Vietnam: What is non-life insurance and what types are included? Distinguishing criteria for non-life insurance and life insurance?
What is non-life insurance according to Vietnamese regulations?
In the future, Clause 14, Article 4 of the Law on Insurance Business 2022 of Vietnam stipulates that Non-life insurance refers to a type of insurance designed to offer protection against property and other losses or to provide third-party civil liability cover.
Non-life insurance includes:
- Health insurance and personal accident insurance: As a type of insurance for the insured person's injury, accident, illness, disease or death, the insurer pays the insurance premium according to agreement in the insurance contract.
- Business Loss Insurance: Is an insurance product for property risks in the process of production and business of enterprises.
- Property and damage insurance: An insurance product for property including real things, money, valuable papers and property rights.
- Aviation insurance: Insurance for the operation of the aircraft and the risks during transportation by air (including goods and people).
- Motor vehicle insurance: is insurance for motor vehicles that indemnifies the vehicle owner when an accident occurs to people, the vehicle or the goods on the vehicle.
- Fire and Explosion Insurance: This is a product that compensates for damage that occurs to the insured's property in the event of an unfortunate fire or explosion.
Vietnam: What is non-life insurance and what types are included? Distinguishing criteria for non-life insurance and life insurance?
- Insurance of goods transported by road, sea, river, railway, air: is an insurance product to indemnify for risks of all kinds of goods in the process of being transported.
- Hull insurance and shipowner's civil liability: It is insurance to compensate for damage to the hull of the ship and the risks that the ship owner has to pay with third-party damage due to the operation of the ship. ship, boat caused.
- Credit and financial risk insurance: It is insurance to guarantee loans at banks in the event of unexpected risks and defaults.
What is life insurance according to Vietnamese regulations?
In the near future, according to Clause 13, Article 4 of the Law on Insurance Business 2022 of Vietnam, life insurance is a type of insurance in case the insured person lives or dies.
Types of life insurance available today:
- Whole life insurance: Whole life insurance is insurance in case the insured person dies at any time during his or her life;
- Term life insurance: Term life insurance is an insurance business in case the insured person lives up to a certain term, whereby the insurer has to pay the insurance money to the beneficiary, if the insured person the insurance still lives up to the term agreed in the insurance contract;
- Term life insurance: Term insurance is an insurance business in case the insured person dies within a certain period of time, whereby the insurer must pay the insurance money to the beneficiary if the insured person dies within the period agreed upon in the insurance contract;
- Mixed insurance: Mixed insurance is an insurance business that combines term insurance and term insurance;
- Periodic payment insurance: Periodic payment insurance is an insurance business in case the insured person lives up to a certain period of time; after that time limit, the insurance enterprise must pay periodic insurance payments to the beneficiaries as agreed in the insurance contract;
- Investment-linked insurance;
- Retirement insurance: Retirement insurance is an insurance business in case the insured reaches the specified age and is paid insurance premiums by the insurer as agreed in the insurance contract.
Law on Insurance Business 2022 comes into force on January 1, 2023
Distinguish non-life insurance from life insurance according to Vietnamese regulations?
Criteria | Non-life insurance | Insurance |
Form | Onetime payment after signing the contract. | The payment period is monthly, quarterly, 6 months, and annually. |
Duration | Usually 01 - 02 years or less. | Usually 10-20 years or lifetime. |
Scope | Protection for people, property and civil liability. Protect people related to disease; outpatient examination according to the bill, according to the norm; guarantee hospital fees; death (pays out usually less than life insurance). | Protection for people includes: - Hospitalization allowance, surgery, emergency. - Paying for critical illness and serious illness. - Injured. - Death due to illness or accident. |
Change of fee | - Risk probability. - Insurance money. - Value of the insured object. | - Age and health. - Periodic fee payment. - Insurance money. |
Compensation principles | The amount spent is usually according to the norm, when death pays. | The amount of insurance payout is very large when the risk of death or accident occurs. |
Cumulative | - Not cumulative. - At the end of the contract period, the fee paid will not be refunded. | - Cumulative. - Get paid at contract maturity. - Enjoy interest or profit sharing. |
For | Protection against unexpected risks to people, property and civil liability. | Protection against unexpected risks to people. |
The Law on Insurance Business 2022 comes into force on January 1, 2023.
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