Issues On Incontestable Clause Of Chinese Insurance Law

Incontestable clause originates from the UK and has undergone constant changes in the US before it was included into China's Insurance Law in recent years. As an introduced article, it has become a primary issue in both theory and practice as how for us to better apply this clause in the field of insurance in China. By introducing the development of the incontestable clause and legislation examples in various countries, as well as the regulation of our Insurance Law, this paper has further raised the legal issues existing in the application of the incontestable clause, including whether or not such clause can be applied to property insurance, the application of such clause in such circumstance where the policy holder commits fraud, the calculation of contestable term in case the insurance contract is reinstated. As for the applicable scope of incontestable clause, by analyzing different theoretical viewpoints, it is concluded that the incontestable clause can be applied to any property insurance with a term of above two years. As for the application of the incontestable clause in case the policy holder commits fraud, through analyzing judicial verdicts and different theories, it is concluded that the insurer shall no longer have any right of revocation as stipulated in the Insurance Law and the incontestable clause shall no longer be applied in case any insured event occurs during the contestable term. As for the calculation of contestable term in case the insurance contract is reinstated, by analyzing judicial verdicts, the nature of contestable term, the nature of the reinstated insurance contract and whether or not we should perform the duty of disclosure when the insurance contract reinstated, it is concluded that such calculation should be differentiated based on the contents informed.