What are cases of null and void insurance contracts in Vietnam?

1. What are cases of null and void insurance contracts in Vietnam?

In Article 25 of the Law on Insurance Business 2022 (effective from January 1, 2023), null and void insurance contracts is in the following cases:

1. An insurance contract shall be made null and void in the following cases:

a) The policyholder has no insurable interest at the time of conclusion of an insurance contract;

b) No subject matter of insurance exists at the time of conclusion of an insurance contract;

c) At the time of conclusion of the insurance contract, the policyholder has the knowledge of the policy event that occurs;

d) Objectives and contents of an insurance contract are in contravention of prohibition clauses and social ethics;

dd) The insurer, the foreign non-life insurer’s branch and the policyholder enter into the fraudulent insurance policy;

e) The policyholder is a minor; the person who is incapable of civil acts; the person who have cognitive and behavioral difficulties; the person whose capacity to perform civil acts is restricted;

g) When being entered into, an insurance contract contains any confusion that causes one or more parties to fail to achieve the purposes of entering into that contract, unless the contractual purposes of the contracting parties have been achieved, or the contracting parties can take immediate remedial actions against such confusion to make the purposes of entering into the contract successfully achieved;

h) The insurance contract is concluded by fraud, except as provided in Article 22 herein;

i) The insurance contract is concluded under threat or pressure;

k) The policyholder lives with health condition related to cognitive disability and impulse control disorder when entering into the insurance contract;

l) The insurance contract is in contravention of regulations on presentation of insurance contracts laid down in Article 18 herein.

2. When an insurance contract is null and void, it is no longer in effect from the date of conclusion. The insurer or the foreign non-life insurer’s branch and the policyholder shall be obliged to return what they have received to each other. The party at fault must be liable to pay compensation.

2. What is unilateral termination of insurance contracts in Vietnam? 

According to Article 26 of the Law on Insurance Business 2022 (effective from January 1, 2023), unilateral termination of insurance contracts as follows:

The insurer, the foreign non-life insurer’s branch or the policyholder may unilaterally terminate the insurance contract in the following cases:

1. The policyholder defaults on insurance premiums or does not pay insurance premiums in full by the agreed due date or after the extended due date;

2. The insurer, the foreign non-life insurer’s branch or the policyholder does not accept the request for change in the level of insurable risk under Article 23 herein;

3. The insured fails to apply safety measures to protect subject matters insured as provided in clause 3 of Article 55 herein;

4. The policyholder disagrees to transfer the portfolio of insurance contracts prescribed in clause 4 of Article 92 herein.

Best Regards!