Vietnam: Some responsibilities to know when participating in agricultural insurance

According to Decree No. 58/2018/NĐ-CP of Vietnam’s Government, when signing and executing an agricultural insurance policy, parties shall have the following responsibilities:

The insurer shall:

- Provide explanation and sufficient information about insurance policy, policy wording and premiums for the policyholder. Sign the agricultural insurance policy only if the policyholder has confirmed its/his/her clear understanding of information concerning the agricultural insurance policy, policy wording and premiums.

- Sign the agricultural insurance policy by following the principles of voluntariness, free will and equality; ensure adherence to the law of large numbers and allocate and share risks through co-insurance and reinsurance.

- On its own initiative, control risks, prevent and minimize losses, and prevent and fight insurance fraud.

- Upon occurrence of an insured event, promptly assign officials to reach the subject matter insured and instruct the insured to take measures to minimize losses (if any). Pay necessary and appropriate costs to minimize losses.

- Organize loss surveys to determine causes and degree of the loss in a public and transparent manner under the agricultural insurance policy and regulations of law. In the case of index-based insurance, obtain and publish the competent authority’s confirmation of the insured event (if specified in the insurance policy); determine the difference between the actual index and the index specified in the insurance policy.

- In the case of determination of loss subject to the indemnity, assign officials to instruct the insured to provide the documents necessary for indemnity.

- Provide sufficient indemnity to the insured under the agricultural insurance policy and regulations of law.

- Bear other responsibilities specified in the agricultural insurance policy and regulations of law.

The policyholder and the insured shall:

- Protect the insurable interest of the subject matter insured as prescribed by law.

- Sufficiently and truthfully provide information concerning the subject matter insured (including the case in which the subject matter insured suffers loss) for the insurer.

- Sign the agricultural insurance policy after having a clear understanding of information about the agricultural insurance policy, policy wording and premiums that is explained and provided by the insurer.

- On its/his/her own initiative, control risks, prevent and minimize losses, and prevent and fight insurance fraud.

- Enable the insurer to inspect fulfillment of requirements for assurance of safety of the subject matter insured.

- Promptly notify the insurer of the insured event; take measures for loss minimization under the guidance of the insurer.

- Closely cooperate with the insurer in surveying losses to determine causes and degree of the loss and provide indemnity.

- Bear other responsibilities specified in the agricultural insurance policy and regulations of law.

Decree No. 58/2018/NĐ-CP of Vietnam’s Government takes effect from June 05, 2018.

-Thao Uyen-

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