{"id":129276,"date":"2026-03-06T13:46:13","date_gmt":"2026-03-06T13:46:13","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=129276"},"modified":"2026-03-06T13:46:13","modified_gmt":"2026-03-06T13:46:13","slug":"taiwan-insurance-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/taiwan-insurance-disputes\/","title":{"rendered":"Taiwan: Insurance Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-129276","comparative_guide","type-comparative_guide","status-publish","hentry","guides-insurance-disputes","jurisdictions-taiwan"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Lee, Tsai &amp; Partners<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/Logo-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Lee, Tsai &amp; Partners<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/Logo-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Insurance Disputes laws and regulations applicable in Taiwan<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What mechanism do insurance policies usually provide for resolution of disputes between the insurer and policyholder?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>(1) File a complaint to the insurer: The Financial Consumer Protection Act allows a consumer of financial products to make complaints directly to the financial service provider in case of a consumer dispute.<\/p>\n<p>(2) A petition for appraisal before the Financial Ombudsman Institution, which is an independent entity responsible for handling disputes between financial industry entities and the consumer.<\/p>\n<p>(3) File a complaint to consumer advocacy organizations: The Consumer Protection Act provides that consumers may file a complaint to, among others, consumer advocacy organizations who are responsible for mediating consumer disputes brought before it.<\/p>\n<p>(4) File a complaint to the Financial Supervisory Commission, which is the competent authority responsible for overseeing the insurance industry in Taiwan.<\/p>\n<p>(5) Judicial solutions (e.g., litigation).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a protocol governing pre-action conduct for insurance disputes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally no pre-action conduct is required for typical commercial insurance matters. However, disputes involving some social insurance programs, such as the National Health Insurance, require an appraisal before the National Health Insurance Dispute Review Board before resorting to judicial actions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are local courts adept at handling complex insurance disputes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While the law does not require Taiwan courts to establish a dedicated system to handle civil insurance disputes, some courts do have specific sections that are dedicated to handling financial disputes, including insurance disputes, with judges who are very experienced in such matters.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is alternative dispute resolution mandatory?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no requirement under Taiwan law to resolve civil insurance disputes through ADR mechanisms.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are successful policyholders entitled to recover costs of insurance disputes from insurers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As in all other civil cases in Taiwan, a prevailing party is entitled to cause the losing party to bear the costs of litigation, such as the court fees, but generally each party remains responsible for their own attorney fees.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an appeal process for court decisions and arbitral awards?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>(1) Court decisions: The same appeal process for civil matters applies \u2013 a three-instance system where the lowest District Court decisions may be appealed to the High Courts, and High Court decisions may be appealed to the Supreme Court if the requirements are met.<\/p>\n<p>(2) Arbitration awards: Arbitration awards may not be appealed in court. However, a party may bring a court proceeding to set aside the award for the specific grounds listed in the Arbitration Law of the ROC.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How much information is the policyholder required to disclose to the insurer? Does the duty of disclosure end at inception of the policy?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Insurance Act requires the policyholder* to clearly and honestly disclose to the insurer any information the insurer may inquire that can materially affect the insurer\u2019s decision to provide coverage and the calculation of the insurance premium. The scope is limited to the inquiries the insurer makes to the policyholder in writing; the policyholder is not required to proactively disclose information to the insurer.<\/p>\n<p>The Insurance Act further recognizes the \u201cincreased risk\u201d disclosure by the policyholder after the policy has entered into effect: The \u201cincreased risk\u201d disclosure refers to a material change to the status of risks known at the time the policy entered into effect that either could not have been foreseen at the time or is not included in the insurance premium calculations, which would leave the insurer at a disadvantaged position. In consideration of fairness of consideration, the Insurance Act thus obliges the policyholder to notify the insurer of such increased risk.<\/p>\n<p>* For the remainder of this QA, we will use the term &#8220;policyholder&#8221; based on its meaning as defined in the Taiwan Insurance Act: A person having an insurable interest in the subject matter insured who applies to an insurer to enter into an insurance contract and is obligated to pay a premium.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available for breach of the duty of disclosure, and is the policyholder\u2019s state of mind at the time of providing the information relevant?