In which cases are insurers in Vietnam exempted from paying insurance indemnity and coverage?
In which cases are insurers in Vietnam exempted from paying insurance indemnity and coverage? - Ms. Yen (HCMC)
What is the insurance company according to the law in Vietnam?
Pusuant to Clause 17 Article 4 of the Law on Insurance Business in 2022:
Interpretation
For the purposes of this Law, terms used herein are construed as follows:
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17. Insurer (also insurance company) refers to an enterprise that is established, managed and run as per this Law and other relevant laws to do business in the insurance, reinsurance and reinsurance cession sector. Insurance companies are classified into life insurance, non-life insurance and health insurance companies.
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As regulated above, insurer (also insurance company) refers to an enterprise that is established, managed and run as per this Law and other relevant laws to do business in the insurance, reinsurance and reinsurance cession sector.
Insurance companies are classified into following forms:
- Life insurance;
- Non-life insurance;
- Health insurance companies.
In which cases are insurers in Vietnam exempted from paying insurance indemnity and coverage? - image from internet
In which cases are insurers in Vietnam exempted from paying insurance indemnity and coverage?
Pusuant to Article 40 of the Law on Insurance Business in 2022 stipulating insurance exclusions:
Insurance exclusions
1. Insurers and foreign non-life insurers’ branches shall not be exempted from paying insurance indemnity and coverage in the following cases:
a) The insured is deceased within 02 years of the first payment of premium or restoration of the insurance contract’s effect;
b) The insured’s death is caused willfully and intentionally by the policyholder or the beneficiary, except as prescribed in clause 2 of this Article;
c) The insured’s permanent injury or impairment is caused willfully and intentionally by the insured himself, the policyholder or the beneficiary, except as prescribed in clause 2 of this Article;
d) The insured’s death is caused by serving the death sentence;
dd) Other cases are stipulated in the insurance contract.
2. In the cases where there are more than one beneficiary, despite the fact that one or more beneficiaries intentionally cause death or permanent injury or impairment for the insured, the insurer or the foreign non-life insurer’s branch shall have the burden of paying insurance indemnity or coverage to the other beneficiaries under contractual terms and conditions.
3. When any situation specified in clause 1 of this Article arises, the insurer or the foreign non-life insurer’s branch shall pay the policyholder the surrender value of the insurance contract or all of the premiums already paid after deducting any reasonable costs and expenses as agreed upon in the insurance contract, except as provided in clause 2 of this Article. In case of the death of the policyholder, all of the refunds shall be treated according to law on inheritance.
As regulated above, the insurers in Vietnam are exempted from paying insurance indemnity and coverage in following cases:
- The insured is deceased within 02 years of the first payment of premium or restoration of the insurance contract’s effect;
- The insured’s death is caused willfully and intentionally by the policyholder or the beneficiary, except as prescribed in clause 2 of this Article;
- The insured’s permanent injury or impairment is caused willfully and intentionally by the insured himself, the policyholder or the beneficiary. In the cases where there are more than one beneficiary, despite the fact that one or more beneficiaries intentionally cause death or permanent injury or impairment for the insured, the insurer shall have the burden of paying insurance indemnity or coverage to the other beneficiaries under contractual terms and conditions.
- The insured’s death is caused by serving the death sentence;
- Other cases are stipulated in the insurance contract.
What are prohibited acts regarding insurance business in Vietnam?
Pusuant to Article 9 of the Law on Insurance Business in 2022 stipulating prohibited acts regarding insurance business in Vietnam:
- 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.
Best regards!
