On The Exemption Clause Of Commercial Insurance Of Motor Vehicle

In China,motor vehicle insurance is divided into compulsory insurance for traffic accident and commercial insurance.Compulsory insurance is guaranteed and the limit of liability is not high,commercial insurance can make sure that victims and the insured get more compensation,it is a good complement of compulsory insurance.The exemption clause is an indispensable content in commercial insurance,it refers to the provisions agreed which the insurer can use to exempt or limit its future contractual liability in the insurance contract,usually made by the insurer in advance and request the applicant to sign unconditionally.China's insurance law has many provisions on the exemption clause,but it is not clear,theorists and practitioners have many controversies,the court did not have a unified standard in the trial,resulting in different judgments in the similar case,which caused huge controversy.The sample cases are typical cases related to the exemption clause.In the case,the insurer and the insured signed a motor vehicle commercial insurance contract,after the accident,the insured claims for compensation,but the insurer refused to pay.So the insured appealed to the court,they thought these clause were legally ineffective,meanwhile,the insurer believed exemption clause had come into effect.There are four controversial focus.The first is to judge whether a clause is an exemption clause or not.The second is whether the insurer fulfilled the specific explanation.The third is the standard of the burden of proof.The last one is whether the exemption clause is valid or not.Based on the current legal principle and provisions of China.At first,it should be judged according to the substantial content to determine whether a term is an exemption clause or not.Secondly,the standard of the specific explanation is substantive.In addition to submitting the insurance vouchers,the insurer has to explain the exemption clause to make sure that the insured understand the meaning of the exemption clause.Thirdly,the insurer shall submit complete evidence to prove that he has fulfilled the specific explanation about the exemption clause,the court generally does not accept the oral way.In practice,it is a common way to provide a statement with the insured's signature and insurance terms to prove that the insurer has fulfilled the specific explanation.Finally,if the insurer proves that he has fulfilled the specific explanation,the exemption clause should be identified as having entered into force.In view of the rapid development of commercial insurance of motor vehicle.It would inevitably bring more disputes about the exemption clause,how to explore a workable way while taking the fairness into account is an urgent problem that need to solve in the theoretical and practical circles.