On The Application Of The Principle Of Compensation In The Personal Insurances

The development of modern economy and science and technology is a double-edged sword,makes people's lives more convenient,at the same time,exacerbates the risk of life.As people gradually raise awareness of risk,awareness of the risk of prevention is also increasing,more and more people choose insurance to share their own losses at any time may suffer.People buy insurance,pay insurance premiums,and then distribute the losses to other policyholders,such a loss of sharing,mutual help mechanism can guard against risks.Modern insurance is very important for controlling risk,reducing risk loss,reducing risk management cost and promoting social stability.The principle of compensation is one of the basic principles of insurance,refers to the insured buy a compensatory insurance product to the insurer,when the circumstances agreed upon in the contract cause the property of the insured to diminish,the insurer shall be insured,give a certain limit economic compensation,so that the economic situation back to the state before the damage occurred.As the subject of the property insurance contract is compenssable,it is characterized as a compensatory insurance contract,applicable to the principle of compensation;However,the application of the principle of compensation in the life insurance contract has always been a hot topic in the insurance theory and practice.Due to unmeasurable and irreparable damage to personal injury,when the insured's body is damaged or the life is lost,the insurer's compensation can not make its physical and living conditions to restore the original state,naturally can not make up for this part of his family and the loss,from this point of view,the principle of compensation does not apply.But we should see that in life insurance,there are some insurance contracts,such as the medical expenses insurance of health insurance and accident insurance,if the insurer takes the cost of treating physical function loss as security object,its amount can be calculated,belong to the nature of compensatory insurance contracts,should be applied to the principle of compensation.Supreme People's Court issued the "judicial interpretation of the insurance law(c)"on November,2015.To some extent,Article 18 of which recognizes the application of the principle of compensation in compensatory life insurance contracts.This paper is divided into three parts.The first part discusses the basic connotation and the establishment basis of the principle of compensation;The second part describes the relationship between the principle of compensation and personal insurance:life insurance is not applicable to the principle of compensation,health insurance and accident insurance are partially applicable:medical expenses insurance can be compensatory;The third part shows the requirements for the insured and the insurer on the application of the principle of compensation in the contractual medical insurance contract and basis when the court finds to apply to the principle of compensation.