Study In Aggravation Of Risk In Insurance Law

The insured transfers risk to the insurer by insurance. However, the insured risk is not unaltered. In most cases, the insured risk would be immaterially aggravated beyond the insurer’s expectation. Hence, the legal system which aims at controlling risk can be found in every country’s insurance law, thereby balancing the interests between the parties of insurance contract. Aggravation of risk exists widely in Civilian law countries and areas. The insured is usually requested to inform the insurer after the aggravation of risk and the insurer has rights to choose remedies. In Germany and Japan, provisions about the aggravation of risk are relatively impeccable. In Common law countries and areas, warranty is similar to aggravation of risk. However, because of the harsh consequence of breaking warranty, this legal system is facing reform. There is the provision about risk obviously increased in Article52of Insurance Law of the People’s Republic of China, however, contrasted with provisions of other Civilian law countries and areas, this article is more ambiguous and is not impeccable. In marine insurance, there is only one provision in respect of the warranty in Maritime Code of the People’s Republic of China. However, whether the provision about aggravation of risk in Insurance Law is applicable for marine insurance and how to apply to marine insurance are not clear.This thesis consists of four chapters. The first chapter focuses on the provisions about aggravation of risk in Germany Insurance Contract Act2008and General Terms and Conditions of Marine Insurance, The Insurance Law of Japan and Hull Insurance Clause1990. Through above introduction, this chapter tries to show the details of aggravation of risk. In the second chapter, taking British law for example, current contents and future development of warranty will be introduced. By the comparison between warranty and aggravation of risk, this chapter tries to find the superiority of aggravation of risk and the possibility of mutual emulation. In the third chapter, the core content are provisions about aggravation of risk in Insurance Law of the People’s Republic of China and the provisions about breach of warranty in Maritime Code of the People’s Republic of China. Based on the above introduction of this thesis, the fourth chapter will study the defects and improvement of aggravation of risk in Chinese legislation. Besides, this thesis will make comments on whether the provision about aggravation of risk in Insurance Law is applicable for marine insurance and how to apply to marine insurance.