Time limits for submission of insurance claims in Vietnam

Time limits for submission of insurance claims in Vietnam (Internet image)

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

1. Time limits for submission of insurance claims in Vietnam

Time limits for submission of insurance claims according to Article 30 of the Law on Insurance Business 2022 is as follows:

-  The time limit for submission of an insurance claim under an insurance contract shall be 01 (one) year from the date of occurrence of the policy event. The period during which a force majeure event or circumstantial obstacle occurs shall not make any increase in the time limit for filing an insurance claim.

- Where the insured or the beneficiary proves that they have no knowledge of the time of occurrence of the policy event, the time limit specified in clause 1 of Article 30 of the Law on Insurance Business 2022 may start from the day on which the insured or the beneficiary has knowledge of occurrence of that policy event.

- When the third party demands compensation from the policyholder for losses falling within the limit of insured liability as agreed upon in the insurance contract, the time limit stipulated in clause 1 of Article 30 of the Law on Insurance Business 2022 shall start from the day on which the third party files their request.

2. Principles of conclusion and execution of insurance contracts in Vietnam

According to Article 16 of the Law on Insurance Business 2022, conclusion and implementation of insurance contracts must adhere to the fundamental principles in civil law and the following principles:

- Principle of utmost good faith: Parties to an insurance contract must provide information and implement contractual rights and obligations in a most honest and trustful manner, and must place the absolute mutual trust in each other during the period of conclusion and implementation of insurance contracts; 

- Principle of insurable interest: Policyholders must be entitled to the insurable benefit varying according to specific types of insurance contract under the Law on Insurance Business 2022;

- Principle of indemnity: The amount of coverage or indemnity that the insured can get shall not exceed the actual loss incurred in a policy event, unless otherwise agreed upon in the insurance contract;

- Principle of subrogation: the insured shall be responsible for giving the insurer or foreign non-life insurer the right to claim the amount of loss from the third party responsible for such loss if such amount falls within the permissible loss limit. This principle shall not apply to life and health insurance contracts;

- Principle of unpredictable risk: in order for a risk to be covered or insured against, it must be a sudden or unanticipated one

3. Regulations on insurance disclaimer clauses in Vietnam

Regulations on insurance disclaimer clauses in Vietnam according to Article 19 of the Law on Insurance Business 2022 are as follows:

- Disclaimer clauses shall prescribe cases in which insurers or foreign non-life insurers’ branches can refuse to pay claims and insurance.

- In the presence of clauses on disclaimer of insured liability, insurers and foreign non-life insurers’ branches must clearly elaborate them in insurance contracts, give explicit, adequate explanations and evidence about the fact that insurers have already received full and clear explanations of these disclaimer clauses by insurers and foreign non-life insurers’ branches when concluding insurance contracts.

- Where any force majeure event or circumstantial obstacle results in the policyholder's late notice of any policy event, the insurer or foreign non-life insurer’s branch is not allowed to apply disclaimer clauses.

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