05 types of compulsory insurances and principles for using insurance services to be amended in Vietnam from January 1, 2023?
What is the new regulation on 05 types of compulsory insurance in Vietnam?
According to Article 8 of the Law on Insurance Business 2022, compulsory insurance is prescribed as follows:
- Compulsory insurance is an insurance product aimed at protecting public interests, the environment and social safety.
Compulsory insurance includes:
+ Compulsory insurance for civil liability of motor vehicle owners;
+ Compulsory fire and explosion insurance;
+ Compulsory insurance in construction investment activities;
+ Compulsory insurance prescribed in other laws meets the provisions of Clause 1 of this Article.
- Organizations and individuals subject to compulsory insurance are obliged to buy compulsory insurance and choose to participate in compulsory insurance at insurance enterprises, branches of foreign non-life insurance enterprises. implementation is allowed.
- Insurance enterprises, branches of foreign non-life insurance enterprises that are allowed to deploy compulsory insurance must not refuse to sell when organizations or individuals satisfy the conditions for purchasing compulsory insurance under the provisions of this Law.
- The Government shall detail insurance conditions, premium rates, and minimum insurance amounts for compulsory insurance specified in Clause 2 of this Article.
05 types of compulsory insurances and principles for using insurance services to be amended in Vietnam from January 1, 2023? (Image from the internet)
What are the current regulations on compulsory insurance in Vietnam?
According to Article 8 of the Law on Insurance Business 2000 (amended 2010, 2019), compulsory insurance is regulated as follows:
- The compulsory insurance means a type of insurance for which the conditions, premium rates and minimum insurance sum are prescribed by law for compulsory implementation by both the organizations or individuals participating in insurance and the insurance enterprises.
-The compulsory insurance shall only apply to a number of insurance types for the purpose of protecting the public interests and social safety.
- The compulsory insurance shall include:
+ Motorized vehicle owners’ civil liability insurance, insurance of air carriers’ civil liability toward passengers;
+ Professional liability insurance for legal consultancy operations;
+ Insurance brokerage enterprises’ professional liability insurance;
+ Fire and explosion insurance.
- Depending on the socio-economic development demands of each period, the Government shall submit to the National Assembly Standing Committee other types of compulsory insurance for its prescription.
What is the amended regulation on basic principles in insurance activities in Vietnam?
According to Article 6 of the Law on Insurance Business 2022, new regulations on the principles of providing and using insurance services are as follows:
"Article 6. Principles of insurance service provision and use
1. Organizations and individuals in Vietnam wishing to participate in insurance may only participate in insurance at insurance enterprises, branches of foreign non-life insurance enterprises, and mutual organizations providing microinsurance license to establish and operate in Vietnam, except for the case of using cross-border insurance services under international treaties to which the Socialist Republic of Vietnam is a contracting party.
2. The Government shall detail the provision and use of cross-border insurance services, cross-border insurance brokerage services, and cross-border insurance auxiliary services in accordance with international treaties to which they are authorized. The Socialist Republic of Vietnam is a member."
Current regulations on basic principles in insurance activities in Article 6 of the Law on Insurance Business 2022 (amended 2010, 2019) are as follows:
"Article 6. Basic principles in insurance activities
1. Organizations and individuals having demands for insurance may only participate in the insurance at insurance enterprises operating in Vietnam.
2. The insurance enterprises must satisfy all financial requirements in order to fulfill their commitments to the insurance buyers."
When will the Law on Insurance Business in 2022 come into effect?
According to Article 156 of the Law on Insurance Business 2022, it stipulates:
"Article 156. Effectiveness
1. This Law takes effect from January 1, 2023, except for the case specified in Clause 2 of this Article.
2. Clause 3, Article 86, Clauses 4 and 5, Article 94, Article 95, Clauses 3 and 4, Article 99, and Articles 109, 110, 111, 112, 113, 114 and 116 of this Law take effect from January 1, 2028.
3. Law No. 24/2000/QH10 on Insurance Business, which was amended and supplemented with a number of articles under Law No. 61/2010/QH12 and Law No. 42/2019/QH14, expires from the effective date of this Law. enforceable, except in the following cases:
a) Clause 1, Article 157 of this Law;
b) Articles 77, 78, 79, 80, 81, 83, 94 and 98 of the Law on Insurance Business No. 24/2000/QH10 have been amended and supplemented with a number of articles under Law No. 61/2010/QH12 and Law No. 42/2019/QH14 takes effect until the end of December 31, 2027."
Thus, the Law on Insurance Business 2022 takes effect from January 1, 2023, amending a number of regulations on 05 types of compulsory insurance products and principles for using insurance services.
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