The Law on Insurance BusinessThe National Assembly passed the Law on Insurance Business on June 16, 2022.
This Law provides for organization and operation of insurance business; rights and obligations of entities and persons participating in insurance; state management of insurance business activities.
This Law applies to social insurance, health insurance, deposit insurance and other state-controlled types of non-commercial insurance.
Subjects of application are:
- Insurers; reinsurers; insurance agents; brokers; entities and persons providing ancillary benefit services; mutuals providing microinsurance products.
- Branches of foreign non-life insurers, foreign reinsurers’ branches (hereinafter referred to as foreign insurance branches in Vietnam).
- Representative offices of foreign insurers, foreign reinsurers, foreign insurance brokers and foreign financial and insurance corporations in Vietnam (hereinafter referred to as foreign representative offices in Vietnam).
- Policyholders/the assured, the insured, beneficiaries.
- State regulatory authorities in charge of insurance business affairs.
- Entities and persons involved in insurance business.
If any other law passed after the entry into force of this Law needs to contain regulations other than those laid down herein pertaining to insurance contracts; establishment, management and provision of insurance services, financial, bookkeeping, accounting and financial reporting activities; payment capabilities; and intervention measures to be applied to insurers, reinsurers, foreign branches in Vietnam, mutuals providing microinsurance products and insurance brokers, cases of compliance or non-compliance with regulations of this Law must be specified.
Parties to insurance, reinsurance or insurance brokerage contracts may be agreed on application of international practices in the following cases: At least a contracting party is a foreign entity or person; or all contracting parties are Vietnamese entities and nationals but subject matters insured or execution of contracts occurs abroad. If consequences of application of international practices are in contradiction to basic principles of domestic law in Vietnam, Vietnam’s law shall be applied.
Entities and persons in Vietnam wishing to participate in insurance schemes can only participate in insurance with insurers, foreign non-life insurers’ branches or mutuals providing microinsurance products obtaining establishment permits or business licenses in Vietnam, except in case of using cross-border insurance services under the international treaties to which the Socialist Republic of Vietnam is a signatory.
The Government will provide detailed regulations on provision and use of cross-border insurance, insurance brokerage and insurance ancillary services in conformity with the international treaties to which the Socialist Republic of Vietnam is a signatory.
There are 3 types of insurance: Life insurance; Health insurance; Non-life insurance.
Compulsory insurance means an insurance product or plan serving the purposes of protection of public interest, environment and social safety.
Classes of compulsory insurance, including: Compulsory insurance against civil liability of vehicle owner; Compulsory fire and explosion insurance; Compulsory insurance in the construction industry
Entities and persons eligible for participation in compulsory insurance schemes will be obliged to buy compulsory insurance schemes and may opt to take compulsory insurance with authorized insurers and foreign non-life insurers' branches. Insurers and foreign non-life insurers’ branches obtaining permission to provide compulsory insurance will not be allowed to refuse to sell their insurance to entities and persons fully meeting the eligibility conditions for buying compulsory insurance under law.
According to the law, application of information technology in the insurance industry serves the following purposes: Firstly to improve insurance business performance, including building and design of insurance products, risk assessment, underwriting, conclusion of contracts, management of contracts, loss assessment, payment of insurance claims and coverage; business management and methods of providing insurance services and products; Secondly to modernize statistics and reporting methods; streamline administrative procedures and reduce administrative burdens; build information technology systems and databases in the insurance business to serve the purposes of management, supervision, analysis and forecast of insurance markets, and prevention or control of insurance frauds or scams.
This Law is entering into force as from January 01, 2023, unless otherwise prescribed in clause 2 of this Article. Clause 3 of Article 86; clause 4 and 5 of Article 94; Article 95; clause 3 and 4 of Article 99; Article 109, 110, 111, 112, 113, 114 and 116 herein shall take effect as of January 1, 2028.
Law on Insurance Business No. 24/2000/QH10 amended and supplemented according to the Law No. 61/2010/QH12 and Law No. 42/2019/QH14 shall be expired after the entry into force of this Law, except in the following cases:
- Clause 1 of Article 157 herein;
- Article 77, 78, 79, 80, 81, 83, 94 and 98 of the Law on Insurance Business No. 24/2000/QH10 that have been amended and supplemented according to Law No. 61/2010/QH12 and Law No. 42/2019/QH14 shall be abolished by end of December 31, 2027.
Insurance contracts that have been entered into before the effective date of this Law and remain valid can continue to apply in accordance with legislation at the time of conclusion of insurance contracts, except when contracting parties are agreed on amendments and supplements thereto to make them aligned with this Law and apply regulations of this Law.
Insurance agent practising certificates issued before the entry into force of this Law can continue to be used till end of December 31, 2025. Minister of Finance shall impose detailed regulations on transformation from insurance agent practising certificates issued before the entry into force of this Law into new ones referred to in this Law.
Insurance practising certificates, insurance agent practising certificates and certificates of practising in insurance ancillary services that have been issued before the entry into force of this Law shall continue to be used.
As from January 1, 2023, insurance companies and branches of foreign non-life insurance companies shall cease paying into the Fund for protection of insured persons
The Law on Insurance Business
15/07/2022
The National Assembly passed the Law on Insurance Business on June 16, 2022.