\u202f\u202f\u202f\u202f\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For the potential policyholder\u2019s refusal of or untruthful disclosure in response to insurer inquiries, the insurer has the right to terminate the insurance contract and take the insurance premium paid without refund. If an insurance event occurs, the insurer may refuse to make insurance payment. Please note that termination is generally limited to intentional breach of the duty to disclose by the policyholder.<\/p>\n<p>In the case of failure to notify the insurer of \u201cincreased risk\u201d, if the \u201cincreased risk\u201d is attributable to the policyholder, the insurer has the right to terminate the insurance contract. If, however, the \u201cincreased risk\u201d is not attributable to the policyholder, but the insurer incurred damages as a result of the policyholder\u2019s failure to notify, the insure may file suit to recover such damages from the policyholder.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are certain types of provisions prohibited in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>To address the policyholder\u2019s relative lack of bargaining power against boilerplate insurance contracts from the insurer, the Insurance Act expressly states that any provision that is clearly inequitable to the policyholder or the insured may be held invalid, which includes: Exempting or reducing the obligations of the insurer required under law, requiring the policyholder or the insured to waive or restrict the exercise of their rights, or increase the policyholder\u2019s obligations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is a duty of utmost good faith implied in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While Taiwan law does not expressly stipulate an \u201cutmost good faith\u201d requirement for insurance contracts, some of the key parts of the \u201cutmost good faith\u201d doctrine are recognized and practiced in Taiwan. As pointed out above, the Insurance Act recognizes the importance of disclosure by the policyholder, such as with respect to insurer inquiries and increased risk. The insurer is also bound by the Regulations Governing the Supervision of Insurance Solicitors in that it may not resort to exaggerated claims, concealment or fraudulent representation of material information to obtain business. Insurers are also obliged to process insurance claims timely without undue delay.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do other implied terms arise in consumer insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As insurance is only intended to compensate the insured for actual damages incurred, insurance contracts cannot provide the insured with any insurance payment that would exceed the actual damages incurred. This concept can be seen in subrogation, where the insurer takes from the insured the right to recover from a third party after it has paid off a claim from the insured so as to prevent the insured from unjustly benefitting from simultaneously recovering from such third party in a separate action.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there limitations on insurers\u2019 right to rely on defences in certain types of compulsory insurance, where the policy is designed to respond to claims by third parties?\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the case of Taiwan&#8217;s Compulsory Automobile Liability Insurance, an insurer\u2019s right to rely on defences is explicitly restricted by the Compulsory Automobile Liability Insurance Act. In the case of a motor vehicle accident, the insurer may assert it is only liable for any outstanding amount remaining after the insured has already paid partial compensation to the third party in a motor vehicles accident, unless there is an agreement between the third party and the insured that such a deduction shall not be made. However, the Act also specifically restricts the above defence by prohibiting the insurer from refusing to make the insurance payment or reduce the amount of the insurance benefit on grounds that the third party victim or other claimants are already holding other types of insurance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the usual trigger for cover under insurance policies covering first party losses, or liability claims? Are there limitation periods for the commencement of an action against the insurer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taking property insurance for example, the typical trigger of payment to cover first party losses is (i) the occurrence of an insurance event that (ii) caused the asserted damages to the insured property. For third party liability claims (e.g., professional liability insurance), the trigger for cover would be the third party\u2019s damages claim against the insured at a time the insured\u2019s policy was still in effect.<\/p>\n<p>The Insurance Act provides that the statute of limitations to exercise a right arising from an insurance contract, such as an action against the insurer, is two years from the date the insured became aware of the underlying insurance event, unless such right arose from a third party claim, in which case it would start counting from the date the insured received the claim from the third party instead.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which types of loss are typically excluded in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In practice, insurance contracts in Taiwan may exclude losses caused by war, social unrest, natural disasters, normal wear and tear, pre-existing defects, unlawful conduct and intentional conduct.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the courts typically construe ambiguity in policy wordings in favour of the insured?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. As mentioned, the Insurance Act recognizes the weaker bargaining power of consumers in relation to the standard boilerplate insurance contract from insurers, thus even though general contract interpretations still apply (i.e., determine the true intent of the parties) cases of ambiguity should be resolved in favour of the insured.