What is prohibition against request for third-party reimbursement in life insurance contracts in Vietnam?

1. What is prohibition against request for third-party reimbursement in life insurance contracts in Vietnam? 

According to Article 38 of the Law on Insurance Business 2022 (effective from January 1, 2023), prohibition against request for third-party reimbursement in life insurance contracts as follows:

Notwithstanding that the insured is deceased, injured or sick due to direct or indirect acts of the third party, the insurer or the foreign non-life insurer’s branch shall discharge their obligation to pay insurance indemnity or coverage as agreed upon in the insurance contract without having the right to request the third party to reimburse the amount that the insurer or the foreign non-life insurer's branch has already paid to the beneficiary. The third party shall still have the burden of paying indemnity to the insured under law.

2. What is conclusion of life insurance contracts and health insurance contracts insuring the death of other person in Vietnam? 

In Article 39 of the Law on Insurance Business 2022 (effective from January 1, 2023), conclusion of life insurance contracts and health insurance contracts insuring the death of other person is as follows:

1. When the policyholder enters into a life insurance contract or a health insurance contract to insure the death of the other person, the written consent, clarifying the sum insured and the beneficiary, must be obtained from that other person.

2. Conclusion of a life insurance contract and health insurance contract insuring the death of the following persons shall be prohibited:

a) Minors, except as agreed in writing by their parents or guardians;

b) People incapable of civil acts;

c) Persons who have cognitive and impulse control difficulties;

d) People with restricted capabilities of civil acts.

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