When it comes to consumer loan insurance, if the owner buys consumer loan insurance when he borrows money to buy a car, once the owner cannot repay the loan, the insurance company needs to compensate the principal and interest of the bank loan. Therefore, this first beneficiary rule is a safeguard measure taken by banks and insurance companies to reduce each other's risks.
Without this agreement, once the car is in danger, it will be paid directly to the owner, but the bank does not know that the mortgage has been lost. If the owner gives up repaying the loan at this time, the bank will suffer huge losses. However, China's Insurance Law stipulates that beneficiary is a concept in life insurance, and auto insurance, as property insurance, has no legal effect. It is precisely because of this that such claims disputes often occur. Therefore, between banks, car owners and insurance companies, the application of the first beneficiary should be agreed upon at the time of agreement, so as to reduce claims disputes in this respect.
legal ground
Article 18 An insurance contract shall include the following contents:
(1) the name and domicile of the insurer
(2) Names and domiciles of the applicant and the insured, and names and domiciles of beneficiaries of life insurance.
(3) the subject matter insured.
(4) Insurance liability and exemption from liability;
(5) The insurance period and the start time of insurance liability;
(6) the insured amount;
(7) Insurance premium and payment method;
(8) Measures for compensation or payment of insurance benefits;
(9) Liability for breach of contract and dispute settlement methods;
(10) The year, month and day when the contract was concluded.
The applicant and the insurer may agree on other insurance-related matters.
Beneficiary refers to the person who is designated by the insured or the applicant to have the right to claim insurance money in the life insurance contract. The applicant and the insured can be beneficiaries.
The insured amount refers to the maximum amount of the insurer's liability for compensation or payment of insurance benefits.