The new " People's Republic of China Insurance Law" (hereinafter referred to as the new "Insurance Law" will be put in force on October 1, 2009. Many customers may ask: “what infrequence the new ‘insurance law’ will make on me? Will the premium increase? If my previous insurance contract can be covered by the new laws?”

The new "Insurance Law" adds 40 new articles to protect the interests of insurers in several aspects including - contract, responsibility exemption, litigation time limitation, etc.  

Non-defense rule

The article 16 of new “ Insurance Law” state: The right to rescind an insurance contract as prescribed in the preceding paragraph shall be annulled after the lapse of 30 days or more from the day when the insurer knows the cause of rescission. After the lapse of two years or more from the day when an insurance contract is entered into, the insurer may not rescind the contract; where an insured incident occurs, the insurer shall be liable for paying indemnity or insurance money.

Some may say: then I’ll not tell the insurance company my health statues, after two years the company will pay indemnity to me. In fact, buying insurance is the fears of the risk, if so do not risky. Anyway, insurance company has strengthened the risk control in screen and claim processes.

Without warn, the clauses exempting the insurer from liability shall not be effective

The new “Insurance Law” requires, for those clauses exempting the insurer from liability in the insurance contract, the insurer shall sufficiently warn the insurance applicant of those clauses in the insurance application form, the insurance policy or any other insurance certificate, and expressly explain the contents of those clauses to the insurance applicant in writing or verbally. If the insurer fails to make a warning or express explanation thereof, those clauses shall not be effective.

 We hereby remind our customer to read the policy or clauses carefully to prevent misunderstanding. For that, SFLI had made new “Insurance Reminder” and new "Application Form" for better introduction to the customers.
 

Speedy claim process

 
The new “Insurance Law” requires, if the circumstances are complex, the insurer shall complete the assessment within 30 days, unless it is otherwise agreed upon in the insurance contract. If the insurer deems that the relevant certificates and materials are incomplete according to the contract, it shall notify, in a timely manner and at one time, the insurance applicant, insurant or beneficiary of all certificates and materials to be supplemented. Meanwhile, the new “Insurance Law” regulate that after knowing the occurrence of an insured incident, the insurance applicant, insurant or beneficiary shall notify the insurer in a timely manner. Where the insurance applicant, insurant or beneficiary fails to do so intentionally or for gross negligence, which makes it difficult to determine the nature, cause, degree of damage, etc. of the insured incident, the insurer shall not be liable for paying the indemnity or insurance money for the undeterminable part.

Clarify the beneficiary’s right

 
The new “Insurance Law” clear the beneficiary right in following three aspects: First, Where both the beneficiary and the insurant die in a same incident, and it is impossible to determine their sequence of death, the beneficiary shall be presumed to be dead first, the insurance money shall be deemed as the legacy of the insurant; Second, the entity can not be the beneficiary when buying insurance for their staff; Third, Where the beneficiary intentionally causes the death, injury, disability or illness to the insurant or attempts to murder the insurant, the beneficiary shall lose the beneficiary right. 

Will the premium increase?
 
Many canards in the market say that the insurance company will increase the premium due to the new “insurance Law”. After seriously consideration, SFLI decides not to increase the premium, better, we will insurance our service quality.
 

If my previous insurance contract can be covered by the new laws?

  
Supreme People’s Court promulgated the first judicial interpretation for the new "Insurance Law" state that the insurance contracts established before the new insurance law, if any insurance transfers, insurance accidents, or claims occur after the new law, shall follow the new law.