TY - JOUR

T1 - Fraudulent Insurance Claims

T2 - A Critical Analysis of Article 27 of the Chinese Insurance Law

AU - Xie, Zhiyong

AU - Jing, Zhen

N1 - This is a pre-copyedited, author-produced version of an article accepted for publication in [insert journal title] following peer review. The definitive published version is available online on Westlaw UK or from Thomson Reuters DocDel service .

PY - 2020/2

Y1 - 2020/2

N2 - A key principle of insurance law is that the insured is under a duty not to make a fraudulent claim, however, fraudulent claims are a serious problem. This article critically examines the provisions relating to fraudulent claims in art.27 of the Insurance Law to see to what extent they reflect the policy of deterring fraudulent claims and at the same time maintaining the needs of justice and fairness to the relevant parties. It is argued that the major drawback in art.27 is its lack of deterrence to fraudulently exaggerated claims. It is suggested that deterrence should be imposed on fraudsters and that the insurer be entitled to reject the entire claim where the fraudulent exaggeration is substantial.

AB - A key principle of insurance law is that the insured is under a duty not to make a fraudulent claim, however, fraudulent claims are a serious problem. This article critically examines the provisions relating to fraudulent claims in art.27 of the Insurance Law to see to what extent they reflect the policy of deterring fraudulent claims and at the same time maintaining the needs of justice and fairness to the relevant parties. It is argued that the major drawback in art.27 is its lack of deterrence to fraudulently exaggerated claims. It is suggested that deterrence should be imposed on fraudsters and that the insurer be entitled to reject the entire claim where the fraudulent exaggeration is substantial.

KW - Insurance law

KW - Fraudulent claims

M3 - Article

VL - 2

SP - 101

EP - 122

JO - Journal of Business Law

JF - Journal of Business Law

SN - 0021-9460

ER -