Regulations on microinsurance products in Vietnam

Regulations on microinsurance products in Vietnam

According to Decree 21/2023/ND-CP, the regulations on microinsurance products provided by insurers and branches of foreign non-life insurers in Vietnam are as follows:

- When launching their microinsurance products, insurers and branches of foreign non-life insurers shall be required to meet the requirements laid down in the Law on Insurance Business and its guiding documents, and the provisions of Article 3, Article 4 and Article 6 of Decree 21/2023/ND-CP.

- Life insurers may provide microinsurance products for protection against life and health risks with a maximum insurance term of 05 years.

- Non-life insurers and branches of foreign non-life insurers may provide:

= Microinsurance products for protection against life and health risks with a maximum insurance term of 01 year;

= Microinsurance products for protection against property risks with a maximum insurance term of 05 years.

- Health insurers may provide:

= Microinsurance products for protection against life risks with a maximum insurance term of 01 year;

= Microinsurance products for protection against health risks with a maximum insurance term of 05 years.

- Names of microinsurance products provided by insurers and branches of foreign non-life insurers must contain the phrase “Sản phẩm bảo hiểm vi mô” (“microinsurance product”) for distinguishing between their microinsurance products and other insurance products.

According to the Law on Insurance Business 2022, microinsurance refers to the insurance service meant for low-income individuals and families in order to offer them protection against life, health and property risks.

Decree 21/2023/ND-CP takes effect from May 5, 2023.

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