The Perfection Of Double Insurance Policy In China’s Insurance Law

As an important assurance measures of principle of indemnity, double insurance has important practical and theoretical significance. For the insurer, double insurance system helps maintain the principle of indemnity, prevent and avoid the risk of subjective, as well as maintain the principle of utmost good faith of the insurance contract. For the insured or the insured person, double insurance system can enhance safety and security, especially when the insurer goes bankrupt or insolvency, the insured or the insured person may reduce the risk of losses caused by inadequate financial viability by double insurance, and enhance security of the insured or the insured person. Currently, there is only one clause of article fifty-six about double insurance. It exists defects and limitations, such as the absence of constitutive elements, the limitations of application scope. Besides, it did not distinguish subjective state of the insured; there is no provision to the legal effect of the double insurance contract; provisions of notification obligations of insured are vogue, lacking of operation. If we do not clarify these issues it will not be conducive to the healthy development of China’s insurance industry, the protection of the interests of the insured and the beneficiaries and maintenance of China’s judicial seriousness.In view of this, in combination with the premise of China’s relevant laws and regulations and the foreign legislation and related scholars point of view, I recommend a full complement of double insurance policy and key components of double insurance; make it clear that double insurance applies to all losses compensatory insurance; distinguish double insurance out of good will and bad will and regulate double insurance out of bad will; clarify notification obligation of double insurance and increase the legal consequences of non-compliance with the notification obligations of the insured.