What are regulations on temporary coverage in life insurance in Vietnam?

1. What are regulations on temporary coverage in life insurance in Vietnam?

In Article 36 of the Law on Insurance Business 2022 (effective from January 1, 2023), temporary coverage in life insurance is regulated as follows:

The insurer shall offer temporary coverage to the policyholder upon receiving the insurance proposal and advance premiums from the policyholder. Insurance term, sum insured and terms and conditions of temporary coverage shall be negotiated between the insurer and the policyholder. Temporary coverage is terminated after the insurer accepts or refuses insurance, or unless otherwise agreed.

2. What are general regulations on payment of life insurance premiums in Vietnam? 

According to Article 37 of the Law on Insurance Business 2022 (effective from January 1, 2023), general regulations on payment of life insurance premiums are as follows:

1. The insurer can pay insurance premiums on a one-off basis or in installments according to the time limit and approach agreed upon in an insurance contract.

2. In the cases where insurance premiums are paid in installments and the policyholder pays one or several installments of insurance premiums, if the policyholder is unable to proceed to pay further, the extended duration of payment of premiums shall be 60 days.

3. Parties can agree to restore the effect of the insurance contract that is unilaterally terminated under clause 1 of Article 26 herein within 02 years of termination when the policyholder has paid outstanding debts on insurance premiums.

4. Where the policyholder defaults on insurance premiums or fails to pay insurance premiums in full, the insurer shall not be allowed to arbitrarily deduct premiums from the surrender value of the insurance contract without the policyholder’s consent, and take legal action to request the policyholder to pay insurance premiums. This regulation shall not apply in case of group insurance.

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