Legal analysis: The first way of loss compensation is also called "the first way of danger compensation" or "the first way of liability compensation". One of the calculation methods of insurance compensation. In property insurance, the loss within the insured amount is regarded as the first loss, and the loss exceeding the insured amount is regarded as the second loss. The insurer is responsible for compensation within the first loss limit, and the second loss shall be borne by the insured. The compensation in this way depends on two factors: the insured amount and the loss amount. As long as the loss amount is within the insured amount, it will be compensated according to the actual loss amount. If the loss amount is greater than or equal to the insured amount, compensation shall be made according to the insured amount. The first method of loss compensation is relatively simple and easy to be accepted by the insured. China's national property insurance adopts the method of compensation first and then compensation.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 165 Where an actor infringes upon the civil rights and interests of others through fault and causes damage, he shall bear tort liability.

If the actor is presumed to be at fault according to the law and cannot prove that he is not at fault, he shall bear tort liability.

The civil rights and interests mentioned in this Law include personal rights and property rights such as the right to life, health, name, reputation, honor, portrait, privacy, marital autonomy, guardianship, ownership, usufructuary right, security right, copyright, patent right, trademark exclusive right, discovery right, stock right and inheritance right.

Article 167 Where an infringement endangers the personal and property safety of others, the infringed party has the right to demand the infringer to bear the tort liability of stopping the infringement, removing the obstruction and eliminating the danger.