Wang Chunmei Problems of application of Art. 65 of the Law of the People’s Republic of China “On Insurance”

Abstract: In the modern society insurance of civil responsibility allows not only to divide and transfer material losses of an insured party due to compensation of harm caused to a third part, but also it serves a function of guaranteeing the interests of the victim. In accordance with the Art. 65 of the Law of the People’s Republic of China “On Insurance” there is a number of key provisions on insuring responsibility. The insurer pays the compensation directly to the victim. In accordance with the law the obligation of an insurer towards the third party is established via peaceful settlement, regulation, accusation and arbitration. According the requests of insurer his obligation towards a third party victim is defined clearly. If an insurer ignores requests of a victim, the victim may contact an insured person directly for compensation. If an insured person causes harm to a third party, and an insurer does not pay the compensation to the third party, then an insured person does not have to pay compensation. Civil responsibility insurance is a type of insurance guaranteeing obligations of an insurer towards the third party victim. Such are the key provisions on insurable risk of responsibility, which is a subject to discussion in this article. The victim gains a right to claim insurance compensation and right to file a lawsuit. However, the analysis of judicial practice shows that incorrect interpretation of Art. 65 of the Law of the People’s Republic of China “On Insurance” causes contradictions, disputes and mistakes in legal practice, weakening its protective function towards a victim (third party) to a certain extent.

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