Study On The Exculpatory Clauses In The Insurance Contract Legal Problems

The insurance industry is an important support to the modern financial system,which through reasonable transfer and distribution of risks protects the explorationand creation spirit that the main part of market has, and it will greatly promote thedevelopment and progress of society. Since the Insurance Law of the People’sRepublic of China was issued and implemented in1995, with the two amendmentsseparately in2002and2009, especially in2009, as many as48clauses were revisedin the Insurance Contract Chapter, many of which reflected the protection thatInsurance Law gives to consumer rights day by day.With the continuous development of the insurance industry, on one hand, thenumber of people and enterprise who are insured increases constantly, and thedevelopment of the insurance business is very prosperous, on the other hand, inpractice, a large number of insurer cite exculpatory clause in the contract in order toreject compensation, as a result, insured’s trust to insurance industry, insurer, andinsurance product decrease day by day, even someone regards the exculpatory clausein insurance contract as the means and tools to cheat insured. Therefore, in moderninsurance industry, the insurer and the insured struggle to their own benefit, whileinsurance exculpatory clause in the contract has become one of the main battlefieldfor the fight.Because the insurance contract is form contract which causes the inequalitybetween the right and obligation of contract parties and violate the principle offairness, the Law should intervene and appropriately restrict the insuranceexculpatory clause in the contract. Insurance exculpatory clause will be analyzed inthe paper from definition of the scope, regulation prescribed and principle explanationand raise suggestions to our legislation considering reference of foreign legislationexample.