What is loss and damage assessment in property insurance contracts, damage liability insurance contracts in Vietnam?
What is loss and damage assessment in property insurance contracts, damage liability insurance contracts in Vietnam? What are regulations on transfer of the right to claim for reimbursement in property insurance contracts, damage liability insurance contracts in Vietnam?
Please advise according to the latest regulations.
1. What is loss and damage assessment in property insurance contracts, damage liability insurance contracts in Vietnam?
Pursuant to Article 53 of the Law on Insurance Business 2022 (effective from January 1, 2023) on loss and damage assessment in property insurance contracts, damage liability insurance contracts, as follows:
1. In case of the policy event that occurs, the insurer or the foreign non-life insurer’s branch or the person authorized by the insurer or the foreign non-life insurer’s branch shall conduct the assessment of loss and damage in order to determine the causes and levels of loss or damage. Costs and expenses incurred from the loss assessment process shall be covered by the insurer or the foreign non-life insurer’s branch.
2. Where contracting parties fail to reach any agreement on the causes and levels of loss or damage, independent assessors may be hired by mutual consent, unless otherwise agreed upon in the insurance contract. Where the contracting parties disagree on hiring of the independent assessor, one of the parties may request the Court having relevant jurisdiction or the Arbitrator to solicit the independent assessor for their assessment feedback. The independent assessor’s conclusions or consultative opinions shall be binding upon concerned parties.
2. What are regulations on transfer of the right to claim for reimbursement in property insurance contracts, damage liability insurance contracts in Vietnam?
According to Article 54 of the Law on Insurance Business 2022 (effective from January 1, 2023) on transfer of the right to claim for reimbursement in property insurance contracts, damage liability insurance contracts is regulated as follows:
1. In a policy event that occurs, if the third party carried the burden of paying compensation for any loss or damage to the insured, the following actions shall be taken:
a) After the insurer or foreign non-life insurer’s branch completes their payment of the insured’s insurance claim, the insured shall assign the right to claim reimbursement from the third party for that insurance claim to them;
b) The insurer or the foreign non-life insurer’s branch may deduct the amount of insurance claim, depending on how serious the insured's fault is, if the insured refuses to the right to claim for reimbursement from the third party.
2. When the insurer or the foreign non-life insurer’s branch enforces the right to claim for reimbursement from the third party, the insured shall have the mandate to provide them with required documents and associated information under terms and conditions of the insurance contract.
3. The insurer or the foreign non-life insurer’s branch is not allowed to request the insured’s parent, spouse or offspring to reimburse the insurance claim that they pay the insured, except as these requested kin cause any loss or damage through their intentional fault.
Best Regards!
