On The Application Of The Principle Of Indemnity In Medical Insurance

There are personal insurance and property insurance in China’s Insurance Law,which are different in the object of insurance.The former takes human life and health as the object of insurance,and the latter takes property and related interests as the object of insurance.The principle of indemnity was regarded as a principle of property insurance and did not apply to personal insurance for a long time.According to the traditional theory,if medical insurance was a type of personal insurances,the principle of indemnity should not apply to it,and if medical insurance was a type of property insurances,the principle of indemnity should apply to it.Under this logic of argument,the determination of whether medical insurance can apply the principle of indemnity is based on the distinction between the concepts of personal insurance and property insurance.Because of its particularity,scholars are divided about whether it should apply the principle of indemnity: on the one hand,the subject matter of medical insurance is closely related to other factors such as human life and health.Some scholars believe that medical insurance is a type of personal insurances such as personal accident insurance or health insurance.And the principle of indemnity is not applicable to medical insurance.On the other hand,medical insurance is closely related to property,and medical expenses are compensating and can be measured in money.Some scholars believe that medical insurance is a type of new insurances such as “Neutral insurance”,which is different from personalinsurance and property insurance.And medical insurance can apply the principle of indemnity.Actually,personal insurance is different from quota payment insurance,property insurance is also different from indemnity insurance.And the principle of indemnity should apply to indemnity insurance.Thus,medical insurance is a type of “Neutral Insurance” or “Third Filed Insurance”.Additionally,it will be helpful to maintain good insurance order if the principle of indemnity can apply to medical insurance.The following solutions are put forward in order to clear that the principle of indemnity can apply to medical insurance,and to solve the problem of “the dissimilarity verdict in the same kind case” in judicial practice: we can learn the classification of insurance contract in foreign legislation,and change the legislative classification method of insurance contract,replacing with quota payment insurance and indemnity insurance.Besides,when the principle of indemnity was agreed to apply to medical insurance by both parties,and the insurer had down prompting duty on the phase,it shall apply to compensatory medical insurance,but not quota payment medical insurance.It is noteworthy that China’s Insurance Law was amended in 2015,in order to maintain the stability and credibility of the law,we can choose the second method given above,and provide an easy way for medical insurance to apply the principle of indemnity.The structure of this paper is also consistent with the logic of the above discussion,and it consists four chapters.In chapter one,I introduce the basic theory of medical insurance and the principle of indemnity.In chapter two,I analyze the present situation of the application,and point out the problem in it.In chapter three,I explain why the principle of indemnity shall apply to medical insurance.And in chapter four,I provide an easy way for medical insurance to apply the principle of indemnity.