What are prohibited acts in insurance business in Vietnam?

What are prohibited acts in insurance business in Vietnam?

Pursuant to Article 9 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating prohibited acts in insurance business in Vietnam as follows:

1. Insurance, reinsurance, reinsurance ceding and insurance brokerage business activities are performed when none of establishment permits or business licences is obtained.

2. Insurance, reinsurance, reinsurance ceding and insurance brokerage business activities are performed outside of the permissible scope of business.

3. Insurance brokerage, insurance ancillary service business is done when eligibility conditions for doing so as prescribed in law are not met.

4. The following fraudulent acts are committed:

a) Conspire with insurance beneficiaries to settle insurance claims and pay insurance illegally;

b) Forge documents, intentionally falsify information shown in documents required for filing claims for insurance coverage and payout;

c) Forge documents, deliberately falsify information to reject payment of insurance indemnities and insurance when insurable events happen;

d) Cause self-harm or bodily self-injury or deliberately self-inflicted loss or damage to property to claim insurance benefits.

5. Using threats and force to obtain the consent to insurance contracts.

What are regulations on socio-professional organizations involved in the insurance industry in Vietnam?

Pursuant to Article 10 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating socio-professional organizations involved in the insurance industry in Vietnam as follows:

1. Socio-professional organizations engaged in the insurance industry must be incorporated and operated under law on associations; shall comply with regulatory provision regarding the insurance industry and be kept under the supervision of the Ministry of Finance.

2. Socio-professional organizations involved in the insurance industry shall issue the professional code of conduct and ethics, rules and standards to be applied to all of their members; shall cooperate with state regulatory authorities in charge of the insurance industry on promulgation, dissemination and enhancement of awareness of law on insurance business.

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