To provide regulations and guidelines for insurance business activities in Vietnam. The Law on Insurance Business 2022 has been issued, effective from January 1, 2023.
1. Scope of application
The Law on Insurance Business 2022 specifically stipulates 06 groups of applicable subjects, including:
– Insurance enterprises, reinsurance enterprises, insurance agents, insurance brokerage enterprises, organizations and individuals providing auxiliary insurance services, mutual organizations providing microinsurance.
– Branches of foreign non-life insurance enterprises, branches of foreign reinsurance enterprises.
– Insurance buyer, insured, beneficiary.
– State management agency for insurance business activities.
– Organizations and individuals related to insurance business activities.
2. Types of insurance
Law on Insurance Business in 2022, detailing insurance operations corresponding to different types of insurance
There are 3 main types of insurance: life insurance, health insurance and non-life insurance.
3. Types of insurance contracts
The Law on Insurance Business 2022 stipulates different types of insurance contracts, including: life insurance contracts, health insurance contracts, property insurance contracts, and damage insurance contracts. liability insurance.
Property insurance contract; Damage insurance contracts and liability insurance contracts belong to the type of non-life insurance.
4. Financial security
The 2022 Law on Insurance Business has added additional regulations on financial safety.
In case the capital adequacy ratio is at a level that requires intervention, early improvement measures, control measures, and regulations on responsibilities of the enterprise, the owner, capital contributors, and the board of directors. Control Board; additional requirements for periodic disclosure of information, regular disclosure of information, and extraordinary disclosure of information to ensure clear information about insurers.
5. Insurers are not allowed to do real estate business
The Business Law 2022 stipulates that insurance, reinsurance and foreign branches are not allowed to conduct real estate business activities.
Exceptions: buying shares of a real estate enterprise listed on the stock market, fund certificates of a public fund.
Insurance businesses are only allowed to use idle capital to invest in real estate business.
6. Transitional provisions of the Law
If the contract term is still valid, insurance contracts concluded before the effective date of this Law will continue to implemented according to the provisions of law at the time of conclusion.
Except where the parties to the insurance contract have agreed to amend and supplement the contract to comply with this Law and to apply the provisions of this Law.
7. Certificate of Insurance
Until December 31, 2025, you will be able to use insurance agency certificates issued before the effective date of this Law.
January 1, 2023, insurance enterprises and branches of foreign non-life insurance enterprises stop making payments to the Insured Person Protection Fund.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
