Legal issues in protecting the rights of the insured life insurance case study

Abstract

             The objective of this research was to study the legal issues for protecting the rights of the insured focusing on life insurance by considering the problems that made the insured lost their rights and benefits as following. 1) the insurer declared the contract and then returned the redemption of the policy, 2) the expropriation of the policy insurance before the expiry of the contract, and 3) there was no time limit for compensation. This research was a qualitative research studying conceptual documents, theories, relevant legal documents both of Thailand and abroad to propose amendments of law.
              The research results revealed that 1) the insurer informed that the contract was clear and returned the redemption. Some time the agent offered for sale or an advertisement of a life insurance company made the insured understood that incomplete health status could do life insurance contract. When the insurer wanted to clear the contract according to the Code Civil and Commercial Law, Section 865 resulted in the insured lose benefits of the money paid to the contract. (2) Problems of the termination of life insurance contract which caused by agents or company policy for the insured to surrender the policy under Section 894, causing the insured to receive less money than the one who waited until the contact was ended. (3) Problems with the compensatory payment that was no law defining about time limit for the company to pay compensation after death. The company might take too long time to investigate which caused the delay of compensation payment.
              Therefore, the law should be amended as following : 1) Civil and Commercial Code, Section 892, paragraph two, if the termination of the contract under Section 865 was proof that the cause was not from the insured and the guaranteed person to receive the premium. The insurer had to pay back the insurance premium with interest to insured or heir. (2) Life Insurance Act 2535, Amendment (No. 2) B.E. 2551 Section 70/3, prohibited the agent to persuade or advise or any other means for the insured to cancel the policy, and (3) Section 37/2 the company should pay compensation within fifteen days after the date of receiving notice about the insured's death. If there was anything necessary, report the Office of Insurance Commission and Insurance Business Operation Promotion.