The Research On The Effectiveness Of Exception Clause In Insurance Contract

Since carrying out its economic reform: Reform and Opening-up almost four decades ago, China has witnessed substantial progress within its society, with the economy growing at a remarkable pace and people's living standards upgraded continually. Consequently, insurance, which used to be a brand new concept, has also thrived and grown as a major pillar of China's contemporary financial system.Despite the considerable benefits permitted by insurance, there also occurs a wide range of conflicts relating to the insurance contracts. After a careful examination of these disputes, it can be noted without much difficulty that most of the controversies or disagreements are caused by clauses of liability exemption included in the contracts and what often comes first as the focus of these arguments is the effect issue of these clauses.As an indispensable component of insurance contract, the clauses of liability exemption stay closely related to the insurer and the insurance counterpart. The proper use of the clauses of liability exemption helps to achieve a balance between both parties and promote the development of the insurance industry. Conversely, if misused, it may result in substantial losses for both sides to suffer and impose adversary influences on the stable development of the insurance industry. Consequently, a thorough discussion and analysis concerning the clauses of liability exemption, specifically centering around their effect issue, has grown as a necessary act.This dissertation is primarily based on the insurance contract dispute between Hongli Wang and China Life Property & Casualty Insurance Company Limited. With both jurisprudence and law system currently in effect applied, this paper expounds the effect of the clauses of liability exemption from the angle of procedure and content censorship. Further, it, based on the real situation of the scenario, from the angle of both the insurers and judicial institutions, prompts solution suggestions for the effect issue of the clauses of liability exemption.The main body of this dissertation is divided into three parts and the major researching methods consist of jurisprudential analysis and case study.The first part is the case introduction, particularly composed of basic facts, judicial gist and dispute focus. It starts with the investigation of the practical case, looking into the essential focus of dispute and the law issue hidden behind.The second part concentrates on the analysis and judgement of the dispute focus, mainly constituted by the connotation and extension of the liability exemption clauses, procedural judgement and content judgement of the effect of the clauses and the relationship between these two judgements.The third part deals with the solution suggestions regarding the effect issue of the liability exemption clauses in the practical case. With jurisprudential analysis and the research conclusion fully combined, this part provides opinions and advice, which includes insurance company specifically informing the insurers of the liability, insurers exercising self-censorship and insurance industry self-regulation and court launching careful review over the format and content of the insurance contract.