1. Basic definition:
1. What are insured events?
Insured events mean objective events mutually agreed upon by the parties or prescribed by law upon the occurrence of which the insurance enterprises shall have to pay the insurance money to the beneficiaries or pay indemnities to the insured.
2. What are insurable risks?
Risks regarding natural disasters, accidental accidents or incidents which the insurance enterprise accepts to cover based on the request of the Insured.
3. What are excluded risks?
Risks which the insurance enterprise refuses to cover, indemnify or compensate when the insured events occur.
4. What characters must insurable risks contain all?
- Losses must be accidental
- Losses must be measurable, able to be quatified financially
- Must not be contrary to moral standards of society.
5. What are additional clauses?
In addition to the scope of cover of a standard policy, the Insured and the Insurer may agree on the extension of insurance conditions and terms if the Insured pays additional fee for the Insurer.
6. What is coincident insurance (double insurance)?
Coincident insurance (double insurance) is where:
- The object is insured by at least 2 insurance contracts
- Risks contributing to the loss falls under the same insurance conditions and insured event of insurance contracts of that object
- Loss occurs while the insurance contracts of that object are in valid.
7. What is coinsurance?
Coinsurance is where:
- Many insurance enterprises together insure an insured object with the same insurance conditions, wording, premium rate… in an insurance contract
- The benefit (insurance premium) and responsibility (compensation, expense) are divided proportionately between enterprises
- Usually, the insurance enterprises will authorize one enterprise to be the lead to negotiate the insurance contract and settle the compensation.
2. Insurance contract:
1. When can insurance enterprises unilaterally suspend the performance of the insurance contract?
- There are changes leading to increase of insurable risks, insurance enterprise recalculates and increases the premium for the remaining time of the contract but the insurance buyer refuses
- The insurance buyer does not apply measures to ensure the safety of the insured object during the time limit which the insurance enterprise required.
2. What is the insurance enterprise obligated to?
- Explain to the insurance buyer the insurance conditions and provisions; the rights and obligations of the insurance buyers
- Issue to the insurance buyer the insurance certificate, insurance policy immediately after the conclusion of the insurance contract
- Pay insurance money to the beneficiary in time or the indemnity to the insured when the insured event occurs
- Explain in writing the reasons for declining to pay the insurance money or the indemnity
- Coordinate with the insurance buyer in settling the third party’s claim for compensation for the losses which fall under the insured liability when the insured event occurs.
3. What shall the insurance buyers have the right to?
- Choose one from among the insurance enterprises operating in Vietnam for the purchase of insurance
- Request the insurance enterprise to explain the insurance conditions and terms and issue the insurance certificate or insurance policy
- Unilaterally suspend the performance of the insurance contract if the insurance enterprises intentionally supply untruthful information with a view to entering into insurance contracts
- Request the insurance enterprise to pay the insurance money to the beneficiary or the indemnity to the insured as agreed upon in the insurance contract when the insured event occurs
- Transfer the insurance contract as agreed upon in the insurance contract or under the provisions of law.
4. What shall the insurance buyers have the obligation to?
- Pay premiums fully, according to time limits and mode agreed upon in the insurance contract
- Declare fully and honestly all details relating to the insurance contract at the request of the insurance enterprise
- Notify cases where risks may increase or the insurance enterprise’s additional liability may arise in the course of performing the insurance contract to the insurance enterprise at the latter’s request
- Notify the insurance enterprise of the occurrence of the insured event as agreed upon in the insurance contract
- Apply measures to prevent or limit losses.
5. When shall an insurance contract become null and void?
An insurance contract shall become null and void when:
- The insurance buyer has no interests which can be insured
- The object of insurance no longer exists at the time of entering into the insurance contract
- The insurance buyer, at the time of entering into the insurance contract, knows the insured event has already occurred
- The insurance buyer or the insurance enterprise commits acts of deception when entering into the insurance contract.
6. When shall an insurance contract be terminated?
An insurance contract be shall be terminated when:
- The insurance buyer no longer has the interests which can be insured
- The insurance buyer fails to fully pay the premium or fails to pay the premium within the time limit agreed upon in the insurance contract, except otherwise agreed upon by the parties
- The insurance buyer fails to fully pay the premium during the extended time limit for premium payment as agreed upon in the insurance contract.
