On The Breach Of Condition And Legal Consequences Of The Disclosure Obligation Violation In China

There is no doubt that insurance,which provides safety to people, plays animportant role in our daily life. Because of the social demands, there is an increase intypes of insured objects, ranging from the traditional life insurance and propertyinsurance to innovative love insurance, thus making it much more difficult for theinsurers to have a good command of the insurance subject.The difference between insurance and contract is that the one who knows bestabout the insurance subject is the insured but the insurer. Besides, for the insurancetype with a long period such as life insurance, once changes take place in theinsurance subject, it is hard for the insurer to notice them.Therefore, insurance law requires the insured to bear the obligation----whileentering into an insurance contract, the insured should inform the insurer of thepossibility of increased risks and if the increased changes do happen, the insuredshould state the facts to the insurer.This paper mainly discusses on the disclosure obligations of the insured whileentering into the insurance contract. The focuses of this paper will be on the issuessuch us the elements contributing to the violation of the disclosure obligations, therights that the insurer will obtain due to the violation of the disclosure obligations andhow to exercise those rights.Meanwhile, as a special contract whose object is “risk”, the risks of the contract needs to be stated by the insured with honesty. Otherwise, the insurer will facesetbacks in the process of risk assessment. However, cases with false information areeverywhere in practice. This paper, on the basis of empirical analysis, aims todistinguish subject intent from gross negligence, to define the scope of material facts,to discuss about the properness of the causality, to evaluate the exercise and restrictionof right of renouncement. Therefore, it may help construct the breach of conditionand the system of evaluation about the disclosure obligation. With the help of theregulations on obligations and rights, there will be a balance in the insured and theinsurer with a win-win situation.