Law on Insurance Business 2022 has been approved, in which new regulations on cases of invalid insurance policies will be applied from January 1, 2023.
Article table of contents
11 cases of invalid insurance policies in Vietnam(Source: Internet)
Specifically, the insurance policy is invalid in the following cases:
- The policyholder has no insurable interests at the time of entering into the insurance policy.
- There is no subject of insurance at the time of entering into the insurance policy.
- At the time of entering into the insurance policy, the insurance buyer knows that the insured event has occurred.
- The purpose and content of the insurance policy violate the prohibition of the law and violate social ethics.
- Insurance enterprises, branches of foreign non-life insurance enterprises, and insurance buyers enter into fake insurance policys;
- The insurance buyer is a minor; persons who have lost their civil act capacity; people with difficulties in cognition and behavior control; persons with limited civil act capacity.
- An insurance policy is entered into with a mistake that causes one or the other parties to fail to achieve the purpose of entering into the contract,
Except where the purpose of entering into the contract of the parties has been achieved, the parties can immediately remedy the confusion so that the purpose of entering into the contract is still achieved.
- insurance policys are entered into due to deception, except for the case specified in Article 22 of Vietnam's Law on Insurance Business 2022.
- The insurance policy is entered into due to intimidation or coercion.
- The insurance buyer is not aware of and controls his or her behavior when entering into an insurance policy.
- The insurance policy does not comply with the regulations on form specified in Article 18 of Vietnam's Law on Insurance Business 2022.
(Currently, the policyholder has no insurable interest at the time of concluding the insurance policy, the subject matter of insurance does not exist at the time of concluding the insurance policy, and the insurance buyer or insurance enterprise commits acts of deception when entering into an insurance policy).
In addition, Vietnam's Law on Insurance Business 2022 stipulates:
When the insurance policy is invalid, the contract will not take effect from the time of signing.
Insurance enterprises, branches of foreign non-life insurance enterprises, and insurance buyers shall return to each other what they have received. The party at fault for causing the damage must compensate.
See Law on Insurance Business 2022, effective from January 1, 2023, for more information.
Chi Nhan
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