Research On Insurers' Right To Participate In Reconciliation

Insurers'right to participate in reconciliation liability insurance has not been established in the insurance law in China. However, insurance policies are abounded with provisions regarding such right. These provisions stand for the insurers'benefits and therefore unfair to the insured. The insurance law of China may make reference to relevant system in Taiwan District, add provisions regarding insurers'rights to participate and amend the improper provisions in insurance policies.Apart from introduction, this paper contains four chapters.Chapter one: The choice of the nature of insurer's right to participate in reconciliation in liability insurance. Worldwide, countries and districts almost establish the system of insurer's participation in reconciliation in liability insurance. These instances can generally fall within two categories, the"right to participate"which emphasizes the protection of insurer's benefit and the"duty to settle claims"which is biased towards the protection of the insured. This paper suggests that reference may made to the insurance law and application in Taiwan District and instances of"right to participate"may be adopted.Chapter Two: Comparison and reference to the"insurer's right to participate in reconciliation in liability insurance"of Taiwan. In this chapter, the author first makes a comparison of the provisions concerning"right of participation"in insurance policies between mainland China and Taiwan, and then suggests that some of the provisions regarding the said right in the insurance policies in Taiwan are worth referring to.Chapter three: The designation of the"insurer's right to participate in reconciliation"and relevant issues. The insured have the duty to inform the insurer the claim for compensation by the third party so as to allow the insurer to exercise the right to participate. The reconciliation outcome should bind the insurer if he had participated in the reconciliation. The legal consequence for non-participation should be determined by whether the insured has fulfilled his duty to inform. Where the insurer improperly participated in the reconciliation, he should bear corresponding legal liability.Chapter Four: Advice on mainland China's"right to insurer's participation in reconciliation". The right and limitation thereof should be added into insurance law upon amendment. In addition, the insurance policies should also be amended accordingly while provisions regarding the insured's duty to inform and the bearing of reconciliation expenses, etc should be added in order to balance the benefits of both sides.