On Right To Participate In Reconciliation Of Liability Insurance

Reconciliation in liability insurance means that the insured person and the third party make concessions on the claim,terminate the dispute or prevent the dispute by reaching an agreement.The result of the settlement has a direct interest with the insurer,so the insurer has the right to participate in the settlement.However,there is no such provision in current “Insurance Law”.The courts lack legal basis,resulting in different verdicts of the same case.Therefore,this paper attempts to use the comparative analysis method,the case analysis method,to define the nature of the insurer's conciliatory behavior,to discuss how the insurers carry out reconciliation behavior in order to balance the interests of all parties,and to provide suggestions for the improvement of insurance laws and regulations.In addition to the introduction and conclusion,this paper contain four parts,the main contents being as follows:The first part introduces the meaning of the right of the insurer to participate in the reconciliation,defining the nature of the insurer's reconciliation behavior,and discussing the necessity of its existence.Insurer's right to participate in reconciliation in liability insurances,refers to that in the liability insurance,the insurers have the right to participate in the reconciliation with the third party,and bear appropriate settlement obligations with goodwill in special circumstances.The second part puts forward some suggestions on how to deal with issue about insurer's right to participate in reconciliation via learning from the experience of different countries and the practice in China.The "statutory model" and "secondary notice theory" should be adopted in designing about starting the insurer's right.The third part discusses the liability of the insured person in different situations for not fulfilling the notification obligation and therefore infringing the insurer's right to participate in the settlement.If the settlement is reasonable,the insurer should pay for the reconciliation amount that does not exceed Insurance amount,otherwise,the insurer may not be bound by the settlement agreement.If the insured person be slack to reconcile with the third party,the insurer shall settle the claim according to the judgment.The litigation costs shall be borne by the insured person.The fourth part discusses different legal consequences about the insurer's improper disposal the right of participation in reconciliation.Insurer's participation in reconciliation need to bear appropriate settlement obligations,and shall not harm the interests of the insured.If giving up the right,the insurer shall still be bound by the settlement agreement between the insured and the third party.