Exclusion Clause In Insurance Contract Of Legal Regulation

Exclusion clause in insurance contract means the special clauses that the insurer specifies in the insurance contract in written form, under which the insurer shall not pay compensation for loss of or damage to the insured property or expenses caused by intentional act or gross negligence of the insured or his representative. The legal regulation on the exclusion clauses means the control and regulation on the exclusion clauses by means of laws, the mandatory provisions for the requirement of validity and the rules of the construction, and the confirmation for the effectiveness of the clauses in the insurance contract in judiciary or the explanation of the content, thus to pay compensation for the contracting party (the insured).Exclusion clause is also called exception clause, which means any incident or loss that are not specified in the insurance contract. Liability exemption clauses for the policy-holder violating the statutory obligations responsibility means the economical responsibility that the policy-holder shall take when the policy-holder violate the clauses specified in the insurance contract. Franchise terms means the insurer shall not pay the compensation or take the responsibility after the accident if the loss is under certain amount or the insurer shall take part of the responsibility for the loss and the insured shall be responsible for certain amount(ratio) for the loss. Unfavorable interpretation principle is also called doubt interests interpretation principle, which means when any disputes arises for the format terms, interpretation shall be provided for unfavorable terms makers regarding to the controversial terms.Legislative regulation means control and regulation on the unfair format clauses by means of laws, which is the foundation of exclusion clauses and judicial administrative regulation and also the most effective method, to some extent, it can overcome the disadvantages of disclaimer, and take into account the principle of efficiency and fairness. The best regulation for the exclusion clauses in insurance contract is to make special insurance format contract regulation law. Judicial regulation means the review and confirmation and control of the exclusion clauses and its legal effect according to related laws and regulations. It mainly gives the judges with discretion through laws and reflected through explanation to the contract clauses according to provisions of laws. Substantial examination is through and careful review of the exclusion clauses that whether these clauses are in violation of compliance with the principles of fairness and in principle of justice, or in violation of honesty and credit, social and public interests, and whether causing ambiguity or not. Administrative regulation for the exclusion clauses in insurance contract refers to the administrative organs to regulate the insurance contract content according to laws and regulations and monitor its applicability thus to prevent the activities under the unfair clauses. Administrative clauses are flexible, initiative and efficient.