China couple win court case against insurer over "love insurance" payout

Court ruled that the coverage was not about the "love relationship"

China couple win court case against insurer over "love insurance" payout

Insurance News

By Kenneth Araullo

A married man from China’s Sichuan province successfully sued an insurance company over a “love insurance” policy which promised a payout of CNY9,995 (US$1,400) if the insured couple got married within a specific timeframe.

Liu Xiaoming purchased the policy in March 2018 as a surprise for his then-girlfriend, the SCMP reports. The couple, who first met in high school and started dating in university, married on Dec. 1, 2022. However, when Liu filed a claim after their marriage, the insurance company refused to honour the policy, despite his multiple complaints.

The insurance product, as promoted by the company, had attracted over 15,000 orders, according to the company's promotions on its official Weibo account. The policies offered were tiered, with premiums ranging from 99 to 495 yuan (US$70), and corresponding payouts from CNY1,999 to CNY9,995. Liu had opted for the highest tier at 495 yuan.

After the insurance company's refusal to pay, Liu initially lost his case in court. The court agreed with the company’s argument that love, being an emotional relationship, did not fall under insurance regulations, rendering the contract invalid.

Unsatisfied with this verdict, Liu appealed to the Beijing Financial Court. The Financial Court reevaluated the case, stating that the insurance was not about the “love relationship” per se but about the financial aspects associated with wedding preparations, which are legally valid considerations. The court also noted that the uncertain nature of a love relationship, including the unpredictability of marriage, aligns with the basic principles of insurance.

Ultimately, the Beijing Financial Court ruled in favour of Liu, ordering the insurance company to pay the promised CNY9,995. This decision has garnered significant attention and support on mainland social media platforms, with many also expressing their disappointment towards the insurance company.

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