five parts to discussing our country legal expenses insurance system. The first part of this paper introduces background, theory practical significance as well as the writing train of thought. The second part is about the overview of legal expenses insurance, and mainly introducing the basic concept of marriage insurance, feature and its significance. The third part demonstrates that legal expenses insurance system has certain feasibility in our county by analyzing the deciding factors of its demands and supplies, using the basic economic methods. Finally, this paper presents some measures to build the system, aiming at benefiting the development of legal expenses insurance in our country.