Vietnam: 05 types of insurance policies takes effect from January 1, 2023

1. What is an insurance policy?

Clause 16, Article 4 of the Law on Insurance Business 2022 stipulates that an insurance contract is an agreement between an insurance buyer and an insurer, a branch of a foreign non-life insurer, or a mutual organization that provides microinsurance.

According to Vietnam's law, the insurance buyer must pay the premium, and the insurer, the branch of the foreign non-life insurer, and the mutual organization providing microinsurance must indemnify and pay the insurance premium as agreed in the contract.

Vietnam: 05 types of insurance policies takes effect from January 1, 2023 (Source: Internet)

2. Types of insurance policies in Vietnam

Article 15 of the Law on Insurance Business 2022 stipulates the following types of insurance policies:

- Life insurance policies;

- Health insurance policies;

- Property insurance policies;

- Damage insurance policies;

- Liability insurance policies.

In which, property insurance policies, damage insurance policies, and liability insurance policies belong to the type of non-life insurance.

(Currently, the Law on Insurance Business 2000 only stipulates 03 types of insurance policies, including: Personal insurance contract; Property insurance contract; Civil liability insurance contract.)

Note:

- Insurers, branches of foreign non-life insurers, and insurance buyers may agree on one type of insurance policy or combine many types of insurance policies following the regulations of Clause 3, Article 63 of the Law on Insurance Business 2022.

- The marine insurance policy shall follow the regulations of Vietnam Maritime Code; Contents not specified in Vietnam Maritime Code shall follow the regulations of the Law on Insurance Business 2022.

- Contents related to insurance policies that are not specified in the Law on Insurance Business 2022 shall follow the regulations of the Civil Code.

3. Contents of the insurance policy in Vietnam

According to Article 17 of the Law on Insurance Business 2022, an insurance policy must have the following main contents:

- The insurance buyer, the insured, the beneficiary (if any), the insurer, or the branch of the foreign non-life insurer;

- The insured;

- Amount of insurance or value of property insured or limit of insured liability;

- Coverage or benefits; insurance rules, conditions, and terms;

- Rights and obligations of insurers, branches of foreign non-life insurers, and insurance buyers; (New rules added)

- Duration of insurance;

- Effective date of the insurance contract; (New rules added)

- Insurance premium rate and method of premium payment;

- Compensation and insurance payment methods;

- Argument setllement.

(It is no longer required to have an insurance exclusion clause and the date, month, and year of contract signing compared to current regulations.)

The Law on Insurance Business 2022 takes effect from January 1, 2023, except for Clauses 3, Article 86, Clauses 4 and 5, Article 94, Article 95, Clauses 3 and 4, Article 99, and Articles 109, 110, 111, 112. , 113, 114 and 116 of the Law which takes effect from January 1, 2028.

Nhu Mai

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