Vietnam: May policyholders move, dismantle or repaire property without consensus of insurers in case of an accident?
- Vietnam: May policyholders move, dismantle or repaire property without consensus of insurers in case of an accident?
- Vietnam: What is the current level of advance indemnity for damage to health and life of compulsory civil liability insurance of motor vehicle owners in case of an accident?
- Vietnam: May insurers reduce up to 5% of indemnities for damage to property in case policyholders or the insured fail to notify insurers about accidents?
Vietnam: May policyholders move, dismantle or repaire property without consensus of insurers in case of an accident?
Pursuant to Article 12 of Decree 67/2023/ND-CP, there are regulations on principles of indemnification as follows:
Principles of indemnification
Insurer shall consider and settle an insurance claim as prescribed by law on insurance business and the following principles:
1. In case of an accident, the policyholder and the insured shall:
a) Immediately notify the insurer via hotline to cooperate in providing treatment in order to cure and limit damage to health, life and property, protect the accident scenes.
b) refrain from moving, dismantling or repairing property without consensus of insurers; except for cases in which such activities are necessary to ensure safety, prevent damage to health, life and property or comply with requests of competent agencies.
c) collect and provide documents required under an application for insurance claims within responsibilities of the policyholder and the insured for the insurer according to Article 13 of this Decree.
d) enable the insurer to verify documents provided by the policyholder and the insured.
2. Within 1 hour after receiving notification of the accident, the insurer must inform the policyholder, the insured of safety measures to minimize damage to life and property, provide guidelines on the application and procedures for filing an insurance claim; closely cooperate with the policyholder, the insured, third party and relevant parties within 24 hours in organizing assessment of damage to determine causes and levels of damage which serve as the basis for settlement of the insurance claim.
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Thus, the policyholders must refrain from moving, dismantling or repairing property without consensus of insurers.
Except for cases in which such activities are necessary to ensure safety, prevent damage to health, life and property or comply with requests of competent agencies, policyholders may move, dismantle or repaire property.
Vietnam: May policyholders move, dismantle or repaire property without consensus of insurers in case of an accident?
Vietnam: What is the current level of advance indemnity for damage to health and life of compulsory civil liability insurance of motor vehicle owners in case of an accident?
Pursuant to Clause 3, Article 12 of Decree 67/2023/ND-CP, there are regulations on the level of advance indemnity for damage to health and life of compulsory civil liability insurance of motor vehicle owners in Vietnam as follows:
Case 1: In case the accident has been identified to be covered by insurance:
- 70% of estimated indemnity per person in case of fatalities.
- 50% of estimated indemnity per person in case of bodily injuries.
Case 2: In case the accident has not been identified to be covered by insurance:
- 30% of the maximum coverage per person in case of fatalities and estimated whole person impairment (WPI) of 81% or more.
- 10% of the maximum coverage per person in case of estimated WPI of from 31% to less than 81%.
After providing advance indemnity, insurers may request MVIF to reimburse the advance payment if the accident is an insurance exclusion or not covered by insurance.
Note: Within 3 working days after being notified by the policyholder or the insured about the accident, the insurer must provide advance indemnity for damage to health and life.
Vietnam: May insurers reduce up to 5% of indemnities for damage to property in case policyholders or the insured fail to notify insurers about accidents?
Pursuant to Clause 7, Article 12 of Decree 67/2023/ND-CP, there are regulations on principles of indemnification as follows:
Principles of indemnification
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7. Insurers may reduce up to 5% of indemnities for damage to property in case policyholders or the insured fail to notify insurers about accidents according to Clause 4 of this Article or insurers detect that policyholders and the insured fail to notify in case of changes to factors which serve as the basis for calculating insurance premiums during execution of policies, thereby increasing insured risks after insured events occurred.
8. Insurers are not obliged to pay for excesses of the maximum coverage according to regulations herein, except for cases in which motor vehicle owners participate in voluntary insurance policies.
9. In case multiple compulsory civil liability insurance policies are concluded for a single motor vehicle, indemnity shall be determined only according to the first concluded policy. Insurers must refund 100% of paid insurance premiums for the remaining insurance policies.
10. Policyholders and the insured shall notify victims or victims’ heirs or representatives of the paid amounts for each case of damage to health or life according to regulations in Point a Clause 6 of this Article.
11. Insurers shall notify policyholders, the insured and victims of indemnities for damage to health or life prescribed in Point a Clause 6 of this Article and pay them.
Thus, insurers may reduce up to 5% of indemnities for damage to property in case policyholders or the insured fail to notify insurers about accidents,and the specific deduction level will be decided by the insurers.
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