The issue of “bad faith” has plagued the insurance market in China and has proven to be a major hurdle in the Chinese insurance market’s development. Below is a case which provides insight into the presence of bad faith at the local level.
In February 2009, a defendant (the insured) was sentenced to eight months imprisonment for refusing to transfer insurance proceeds to the injured party. The ruling was given by Haidian local court, Beijing, China.
In 2007, a car accident occurred in Beijing, involving the defendant and claimant, Mr. Sun. The claimant sued the defendant in a Chinese local court and the Chinese court issued a judgment in favor of claimant; ruling the defendant assumed full responsibility and should indemnify the claimant for the loss of 43,000 RMB ( approximately 6,300 USD).
The defendant received the proceeds form his insurer, resulting from the car accident, however, he refused to pay the proceeds to claimant. Furthermore, to escape enforcement of the judgment, the defendant fraudulently transferred property titles in his name, including the title to a car.
The enforcement department of the local Chinese court stated the actions of the defendant violate the Criminal Law of the People’s Republic of China. The case was then transferred to the Criminal Division in the court.
The case provides an example of the problem of “bad faith” within the Chinese insurance market. As many Chinese Insurance lawyers would agree, the issue surrounding and the problems arising from “bad faith” in the Chinese insurance market must be resolved. A suitable start would involve the Chinese courts strengthening enforcement of their judgments which would discourage immoral behavior.
The Practices of Mergers and Acquisitions under the Anti-monopoly Law of the People’s Republic of China is based upon Dr. Zhan Hao’s professional experience as a distinguished lawyer in the field of competition law. Published after the promulgation of the Anti-monopoly Law of the PRC and before the issue of the Provisions of the State Council on the Declaration of the Concentration of Business Operators (Exposure Draft). Dr. Zhan Hao introduces and analyzes the classification,examination standard, hearing and investigation procedures concerning concentration (including M&A) under the Chinese Anti-monopoly law. Additionally the text comprehensively and systematically highlights problems lawyers and legal counsel will encounter in the application process of concentration. A comparative analysis is also provided on the rules of the concentration under Chinese Anti-monopoly law and laws of other foreign jurisdictions. Acting as a guide for the practicing lawyer, each chapter provides an analysis of famous cases, both in China and foreign jurisdictions, concerning hotly debated issues, allowing an ease of understanding surrounding the rules of China’s Anti-monopoly Law. This is the first book in China for the purpose of providing countermeasures for lawyers dealing with concentration cases under the new and ever emerging Anti-monopoly law of the PRC. This book was published by China Law Press and LexisNexis.
The Full Record of a China Lawyer’s Tips on Handling Cases: Insurance Litigation introduces Chinese insurance litigation procedures including insurance case analysis and evidence collection prior to trial. Dr. Zhan Hao, a leading Chinese insurance lawyer, shares his ideas and commentary on insurance litigation in China and explains the principles and concepts surrounding Chinese insurance law. The book is a true necessity for the modern Chinese insurance lawyer. Throughout the book, many forms of insurance litigation are introduced, such as property insurance, life insurance, maritime insurance and liability insurance litigation. In explaining each form of litigation, Dr. Zhan Hao acknowledges and explains the different procedure rules between the court of first instance, the court of second instance and the pleading and confrontation procedure. This book is the first book written by a veteran insurance lawyer introducing insurance litigation in China and has proved to be a highly influential text. The merits of this book have not gone unnoticed. it was published as the lead textbook for training young lawyers, and is currently recommended by the All China Lawyers Association.
The Comprehensive Interpretation of Insurance Law Principles and Commentary on Typical Cases is not only a case book introducing classic insurance cases rendered by Chinese Courts, it is also a textbook for those interested in learning about Chinese insurance law. Dr. Zhan Hao introduces the insurance law systematically and presents a collection of many special cases, all of which are complemented with Dr. Zhan Hao’s expert commentary. After reading this book, the reader will understand how a Chinese judge handles different types of insurance cases and the reader will become familiar with insurance litigation and arbitration procedures in China, through an emphasis on insurance cases decided in the past 3 years by the Intermediate People’s Court, the Higher People’s Court and the Supreme Court. Overall the book is key for understanding the newly mastered insurance law theories utilized by Chinese Courts.
Investor Relations of Listed Companies is popular amongst in-house counsel as it provides up to date investment advice for corporate structures and introduces the basic principles and knowledge surrounding investor relations and interaction with Chinese laws and regulations. Dr. Zhan Hao analyzes the problems arising from investor relations in the legal and economic context and concludes with his experience as in-house counsel for an international company. The investment tactics of multinational and domestic listed companies and newly developed laws, regulations and ordinances concerning investor relations are also covered. In short Dr. Zhan Hao provides a practical source for in-house counsel and lawyers. Readers will also find case references regarding investor relations. Overall, this text is an excellent study resource for company directors, managers and those whose chief responsibility is to protect investors’ interests.
Looking at the Regulation of the Insurance Market from an Economic Law Perspective introduces the Chinese insurance market and insurance law by analyzing the issues concerning the regulation of the insurance market from an economic law aspect. The book is presented at the theoretical level in the study of Chinese insurance market regulation. Dr. Zhan Hao introduces his research approaches to the insurance market’s regulation and traditional market regulation theories and principles are also illustrated. Additionally, the history and development of the Chinese insurance market is described and Dr. Zhan Hao shares his opinions on mixed operation, integrated regulation models, the insurance industry’s continuing evolution and the regulatory rules on the use of insurance capital. Overall Dr. Zhan Hao presents valuable advice on the establishment of a more reasonable and effective insurance law system in China.
The Theory of Chinese Anti-Monopoly Law and Practice is an innovative work sponsored by the Ministry of Commerce (MOFCOM). Introducing Anti-monopoly Law theories and providing a review of a number of famous domestic and foreign Competition/Anti-monopoly Law cases, readers will find important legal concepts, principles and reference to important institutions concerning the Anti-monopoly Law of the PRC, which came into force August 1st 2008. Anti-monopoly cases are inserted in each chapter helping the readers better understand the Anti-monopoly Law of the PRC. Debatable issues such as the role of the guild under the Anti-monopoly Law, the exercise of intellectual property rights and anti-monopoly private litigation are all covered. Dr. Zhan Hao shares his opinions on these issues and introduces a comparative analysis with other countries’ advanced experience and practices,incorporating not only the Anti-monopoly Law but also Chinese economic law, contract law, company law, administrative law and civil law, which jointly compose the regulation surrounding competition law in China.
