Of The Inherent Defects Insurance

The thesis is composed of the introduction and four chapters.The introduction concentrates on accounting for two issues: the reasons for establishing inherent defects insurance(Abbr.IDI) and significance of establishing IDI system in China. Since 1993,China has carried out a variety of insurances,including CAR/EAR,accident and injury insurance for construction workers,profession liability insurance for designers or supervisors in the field of construction. The varieties'coverage mentioned above merely indemnifies the risks and liability in the process of construction, and excludes the inherent defects risk which may come forth and arouse accident and loss after checking-and-accepting. However,IDI covers it absolutely. Morever,two social factors contribute to setting up IDI syetem in China: 1) In the current construction market,for the sake of eluding unfulfilling risk,proprietors deduct a large sum of deposit,which awfully accouts for builders'financing. Postponement of paying deposit make builders delay paying wokers who are from rural country. Once these wokers have no salary to support family,base of social stabilization may be shaked. 2) All along,observing policy of low-price and low-profit,a large part of builders accumulate wretched capital and are incapable of indemnifying potential victim. Unfortunately,once construction accident appears after checking-and-accepting,builders may suffer bankruptcy,even not be found at the worst sometimes. But IDI covers all these risks and further safeguard proprietors'legal interests.ChapterⅠis the theoretical basis of this study, which mainly answers what is IDI. First of all, this chapter introduces background of IDI,defines IDI. To enrich connotation of IDI,it details IDI contract content(coverage, exclusion, efficacity and term, quota, and premium )and traits. To accurately grasp the applicable object and scope of IDI,it compares property insurance,product Liability insurance with IDI. At last, it puts itself in policyholder's shoes to compare IDI with ralated insurnces to maximumly optimize proposal(striking a balance between no coverage overlapping, maximum premium savings, and adequate indemnity).Chapter II studies for those countries ,who developed IDI very well, how to run IDI system. Firstly, based on fundamentals of law , main points , and implementation,it introduces mode of IDI system in French, Spanish,Japan,respectively,and further comparing similarities and differences in detail. Finally,it sums up their concensus on establishing IDI system also.ChapterⅢ,as one of the mainbodies of this article, centers on studying 3 fundamental systems such insurer's option,technical inspection service(Abbr.TIS) as insurer's subrogation disclaimation. Insurer's option is defined that if a policyholder will insure IDI,he must contract a insurer offer; subsequently,the insurer is entitled to supervise and check the project on the spot,enen to decide whether to underwrite the risk of the project according to actual situation after checking-and-accepting. TIS shows that once a insurer accepts the policyholder's offer,it must engage neutral consultancy organization to guide and supervise in terms of constrction technology during whole process. TIS acts as a supervisor to project quality and a appraiser to risk situation. Insurer's subrogation disclaimation indicates that a insurer disclaims subrogation to the 3rd party,who is potential virulence people ,who must accept and cooperate with insurer's risk-control,after it perform policy well.ChapterⅣ,based on analysis on IDI system in chapterⅢ,intends to address countermeasures and suggestion how to establish and improve IDI system according to Chinese conditions.First of all,the author looks back on the status quo of implementation and makes rational researches on"bottlenecks"at present. Accordingly,the author thinks that China should plan long and short-term objective to establish its IDI system because it has set up IDI lately and lacks experience. Moreover,he insists that to construct 3 fundamental systems mentioned above be stage objectives. Among this part,he centers on discussing feasibility for"Domicile Performance Authentication Institution",as a core-body, to construct Chinese TIS. Finally,he cites some necessary supporting measurer in the long run.Based on an in-depth, systematic analysis of the IDI system,the author clearly brings up series of countermeasures how to establish IDI system in China, which may be the largest contribution.In this article,there are some original discussions as follows: the economic analysis of a insurer option,reasons for insurer's subrogation disclaimation,how to establish characteristics IDI system by means of merger and integration.