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does a \u2018but for\u2019 or \u2018proximate\u2019 test of causation apply, and how is this applied in wide-area damage scenarios?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Taiwan, the standards for causation in the insurance context are based on the same civil law concept of \u201cadequate causation\u201d as applied in all other legal disputes where causation analysis is involved, namely that if under ordinary circumstances and common experience, the same action generally results in the same harm, then there is adequate causation between such action and such harm.<\/p>\n<p>While the \u201cadequate causation\u201d analysis is the primary method to determine legal liability in Taiwan, there have been some examples in which the Taiwan court looked at proximate cause to determine whether the insurer should be made to provide compensation. However, those proximate cause cases primarily involve multiple causes rather than a (single) wide-area damage scenario, such as typhoons and earthquakes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the legal position if loss results from multiple causes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned, the court will conduct causation analysis, whether by the civil law \u201cadequate causation\u201d theory or by proximate cause, to determine which party, if any, should be held liable for compensating the loss.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available to insurers for breach of policy terms, including minor or unintentional breaches?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned, the remedies available to insurers for breach of policy depend on whether the breach materially affected the insurer\u2019s risk assessment, and whether causation between the breach and the insurance event is established. In cases where the breach was sufficient to change the insurer\u2019s risk assessment, the insurer may terminate the insurance contract. If the increased risk was not attributable to the breach, the insurer\u2019s remedy is generally limited to monetary recover for damages incurred and will still be obliged to make the insurance payment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where a policy provides cover for more than one insured party, does a breach of policy terms by one party invalidate cover for all the policyholders?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Taiwan Insurance Act, an insurer is not liable for damages resulting from the intentional acts of the policyholder or the insured. Thus, if the damages may be attributed to the intentional acts of a co-insured, it would typically invalidate cover for all co-insured. However, some academic commentary has noted that this rule may sometimes lead to inequitable results: In the classic case of joint property between a husband and wife, a joint policy would invalidate cover for the wife if the husband intentionally burns the house down. To remedy this inequity, it is being advocated that the husband and wife should be treated as having separate interests in such a policy and allow the wife\u2019s insurance claim to go through under the above scenario.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where insurers decline cover for claims, are policyholders still required to comply with policy conditions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Taiwan practice, this depends on whether the refusal to cover has in effect extinguished the insurance contract. In general, a refusal to pay based on, for example, the scope of liability exclusion in the contract, the policyholders would still have to continue complying with policy conditions. However, if the refusal to pay has the effect of terminating the contract, then the policyholder would no longer be bound by the policy conditions as a result.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is quantum assessed, once entitlement to recover under the policy is established?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned, once it is determined that the insurer has the obligation to pay, the amount to pay should in principle make the victim whole and not unjustly enriching the victim. In the case of property insurance, unless the parties have stipulated \u201creplacement cost value\u201d (RCV), an actual cash value (ACV) payout may be further limited by Article 77 of the Insurance Act, which provides that if the insured value is less than the value of the property in question, the insurer only has to bear up to the percentage of actual value covered by the insurance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where a policy provides for reinstatement of damaged property, are pre-existing plans for a change of use relevant to calculation of the recoverable loss?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Taiwan practice, RCV in a reinstatement clause is defined as the amount needed to restore the insured property to the \u201coriginal design and specification\u201d, with same or similar materials, at the current time and place, and disregarding all depreciations. As such, the calculation formulas used to determine the value for the reinstatement of damaged property do not account for a plan for a change-of-use that existed prior to the insurance event.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">After paying claims, are insurers able to pursue subrogated recoveries against third parties responsible for the loss? How would any such recoveries be distributed as between the insurer and insured?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, under the Insurance Act, the insurer can claim against the third party to recover up to the insurance payment issued to the insured, unless the third party causing the loss is a family or employee of the insured, in such case the insurer may not pursue a subrogated claim unless the loss was caused by an intentional act.