What are group insurance contracts under life insurance contracts in Vietnam?
What are group insurance contracts under life insurance contracts in Vietnam? In which cases shall policyholder, insurer or the foreign non-life insurer’s branch have the right to amend and supplement the group insurance contract in Vietnam?
Please advise according to latest regulations.
1. What are group insurance contracts under life insurance contracts in Vietnam?
In Clause 1, Clause 2, Clause 3 and Clause 4, Article 42 of the Law on Insurance Business 2022 (effective from January 1, 2023) stipulates group insurance contracts under life insurance contracts as follows:
1. Group insurance contract is the arrangement between the policyholder and the insurer or the foreign non-life insurer’s branch that is made to offer insurance on the insured group members under the same insurance contract.
2. A group of members participating in the insurance contract must be the group set up not to serve the purpose of participation in insurance.
3. The policyholder and the insured may negotiate for the joint payment of premiums.
4. The insured shall have the right to designate the beneficiary in case of the death of the insured.
2. In which cases shall policyholder, insurer or the foreign non-life insurer’s branch have the right to amend and supplement the group insurance contract in Vietnam?
According to Clauses 5 and 6, Article 42 of Law on Insurance Business 2022 (effective from January 1, 2023), the policyholder, the insurer or the foreign non-life insurer’s branch shall have the right to amend and supplement the group insurance contract in the following cases:
5. The policyholder, the insurer or the foreign non-life insurer’s branch shall have the right to amend and supplement the group insurance contract in the following cases:
a) At least one insured person is no longer the group member;
b) Insurance premiums specific to the insured persons are not paid under terms and conditions of the insurance contract;
c) Other cases are agreed upon in the insurance contract.
6. In addition to those regulations laid down in Article 17 herein, a group insurance contract must contain the followings:
a) Conditions for participation in insurance to be applied to the insured;
b) Conditions and procedures for transformation into the individual insurance contract.
Best Regards!
