Related cases of insurance value

Disputes caused by insurance value exceeding actual value

September 01, 2009 14:25 Great Wall Insurance Brokerage Co., Ltd.

A ship accident occurred within the scope of insurance liability In the case of an insured accident, the plaintiff requested a compensation of RMB 22 million based on the insured value and insurance amount stipulated in the insurance contract. The defendant believed that the insured value exceeded the actual value of the ship, and compensation should be based on the actual value at the time of the ship accident. This controversial ship insurance contract dispute case was heard in Wuhan Maritime Court.

On August 29, 2005, a cruise ship owned by a tourist ship company in Chongqing sailed from Yichang, Hubei to Chongqing. On September 1, when the ship was traveling to Xiaotan, the visibility was reduced due to fog. While overtaking another ship, the ship accidentally hit a rock and the entire hull rested on the rocks. After an on-site survey by the salvage agency, it was determined that the ship was seriously damaged and had no repair value. The tourist shipping company had no choice but to dismantle and salvage the ship. Previously, the tourist shipping company had insured the ship with an insurance company, and the insurance coverage was "all risks along the coast and inland rivers." The two parties agreed in the insurance policy that the insurance value of the ship was 22 million yuan, and the insurance amount was also 22 million yuan. After the accident, the insurance company failed to pay the company's losses in time. In February 2006, the tourist shipping company filed a lawsuit with the Wuhan Maritime Court, requiring the insurance company to pay 22 million yuan in insurance premiums and compensate for the losses caused by late payment of insurance premiums.

After accepting the case, at the request of both the plaintiff and the defendant, the court commissioned an accounting firm to evaluate the market value of the ship on the day of the accident, and determined that the actual market value of the ship at the time of the accident was 13.0508 million yuan, and the estimated residual value after the protective disintegration should be 2.4291 million yuan on the day of the accident.

The biggest dispute between the two parties during the trial was the issue of compensation standards. The plaintiff believes that the boat has been insured with the defendant since 2003, and the insurance value and insurance amount are both 22 million yuan. The defendant has never raised any objection to the insurance value of 22 million yuan, and has also been charging corresponding insurance premiums of 22 million yuan. . The agreement between the plaintiff and the defendant followed the principles of fairness and mutual benefit, consensus through consultation, and voluntary conclusion. It did not violate the corresponding legal provisions and should be effectively protected by the law. After the insured subject is totally lost, the defendant shall compensate according to the agreed insured value and insurance amount.

The defendant argued that the actual value of the round was far less than 22 million yuan, so the excess of the 22 million yuan insured value agreed in the policy over its actual value was invalid from the beginning because it violated the insurable interest principle. , the insurance amount can only be limited to the actual value at the time of the accident, which is 13.0508 million yuan.

Both sides hold their own opinions, and there is some truth in their views. According to the judge in this case, there is a lack of uniform standards in the application of law in this case. In property insurance contracts, the insurance value can be determined in two ways: fixed-value insurance and unfixed-value insurance (determined based on the actual value of the insured subject matter when the insured accident occurs). In a fixed-value insurance contract, the determination of the insurance value of the insured subject matter is mainly based on the mutual agreement between the policyholder and the insurer, and the agreed amount is mainly based on the agreement of both parties. As for the final result, the law does not have strict regulations. In other words, regarding the insurance value, both parties can agree to be lower than the actual value of the insured property at the time of insurance application, or they can agree to be higher than the actual value of the insured property at the time of insurance application. However, insurance contracts are in the nature of economic compensation, and the so-called economic compensation should be limited to the actual economic losses of the policy holder caused by the insurance liability accident. The actual value of the ship involved in the case was only 13.5 million yuan, and the defendant was required to pay 22 million yuan in compensation. It was obviously profitable. This was neither in compliance with the principle of good faith in the Contract Law nor in conflict with the legislative spirit of the Insurance Law.

After the trial, the collegial panel organized the two parties to conduct mediation work. However, there were certain gaps between the two parties in terms of the nature of the contract and the application of the law, and ultimately they failed to reach a mediation agreement. Since the outcome of this case may involve a re-understanding of insurance principles, the collegial panel decided to submit it to the judicial committee for discussion and then select a date for the verdict.

Source: China Insurance News