What are contents of insurance contracts in Vietnam?

What are contents of insurance contracts in Vietnam?

Pursuant to Article 17 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating contents of insurance contracts in Vietnam as follows:

1. An insurance contract must include but not limited to the followings:

a) The policyholder, the insured, the beneficiary (if any), the insurer or the foreign non-life insurer's branch;

b) Subject matter insured;

c) Sum insured or value of property insured or covered property value or insurance policy limit;

d) Scope of insurance coverage and insurance benefits; insurance rules, terms and conditions;

dd) Rights and obligations of the insurer, the foreign non-life insurer’s branch and the policyholder;

e) Insurance policy period, date of entry into force of the insurance contract;

g) Insurance premium, premium payment option;

h) Insurance coverage and payment option;

i) Dispute resolution method.

2. Minister of Finance shall elaborate on clause 1 of this Article with respect to life and health insurance contracts.

What are disclaimer clauses in insurance contracts in Vietnam?

Pursuant to Article 19 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating disclaimer clauses in insurance contracts in Vietnam as follows:

1. Disclaimer clauses shall prescribe cases in which insurers or foreign non-life insurers’ branches can refuse to pay claims and insurance.

2. In the presence of clauses on disclaimer of insured liability, insurers and foreign non-life insurers’ branches must clearly elaborate them in insurance contracts, give explicit, adequate explanations and evidence about the fact that insurers have already received full and clear explanations of these disclaimer clauses by insurers and foreign non-life insurers’ branches when concluding insurance contracts.

3. Where any force majeure event or circumstantial obstacle results in the policyholder's late notice of any policy event, the insurer or foreign non-life insurer’s branch is not allowed to apply disclaimer clauses.

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