What are the contents of insurance contracts in Vietnam? What are the principles of conclusion and execution of insurance contracts in Vietnam?
How many types of insurance policies are there?
Pursuant to Article 15 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Insurance contracts
1. There are the following types of insurance contract:
a) Life insurance contract;
b) Health insurance contract;
c) Property insurance contract;
d) Property damage liability insurance contract;
dd) Liability insurance contract.
Those specified in point c, d and dd of this clause are classified into the type of non-life insurance.
2. Insurance companies, branches of foreign non-life insurance companies and policyholders may agree to enter into a single or combined type of insurance contracts prescribed in clause 1 of this Article and ensure conformance to clause 3 of Article 63 in this Law.
3. Marine insurance contracts shall be subject to the Maritime Code; parts of these contracts that are not prescribed in the Maritime Code shall be subject to regulatory provisions of this Law.
4. Insurance contract-related matters that are not covered herein shall be subject to the Civil Code.
According to the above regulations, in the coming time, there will be 5 types of insurance contracts including:
- Life insurance contract;
- Health insurance contract;
- Property insurance contract;
- Property damage liability insurance contract;
- Liability insurance contract.
In which, property insurance contracts, property damage liability insurance contracts and liability insurance contracts are classified into the type of non-life insurance.
What are the contents of insurance contracts in Vietnam? What are the principles of conclusion and execution of insurance contracts in Vietnam?(Image from the Internet)
What are the contents of insurance contracts in Vietnam?
Pursuant to Clause 1, Article 17 of the 2022 Law on Insurance Business in Vietnam, the contents of insurance contracts are as follows:
- The policyholder, the insured, the beneficiary (if any), the insurer or the foreign non-life insurer's branch;
- Subject matter insured;
- Sum insured or value of property insured or covered property value or insurance policy limit;
- Scope of insurance coverage and insurance benefits; insurance rules, terms and conditions;
- Rights and obligations of the insurer, the foreign non-life insurer’s branch and the policyholder;
- Insurance policy period, date of entry into force of the insurance contract;
- Insurance premium, premium payment option;
- Insurance coverage and payment option;
- Dispute resolution method.
What are the principles of conclusion and execution of insurance contracts in Vietnam?
Pursuant to Article 16 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Principles of conclusion and execution of insurance contracts
Conclusion and implementation of insurance contracts must adhere to the fundamental principles in civil law and the following principles:
1. Principle of utmost good faith: Parties to an insurance contract must provide information and implement contractual rights and obligations in a most honest and trustful manner, and must place the absolute mutual trust in each other during the period of conclusion and implementation of insurance contracts;
2. Principle of insurable interest: Policyholders must be entitled to the insurable benefit varying according to specific types of insurance contract under this Law;
3. Principle of indemnity: The amount of coverage or indemnity that the insured can get shall not exceed the actual loss incurred in a policy event, unless otherwise agreed upon in the insurance contract;
4. Principle of subrogation: the insured shall be responsible for giving the insurer or foreign non-life insurer the right to claim the amount of loss from the third party responsible for such loss if such amount falls within the permissible loss limit. This principle shall not apply to life and health insurance contracts;
5. Principle of unpredictable risk: in order for a risk to be covered or insured against, it must be a sudden or unanticipated one.
According to the above provisions, the conclusion and execution of insurance contracts will be carried out according to the following 5 principles:
- Principle of utmost good faith
- Principle of insurable interest
- Principle of indemnity
- Principle of subrogation
- Principle of unpredictable risk.
Is the insurance contract required to be made in writing?
Pursuant to the provisions of Article 18 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Presentation and proof of conclusion of insurance contracts
Insurance contracts must be made in writing. Proof of conclusion of an insurance contract shall comprise insurance contract, certificate of insurance, insurance policy or others prescribed in law.
Thus, the insurance contract must be made in writing.
What are disclaimer clauses?
Pursuant to Article 19 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Disclaimer clauses
1. Disclaimer clauses shall prescribe cases in which insurers or foreign non-life insurers’ branches can refuse to pay claims and insurance.
2. In the presence of clauses on disclaimer of insured liability, insurers and foreign non-life insurers’ branches must clearly elaborate them in insurance contracts, give explicit, adequate explanations and evidence about the fact that insurers have already received full and clear explanations of these disclaimer clauses by insurers and foreign non-life insurers’ branches when concluding insurance contracts.
3. Where any force majeure event or circumstantial obstacle results in the policyholder's late notice of any policy event, the insurer or foreign non-life insurer’s branch is not allowed to apply disclaimer clauses.
Thus, disclaimer clauses shall prescribe cases in which insurers or foreign non-life insurers’ branches can refuse to pay claims and insurance.
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