Regulations on payment of life insurance premiums in Vietnam

Regulations on payment of life insurance premiums in Vietnam (Image from the Internet)

1. Subject matters of life insurance policies and health insurance policies under the law in Vietnam

According to Article 33 of the Law on Insurance Business 2022, the subject matters of life insurance policies and health insurance policies under the law in Vietnam are as follows:

- Human life and life expectancy is the subject matters of a life insurance policy.

- Human health is the subject matters of a health insurance policy.

2. Regulations on payment of life insurance premiums in Vietnam

Article 37 of the Law on Insurance Business 2022 stipulates payment of life insurance premiums in Vietnam as follows:

- The policyholder can pay the insurance premium once or multiple times according to the term and method agreed upon in the insurance contract.

- In cases where the premium is paid in multiple installments and the policyholder has paid one or several premiums but is unable to continue paying subsequent premiums, the grace period for premium payment is 60 days.

- The parties can agree to reinstate the validity of an insurance contract that has been unilaterally terminated as stipulated in Clause 1, Article 26 of the Law on Insurance Business 2022 within 2 years from the date of termination, provided the policyholder has paid the outstanding premiums.

- If the policyholder fails to pay or underpays the premium, the insurer is not allowed to unilaterally deduct the premium from the surrender value of the insurance contract without the policyholder's consent, nor can they sue the policyholder for the premium payment. This rule does not apply to group insurance.

3. Regulations on designation and change of beneficiaries of life insurance, health insurance in Vietnam

According to Article 41 of the Law on Insurance Business 2022, regulations on designating and changing beneficiaries of life insurance and health insurance in Vietnam are as follows:

- The policyholder has the right to designate beneficiaries, except in group insurance contracts. If the policyholder is not concurrently the insured, the policyholder must have the written consent of the insured when designating beneficiaries. If the insured is a minor, lacks civil capacity, or has difficulties in cognition and behavior control, or has limited civil capacity, the designation of beneficiaries requires legal representative consent.

- In cases where there are multiple beneficiaries, those authorized to designate beneficiaries according to the Law on Insurance Business 2022 can determine the order or proportion of benefits among the beneficiaries. If the order or proportion is not determined, all beneficiaries shall receive benefits equally.

- The policyholder can change beneficiaries but must have the written consent of the insured and must notify the insurer and foreign non-life insurer's branch in writing. If the insured is a minor, lacks civil capacity, or has difficulties in cognition and behavior control, or has limited civil capacity, the change of beneficiaries requires legal representative consent. The insurer and foreign non-life insurer's branch must confirm the change in the insurance contract or a separate document attached to the contract after receiving the notification from the policyholder.

Thus, the policyholder may change the beneficiaries but must have the written consent of the insured and must notify the insurer and foreign non-life insurer's branch in writing.

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