Research On The Compensation Rules Of Valued Insurance

The 2009 reform of China’s Insurance Law made new provisions for valued insurance,pointing to a new trend in the application of the law.The parties to an insurance contract may agree either on the insured value or on the actual loss without agreement.There is confusion between valued insurance and unvalued insurance,confusion between the concepts of insurance value and insurance interest,and the lack of restrictive provisions on the extent to which the agreed insurance value exceeds the actual value,which often leads to disagreements in practice.The compensation of valued insurance is a specific application of valued insurance in judicial practice,and there has not yet been a comprehensive and unified rule guidance on how to compensate in valued insurance at the legal level.In view of the above factors,this article takes the gradual and widespread use of valued insurance in property damage insurance as the background,takes the valued insurance compensation rules as the object of research,discusses the current situation and problems of valued insurance at the present stage,and makes reference to foreign models,with a view to establishing a more perfect valued insurance system.The full article excludes the research background and the national and international review of the article,and the main research contents of each section are as follows:The article begins with the origins of valued insurance and delves into the emergence and development of valued insurance.Next,the article examines the legislative basis of valued insurance in order to argue for the legitimacy and feasibility of valued insurance.The value and basic scope of valued insurance are introduced.The basis for understanding value insurance is to determine the meaning of "value" of value insurance.Determining the substantive criteria for valued insurance is the key to determining the nature of valued insurance.This article argues that stating the value of the subject matter of the insurance in the policy only constitutes the formal appearance of a valued insurance contract.The substantive criteria for determining valued insurance should be whether or not the manner of insurance indemnity is agreed.In terms of the relationship between the valued insurance system and the principle of compensation,this article argues that the valued insurance system and the principle of indemnity are like the relationship between legal rules and legal principles,which appear to be a deviation from the basic principles of insurance law and are actually complied with.The second part of the article deals with the current state of justice for valued insurance in China.On the basis of the argument that valued insurance is legal and reasonable,the imperfections of valued insurance,especially the problem of excess valued insurance,are analyzed in the light of the practical problems encountered in trials.In China’s judicial practice,there are two main disputed issues in relation to valued insurance:one is the dispute over whether the insurance contract is valued insurance or unvalued insurance;the other is the issue of excess value in valued insurance.The consideration of the limits of excess valued insurance and the distinction between the validity of excess valued insurance are two issues that have led to different decisions on excess valued insurance in the same case.The third part further examines the effectiveness of excess valued insurance.German and Japanese law distinguish between general excess and significant excess;UK Courts deny the validity of defective excess valued insurance contracts and presume that the contracts are invalid in their entirety;the American model emphasizes the insurer’s duty of care.Discussing its validity in terms of good faith and bad faith.The treatment of different excess valued insurance should be targeted.The preservation of every legal civil contract is a requirement of the Civil Code and a natural law of the commodity marketThe fourth part of the article is devoted to the improvement of valued insurance compensation rules.The focus is on the guidance of the basic principles of insurance law on valued insurance,the legislative improvement of valued insurance,the regulation of the limits of excess valued insurance.Studying existing foreign models for dealing with valued insurance issues.Firstly,the adjustment of valued insurance compensation rules and the application of valued insurance contracts should be carried out within the framework of the basic principles of insurance law;secondly,the concept and scope of application of valued insurance should be clarified;and finally,the effect of excess valued insurance should be discussed on a case-by-case basis,distinguishing between general excess and significant excess.