7. What is the time limit for claiming the insurance money or indemnity under insurance contracts?
The time limit for claiming the insurance money or indemnity is 1 year from the date the insured event occurs.
8. In case of the absence of the agreement on time limit, how long shall the insurance enterprises have to pay the insurance money or indemnities to the Insured?
In case of the absence of the agreement on time limit, the insurance enterprises have to pay the insurance money or indemnities to the Insured within 15 days from the date of receiving complete and valid dossiers claiming insurance money or indemnities.
9. Where the insurance buyers can prove that they do not know the time when the insured events occur, what is the time limit for claiming the insurance money or indemnity?
In this case, it shall be counted 1 year from the date the insurance buyers know the occurrence of such insured events.
10. Where the third party demands the insurance buyer compensate for damage covered by the insurance as agreed upon in the insurance contract, what is the time limit for claiming the insurance money or indemnity?
The time limit for claiming the insurance money or indemnity shall be 1 year counted from the date the third party so demands.
11. What is the statute of limitations for instituting a lawsuit about an insurance contract?
3 years from the time the dispute arises.
12. When will liability of insurance arise?
According to Law on Insurance Business, liability of insurance arises when having one of the following cases:
- Insurance contract has been concluded and the insurance buyer has fully paid premiums
- Insurance contract has been signed, including agreements between an insurance enterprise and insurance buyer on insurance buyer owes insurance premiums
- Having evidence of the insurance contract concluded and the insurance buyer has fully paid insurance premiums.
13. When will insurance liability not arise?
When insurance contract is concluded but insurance buyer hasn’t paid the insurance premium for insurance enterprise as agreed.
14. In case the insured does not perform safety measures for the insured object, what shall the insurance enterprise do?
Insurance enterprise shall require a time limit during which the insured must perform necessary safety measures for the insured object.
15. Where the insurance contract requires payment in 4 installments, the insurance buyer paid 2 installments and cannot pay the remaining, unless both parties agree otherwise, what will happen?
The insurance enterprise can unilaterally suspend the insurance contract; the insurance buyer has no right to claim the paid insurance premium.
3. Motor Vehicle Insurance:
1. What insurance operations does motorbike insurance include?
Motorbike insurance includes following insurance operations:
- Compulsory insurance for civil liability of motorbike owner for third parties
- Personal accident insurance for persons on motorbike.
2. What insurance operations does automobile insurance include?
Automobile insurance includes following insurance operations:
- Compulsory insurance for civil liability of automobile owner for third parties (including persons and properties)
- Voluntary insurance for civil liability of automobile owner for third parties (including persons and properties)
- Personal accident for driver, assistant driver and people aboard
- Personal accident for passengers
- Automobile physical damage insurance
- Insurance for civil liability of automobile owner for cargo transported.
3. When will contract of compulsory insurance for civil liability of automobile owner be terminated?
Contract of compulsory insurance for civil liability of automobile owner is terminated if:
- Motor vehicles’ registration and license plate are seized;
- Motor vehicles are expiry to use;
- Motor vehicles which is confirmed stolen by police.
4. In which cases shall insurance enterprises not pay indemnity?
Insurance enterprises shall not pay indemnity in following cases:
- Where the driver does not have a valid driving license or the driving license is unsuitable to the type of motor vehicle which is required;
- Driver is deprived of driving license for limited or unlimited time;
- Third parties’ property stolen or robbed in the accident;
- Intentional damages and losses caused by the owner, driver or accident victim;
- Where the driver intentionally escape from fulfilling the civil liability of the motor vehicle owner and/ or driver causing the accident;
- Damages and losses cause indirect consequences such as decrease of commercial value, damages and losses associated with the utilization and exploitation of the damaged property;
- Wars, terrors, earthquakes;
- Damaged special property consisting of gold, silver, precious stone, valuable papers such as money, antique, precious and rare paintings, human corpses and remains.
5. Who do third parties do not include?
Employees of a company or an organization, who are transported on vehicle of such organization; driver and assistant driver in such motor vehicle; passengers in such motor vehicle.
6. Who are passengers in a motor vehicle?
They are persons transported on a vehicle pursuant to a passenger transport contract.
4. Personal Insurance:
1. What are objects of personal insurance contracts?
It's age, life, health and accident of person.
