At October, 2009, China took the unusual step, introducing the incontestable clause to Insurance Law of the People's Republic of China to give proper legal protection to the relatively weak policyholders. However, the problem of insurance fraud exposed in practice shows that still many loopholes and gaps of legislation in Chinese current Insurance Law's incontestable clause. This paper uses the game theory to analyze the process of the fraud action of policy-holder under the background of the incontestable clause, and then find out the main factors affecting the cost of the fraud action, put forward ideas for perfecting the incontestable clause. By referring to the legislative experience of foreign countries against the insurance fraud, and combining with the present situation of our country, this paper puts forward some suggestions on the amendment of the incontestable clause in our country and the anti fraud suggestions under the background of the current clause.
