What are general regulations on sums insured of property insurance contracts in Vietnam?
What are general regulations on sums insured of property insurance contracts in Vietnam? What is notification of policy events of property insurance contracts in Vietnam?
Please advise according to the latest regulations.
1. What are general regulations on sums insured of property insurance contracts in Vietnam?
In Article 45 of the Law on Insurance Business 2022 (effective from January 1, 2023), general regulations on sums insured of property insurance contracts are as follows:
The sum insured is the amount of money that a policyholder and an insurer or foreign non-life insurer’s branch are agreed upon in the insurance contract to provide insurance for property or assets and against losses upon the policyholder’s request as per this Law.
2. What is notification of policy events of property insurance contracts in Vietnam?
According to Article 46 of the Law on Insurance Business 2022 (effective from January 1, 2023), notification of policy events of property insurance contracts as follows:
1. The policyholder is bound to notify the insurer or the foreign non-life insurer’s branch when having the knowledge of an occurrence within the time limit agreed upon in the insurance contract. Where the policyholder fails to comply with the obligation of notification or gives late notification, the insurer or the foreign non-life insurer’s branch can deduct the amount of money that must be paid as insurance in proportion to losses that the insurer or the foreign non-life insurer’s branch incurs, except in force majeure events or objective obstacles.
2. The insurer or the foreign non-life insurer's branch is not allowed to apply the regulations laid down in clause 1 of this Article if the insurance contract does not have any terms and conditions relating to liabilities of the policyholder, sanctions against failure to comply with the obligation of notification or the deferred notification of the policy event.
Best Regards!