2. What is total permanent disability?
Loss or permanent paralysis (unable to recover) of two of the Insured’s: eyes, arms or legs.
3. What is the scope of cover of personal accident insurance for domestic passenger?
Accidents occur while passenger is aboard and/or getting on/off the vehicle.
4. What does comprehensive health care insurance’s scope of cover include?
Comprehensive health care insurance’s scope of cover includes:
- Expenses for medical examination, test, ultrasound scan, radiography… to regularly and suddenly dianogse; consultation service, emergency support domestically and internationally
- Expenses for medical emergency, treatment, surgery, hospitalization, medicine, assistive medical equipment… in case of sickness, illness; disease treatment and health care
- Outpatient treatment due to sickness, illness; medical expense for accident; death, disability due to sickness, illness; death, permanent disability due to accident; medical emergency transport; antenatal and dental exam; assistance for loss and decrease of income.
5. What does hospital and surgical insurance’s scope of cover include?
Hospital and surgical insurance’s scope of cover includes:
- Sickness, illness, bodily injury, pregnancy which require hospitalization or surgery
- Death during inpatient treatment or surgery.
6. What will happen if the insurance buyers (unintentionally) disclose inaccurate ages of the insured, thus reducing the payable insurance premium amounts, but the accurate ages of the insured persons remain to be in the insurable age groups?
The insurance enterprises shall have the right to request the insurance buyers to pay additional insurance premiums corresponding to the insurance money amounts already agreed upon in the contracts or to reduce the insurance money amounts already agreed in the insurance contract corresponding to the already paid amount of insurance premiums.
7. What will happen if one or several beneficiaries intentionally cause death or infirmity to the insured?
The insurance enterprise shall still have to pay the insurance money to other beneficiaries as agreed upon in the insurance contract.
8. What will happen if the insured dies, gets disable or sick as a direct or indirect result of the third party’s acts?
The insured or the beneficiary shall receive the insurance money amount from the insurance enterprise and the indemnity from the third party.
5. Property Insurance:
1. What are objects of property insurance contracts?
Material things, cash, valuable papers and rights of property.
2. What will happen if the insurance buyer enters an over-value insurance (over-insurance) contract?
When the insured event occurs, the insurance enterprise only pay the indemnity equal to real value of the property.
3. What if the insurance buyer enters an under-value insurance (under-insurance) contract?
The insurance enterprise shall pay indemnity proportionately. The indemnity is equal to actual loss multiply (x) with sum insured/market value of insured property.
4. Upon the occurrence of the insured events, the insurance enterprises or persons authorized by the insurance enterprises shall carry out the expertise in order to determine the cause and extent of the damage. Who shall pay the expenses for expertise of damage be borne by?
The insurance enterprises shall pay the expenses for expertise of damage.
5. If the third party is at fault in causing damage to the insured’s property but the insured refuses to transfer the right (to request the third party to refund the indemnity) to the insurance enterprise, fail to reserve or give up the right to request third party to indemnify, what shall the insurance enterprise have obligation to?
In this case, insurance enterprise may deduct the indemnity sum depending on the degree of fault committed by the insured.
6. How is excess and franchise applied?
In a property insurance contract:
- Where the excess is applied, if the loss occurs: The indemnity is equal to the loss value subtracting the excess
- Where the franchise is applied, if the loss occurs:
- And the loss value is higher than the franchise: The indemnity is equal to the loss value
- And the loss value is lower than the franchise: The indemnity is 0 (zero).
6. Liability Insurance:
1. What are objects of civil liability insurance contract?
It's the civil liability of the Insured for third parties as prescribed by the Law.
2. What are objects of professional indemnity insurance?
Insured’s liability to indemnify third parties arises from errors, omissions, negligence of the insured or employees of the insured while performing their professional works.
3. What are objects of public liability insurance?
Liability for loss of or damage to property, life, health of third party when the insured event occurred in the locale and due to the activity of the insured.
7. Fire and Explosion Insurance:
1. What are objects of compulsory fire and explosion insurance?
Objects of compulsory fire and explosion insurance include:
- Houses, building structures and attached equipments;
- Mechanical Equipments;
- Other commodities, materials, and properties.
Properties above are assured by the insurance enterprise when they are calculated into money and noted in the insurance contract.