This Law provides for organization and operation of insurance business; rights and obligations of entities and persons participating in insurance; state management of insurance business activities.
This Law applies to social insurance, health insurance, deposit insurance and other state-controlled types of non-commercial insurance.
Subjects of application are:
- Insurers; reinsurers; insurance agents; brokers; entities and persons providing ancillary benefit services; mutuals providing microinsurance products.
- Branches of foreign non-life insurers, foreign reinsurers’ branches (hereinafter referred to as foreign insurance branches in Vietnam).
- Representative offices of foreign insurers, foreign reinsurers, foreign insurance brokers and foreign financial and insurance corporations in Vietnam (hereinafter referred to as foreign representative offices in Vietnam).
- Policyholders/the assured, the insured, beneficiaries.
- State regulatory authorities in charge of insurance business affairs.
- Entities and persons involved in insurance business.
If any other law passed after the entry into force of this Law needs to contain regulations other than those laid down herein pertaining to insurance contracts; establishment, management and provision of insurance services, financial, bookkeeping, accounting and financial reporting activities; payment capabilities; and intervention measures to be applied to insurers, reinsurers, foreign branches in Vietnam, mutuals providing microinsurance products and insurance brokers, cases of compliance or non-compliance with regulations of this Law must be specified.
Parties to insurance, reinsurance or insurance brokerage contracts may be agreed on application of international practices in the following cases: At least a contracting party is a foreign entity or person; or all contracting parties are Vietnamese entities and nationals but subject matters insured or execution of contracts occurs abroad. If consequences of application of international practices are in contradiction to basic principles of domestic law in Vietnam, Vietnam’s law shall be applied.
Entities and persons in Vietnam wishing to participate in insurance schemes can only participate in insurance with insurers, foreign non-life insurers’ branches or mutuals providing microinsurance products obtaining establishment permits or business licenses in Vietnam, except in case of using cross-border insurance services under the international treaties to which the Socialist Republic of Vietnam is a signatory.
The Government will provide detailed regulations on provision and use of cross-border insurance, insurance brokerage and insurance ancillary services in conformity with the international treaties to which the Socialist Republic of Vietnam is a signatory.
There are 3 types of insurance: Life insurance; Health insurance; Non-life insurance.
Compulsory insurance means an insurance product or plan serving the purposes of protection of public interest, environment and social safety.
Classes of compulsory insurance, including: Compulsory insurance against civil liability of vehicle owner; Compulsory fire and explosion insurance; Compulsory insurance in the construction industry
Entities and persons eligible for participation in compulsory insurance schemes will be obliged to buy compulsory insurance schemes and may opt to take compulsory insurance with authorized insurers and foreign non-life insurers' branches. Insurers and foreign non-life insurers’ branches obtaining permission to provide compulsory insurance will not be allowed to refuse to sell their insurance to entities and persons fully meeting the eligibility conditions for buying compulsory insurance under law.
According to the law, application of information technology in the insurance industry serves the following purposes: Firstly to improve insurance business performance, including building and design of insurance products, risk assessment, underwriting, conclusion of contracts, management of contracts, loss assessment, payment of insurance claims and coverage; business management and methods of providing insurance services and products; Secondly to modernize statistics and reporting methods; streamline administrative procedures and reduce administrative burdens; build information technology systems and databases in the insurance business to serve the purposes of management, supervision, analysis and forecast of insurance markets, and prevention or control of insurance frauds or scams.
This Law is entering into force as from January 01, 2023, unless otherwise prescribed in clause 2 of this Article. Clause 3 of Article 86; clause 4 and 5 of Article 94; Article 95; clause 3 and 4 of Article 99; Article 109, 110, 111, 112, 113, 114 and 116 herein shall take effect as of January 1, 2028.
Law on Insurance Business No. 24/2000/QH10 amended and supplemented according to the Law No. 61/2010/QH12 and Law No. 42/2019/QH14 shall be expired after the entry into force of this Law, except in the following cases:
- Clause 1 of Article 157 herein;
- Article 77, 78, 79, 80, 81, 83, 94 and 98 of the Law on Insurance Business No. 24/2000/QH10 that have been amended and supplemented according to Law No. 61/2010/QH12 and Law No. 42/2019/QH14 shall be abolished by end of December 31, 2027.
Insurance contracts that have been entered into before the effective date of this Law and remain valid can continue to apply in accordance with legislation at the time of conclusion of insurance contracts, except when contracting parties are agreed on amendments and supplements thereto to make them aligned with this Law and apply regulations of this Law.
Insurance agent practising certificates issued before the entry into force of this Law can continue to be used till end of December 31, 2025. Minister of Finance shall impose detailed regulations on transformation from insurance agent practising certificates issued before the entry into force of this Law into new ones referred to in this Law.
Insurance practising certificates, insurance agent practising certificates and certificates of practising in insurance ancillary services that have been issued before the entry into force of this Law shall continue to be used.
As from January 1, 2023, insurance companies and branches of foreign non-life insurance companies shall cease paying into the Fund for protection of insured persons