Study On The Incontestable Clause Of Insurance Contract In China

Since the socialist market economy is established and improved in our country,the insurance industry has been developed rapidly according with the people’spsychology of avoiding disadvantages. However, the legal system of insurance fallsbehind that of the country who has the developed market economy. There is lessprotection for the interest of policy-holder, insurant or beneficiary. The legal system isshort or not good enough to balance the interests of parties. Insurance contracts playan important role in civil cases."Easier insurance, but harder reimbursement" hasbecome the public’s opinion to the underwriter.In2009, the revised insurance law came into operation. The article16of new"insurance law" established the incontestable rule. This rule helps to control theunderwriter’s abuse of the right of defense or contract dissolution right to refuse topay. Thus it makes it real to protect the interests of policy-holder, insurant andbeneficiary. However, many supporting regulations haven’t follow up because theincontestable rule is new. Such as the scope of application mentioned in this paper,whether there is exception and so on. These caused great difficulty to our country’sjudicial practice and high judicial cost. Therefore, this article is divided into four parts,discusses the existing problems and measures of improvement of incontestable clausein China’s insurance law. The purpose of this paper is to hope gradually improve theregulation of the incontestable clause in insurance law, gradually balance the rightsand obligations of both parties and promote the healthy development of insuranceindustry in China through these superficial suggestion.This paper firstly introduces the connotation of the incontestable clause, andanalyzes the relationship between the related legal concepts, makes legal analysis deeply to truly understand the terms and conditions, and then the role of theincontestable clause to shows the value of the incontestable clause. Secondly, thepaper analyzes the current situation of the incontestable clause in our country, andmakes comparison of the incontestable clause in old and new "insurance law" of ourcountry to show the improvement, progress and necessity of introducing it intoChina. At the same time, it points out the inadequacies. Thirdly, this paperintroduces the regulations of incontestable clause in Hong Kong, Macao and Taiwanand other foreign countries, using the method of comparative analysis to show theseregions’ advantages that are worth learning. Finally, it puts forward the improvementsuggestions in the aspects of legislative, judicial and insurance industry itself, whichthe author feels innovative. Since the law is stable, we should use the guidance ofthe judicial interpretation, judicial practice and the self-discipline of the insuranceindustry itself for a better use of the incontestable clause, but not only depend on theperfection of law.