A Study on Solution and Case Analysis for Incomplete Insurance Contract

• Main Authors: CHU,FU-YUAN, 朱富源
• Other Authors: Hsu, En-Te
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/vufy9x

碩士 === 東海大學 === 會計學系 === 106 === A contract is a relationship formed by interactions between two or more economic entities after a certain deliberation, and the actions of such a relationship are protected by law. Section 1 of Article 153 of the Civil Code states: “When the parties have reciprocally declared their concordant intent, either expressly or impliedly, a contract shall be constituted.” Insurance contracts in Taiwan are contracts with standard terms and conditions that are often poorly defined or not appropriate for actual circumstances. According to statistics published by the Financial Ombudsman Institution, from 2012 to 2017, there were on average 2600 complaints filed every year against insurance companies in Taiwan, which indicates the severity of the problem of insurance contract disputes. This study generalizes a solution for incomplete insurance contracts from case studies. With respect to standard provisions of life insurance, we conclude that harsher penalties should be in place for breach of duty of disclosure or concealment of information by the solicitor. With respect to standard provisions of personal injury insurance, we find that there are disputes over the “interpretation” of insured perils. For example, when it comes to the term “injury by accident” which is “caused by unforeseen external events other than illness”, there are different interpretations of “cause” and “effect”. With respect to standard provisions of annuity insurance, we discover that the standard terms and conditions of individual annuity insurance are not consistent with that of group annuity insurance. Finally, this study suggests that, in the future, regulatory agencies should systematically review current incomplete insurance contracts over which disputes exist, revise the standard terms and conditions of these contracts, and set penalties and assign accountability for breaches of duty of disclosure.