Right to receive premiums and terminate insurance contracts of the buyers when the insurance company transfer of insurance contracts in Vietnam

Do buyers get the premium amount when terminating the contract due to the insurance company transfer of insurance contracts in Vietnam?

Pursuant to Point b, Clause 3, Article 48 of Decree 73/2016/ND-CP stipulating transfer of insurance contracts as follows:

3. In 30 days upon the Ministry of Finance’s approval of the transfer of insurance contracts, the ceding enterprise must announce the transfer in the following manner:

a) Publish the following primary details of the transfer on two daily newspapers in 05 consecutive issues:

- Name and address of the ceding enterprise and accepting enterprise;

- Lines of insurance and quantity of insurance contracts being transferred;

- Expected time of the transfer;

- Contact address for insurance buyers’ complaints and inquiries concerning the transfer.

b) Deliver a notice and the summary of the transfer plan to each buyer. The notice delivered to insurance buyers must clearly indicate that the buyers shall be allowed to terminate their insurance contracts in 15 days upon receiving the notice if they object to the transfer plan. Moreover, the notice must specify the date that the transfer takes effect.

If a buyer terminates his insurance contract, the ceding enterprise must give the buyer a refund. Such refund shall be the paid premiums commensurate with the remaining duration of the insurance contract, minus the relevant reasonable expenses in case of non-life insurance or health insurance. Otherwise, the refund shall be the paid premiums remaining or the surrender value, whichever is larger, in case of life insurance.

As such, you have the right to cancel the insurance contract and receive the premium amount corresponding to the remaining period of the insurance contract after deducting reasonable expenses in Vietnam.

What are conditions for transfer of insurance contracts in Vietnam?

Pursuant to Article 75 of the Law on Insurance Business 2000, conditions for transfer of insurance contracts are as follows:

The transfer of insurance contracts shall be carried out under the following conditions:

1. The transferee enterprises are dealing in the insurance operations to be transferred;

2. The rights and obligations under the to be- transferred insurance contracts shall not alter till the expiry of the insurance contracts;

3. The transfer of insurance contracts must be made together with the transfer of funds and professional reserves related to the entire insurance contracts to be transferred.

Best Regards!