What acts are prohibited in the insurance business in Vietnam? What are the principles of provision and use of insurance services in Vietnam?
- What acts are prohibited in the insurance business in Vietnam?
- What are the principles of provision and use of insurance services in Vietnam?
- How are the policies for development of the insurance industry implemented by the Government of Vietnam?
- What criteria must be met to provide insurance database information?
What acts are prohibited in the insurance business in Vietnam?
Pursuant to Article 9 of the 2022 Law on Insurance Business in Vietnam stipulating the prohibited acts in insurance business as follows:
- Insurance, reinsurance, reinsurance ceding and insurance brokerage business activities are performed when none of establishment permits or business licences is obtained.
- Insurance, reinsurance, reinsurance ceding and insurance brokerage business activities are performed outside of the permissible scope of business.
- Insurance brokerage, insurance ancillary service business is done when eligibility conditions for doing so as prescribed in law are not met.
- The following fraudulent acts are committed:
+ Conspire with insurance beneficiaries to settle insurance claims and pay insurance illegally;
+ Forge documents, intentionally falsify information shown in documents required for filing claims for insurance coverage and payout;
+ Forge documents, deliberately falsify information to reject payment of insurance indemnities and insurance when insurable events happen;
+ Cause self-harm or bodily self-injury or deliberately self-inflicted loss or damage to property to claim insurance benefits.
- Using threats and force to obtain the consent to insurance contracts.
What acts are prohibited in the insurance business in Vietnam? What are the principles of provision and use of insurance services in Vietnam? (Image from the Internet)
What are the principles of provision and use of insurance services in Vietnam?
Pursuant to Article 6 of the 2022 Law on Insurance Business in Vietnam, the principles of provision and use of insurance services are as follows:
- Entities and persons in Vietnam wishing to participate in insurance schemes can only participate in insurance with insurers, foreign non-life insurers’ branches or mutuals providing microinsurance products obtaining establishment permits or business licenses in Vietnam, except in case of using cross-border insurance services under the international treaties to which the Socialist Republic of Vietnam is a signatory.
- The Government shall provide detailed regulations on provision and use of cross-border insurance, insurance brokerage and insurance ancillary services in conformity with the international treaties to which the Socialist Republic of Vietnam is a signatory.
How are the policies for development of the insurance industry implemented by the Government of Vietnam?
Pursuant to Article 5 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Policies for development of the insurance industry
1. The Government shall provide protection for legitimate rights and interests of entities and persons participating in insurance and organizations rendering insurance services.
2. The Government shall provide insurers, reinsurers, foreign insurance branches in Vietnam and mutuals providing microinsurance product with incentive and facilitation measures for research and development of products, services, application of advanced technologies in the insurance industry.
3. The Government shall provide insurers, reinsurers, foreign insurance branches in Vietnam and mutuals providing microinsurance product with incentive and facilitation measures for resumption of investment in the economy, re-investment and development of the insurance market.
4. The Government shall provide incentive and facilitation measures for launching, offering and participating in agricultural, forestry, fishery or aquaculture insurance, microinsurance and other insurance products serving social welfare and security purposes.
Thus, the policies for development of the insurance industry are protected and encouraged by the Government of Vietnam to comply with the above provisions.
What criteria must be met to provide insurance database information?
Pursuant to Article 11 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Insurance industry database
1. The Government shall invest in establishing the database in the insurance industry. The Ministry of Finance shall be responsible for setting up, running and managing the insurance-industry database designed for state management and protection of legitimate rights and interests of parties involved in insurance business activities.
2. Insurers; reinsurers; foreign insurance branches in Vietnam; insurance brokers; insurance ancillary service providers; mutuals providing microinsurance product shall be responsible for providing policyholder, the insured, subject matter insured, insurance agent and other relevant information used as inputs into the database in the insurance industry.
3. Collection, use, storage and provision of information included in the insurance industry database must ensure confidentiality and security of information, and comply with the regulatory provisions of laws on protection of personal privacy, personal secrets, family secrets and trade secrets.
State agencies, other entities and persons are required to use the information provided for the right purposes and are not allowed to provide information to any third party without the consent of the policyholder or the insured, unless otherwise provided in law.
4. The insurance industry database may be linked to other national and specialized databases.
5. The Government shall impose detailed regulations on setting up, collecting, using, storing and providing information for the insurance industry database, and linking the insurance industry database with other national and specialized databases.
Thus, collection, use, storage and provision of information included in the insurance industry database must ensure confidentiality and security of information, and comply with the regulatory provisions of laws on protection of personal privacy, personal secrets, family secrets and trade secrets.
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