This article considers the English and Chinese laws relating to the insurer’s primary obligation and the consequences for non-performance of the obligation. English law characterises an insurer’s primary obligation as a duty to "hold the insured harmless" against the insured event and there is no damage for late payment of insurance claims. Chinese law requires the insurer to pay valid claims in a timely manner and also sets out time-limits for an insurer to assess and pay claims. The strengths in setting out such time-limits and the difficulties without such time-limits are discussed. This article also considers how Chinese courts interpret and apply these time-limits. Finally, suggestions are made on further improvement of Chinese law and of the Law Commissions’ recommendation that insurers should have an obligation to pay valid claims "within a reasonable time".