Conditions for professional liability insurance for notaries in Vietnam

Conditions for professional liability insurance for notaries in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Professional liability insurance coverage for notaries in Vietnam

According to Article 20 of Decree 29/2015/ND-CP, the professional liability insurance coverage for notaries is determined as follows:

(i) The insurance shall cover financial damage incurred by the persons who sign contracts or make transactions, or other individuals and organizations involved in the notarized contracts or transactions which is on account of the notary during the insurance period.

(ii) The notary office or the socio-professional organization of notaries authorized by the notary office may reach an agreement with the insurer on a broader coverage than that prescribed in (i).

2. Conditions for professional liability insurance for notaries in Vietnam

Specifically, in Article 21 of Decree 29/2015/ND-CP, the insurer shall pay insurance money and indemnity when all of the following conditions are satisfied:

- The damage is covered by insurance as prescribed in Section 1.

- It is not any of the following cases:

+ The notary notarizes a contract, transaction, or translation that contravenes the law, social ethics; the notary incites or enables the participant in the contract or transaction to make a false transaction or commit other fraudulent acts;

+ The notary notarizes a contract, transaction, or translation related to the notary’s own property or interest or his/her spouse, birth parent, adoptive parent, his/her wife’s birth parent or adoptive parent, his/her birth child or adoptive child, daughter-in-law, son-in-law, grandparent, sibling, his/her spouse’s sibling, his/her birth grandchild or adoptive grandchild.

+ The notary collaborates with his/her client and relevant persons to falsify the documents being notarized;

+ Other cases agreed between the insurer and the notary office of socio-professional organization of notaries authorized by the notary office.

3. Rules for obtaining professional liability insurance for notaries in Vietnam

According to Article 19 of Decree 29/2015/ND-CP, the rules for obtaining professional liability insurance for notaries include:

- The notary office shall directly buy or authorized a socio-professional organization of notaries to buy professional liability insurance for its notaries.

- Professional liability insurance for notaries must be bought within 60 days from the day on which such notaries are registered for practice.

- The funding for buying professional liability insurance for notaries of the public notary office is provided by the professional development fund or other funding sources prescribed by law.

4. Professional liability insurance for notaries premium in Vietnam

Insurance premium is the amount payable by the notary office to the insurer when buying professional liability insurance for its notaries.

The insurer and notary office or socio-professional organization of notaries authorized by the notary office shall reach an agreement on the insurance premium, which must not fall below VND 03 million per year for a notary.

(Article 22 of Decree 29/2015/ND-CP)

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