Insurance of Law on Insurance Business 2022 replacing the Law on Insurance Business 2000 in Vietnam (effective from January 01, 2023)
What is the scope and subjects of application of the Law on Insurance Business 2022?
According to Article 1 of the Law on Insurance Business 2022:
"Article 1. Scope of regulation
1. This Law provides for the organization and operation of insurance business; the rights and obligations of organizations and individuals participating in insurance; state management of insurance business activities.
2. This Law does not apply to social insurance, health insurance, deposit insurance and other types of insurance implemented by the State without a business nature."
According to Article 2 of the Law on Insurance Business 2022:
"Article 2. Subjects of application
1. Insurance enterprises, reinsurance enterprises, insurance agents, insurance brokerage enterprises, organizations, individuals providing insurance auxiliary services, mutual organizations providing microinsurance.
2. Branches of foreign non-life insurers, branches of foreign reinsurance enterprises (hereinafter referred to as foreign branches in Vietnam).
3. Representative offices of foreign insurers, foreign reinsurance enterprises, foreign insurance brokerage enterprises, foreign financial, insurance groups in Vietnam (hereinafter referred to as foreign representative offices in Vietnam).
4. Insurance buyers, insureds, beneficiaries.
5. State management agencies on insurance business activities.
6. Organizations and individuals related to insurance business activities"
Insurance of Law on Insurance Business 2022 replacing the Law on Insurance Business 2000 in Vietnam (effective from January 01, 2023) (Image from the internet)
When does the Law on Insurance Business 2022 in Vietnam take effect?
According to Article 156 of the Law on Insurance Business 2022:
"Article 156. Effectiveness
1. This Law takes effect from January 01, 2023, except as provided in Clause 2 of this Article.
2. Clause 3 of Article 86, Clauses 4 and 5 of Article 94, Article 95, Clauses 3 and 4 of Article 99, Articles 109, 110, 111, 112, 113, 114, and 116 of this Law take effect from January 01, 2028.
3. The Insurance Business Law No. 24/2000/QH10, amended and supplemented by Laws No. 61/2010/QH12 and No. 42/2019/QH14, expires from the effective date of this Law, except in the following cases:
a) Clause 1 of Article 157 of this Law;
b) Articles 77, 78, 79, 80, 81, 83, 94, and 98 of the Insurance Business Law No. 24/2000/QH10, amended and supplemented by Laws No. 61/2010/QH12 and No. 42/2019/QH14, are effective until the end of December 31, 2027."
Thus, the Law on Insurance Business 2022 replaces the Insurance Business Law 2000, effective from January 01, 2023.
What are the cases of applying the current law before the new law takes effect in Vietnam?
According to Article 157 of the Law on Insurance Business 2022:
"Article 157. Transitional provisions
1. Insurance contracts concluded before the effective date of this Law and still valid at the time of the effective date shall continue to be performed according to the legal provisions at the time of conclusion of the insurance contract, unless the parties to the insurance contract agree on amendments and supplements to match this Law and apply the provisions of this Law.
2. Insurance agent certificates issued before the effective date of this Law shall continue to be used until December 31, 2025. The Minister of Finance provides detailed regulations on the conversion of insurance agent certificates issued before the effective date of this Law into insurance agent certificates as regulated by this Law.
3. Insurance certificates, insurance brokerage certificates, and insurance auxiliary certificates issued before the effective date of this Law shall continue to be used.
4. From January 01, 2023, insurers and branches of foreign non-life insurers shall cease contributing to the Insurance Policyholders' Protection Fund.
5. The handling of the balance of the Insurance Policyholders' Protection Fund as stipulated in Article 97 of the Insurance Business Law No. 24/2000/QH10, amended and supplemented by Laws No. 61/2010/QH12 and No. 42/2019/QH14, shall be carried out as follows:
a) The entire balance of the Insurance Policyholders' Protection Fund shall be managed by the Ministry of Finance to protect the rights and benefits of the insured in case insurers lose solvency or go bankrupt;
b) The Government of Vietnam provides detailed regulations on the management and use of the balance of the Insurance Policyholders' Protection Fund.
This Law was passed by the 15th National Assembly of the Socialist Republic of Vietnam at its 3rd session on June 16, 2022."
Thus, cases of applying the current law before the Law on Insurance Business 2022 takes effect are according to the provisions mentioned above.
The Law on Insurance Business 2022 takes effect from January 01, 2023.
LawNet
