How are the new regulations on insurance contracts in Vietnam under the Law on Insurance Business 2022 used from January 1, 2023?
- How many types of insurance policies are there? How are the new regulations on principles of insurance contracts in Vietnam implemented from January 1, 2023?
- How are the new regulations on the contents of insurance contracts implemented from January 1, 2023?
- How is the new regulation on insurance liability exclusion implemented from January 1, 2023?
How many types of insurance policies are there? How are the new regulations on principles of insurance contracts in Vietnam implemented from January 1, 2023?
According to Article 17 of the Law on Insurance Business in 2022, the types of insurance contracts in Vietnam and the principles for entering into them are as follows:
Types of insurance contracts include:
+ Contract of life insurance;
+ Health insurance contract;
+ Contract of property insurance;
+ Damage insurance contract;
Liability insurance contract.
+ The insurance contract specified at Points c, d and dd of this clause belongs to the type of non-life insurance.
+ Insurance enterprises, branches of foreign non-life insurance enterprises and insurance buyers may agree to enter into one type of insurance contract or combine many types of insurance contracts specified in Clause 1 of this Article. and ensure compliance with the provisions of Clause 3, Article 63 of this Law.
+ The marine insurance contract shall comply with the provisions of the Maritime Code; Contents not specified in the Maritime Code shall comply with the provisions of this Law.
+ Contents related to insurance contracts not specified in this Law shall comply with the provisions of the Civil Code.
- Principles of conclusion and performance of insurance contracts: The conclusion and performance of an insurance contract must comply with the basic principles of civil law and the following principles:
+ Principle of absolute honesty: the parties to an insurance contract must provide information and exercise their rights and obligations in the most honest way, on the basis of absolute trust in each other during the process of entering into and performance of an insurance contract;
+ Principle of insurable interests: the insurance buyer must have insurable interests in accordance with each type of insurance contract in accordance with this Law;
+ Principle of indemnity: the amount of compensation received by the insured does not exceed the actual damage in the insured event, unless otherwise agreed in the insurance contract;
+ Principle of subrogation: the insured is responsible for transferring to the insurance enterprise or branch of the foreign non-life insurance enterprise the right to request the third party who commits damage-causing acts to be responsible for reimbursement in insurance coverage amount. This principle does not apply to life insurance policies and health insurance policies;
+ Principle of random risk: Insured risks must be unexpected, unforeseeable risks
How are the new regulations on insurance contracts in Vietnam under the Law on Insurance Business 2022 used from January 1, 2023? (Pictures from the internet)
How are the new regulations on the contents of insurance contracts implemented from January 1, 2023?
According to Article 17 of the Law on Insurance Business in 2022, an insurance contracts in Vietnam must have the following main contents:
- The insurance buyer, the insured, the beneficiary (if any), the insurance enterprise or the branch of the foreign non-life insurance enterprise;
- The insured;
- Amount of insurance or value of property insured or limit of insured liability;
- Scope or benefits of insurance; insurance rules, conditions and terms;
- Rights and obligations of insurance enterprises, branches of foreign non-life insurance enterprises and insurance buyers;
- The insurance period, the effective time of the insurance contract;
- Insurance premium rate and method of premium payment;
- Compensation and insurance payment methods;
- Argument setllement.
- The Minister of Finance shall detail Clause 1 of this Article for life insurance contracts and health insurance contracts.
- Form and evidence of entering into an insurance contract: An insurance contract must be made in writing. Proof of entering into an insurance contract is a contract, insurance certificate, insurance policy or other form as prescribed by law.
How is the new regulation on insurance liability exclusion implemented from January 1, 2023?
According to Article 19 of the Law on Insurance Business in 2022, provisions on exclusions of insurance liability are as follows:
- The insurance liability exclusion clause stipulates the cases in which insurance enterprises and branches of foreign non-life insurance enterprises are not required to compensate or pay insurance premiums.
- In case there is a clause excluding insurance liability, the insurance enterprise or branch of foreign non-life insurance enterprise must clearly state it in the insurance contract, must clearly and fully explain it and have a valid license. a certificate confirming that the insurance buyer has been fully explained and understood by the insurance enterprise or branch of the foreign non-life insurance enterprise when concluding the insurance contract.
- In case there is a force majeure event or an objective obstacle that leads the insurance buyer to delay in notifying the insurance event, the insurance enterprise or foreign non-life insurance enterprise's branch is not allowed to apply this clause. excludes insurance liability for late notice.
Thus, the above are new regulations on insurance contracts under the Law on Insurance Business 2022, applied from January 1, 2023.
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