The Study On The Term Of “No Liability No Compensation” In Own Damage Insurance Contract

With the development of China's economy and the improvement of people's living standard, China's motor vehicle ownership is increasing rapidly and the commercial insurance amount insured for motor vehicles is also ncreasing year by year, accounting for 3/4 of the property insurance market share. However, as an important type of insurance, the item of “no liability no compensation” of vehicle loss insurance has caused many arguments no matter in theory or in juridical practice. The insurance companies tend to refuse to compensate the loss of the vehicle by reason of that the vehicle driver has no accountability in the traffic accident, resulting in the situation that the insurant has insured the vehicle loss insurance but can not get the compensation. When the insurant fails to claim the compensation, he/she has to conduct prosecution to the court and ask for compensation from the insurance company, thus leading to the large number of such cases in judicial practice. The laws in our country have no specific stipulations on the item of “no liability no compensation” of vehicle loss insurance, nor is there any explanation on the liability principle of the vehicle loss insurance. Therefore, in similar cases, the grounds of decision issued by different courts vary from each other, leading to the phenomenon of different judgments for the same cases. This paper tries to start from the definition of vehicle loss insurance and the liability principle. Combined with the theoretical basis for the existence of the item of “no liability no compensation”, it elaborates whether the item of “no liability no compensation” is suitable to be stipulated in the vehicle loss insurance contract, thus providing certain reference for the solving of such peoblems in judicial practice.First of all, this paper starts from a dispute case caused by the item of “no liability no compensation” of vehicle loss insurance, and introduces the dispute focus of this item. Secondly, it studies the liability principle of the vehicle loss insurance. Through the analysis of the purpose of this insurance and the comparison between this insurance and the compulsory insurance and the commercial three-liability insurance, it clarifies that this insurance should apply the liability principle of no fault liability. It also analyzes the item of “no liability no compensation” from the theoretical level. Then, it analyzes the current situation of the application of this item in law, finds out the problems existing in the application of law, and points out the root of problems. Finally, through the above analysis, it concludes the solutions to improve this item.