What are the types of insurance? What are the insurance operations in Vietnam as prescribed in Decree 46/2023/ND-CP?
What are the types of insurance in Vietnam?
Pursuant to the provisions of Article 7 of the Law on Insurance Business 2022, it is stipulated as follows:
Types of insurance
1. There are the following types of insurance:
a) Life insurance;
b) Health insurance;
c) Non-life insurance.
2. The Government shall elaborate on regulations on insurance operations of respective types of insurance referred to in clause 1 of this Article.
According to the above regulations, There are the following types of insurance:
- Life insurance;
- Health insurance;
- Non-life insurance.
What are the types of insurance? What are the insurance operations in Vietnam as prescribed in Decree 46/2023/ND-CP?
What are the insurance operations in Vietnam as prescribed in Decree 46/2023/ND-CP?
Pursuant to the provisions of Articles 3, 4, and 5 of Decree 46/2023/ND-CP stipulating insurance operations corresponding to the following types of insurance:
Types of life insurance include:
- Whole life insurance.
- Pure endowment insurance.
- Term life insurance.
- Endowment insurance.
- Annuities.
- Investment-linked insurance.
- Retirement insurance.
Types of non-life insurance include:
- Property insurance.
- Cargo insurance.
- Aviation insurance.
- Motor vehicle insurance.
- Fire insurance.
- Marine hull and liability insurance.
- Liability insurance.
- Trade credit risk insurance.
- Agriculture insurance.
- Guarantee insurance.
- Other types of damage insurance.
Types of health insurance include:
- Health insurance and personal injury insurance.
- Medical cost insurance.
What are the prohibited acts in the insurance operations in Vietnam?
Pursuant to the provisions of Article 9 of the Law on Insurance Business 2022, it is stipulated as follows:
Prohibited acts
1. Insurance, reinsurance, reinsurance ceding and insurance brokerage business activities are performed when none of establishment permits or business licences is obtained.
2. Insurance, reinsurance, reinsurance ceding and insurance brokerage business activities are performed outside of the permissible scope of business.
3. Insurance brokerage, insurance ancillary service business is done when eligibility conditions for doing so as prescribed in law are not met.
4. The following fraudulent acts are committed:
a) Conspire with insurance beneficiaries to settle insurance claims and pay insurance illegally;
b) Forge documents, intentionally falsify information shown in documents required for filing claims for insurance coverage and payout;
c) Forge documents, deliberately falsify information to reject payment of insurance indemnities and insurance when insurable events happen;
d) Cause self-harm or bodily self-injury or deliberately self-inflicted loss or damage to property to claim insurance benefits.
5. Using threats and force to obtain the consent to insurance contracts.
Accordingly, the above acts are strictly prohibited in the insurance business.
What are the policies for developing insurance business activities and principles for providing and using insurance services?
Pursuant to the provisions of Article 5 of the Law on Insurance Business 2022, it is stipulated 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.
Pursuant to the provisions of Article 6 of the Law on Insurance Business 2022, it is stipulated as follows:
Principles of provision and use of insurance services
1. 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.
2. 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.
Accordingly, insurance business development policies are regulated according to the above regulations.
At the same time, entities and persons in Vietnam wishing to participate in insurance schemes need to follow the following principles:
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.
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