What are responsibilities of insurance companies in prevention and control of loss or damage in insurance; prevention and control of insurance fraud in Vietnam?

What are responsibilities of insurance companies in prevention and control of loss or damage in insurance; prevention and control of insurance fraud in Vietnam?

Pursuant to Article 121 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating responsibilities of insurance companies in prevention and control of loss or damage in insurance; prevention and control of insurance fraud in Vietnam as follows:

Insurance companies, branches of foreign non-life insurance companies, policyholders, insured persons and other concerned parties shall assume their responsibilities for prevention and control of loss or damage in insurance; prevention and control of insurance fraud.

What are general regulations on prevention and control of loss or damage in insurance in Vietnam?

Pursuant to Article 122 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating prevention and control of loss or damage in insurance in Vietnam as follows:

1. Prevention and control of loss or damage in insurance is the act of performing measures to prevent and reduce possible loss or damage to the subject matters insured.

2. Policyholders and insured persons shall be responsible for proactively taking measures to prevent and reduce loss or damage; immediately notifying insurance companies or branches of foreign non-life insurance companies of occurrence of insured events; carrying out measures to prevent and reduce loss or damage according to the instructions of insurance companies (if any).

3. Insurance companies and branches of foreign non-life insurance companies shall be responsible for taking the following risk prevention and control measures:

a) Provide training and propagation sessions; offer support to ensure training and propagation sessions on insurance business policies are successfully organized;

b) Provide funding for access to and donate equipment and physical resources for prevention and control of risks;

c) Back development of construction structures used for the purposes of preventing and mitigating possible effects of risks to subject matters insured;

d) Hire other entities and persons to monitor, prevent and control loss or damage.

4. Relevant entities shall provide guidance and propagation sessions on implementation of measures to prevent and control loss or damage.

Best regards!