<\/p>\n<p>Since subrogation is intended to prevent the insured from receiving further recovery and retaining the right to claim directly against the third party, the amount recovered by an insurer from subrogation goes to cover what the insurer has paid to the insured and is generally not further distributed to the insured. However, if the insured is not fully recompensed by the insurance payment and thus still retain a right to recover against the third party, by default in Taiwan practice, the conflict between such right of the insured and the insurer\u2019s subrogation right shall resolve in favour of the insured instead.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right to claim damages in the event of late payment by an insurer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Insurance Act, failure of an insurer to timely make an insurance payment for reasons attributable to the insurer would cause the insurer to have to pay a 10% annual interest on the amount.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can claims be made against insurance policies taken out by companies which have since become insolvent?\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The insured being insolvent does not automatically extinguish any of its insurance contracts that are still in effect. The insurer or receiver has a statutory period during which they may move to terminate the insurance contract, while a creditor may move to maintain such contract to preserve its creditor claims based on such contract.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are class action or group litigation options available to facilitate bulk insurance claims in the local courts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As long as the requirements in the Taiwan Code of Civil Procedure for group litigation is met, it is possible to initiate group litigation over an insurance dispute in Taiwan. However, due to the difficulties in dealing with potentially massive numbers of possible plaintiffs and possibly diverging interests amongst them, group litigation over an insurance dispute is quite rare in Taiwan.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the biggest challenges facing the insurance disputes sector currently in your region?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to data collected by the Financial Ombudsman Institution, one of the most prominent issues in recent insurance disputes has been medical coverage claims, with the insured patients making higher medical bill claims from more advanced treatment options while the insurers contest whether such procedure\/treatment was medically necessary. The determination over what constituted \u201cnecessary medical care\u201d has therefore created a growing tension between \u201cclinical opinion\u201d and \u201c[insurance] contract scope limitations\u201d.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do you envisage technology affecting insurance disputes in your jurisdiction in the next 5 years?\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taiwan law on the protection of consumers of financial products has been primarily based on the assumption that humans are making the sales pitches and providing the relevant services. The advent of AI insurance approvals and automated insurance payments, with all the associated issues in lack of transparency, thus represents a direct challenge to such paradigm. As a result, it is likely that the regulatory impetus may shift focus to \u201cgovernance by design\u201d in the integration of concepts such as fairness, compliance and accountability into automated systems to ensure that consumer protection may be maintained.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant trends and developments in insurance disputes within your jurisdiction in recent years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The government authorities have noted a rise in insurance fraud via conspiracy between the insured and certain insurer personnel to exploit flaws in the insurer\u2019s internal controls, which led to unjustly outsized insurance payments and major disputes between the insurer and the insured. This issue is expected to remain a focal issue in the insurance industry for the near future.<\/p>\n<p>Another recent focal point in the industry has been changes in the law regarding the compulsory enforcement of insurance contracts, and the newly created \u201cintervener\u201d right to maintain the insurance policy in response to the above. In 2022, the Taiwan Supreme Court held that the life insurance surrender value is considered the property of the policyholder and may be subject to compulsory enforcement, the exercise of which will extinguish the insurance policy and thereby deprive the debtor from its protection. In response, the Insurance Act was amended in 2025 to allow an interested \u201cintervener\u201d (e.g., a family member) to pay the expected surrender value in response to a compulsory enforcement order and thus maintain the insurance policy as a new insured. These changes are expected to create a new type of insurance disputes that will need to be further tested in court.<\/p>\n<p>Finally, the competent authorities are exploring a possible overhaul of the Insurance Act and are currently seeking public comments from various industries on the matter.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where in your opinion are the biggest growth areas within the insurance disputes sector? \u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>We believe that disputes involving loss attributable to extreme climates and those involving construction projects, given the recent rising number of construction site safety incidents in Taiwan and the outsized insurance claim amounts involved, should continue to play a large part in driving developments in the insurance disputes sector in the jurisdiction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3226<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/129276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=129276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}