Love cover: China couple sue insurance firm for refusing to honour policy with US$1,400 payout for decision to live happily ever after

Frustrated by the insurance company’s refusal to pay, Liu took his case to court, seeking the insurance payout along with late payment penalties.

He lost the first trial because the court agreed with the company’s defence that love was an emotional relationship which does not fall within the scope of insurance regulations and the insurance contract was therefore invalid.

Dissatisfied with the initial judgment, Liu appealed to the Beijing Financial Court for a second trial.

The Financial Court evaluated the case from a fresh perspective, stating that the insurance wasn’t related to a “love relationship” but rather to the financial interests that might arise from wedding preparations, which are considered legitimate under the law.

Furthermore, the basic principles of insurance mandate that the subject covered by an insurance contract must be uncertain.

A love relationship, with uncertainty concerning whether and when a couple would eventually marry, aligns with these principles.

Finally, the court upheld Liu’s appeal and ordered the insurance company to pay him 9,995 yuan.

Public sentiment remains critical of the insurance company, with many online observers sharing their experiences.

“I have personally experienced disputes with this company. They don’t pay cancer insurance policies, you have to sue them to get compensation,” one person said.

“Shouldn’t he sue the insurance company for commercial fraud?” said another, while a third remarked: “This is really terrible!”

This article was first published on SCMP.