The Theory Of Insurer’s Explaining Obligations

With the development of the insurance industry, the contents of the insurance contract become more and more complex and professional. The lay person is difficult to understand the important terms of the contract without special guidance, not to mention make a comprehensive understanding of it. Main while, in order to sign more contracts, some insurers providers show false propaganda, exaggerated on claim scope and claim amount to the consumers. They also set improper clauses in the contract without notice, intentionally or unintentionally mislead policyholders. Generally speaking, policyholders are lacking knowledge for their insurance. But all of them have the good faith that the insurance can spread the risk and make up for the loss. Some insurance sales agents deliberately mislead them which makes the policyholders has more expectations on the policy than they shoud have. The gap between the two sides can easily lead to the occurrence of insurance contract disputes. Therefore, how to ensure that insurers carry out real propaganda, and make sure the policyholders can truly understand the contract become one of the key elements of the insurance law of the countries concerned.Our country passed the "Insurance Law" in 1995, and it clearly defined the explanation obligation which the insurence provider would fulfill. In 2002, it further revised the explanation obligation to hint explanation obligation. On June 8,2013, the Supreme People’s Court on the application of Insurance Law of the People’s Republic of China (Ⅱ) began to implement. The judicial interpretations make it further, more detailed provisions on hint explanation obligation of the insurece provider. Therefore, the insurence provider has a clear operational ability on how to fulfill the hint explanation obligation. It has an extremely important significance for the insurance provider to carry out correct and standard insurance business and for the court to hear the case of insurance contract disputes with a unified standard. However, judicial interpretations define the insurer’s obligation, but it is not like explanation obligation which has specific and operational identification standards. In the judicial practice, the provisions on insurer’s explanation obligation are still too broad, and whether the insurer has fulfilled the obligation still need to rely on the judge to determine according to the actual situation, which greatly increases the uncertainty of the results of the case.Law can never be perfect, and it is the law itself has flaws, but also it is the driving force to make law to improve continuously. In order to realize the equal status of both parties of the insurance contract and protect the legal rights and interests of the policyholders. The author believes that we should start from the actual situation, and from the angle of the main body, time, conditions, contents, standards and methods. Referring to foreign regulations, to clear the methods and standards of explanation obligation for the insurer. Finally, to promote the perfection of the insurance law, and promote the healthy development of the insurance industry.