Vietnam: Where a policyholder deliberately provides untrue information, shall the insurance contract be teminated?
What are the obligations of the policyholders in Vietnam?
Pursuant to Clause 2, Article 21 of the Law on Insurance Business 2022:
Rights and obligations of the policyholder
1. The policyholder shall have the following rights:
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2. The policyholder shall take on the following obligations:
a) Provide all full and accurate information related to the insurance contract upon the request of the insurer or the foreign non-life insurer's branch;
b) Carefully read and understand policy terms and conditions, rights and obligations of the policyholder when entering into the insurance contract, and other contents of the insurance contract;
c) Pay insurance premiums in full and on time under contractual terms and conditions;
d) Inform the insurer or the foreign non-life insurer’s branch of cases in which it is likely to assume aggregated or alleviated risks or additional liability during the contract term as agreed upon in the insurance contract;
dd) Inform the insurer or the foreign non-life insurer’s branch of occurrence of any policy event as agreed upon in the insurance contract; cooperate with the insurer or the foreign non-life insurer’s branch on insurance loss assessment;
e) Apply loss prevention and control measures in accordance with this Law and other regulatory provisions of relevant law;
g) Other obligations prescribed by law.
Thus, the policyholder shall take on the following obligations:
- Provide all full and accurate information related to the insurance contract upon the request of the insurer or the foreign non-life insurer's branch;
- Carefully read and understand policy terms and conditions, rights and obligations of the policyholder when entering into the insurance contract, and other contents of the insurance contract;
- Pay insurance premiums in full and on time under contractual terms and conditions;
- Inform the insurer or the foreign non-life insurer’s branch of cases in which it is likely to assume aggregated or alleviated risks or additional liability during the contract term as agreed upon in the insurance contract;
- Inform the insurer or the foreign non-life insurer’s branch of occurrence of any policy event as agreed upon in the insurance contract; cooperate with the insurer or the foreign non-life insurer’s branch on insurance loss assessment;
- Apply loss prevention and control measures in accordance with this Law and other regulatory provisions of relevant law;
- Other obligations prescribed by law.
What are the obligations of the policyholders in Vietnam? (Image from the Internet)
Vietnam: Where a policyholder deliberately provides untrue information, is the insurance contract legally valid?
Pursuant to Clause 2, Article 22 of the Law on Insurance Business 2022:
Responsibilities and legal consequences for breach of information disclosure obligations
1. When entering into insurance contracts, insurers and foreign non-life insurers’ branches shall have the burden of providing full and accurate information related to insurance contracts; give explanations about contractual terms and conditions to policyholders. Meanwhile, policyholders shall have the burden of providing full and accurate information related to subject matters of insurance for insurers and foreign non-life insurers’ branches.
2. Where any policyholder deliberately provides inadequate or untrue information with the aim of concluding an insurance contract to receive insurance indemnity or coverage, the insurer or foreign non-life insurer’s branch may nullify the insurance contract. To such extent, the insurer or the foreign non-life insurer’s branch shall not be obliged to pay insurance indemnity or coverage and must reimburse insurance premiums that the policyholder pays after deducting reasonable expenses (if any) under contractual terms and conditions. The policyholder is bound to compensate for any possible loss that the insurer or the foreign non-life insurer's branch incurs due to such act.
When entering into insurance contracts, policyholders shall have the burden of providing full and accurate information related to subject matters of insurance for insurers.
Where any policyholder deliberately provides inadequate or untrue information with the aim of concluding an insurance contract to receive insurance indemnity or coverage, the insurer or foreign non-life insurer’s branch may nullify the insurance contract
The insurer or the foreign non-life insurer’s branch shall not be obliged to pay insurance indemnity or coverage and must reimburse insurance premiums that the policyholder pays after deducting reasonable expenses (if any) under contractual terms and conditions.
Note: The policyholder is bound to compensate for any possible loss that the insurer or the foreign non-life insurer's branch incurs due to such act.
Where a insurer deliberately provides untrue information, can the policyholder terminate the insurance contract in Vietnam?
Pursuant to Clauses 1 and 3, Article 22 of the Law on Insurance Business 2022:
Responsibilities and legal consequences for breach of information disclosure obligations
1. When entering into insurance contracts, insurers and foreign non-life insurers’ branches shall have the burden of providing full and accurate information related to insurance contracts; give explanations about contractual terms and conditions to policyholders. Meanwhile, policyholders shall have the burden of providing full and accurate information related to subject matters of insurance for insurers and foreign non-life insurers’ branches.
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3. Where the insurer or the foreign non-life insurer’s branch deliberately fails to discharge its information disclosure obligations or provides untrue information with the intention of obtaining the insurance contract, the policyholder can terminate the insurance contract and be repaid insurance premiums. The insurer or the foreign non-life insurer’s branch is bound to compensate for any loss that the policyholder may suffer due to such act.
Thus, when entering into insurance contracts, insurers shall have the burden of providing full and accurate information related to insurance contracts; give explanations about contractual terms and conditions to policyholders.
Where the insurer deliberately fails to discharge its information disclosure obligations or provides untrue information with the intention of obtaining the insurance contract, the policyholder can terminate the insurance contract and be repaid insurance premiums.
Note: The insurer is bound to compensate for any loss that the policyholder may suffer due to such act.
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