The Research On The Insurer’s Participation Right In The Liability Insurance

In our Taiwan Zone "Insurance Law" Article93states:"the insurer should agreethe insured for the third party of its responsibility to admit, reconciliation orcompensation, if not participating, unrestrained. But if the insurer has been informedby proposer or the insured and without justified reasons to refuse or an excuse delay,this restriction shall not apply. The law stipulates participation rights of the insurer inliability insurance, so in the Taiwan area, the liability of the insurer can execute itsparticipation rights according to the law and can better maintain the balance of thelegitimate interest among insurer, the insured and the injured third party’s so as topromote the development of the insurance industry better. However, at present,China’s "insurance law" has no provisions in this aspect. The participation right ofliability of the insurer is only applied to the liability insurance in the concerninginsurance companies.The main research methods of this essay include comparison analytic method,value analysis method and so on. First of all, I carry on the detailed analysis of theparticipation right from its concept, character and its function. The general definitionof liability insurance is a kind of insurance that when the insured bears the liabilityfor compensation to the victimized third party, after the victimized third request, theinsurer assumes compensation liability to the victimized third liability insurance inaccordance with the insurance contract. When referring to the character ofparticipation, there are two different definitions. One defines the participation as aright but the other defines it as an obligation which should be assumed by the insurer.The essay makes a deep analysis on these two definitions. Through analyzing, wewill have a better understanding of the content of participation right.Secondly, I analyze the exercise of liability insurance which includes theoreticalpremise of exercising participation right, bearing the consequence of exercisingparticipation right, bearing the consequence of not exercising participation right,assuming the advertent obligation and assuming the responsibility of compensation caused by improper use of participation. In our mind, when the insured indeedmakes the injured third party suffer the loss due to negligence, at the same time, theinjured third party exercise the right to claim for compensation of damage. theinsurance liability happens and the insurer can exercise the right to participate in theinsurance China’s "Insurance Law" stipulates that the victimized third party’s claimfor damages can not be counted as occurring because only until the insured hasfulfilled its compensation responsibility to the third party, it occurs. I divide theparticipation right into participating and not participating. For participating, there arealso two kinds, namely, the exercise of the right to participate and agree to asettlement or a compensation agreement with the exercise of the right to participatebut do not agree to a settlement or compensation agreement. Not participating alsoincludes two categories, divided by without notice, and is not involved in thenotification without participation. Through the above analysis of several scenarios,we have a better understanding of the process of exercising the right to participate aswell as issues related to attention. Since the liability insurers actively exercise theright to participate, there is a possibility of improper using of participation right andcausing the problem of how to compensate. If so, how can we dispose of it?Therefore, this paper also discusses the duty and responsibility of the insurer when inthe process of exercising participation right and the liabilities because of theimproper use of participation right in detail.Finally, when it comes to how to develop and perfect the liability insurancesystem in our country, I put forward a series of suggestions, hoping they are ofhelpful for the legislation of insurance and development of insurance industry. Firstof all, I add some provisions about liability insurance participation right; secondly, Ithink the insured shall timely perform the obligation of notification, so that theinsurer can exercise the right to participate in time; Thirdly, adding the exceptionprovisions on exercising the right of participation; Fourthly, adding the provisionsthat when the insurer hold the opposite opinion.